Square has been replaced at Starbucks.
Going forward, JPMorgan Chase (JPMC) will do the payments processing for America's favorite coffee hub through its Chase Commerce Solutions division. That will include all non-mobile payments and also entail the upgrade of all of Starbuck's POS terminals to chip-enabled editions.
Hopefully, JPMC can make the deal work better than its predecessor over at Square. Data made public in the Square's IPO filing last week made it clear that processing for Starbucks was a losing proposition for Square, which lost $71 million for the firm over the course of three years.
The new Chase deal will cut short the Square contract, which is technically set to go until Q3 2016. JPMC will take up at least some of the processing duties immediately, with the total transition forecasted for spring next year.
Kevin Johnson, COO of Starbucks, noted that the new pair-up will prepare his company for the “coming wave of innovation in our digital payment ecosystem.”
To check out what else is HOT in the world of payments, click here.