Why Square Coming to Starbucks Is a Big Deal (Update 2)

With this deal, the mobile payments industry might be coming to a consensus on how it is used, Sterne Agee analyst Greg Smith wrote in a recent research report. He said "the payment itself is becoming commoditized; it is therefore the functionality you wrap around the payment or embed in the mobile wallet that will differentiate the winners from the losers."

It looks like Square and Starbucks are poised to be in the winners column.

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--Written by Chris Ciaccia in New York

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