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Starbucks CEO Howard Schultz and Square co-founder Jack Dorsey on the deal that will allow customers to pay through Square’s mobile payment app.
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You guys have a Starbucks down of the New York Stock Exchange we do because I always get my cake -- from there well this next story involves Starbucks of course mobile payment companies.
Like veriphone are taking a dive today all because Starbucks chose someone else Starbucks making a big bet on startup competitors square founded by one of the Twitter guys.
Starbucks betting -- choose to pay it with your phone.
Over cash or credit is struck the deal last night that's the -- -- that made it happen we have it on tape and now they're here to break it down.
What it means for you and their bottom line Starbucks chairman and CEO Howard Schultz with me here.
And squares co-founder and CEO Jack Dorsey also the chairman and co-founder of Twitter -- to see you both.
How excited -- you that Starbucks chose -- you for the mobile payments.
So -- we you're an extremely so we've always admired.
What Howard and -- Timmons has done because they put the customer first to put to experience first.
And it's a massive acceleration for what we're doing what we wants him -- -- look to they'll help these things happen who went to home.
Did -- you could hit you how did you say I like your stuff I'm not embarrassed -- called Jack and as soon as -- met Jack and square and had.
Gone through scores technology innovation was very clear to us that they were the one for us why.
I mean why not -- for did you meet did you look at their -- I don't wanna really speak about Verifone we met with most of the other companies in the space I think because we have had such a big lead in mobile payment general interest in the -- but I think -- focus.
On the customer innovation in the entrepreneurial spirit it was obvious to us.
This is a game changing opportunity Starbucks -- when I go and you can tell lol this is -- -- -- put so much what got I think -- I don't like to get new ones but this is the one that I got during the holidays.
Is this going to be obsolete this credit card for Starbucks.
No no I mean these in these things are used constantly.
And and has our credit cards and prepaid cards and debit cards so how bullet wound and we were and accepts everything's the story square is going to be processing -- -- Starbucks.
Credit and debit transactions all of its mobile transactions and adding a new payment processing system called -- -- square.
So with -- you can actually open up yet.
You can see the Starbucks -- you can go to your local Starbucks and you just put in front of the -- -- reader and -- -- -- -- and now.
This this is for.
Android phones are found it's not specific to a certain kind of found platform agnostic so Andrew heard Ireland's OK so here's the question -- what kind of deal did you go on strike because you guys usually what about.
Two point 75% or so for each transaction with your regular retailers.
Did you get this guy deal to -- drive a hard -- Flood that the company is your very tough -- -- that up well.
You -- you long he -- for -- it happen.
I think it's safe to say that Starbucks will be saving money with regard card interchange but we're not being any more specific than that is it.
Something Howard that we will see as.
It's a creed of the right -- coming out of your bottom line.
How -- Well first -- I think before the holiday season nationwide -- be in our stores and I think it will be accretive to Starbucks but most importantly he'll be accretive to the customer experience.
And I think the innovation that will bring over the coming months and years will be so significant -- at the Mason stage.
The mobile payment -- already processing over a million mobile payments but we construct.
Through people's phone trying to because remember you -- we -- at Starbucks headquarters for your big anniversary yeah and you showed us.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Of course we go way back when you have Twitter back in 2007 we were watching him and following everything that you did.
People get so down about the economy and they think to themselves why bother starting the company it's too dangerous you -- -- What's in your genetics what's in your mind that that makes you unafraid to do something like it's just.
You know we have a passion about what we wanna see in the world and we wanted to open and we wanna use and most importantly.
And we want our family members to isn't my friends to -- and therefore the world to isn't so we just really love what we do and and we wanna -- more and more people.
-- -- -- But square wasn't first and you weren't the first to be doing this that you word jumping into a market it's sort of like you -- splendor and because could -- low was out there and equal was out there already but now everybody wants want to so.
You were able to get this company up and running.
Public you took a seat on the chair of square cracked.
In -- invited -- -- the board yes very you're except -- yes I am okay.
And Northrop I don't know guys like that when they make investments that they wanna see a return on that IPO eventually the square.
Well a lot of companies see and then a lot of press talks about the -- as -- global -- -- -- -- -- as a milestone that -- I don't ask the question and I enough hits its fundraising event and then what we're doing in soda companies focusing on building product position and then of course the political the obligatory Twitter IPO same same answer okay.
I just gave -- the Olympics so all I can tell you.
It's -- Twitter.
What some major factor on many different levels I mean everything from.
Athletes complaining about rule for any our sponsorship and lack of sponsorship opportunities to -- and taking it as a venue to to complain about sports etc.
Do you sit down take this is great to -- company employs a celebration -- -- them.
But yeah I mean it's it's it's amazing to see how the world was taken to an -- and how much of the conversation has moved to a public venue.
That's what's really happening is you can see this unfold you can see president Barack Obama congratulate -- medal winners force on the public and and and in the area.
Which is amazing to see so we have a lot to do with Twitter mainly making it easier to use when.
Virtually took -- also had to apologize for -- and cutting off one of the journalist's Twitter accounts and then you reinstated at once again was -- a learning experience.
We're always running sort of learning experiences that -- -- focusing you hook up with these guys and what's next for Starbucks I mean what I remember when you announce cake pops this was a big deal kind.
You know the biggest -- of -- -- but what's next.
Talking about the K -- against the green mountain relationship yes is that continuing or when you put out the very smoke which is.
Mean the falls on October 10 okay October 10.
Not we're gonna continue to promote green mountain and current but I think we've got a winning formula with -- most will be the only machine that has brewed coffee espresso and -- -- the same time it's a winning strategy.
It's going to be a big hit for the steam as the milk at the same time notice fresh milk in -- capsule first one.
Perfect and we we open up India in the middle of October OK we'll be watching all of it Howard Schultz.
Jack Dorsey thank you both for coming on to talk about the new partnership with square thank you but I can hold onto my credit card and the came -- and the -- Addict -- but yes that.
