News: Starbucks cuts ties with company.
Payment processing company Square has filed to go public and is planning to offer up to $275m in stock.
The company recorded revenue of approximately $560m in the first half of 2015, which is a 51% increase over the first half of 2014. However, for the same period, the company incurred losses of $77.6m.
Square’s half-year gross profit stood at $164.6m, and its net loss fell in its second quarter to $29.6m, which is better than the $47.9m loss it recorded in its first quarter this year.
Square, is the brainchild of Twitter CEO Jack Dorsey, and Jim McKelvey, and the company is known for its credit-card readers that attach to mobile devices.
In 2012, Square entered into an agreement with the Starbucks under which the coffee giant planned to invest $25m in the startup.
In return, Square agreed to process credit and debit card payments for Starbucks in an attempt to raise awareness about the company amongst Starbucks customers.
Starbucks which used Bank of America Merchant Services to process its payments moved to Square citing that it was cheaper for the company.
However, in 2014 the coffee giant discontinued most of its app partnerships with Square, opting instead to bring development in-house.
In its IPO filing, Square disclosed that it will discontinue its payment processing agreement with Starbucks.
Starbucks might be looking towards Apple for its payment services, as recently Apple announced that the company’s Apple Pay service will be accepted at Starbucks in 2016.