Starbucks targets mobile payments

Starbucks targets mobile payments

American Starbucks wants to promote mobile payments in the upcoming years. The chain believes the number of mobile payments will increase rapidly, at a time when 1 in 10 payments in the US is currently being done through mobile means.

Use loyalty program to stimulate mobile payments

Starbucks registers nearly 5 million mobile payments in its American stores on a weekly basis, more than 10 % of its total number of transactions. Howard Schultz, Starbucks CEO, wants that number to soar in the next few years and one of the ways to stimulate customers to do so is to attach mobile payments to its loyalty program.

 

Whenever customers spend a certain amount of money, they will get a “golden status” which will give them several extras - if they have registered their purchases through a Starbucks card. The Starbucks app also allows you to register, but you have to charge your app through starbucks.com or through in-app purchases. For the first quarter of 2014, Starbucks estimates it will get one billion euro in card charges.

 

Collaborations

Starbucks has changed its leadership structure to take full advantage of the capabilities of both the app and the mobile payments. “This new organizational change will free me up to really create and innovate around not only mobile payment, but the things that we are doing with new channels of distribution, which we can cross-promote and cross-reward our customers with stars as currency”, CEO Howard Schultz said.

 

Analysts expect Starbucks to collaborate with other companies, like Uber, which allows you to order a driver and a car. An example would be that people could get a gold status when he gets dropped off at Starbucks through an Uber-request. “The Starbucks app has 10 million users who are highly motivated by incentives. Other companies would be foolish not to look into the opportunities such partnerships could bring”, Yankee Group’s Jordan McKee told mobilecommercedaily.com.

Questions or comments? Please feel free to contact the editors


Will free home delivery disappear?

15/12/2017

A growing number of online orders also brings additional pressure on the logistical industry. Free home delivery can no longer be maintained according to research company ECC Köln. More flexible options should be installed.

Amazon brings its private labels to Europe

14/12/2017

After it introduced Amazon Prime to an increased number of European markets, Amazon is now bringing in its own FMCG private labels. Over the past few weeks, the online department store launched several private label products in Europe and it has plans for even more. 

Amazon Echo is now available in the Benelux

11/12/2017

Amazon announced it will ship its smart speaker Amazon Echo to another 28 countries, including Belgium and the Netherlands. Its own music streaming service will also get a local launch.

Luxury manufacturers can block retailers from selling on Amazon

07/12/2017

Luxury product manufactures can block retailers from selling their merchandise on online marketplaces like Amazon. The European Court of Justice has ruled on the matter after cosmetics manufacturer Coty filed a complaint.

Surge in mobile sales during Thanksgiving weekend

29/11/2017

During Thanksgiving weekend in the United States, which contains Black Friday and Cyber Monday, there was a big surge in mobile sales. Those two days saw a total sales figure of almost twelve billion dollar (just shy of ten billion euro).

Alibaba reveals its high-tech store of the future

24/11/2017

Amazon Go’s automated supermarkets have not yet arrived, but Alibaba already has its answers ready. The Chinese online retailer has showcased Tmall Supermart, filled with technology: from virtual fitting rooms to facial recognition.

Back to top