Square dies with Starbucks

Absrtact: More than a year ago, Square and Starbuck reached a famous cooperation. The partnership is made up of three parts: square deals with all of Starbucks ' credit and debit-card payments, and Starbucks invests $25 million in square dollars, the founder

More than a year ago, Square and Starbucks reached a well-known cooperation.

The partnership is made up of three parts: square deals with all of Starbucks ' credit and debit-card payments, and Starbucks invests 25 million of dollars in the square, with Howard Schultz, founder of Schultz, joining the square board.

Insiders recognize the deal as a victory for square. The deal was a deep impression, because a big brand like Starbucks signed the deal with Square as a vote of confidence in the latter. This has also greatly increased the number of locations where customers use the Square Wallet mobile payment applications.

But it now seems that the deal, once praised, is more like a failed deal, at least for square. Starbucks has saved a lot of money for the deal, but Square last year incurred a 25 million dollar loss on the deal.

The deal does not give square more opportunities to work with big brands and does not increase the use of square wallet. Square had just announced earlier this week that the company had decided to give up the square wallet application altogether.

Schultz spent more than 3 months on the square board, but in fact he had decided not to stay on the square board.

While Roelof Botha, the Square's board member, Rolov Bosa that the deal is starting to get some good results, such as improving Square's brand name, he said: "It's dangerous to look at things in hindsight." ”