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Starbucks Partners With Square

Square, the start-up mobile payment service that aims to bring credit card transactions to anyone with a smartphone, has formed a partnership with Starbucks, a move that vastly increases Square's reach and visibility. According to the NY Times, "This fall, Square will begin processing all credit and debit card transactions at Starbucks stores in the United States and eventually customers will be able to order a grande vanilla latte and charge it to their credit cards simply by saying their names. Though smartphone payments have a long way to go before they replace wallets altogether, Starbucks’s adoption of Square will catapult the start-up’s technology onto street corners nationwide, and is the clearest sign yet that mobile payments could become mainstream. ... At first, Starbucks customers will need to show the merchant a bar code on their phones. But when Starbucks uses Square’s full GPS technology, the customer’s phone will automatically notify the store that the customer has entered, and the customer’s name and photo will pop up on the cashier’s screen. The customer will give the merchant his or her name, Starbucks will match the photo and the payment will be complete."

36 of 145 comments (clear)

  1. Crap coffee meets crap payment system by Hazel+Bergeron · · Score: 4, Funny

    Mediocrity loves company.

    1. Re:Crap coffee meets crap payment system by jehan60188 · · Score: 2

      tell me more about this mediocre coffee that has stores across the nation

    2. Re:Crap coffee meets crap payment system by Nimloth · · Score: 4, Funny

      Dunkin Donuts?

    3. Re:Crap coffee meets crap payment system by cupantae · · Score: 3, Insightful

      ...because everyone knows that the best things are the most popular. Don't you just love Rihanna, Justin Bieber, Beyoncé...

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    4. Re:Crap coffee meets crap payment system by the+phantom · · Score: 4, Funny

      By your logic, McDonalds makes an obviously-better-than-average burger, Taco Bell serves an obviously-better-than-average taco, and Pabst Blue Ribbon is an obviously-better-than-average beer.

    5. Re:Crap coffee meets crap payment system by Anonymous Coward · · Score: 2, Funny

      I can't pick out coffee brands, because a lot of them are crap. My coffee of choice (when I am not home*) is an americano (espresso + hot water, for those that don't know) from a couple of independent coffee shops. Starbucks, like McDonalds with their hamburgers, are more concerned with consistency than flavour.

      *When at home I do have a couple of espresso machines, and, when I want more caffeine, a bodem. I grind my own beans that I buy from one of a few local roasters.

      This is your defense in reply to a thread where someone asked if we're going to get all hipster-douche about it?

    6. Re:Crap coffee meets crap payment system by icebraining · · Score: 3, Informative

      Yeah, but the average in the US is terrible. There's a reason why Starbucks isn't all that successful here in the Mediterranean countries, where good coffee is well established and cheap.

    7. Re:Crap coffee meets crap payment system by the+phantom · · Score: 2

      A brand becomes popular because it offers something that people want. Quality is only one possible metric out of many. To say that Starbucks is popular, therefore they must sell better-than-average-coffee, is a fallacy. Personally, I would hazard to guess that Starbucks is popular because it is fast and consistent (i.e. I can get the same slightly burned cup of coffee at any Starbucks in the world).

      That being said, I just reread the original post to which I relied, and it seems that the poster was taking this into account (he said that they do a better than average job, rather than saying that they serve a better than average cup of coffee, which is how I read it originally). Reading comprehension fail on my part.

    8. Re:Crap coffee meets crap payment system by OhHellWithIt · · Score: 2

      I'll tell you some other things Starbucks provides their customers that keeps them (well, me, at least) coming back. They manage to provide some of the feel of a European cafe, in which I have no qualms about ordering just a cup of coffee and sitting in an actual chair for a while to read or converse with a companion. The people who work there actually interact with the customer and care about getting the order right. After a few visits, they acknowledge that they know you are a repeat customer, and after a bit more, they may even prepare your "usual".

