Square uses a free credit card reader for smartphones and allows anyone to accept credit cards anywhere using iPhone and Android apps.
The coffee shop powerhouse will use Square's "Pay with Square" app for transactions. Customers also will need to download and set up an account on their smartphone.
Starbucks hopes to give their customers a seamless payment experience at 7,000 stores in the U.S. Square is only available in the U.S. at this time, where "more than two million individual and businesses" use the service.
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