Starbucks will rely on J.P. Morgan Chase to handle some of its payments processing, replacing Square, which lost money on the deal.
Starbucks Replaces Square with J.P. Morgan as New Payments Processor
The big banker steps in for the scrappy Silicon Valley startup.
Shutterstock / Andresr
Chase Commerce Solutions, the processing division of J.P. Morgan Chase, will process Starbucks’ non-mobile payments and help it introduce chip-enabled terminals.
As first disclosed in Square’s initial public offering filing last week, the Starbucks deal was a financial disaster for Square, losing it $71 million in revenue over the course of three years.
The payments company was contractually obligated to process Starbucks’ transactions until the third quarter of 2016, but the deal is being cut short. J.P. Morgan will immediately start to process some of Starbucks’ payments and the full transition should be done by spring of next year.
Kevin Johnson, COO of Starbucks, said that the partnership will help the coffee company with a “coming wave of innovation in our digital payment ecosystem.”
This article originally appeared on Recode.net.
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