      This isn't to say I believe Starbucks is the end-all or be-all. I still much prefer independent coffee shops, and I delight everytime I find one; however, the fact is that before Starbucks entered my market (D.C. suburbs) 20 years ago, there was nothing like it around here. I would even venture to say that the suburban independents who have gone into the same service model wouldn't have dared doing so if they hadn't seen Starbucks succeed at it.

      To return to the original topic, though, I don't believe I'd like being identified by this new payment system. I hate faux familiarity, and I hate being tracked by my phone.

      --
      "Who controls the past controls the future. Who controls the present controls the past." -- George Orwell
  2. I Was Super Confused By the Headline by eldavojohn · · Score: 4, Funny

    "Uh, yeah, I'll have a double Crono frappuccino and a venti Cloud -- be sure to leave room for Chocobo."

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    My work here is dung.
    1. Re:I Was Super Confused By the Headline by cupantae · · Score: 4, Funny

      "One bard, please. Extra spoony."

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    2. Re:I Was Super Confused By the Headline by Omegawar · · Score: 2

      Glad I'm not the only one. I was picturing the girl making the coffee dressed up as Tifa.

  3. Square and Starbucks by Anonymous Coward · · Score: 2, Funny

    Was it just me who thought this would be about making sure Square-Enix developers stayed focused?

    1. Re:Square and Starbucks by FilmedInNoir · · Score: 2

      Yes... I thought maybe some coffee related RPGs were going to be produced like Latte Quest or Final Cappuccino.

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      Sig. Sig. Sputnik
  4. No cashier needed by davide+marney · · Score: 4, Interesting

    If they can track customers as they walk in the door, why even have a line at the cashier? You walk in the door, you get a push notification to confirm or change your standing order on your phone, and then you take a seat. Once your drink is ready, you get another notification, go to the pickup counter where they confirm your photo and give you your drink.

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    "We receive as friendly that which agrees with, we resist with dislike that which opposes us" - Faraday
    1. Re:No cashier needed by badfish99 · · Score: 2

      Why bother with customers at all? Just track the people walking past the store, charge each of them $5, and leave the country with a big bag of cash before the police can catch up with you.

      Credit card transactions with no audit trail: what could possibly go wrong?

    2. Re:No cashier needed by AmIAnAi · · Score: 2

      But then I wouldn't get to chat to the attractive cashier while they took my order. Seriously though, I can see the advantage if you're getting a coffee to go and can simply go straight to the collection point, but if I'm going to sit down its nice to have someone say hello and smile as you give your order, ask how you are and comment on the weather.

      --
      Any sufficiently advanced bug is indistinguishable from a feature.
    3. Re:No cashier needed by tomhath · · Score: 2

      Sadly, that's how coffee shops used to be. When I worked in one I knew the regulars and had their order ready before they sat down. Now get off my lawn.

    4. Re:No cashier needed by Anubis+IV · · Score: 3, Interesting

      In computing terms, it's the difference between serial and parallel. In this case, allowing anyone to check themselves out via their phones would mean that more transactions could be handled per minute, even though each transaction may take longer to accomplish. It would also be a less frustrating experience, since customers could go in, sit down, and make the transaction in their own time from the comfort of a nice seat, rather than having to stand in line for an interminable amount of time while the lady at the front forces the poor cashier to repeat back to her the 17 adjectives describing her "coffee" drink, just to make sure he didn't mess up the order.

      Now, I'm sure we'll still need a cashier to handle people like her who want to place custom or unusual orders that aren't handled easily via Square, but for the majority of people, it can be used to speed them along. Apple has actually been using a system like this for a few months now, where any customer with an iOS device can download a retail store app, find the product they want in the store, and simply purchase it from their device, then walk out the door, all without having to ever talk to a salesperson. It sounds crazy to me, to be honest, but the people I've talked to who have done it think it's absolutely great.

  5. How by TheEffigy · · Score: 2

    How is this even possible, the accuracy of standard GPS and size of starbucks stores ensures there must be a high margin of error - unless I'm misunderstanding.

