(CBS News) Coffee giant Starbucks and tech payment company Square announced a new partnership starting this fall that will bring Square's credit card payment technology into 7,000 Starbucks locations in the U.S.
Under the deal, Square will process Starbucks U.S. credit and debit card transactions, Starbucks will invest $25 million in Square. Starbucks CEO Howard Schultz will join Square's board of directors. The Square Directory will also integrate with Starbucks digital platforms to help customers locate Starbucks and other Square businesses in their vicinity.
"Every tech company over the last year or so has been chasing down Starbucks to try and build an alliance on mobile technology," Schultz said Wednesday on "CBS This Morning." "We met them and then I decided I got to call Jack (Dorsey, Square co-founder). I called Jack, met him, met Square, and overnight realized that he was at the cutting-edge of this technology. This was a marriage made in heaven."
Starbucks already has a mobile payment option for its customers. Starbucks gets from Square its software, and presumably, the rates: Square charges businesses 2.75 percent per transaction. Other credit card processors charge upwards of 3.5 percent.
"Starbucks is always someone we've admired as a company and we've always admired Howard's leadership because they really put the customer first," Dorsey said. "They put the experience first and really craft that experience. And that's what matters in retail. That's what we want to build the technology around."
Dorsey is also co-founder and executive chairman of Twitter.
For more with Schultz and Dorsey on the partnership, as well as other tech topics, including Twitter's involvement in criminal investigations, rumors in Silicon Valley and more, watch the video in the player above.