Whole Foods, Starbucks Partnerships Make Square Appealing Purchase
By Hannah Ash, contributing writer
Mobile payment processor Square, founded by Twitter co-founder Jack Dorsey, has taken mobile payment processing far since its launch in 2010. Square is intent on perfecting payments from all angles; the company offers numerous options that empower both consumers and merchants to streamline the checkout process. Though Square initially found its niche with local businesses looking to offer consumers more ways to pay, the company has demonstrated its versatility after forging deals with leading retailers Whole Foods and Starbucks. Amid growing losses, Square is said to be eyeing a multi-billion dollar buy-out.
Square gives Starbucks in-store customers the chance to skip check-out and pay with a mobile device. The mobile payment processor has endured losses in the millions as a result of its partnership with Starbucks in 2013; despite these losses, a representative with Starbucks states, “Square remains an important strategic partner for Starbucks and we continue to partner together on initiatives stemming from our original agreement.” In March of 2014, Whole Foods CEO Walter Robb announced a partnership with Square that will allow quick-service customers purchasing small items such as sandwiches the ability to pay from multiple points throughout the store. Square will also allow Whole Foods customers the ability to order items in advance, marking the retailer’s first real foray into online ordering with same-day pickup. Robb states, “There’s all these sorts of features that could be done that a customer with the experience would start before they left the home and after they got back home.” For Dorsey, the partnership with Whole Foods is a natural extension of Square’s roots with local merchants. The Twitter co-founder remarks, “Whole Foods Market and Square share a focus on supporting local sellers and creating amazing shopping experiences.”
Purchasing a company that can turn mobile devices into cash registers, and that has deals with giants such as Whole Foods and Starbucks, seems like it could be a smart move for the right company. 2013 brought losses of 100 million dollars to Square. With such large losses and its key deals with major retailers, rumors are flying that the mobile payment processor is eyeing a buy-out. Despite a potential shortage of funding, Square’s IPO has been postponed, indicating a sale could be on the horizon. Amid the rumors a buy-out from Apple or Google could fetch billions, Square spokesman Aaron Zamost denies a sale is in the works, "we have never seriously considered selling to anyone or been in any talks to do so," Zamost explains.