  6. Bit of an invasion of privacy isn't it? by blackest_k · · Score: 5, Interesting

    I am quite uneasy about all this gps tracking and logging which is going on these days?
    Sure it's just a coffee in this case but do you really want everything logged and recorded?
    How long before your inbox is getting spammed with we notice you haven't been in starbucks for a while here's a voucher to super size your coffee on your next visit. Should there be records of your movements associations and purchases.

    Facebook has gotten ever more intrusive, especially with timeline they are recording where you go and who you meet up with.

    Your smartphone will tag your location with gps when you take a photo in the exif information (firefox has an extension to read the exif and locate it on a map for you). I noticed facebook strips the exif data from photographs but facebook is still likely to retain it for their own purposes and of course facebook will turn over everything it has to the Police should they so request.

    I'm all for using technology when it is useful to the user, but this constant casual surveillance is beginning to get more than a little creepy. You don't have to live in Syria to find a goverment who will use technology against you given the opportunity.
     

    1. Re:Bit of an invasion of privacy isn't it? by outsider007 · · Score: 2

      It's not for you. They're selling mocha frappuccinos to yuppies. When they start accepting smartphone payments for tin foil hats your feedback will be welcome.

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      If you mod me down the terrorists will have won
  7. Yikes by Venner · · Score: 3, Insightful

    Am I the only one whose first knee-jerk thought was, "Wow, that's great! And from now on, I use nothing but cash!"

    What's wrong with a simple asymmetric encryption system keyed to a particular cellphone, to be activated at checkout?

    GPS-revealing apps already weird me out -- along with peoples' obliviousness to personal safety and/or security -- but automatically promulgating your name and photo to the store you enter quite exceeds creepy. At least this service is optional...for now.

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    A preposition is a terrible thing to end a sentence with.
    1. Re:Yikes by zippthorne · · Score: 2

      My yikes was a different one.

      Square seems to be going for the paypal market - being a middle-man between the credit card companies and the merchants.

      Just like with paypal, I cannoth fathom why the credit card companies would allow this to go on without offering a similar service themselves, and I also cannot understand how it could possibly be anything but more expensive per transaction for the merchant.

      The pay-by-phone tech that I would be interested in is this:

      Merchant requests a payment token from my phone via a low-power short-range communication protocol (bluetooth, perhaps, though I'm not sure how to speed up the discovery so it requests payment from the right device), and I review the request on my on phone, which itself contacts the cc processor to obtain a unique token for this transaction to give to the merchant.

      For convenience, I would like to have settings to specify what kind of authentication is required for various sized transactions, a daily cutoff that bumps up the authentication requirement, and per-merchant settings to bump up or down the requirements. Perhaps with the ability to pre-authorize certain merchants for authentication-free transactions for certain amounts during a certain time-window - e.g. the morning coffee mentioned above.

      --
      Can you be Even More Awesome?!
    2. Re:Yikes by hawguy · · Score: 2

      Exactly -- when I saw that they'd Sbux scan a barcode, I thought that sounded ok (but what happened toe NFC being the ultimate solution to contactless pay-by-phone!?). But when I saw that Square wanted to be able to track my movements at all times via GPS so my phone can automatically authorize payments at a merchant anytime I walk in the door, that's when I realized that I'm sticking to credit cards.

      I don't even mind letting the merchant know that I've walked in their door since they're going to know one way or another, whether I use my phone to pay, my credit card, or my starbucks card, but I don't want to let Square track my every move 24 hours/day and then sell that data to other merchants ("Hey, hawguy walked in your store 23 times over the past month, but he only made a purchase twice. Pay us $$ and we'll pop up an ad on his phone next time he walks in your store"). Or worse, send me promotions based on where I've been so my wife will say "Hey honey, why does Square keep sending you Victoria's Secret promotions when you haven't set foot in that store for years -- who are you buying lingerie for!?!"

