Starbucks expands mobile payment system

Starbucks Coffee Co. announced a new partnership that will allow customers to pay with Square Inc.s mobile phone payment system.

The coffee giant has invested $25 million in the technology, which will eventually be available in 7,000 Starbucks locations across the United States.

Launched in 2009 by Twitter co-founder Jack Dorsey, Squares software allows vendors to accept electronic payments on their own hardware or through a devicecustomers can plug into their cellphones or tablets.

Starbucks will be merging Squares system to its pre-existing mobile payment app, which is now used for more than one million transactions per week in the U.S. The companys goal is to make buying that grande non-fat, no whip, no foam, extra hot soy latte as simple as possible. The move will also reducethe cost of processing payments for the company.

"The evolving social and digital media platforms and highly innovative and relevant payment capabilities are causing seismic changes in consumer behavior," Starbucks CEO Howard Schultz said in a release. Schultz will also join Squares board of directors as part of the deal.

The new application will become available in select U.S. stores starting this fall.