Square Enables Restaurant Ordering Through ChatGPT and Claude

Major payment service Square has launched a new integration feature connecting with ChatGPT and Claude. This allows consumers to discover and order directly from restaurants through AI chat interfaces. Meanwhile, restaurants can now accept AI-mediated orders without requiring any special technical preparation.

The food industry has long been pressured by dependence on major delivery platforms like DoorDash, Uber Eats, and Grubhub. These services provide comprehensive solutions including driver dispatch, marketing, and search visibility in exchange for taking a percentage of sales as fees. For example, DoorDash charges up to 30% on delivery orders, Uber Eats charges 20-30%, and Grubhub charges 5-20%. When combined with payment processing fees, independent restaurants with profit margins typically around 3-9% have struggled with digital ordering being barely profitable.

The major reason Square's new feature attracts attention is its fee structure. Square has adopted a policy of not charging marketplace fees—the type typically imposed by traditional delivery platforms—on these AI-mediated transactions. However, standard payment processing fees applicable to online orders continue to apply. Specifically, merchants on Square Plus and Square Premium plans are charged either "3.3% + 30 cents" or "2.9% + 30 cents" per transaction.

From a technical standpoint, the system connects in real-time to Square's inventory catalog, automatically reflecting product information, pricing, options, and stock status. This design minimizes the issue of AI agents displaying out-of-stock items. The order completion method varies depending on AI tool configuration—some complete payment within the chat interface, while others direct users to the restaurant's ordering page with selected items already in their cart. Additionally, merchants can verify how their restaurants appear by using the "@" symbol to invoke the Order by Cash App plugin within ChatGPT or by connecting through Claude's extensions directory.

This development aligns with the growing trend of AI agents handling actual commercial transactions. The experience of a user simply typing "find a nearby pizza place and order for me" in a chat interface, with the order completing automatically, differs fundamentally from traditional app-based ordering. This pattern of "AI handling procedures on behalf of users" indicates that beyond search and information gathering, AI is now entering a phase where it actively mediates purchasing behavior itself.

For restaurants, there is practical value in gaining a new order channel without high fees. However, the extent to which AI-mediated orders will become widespread and how much they will contribute to actual revenue remains uncertain and requires observing future usage patterns. Additionally, with Square forgoing fee revenue from this integration, the underlying business strategy warrants continued attention.