August 9th, 2012
03:23 PM ET

Starbucks gets a Square deal: Is this the death of cash?

Starbucks is investing 25 million dollars in mobile payment company Square. The company is best known for its Square credit card reader that plugs into a smartphone.It had been popular with small business owners and even at flea-market booths that for years have only taken cash. Now stores can swipe and process credit cards any place a cell phone gets reception. Square has launched a phone app that links your credit card to your square account. So you just touch the app and pay.

Which brings us to the number tonight: $470, 600,000,000.

That's how much the value of currency in circulation has increased since 2000. It's an 83 percent jump and dollars are typically used when you make those smaller transactions, like a latte.

According to a preliminary federal reserve study on consumer payment choices, about 67 percent of all transactions 10 dollars and under are still paid for with cash.

So new technology is great, but cash is still king.

Filed under: The Number
soundoff (One Response)
  1. Joey at Purdue Univ

    The combined awesomeness of Jack Dorsey & Howard Schultz together is almost too much to handle.

    August 9, 2012 at 6:59 pm | Reply

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