It is now official that Starbucks Coffee Co. and Square signed a deal in order to allow debit and credit card purchases through the use of a mobile platform. The news was made public on Wednesday through an official press release issued by the coffee shop franchiser.

The deal sees Starbucks making a pledge to make an investment in Square, which is a retail mobile payment platform. The amount agreed was of $25 million dollars. In addition, Howard Schultz, Starbucks Coffee Co. CEO, will join the Square board of directors.

It was mentioned that all Starbucks customers will be able to utilize a special mobile application called “Pay With Square” in order to make all purchases in the coffee shops. This is a direct reaction to similar investments that have been announced by Dunkin’ Brands and Green Mountain Coffee Roasters.

Square will allow credit and debit card reader applications that will run on smartphones. This includes those running on Android, the iPad and the iPhone. The consumer can use the application to process transactions.

Jack Dorsey, Square CEO, declared that the deal with Starbucks was a real “boon for growing his business”.

Only time will tell if the consumers will jump ship or will prefer the traditional payment methods. However, based on current market trends, it does seem like the Starbucks – Square deal is one that will ofer many shoppers exactly what they wanted.