In 2012, Square received $9.47 million in revenue from Starbucks, and that amount increased in 2013 to $114.45 million, until finally reaching $123 million in 2014. However, the transaction costs from the Starbucks deal paint a very different picture: In 2012 Square paid $12.54 million in fees associated with the processing it did from Starbucks, $139.8 million in 2013, and $150.96 million in 2014.
Wow, that’s pretty interesting – when you take credit cards there are fees, no way around that, what looks like what happened was Starbucks got a SWEET deal – they agreed to use Square for the below-market rates for card processing, and Square basically subsided it. Square probably just considered it a marketing expense and was going for market share (“we’ll make it up in volume later!”) or as Square said it was “a valuable catalyst for building best-in-class enterprise infrastructure”. Apple Pay is going to be the winner in this space is our prediction.
Want more “makerbusiness” stories like this delivered to your inbox each day, spam free and we will never use your email for anything? Visit AdafruitDaily.com it’s our daily newsletter site that’s spam free and has nothing to do with your Adafruit.com shopping experience, we wanted to keep it separate so it’s 100% clear it’s an sign-up only, spam free daily newsletter that you actually want! We currently have electronics daily tips, wearables daily tips and maker business.
Join us every Wednesday night at 8pm ET for Ask an Engineer!
Maker Business — Transforming Today’s Bad Jobs into Tomorrow’s Good Jobs
Wearables — Snap a picture
Electronics — To Y5V or not to Y5V?
Biohacking — Ticks are Spreading an Allergy to Meat
No comments yet.
Sorry, the comment form is closed at this time.