Starbucks to use Square for payments

  • Starbucks has signed a deal to use Square Inc to process payments at its U.S. coffee shops.

    The announcement comes as a major victory for the two-year-old startup that is emerging as a serious competitor to established payment processors.

    As part of the deal, the world's biggest coffee chain will also invest $25 million in Square.

    Starbucks acquired its stake as a participant in Square's recent $200 million funding round that valued the company at $3.25 billion.