Square Will Allow Whole Foods Shoppers to 'Skip the Line'

Square announced a deal with Whole Foods Markets that involves Square Register and Square Wallet. Some outlets are reporting this as another big enterprise deal for Square, after Starbucks. And it is. But what's more interesting is the consumer experience that it will enable in stores. 

Square will power payments for in-store food venues, such as the deli counter: 

These in-store venues -- including sandwich counters, juice and coffee bars, pizzerias, and beer and wine bars -- will use Square Register and Square Stand, Square’s suite of simple and affordable software and hardware tools for businesses. By bridging the digital and in-store retail spaces at these venues, Whole Foods Market shoppers can skip the main checkout lines, reducing wait times for all customers.

In other words, consumers with Square Wallet (with a stored credit card) will not have to stand in line to pay for their purchases. This will both create a more convenient experience for consumers and greater efficiency for in-store staff. (Ultimately mobile payments will reduce the number of cashier jobs across the US but that's another discussion.) 

Whole Foods will gain additional customer data (purchase histories). That in turn will likely enable new promotions and marketing opportunities for Whole Foods.  

The companies also said, "Several Whole Foods Market locations will serve as 'lab stores,' testing additional innovations designed to enhance customer service and cater to the changing needs of shoppers," before those services are rolled out more broadly.  

Earlier today I wrote that mobile payments can become a competitive advantage, promoting consumer convenience and loyalty and differentiating a product or service experience. Whole Foods has a very strong and generally differentiated brand already.

This development will further contribute to that brand strength and may generate additional shopper frequency at those in-store food venues that are mobile-payment enabled. It will probably also lead to more adoption for Square Wallet.