
Square $igns up Starbux
Starbucks could earn a lot of beans from its $25 million investment in Square.
The coffee chain’s decision to partner with the mobile payments service delivered an immediate marketing jolt, bringing the 2-year-old startup founded by Jack Dorsey into the mainstream.
Square will increase its yearly revenue by $125 million now that Starbucks patrons can use the payment method, according to a research report from PrivCo.
The added revenue will contribute to a $5.5 billion valuation in 2013, a 243 percent jump from the $3.25 billion valuation set during a July fundraising round, the report said.
“At this valuation, Jack Dorsey’s 26 percent stake would be worth $1.43 billion by next summer,” PrivCo said.
Square is quickly becoming a force in the growing e-payments category, competing with the likes of Google and PayPal for new technologies that facilitate sales through mobile devices.
Square is known for a device that turns your mobile phone into a credit-card reader.

