AT&T Inc. has agreed to sell Square Inc.'s smartphone-based card readers in its 1,000 company-owned retail stores.

The square reader plugs into smartphones and tablets to allow consumers and merchants to accept card payments using the mobile device's data connection. Square's devices are available in over 20,000 retail locations, including those of Apple Inc. and Target Corp., where it sells for about $10 with a $10 rebate on transaction fees.

Square has been pushing aggressively this month to expand its products. Its mobile wallet, called Pay with Square, got a boost from an agreement with Starbucks Corp. to use Square's payment technology and processing services at its stores. A week later, Square announced flat-fee processing to attract merchants that are uncomfortable with per-transaction fees.

"AT&T stores are a convenient retail destination for purchasing Square Card Readers, offering entrepreneurs the ability to purchase all of the devices they need to run their business in one place," said Jeffrey Kolovson, head of retail distribution at Square, in a press release Aug. 29.

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