  8. square's other cool tech = reenabling petty theft by xeno · · Score: 5, Insightful

    Square? You mean the purveyors of the butter-slice sized "I-can't-believe-it's-PCI-compliant!" (tm) mobile payment system? The first time I had some hipster process my card with his iPhone, I was apalled that there was a system that *can't* issue a physical receipt. I know, I know, most people swipe their cards and wave off the receipt, taking it on faith that the merchant will charge only the amount shown on the till and not a little more... or the maximum I just authorized with the card-present swipe. If the charge is off, you have no proof, no way of coming back, nothing at all.

    Oh sure, I can stand there for another 2-3min while I ask said hipster to email or text me a "receipt" (at least it has a transaction number) usually accompanied with a lot of huffing and puffing about how giving me a receipt is a hassle and why do I want one anyway....? Because I just did the electronic equivalent of laying my wallet on the counter and saying "Take what you need." I'd like some acknowledgement of what was taken. Is that such a burden? I still write a few checks for bills and such so there are multiple transaction types debited against a single account, and I like to reconcile payments and balance my account periodically like a grownup.

    I might slide more easily into the paperless future if the rate of "error" (not really) wasn't going up. Even in my run-o-the-mill consumer usage, I've had a few instances in the past year where a person (a local drive-up barista, a dude selling t-shirts at Comicon, etc) where there was a discrepancy between what I was told and what was punched in. It's never in my favor, and if I didn't catch it in tiny print on a smudgy screen before faux-signing with my finger... And when I ask for a receipt -- even a text pseudo-receipt -- they got all flustered, and one even refused (that was the one who'd added an even two dollars). Persoanlly, if you're that hard up to steal a buck from me, you can have it. But that doesn't mean it's right.

    All of a sudden this older type of "skimming" is coming back into vogue, something that I haven't seen since... well, ever in my lifetime. My parents used to talk about deli guys with a finger on the scale, and cashiers with pennies on the counter to count how many dollars in the till they'd lifted from customers (so they could balance the till by pocketing the right amt of cash at the end of the day), but I thought they were funny old-people stories. Any now Square comes along with a magical box that re-enables a petty crime by depricating auth logs... and few people seem to give a crap.

    Everything old is new again.

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    I think not...(*poof*)
  9. Wat by Enry · · Score: 2

    Starbucks already has a mobile payment system for smartphones that uses a barcode. I haven't had to carry my starbucks card in my wallet for months. That makes is slightly more secure since my wallet can be stolen while my Android phone can be remotely wiped and is PIN-locked.

    As soon as you enter a Starbucks, you're in a wifi area (attwifi) that you have to click-through before you get Internet access. If most Starbucks customers are like me, they use it. So the instant you walk into a store, there's no way for the phone to communicate to the store that you've entered, since the internet connection is being blocked by the clickthrough. This isn't a problem for the existing smartphone app since it already knows your card number and can generate the barcode. The balance and ability to reload won't work, but that may not be necessary for the transaction.

    And yes, I like Starbucks. Their decaf is one of the few drinkable varieties.

  10. Re:Better than average by TaoPhoenix · · Score: 3, Interesting

    You tried to snark, but you lose.

    McDonald's, through their (insert three adverbs here) ____ ____ ____ processes, produce fries that give the best in the country a run for the money *if you time the batch cycles right*. That is, you watch the current batch of fries, wait until they burn on 4 customers, and maneuver your way to the first of the new batch. Beats EVERY TIME the nasty "home fries" that the indie restaurants seem to think taste good.

    Taco Bell that you tried to hate on, has an even stronger case. You can't get out of a standard mexican restaurant under $15. (remember tips?) They have SEVEN of the best low cost meals I have ever had at fast food outlets. (Five if you count the Non-KFC Co-branded ones.)

    What these lowballer corps do is force everyone else to offer something else besides price.

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    My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
  11. Re:Better than average by RKThoadan · · Score: 3, Interesting

    Their fries are pretty good and their non-nugget chicken products are pretty decent as well. However, none of that excuses the horror of the substance which they refer to as "cheese". It's an insult to cheesemakers everywhere.

