Starbucks stops Square mobile payment cooperative business

According to the Wall Street Journal, Starbucks has stopped working with U.S. mobile payment service provider Square's mobile payment business. Since last week, consumers have been unable to use Square's mobile phone to pay for the "wallet" Wallet.

Square is the mobile payment company founded by the father of Twitter, Jack Dorsey. In 2012, Starbucks invested 25 million dollars in Square to provide a better consumer experience. Starbucks CEO Howard Schultz into the Square board. However, the cooperation between the two sides did not meet expectations, Wallet has not become the mainstream of Starbucks payment applications. Howard Schultz left the Square board a year later.

In October, Howard Schultz revealed that Starbucks's trading in the United States, a single week of mobile payment transactions reached 7 million, which is more than six months before the company at the annual shareholder meeting to provide more than 2 million of the data. The ratio of mobile-end payments to total payment transactions amounted to 16%. With the increasing importance of mobile end payments in transactions, Starbucks is increasingly attaching importance to the application experience of mobile terminals. But this time they chose to develop their own applications. Starbucks ' own mobile payment apps are being tested. Consumers can use the Starbucks app to finish ordering before they get to the store. The app will also support Starbucks ' consumer loyalty program.

In May, Square said it would replace Wallet with an order in the first half of next year, and would continue to support Wallet services after the app was put down from the App store. And the actual time is ahead of schedule. And square will no longer continue to support the transfer of order information from the Wallet to Square's new next orders.

Still, Square and Starbucks did not completely stop cooperating. Square will continue to deal with Starbucks ' card and credit card payments business in 7,000 U.S. chains. Square also acquired the online booking service, Caviar, expanded its mobile payment business on the Via line, and also launched its own financial operations, Square Capital, which provides loans to credit-good businesses based on the user's payment records; last month, Square and "Burn after" application Snapchat cooperation, friends in the chat page can be completed transfer.

Driven by these businesses, the Square Day traded at $100 million trillion earlier this month, but it was still losing money. According to Jack Dorsey, in an interview with the New York Times earlier this month, Square is growing fast and has not denied rumours of a possible takeover.

But the loss of Starbucks ' mobile payment business could be a blow to the newly-picked Square. The loss of Starbucks ' mobile payment business is a big blow to Square, in the context of Paypal and Apple Pay quickly grabbing the market.

At least for now, it's hard for Square to be a great product like Twitter.