JPMorgan Chase has just secured a new strategic partner for its payment processing in Starbucks. The coffee giant recently announced that it has decided to make a move to Chase Bank’s payment processing service from its current payment processor, Jack Dorsey’s San Francisco-based Square.
According to Starbucks, this would mean that the company will be moving all of its non-mobile payments and U.S. retail card payment transaction in all of its company-operated stores to Chase. Moreover, Starbucks says the company will also partner up with Chase Commerce Solutions to rollout some chip-enabled payment terminals.
According to Starbucks President and Chief Operating Officer Kevin Johnson, the new partnership with Chase Commerce Solutions serves as a “foundation for a coming wave of innovation” in the company’s digital payment network. This is essential to Starbucks now more than ever, as it looks to expand its Mobile Order & Pay service as well as its Green Apron Delivery service.
Starbucks will become a highly valued client to Chase when the transition to its payment system is completed in Spring 2016. By then, Chase Commerce Solutions can expect to handle more than 47 million transactions from Starbucks each week, coming from its more than 12,000 stores. Meanwhile, this is not the first time Starbucks has partnered with Chase. Back in the 2014, the two companies along with HBO became presenting sponsors for The Concert of Valor in Washington, D.C.
An earlier version of this story stated that Starbucks had decided to move to Chase Pay, instead of Chase Commerce Solutions. Moreover, Chase spokesman Paul Hartwick has told Morning News USA, “Starbucks has not agreed to accept our new Chase Pay at this time.” We apologize for the confusion.