JPMorgan Chase has struck a payments processing deal with Starbucks, replacing Square, which recently revealed that its contract with the coffee giant was a massive loss-maker.
Chase Commerce Solutions will process all non-mobile and US retail card payment transactions in company-operated stores, as well as help Starbucks in its roll out of chip-enabled terminals. First Data will continue to handle mobile payments.
The move will start immediately and be completed by Spring. The Square deal was supposed to run until the third quarter of 2016.
Kevin Johnson, president and COO, Starbucks, says: "These investments and innovations will both strengthen our payment platform and be increasingly accretive to our business over time."
When the Square agreement was struck back in 2012, it was hailed as a major coup for Jack Dorsey's firm in its bid to take on the traditional players, with Starbucks also investing $25 million in its new partner.
However, in its IPO filing last week, Square revealed that it would be parting ways with the coffee firm, admitting that it lost tens of millions of dollars on the three year deal.