  12. Re:Better than average by colinnwn · · Score: 3, Insightful

    Taco Bell that you tried to hate on, has an even stronger case. You can't get out of a standard mexican restaurant under $15. (remember tips?) They have SEVEN of the best low cost meals I have ever had at fast food outlets.

    Taco Bell is not Mexican food. It is Tex-Mex inspired junk food. That's not to say I don't enjoy it on occasion, especially a green buritto and a MexiMelt. But there are at least 30 good Mexican restaurants in Dallas I can go to for under $15 (food, non alcoholic drink, tax and tip), many under even $10. And there isn't a single meal at Taco Bell I would consider one of my favorite low cost meals. Del Taco just opened in Dallas, and I personally like it better.

  13. How is that different than online shopping? by langelgjm · · Score: 3, Interesting

    The first time I had some hipster process my card with his iPhone, I was apalled that there was a system that *can't* issue a physical receipt.

    How is that different than shopping online? You're relying on online vendors to present you with a confirmation page, which you can then choose to print on your printer, or have e-mailed to you. If you're buying a physical object, you might get a receipt with your shipment, or maybe just a packing list. If not, where's your physical receipt? It's up to you to print it.

    Square will e-mail or text you a receipt. Is it that hard to enter 10 digits to get a text? If the person you're buying from is complaining, the problem is them, not the system.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
  14. back in the real world... by dAzED1 · · Score: 2
    "If the charge is off, you have no proof, no way of coming back, nothing at all."

    You must have really, really horrible credit cards. Get an AMEX. If a charge is off, call them - they'll fix it. I even had a situation where a mechanic shop charged me $1k for /not fixing/ my harley, so after a bit of protesting I walked out the door, called AMEX, and let them handle it. I did have to send in a little form defending my protest of the charge, but only because it was $1k, versus the $10 charge for a $3 coffee that would be much faster. The business is the one who is responsible for creating an audit trail they can not modify - when have you ever used the slip of paper (which fades to unlegible in microseconds anyway) to protest a charge after the fact?

  15. Re:Better than average by the+phantom · · Score: 2

    Regarding McDonalds fries, I suppose that is a matter of taste. I prefer a thicker cut fry. That still doesn't change the fact that the product that McDonalds is best known for---their bugers---are mediocre to terrible. As you rightly point out, McDonalds is not competing on quality, but on price and speed. There are many places where I could get a better burger (and better fries, too), but I am going to have to pay more or wait longer (or both).

    Regarding Taco Bell, you have once again made my point for me. I can go to a real Mexican restaurant and get a great taco, but it will likely cost me more than a Taco Bell taco. You buy a taco at Taco Bell not because you want a high quality meal, but because you want a fast, cheap meal.

  16. Re:Free Coffee by cayenne8 · · Score: 4, Insightful
    Will they still take cash?

    These days, I'm going more and more back to trying to do only cash transactions for daily needs (groceries, eat out....etc). I really am not a fan of giving up my purchasing patterns to all these corporations just so they can try to sell me more or sell me crap I don't want or need.

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    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  17. Re:Better than average by timeOday · · Score: 2

    why the "diet" dp? trying to cut back on sugar, are ye? duh, wunder if yer 'merican.

    I agree the "diet" appellation we still use here in the US sounds a bit odd compared "lite" as used most other places.

    But yeah, it's the sugar. In a 32 oz drink that would be 90 grams of sugar and 360 calories. That's like eating an entire second hot fudge sundae (370 cal), except ALL of it is sugar.

    A plain McDonald's ice cream cone has 150 cal, 18g sugar, 4g protein, 2g sat. fat, so it's actually relatively sane for a treat. I know, it's not the same as Haagen-Daaz, but personally I like it.

  18. Re:square's other cool tech = reenabling petty the by ScentCone · · Score: 2

    You've never really used this system, have you? Or does it actually take you two to three minutes to type in your e-mail address on a pad? Really? Two to three minutes? Because it's swipe, sign, optionally-type, done. I've done hundreds of Square transactions, and it takes seconds. You don't know what you're talking about.

    --
    Don't disappoint your bird dog. Go to the range.