Tag: mobile payments statistics

Mobile payments make up 10 percent of U.S. Starbucks transactions

One in ten purchases made in the coffee shops across the United States are made using smartphones.

According to the coffeehouse chain’s own statistics, which have just been released, mobile payments are now accounting for over ten percent of all transactions that are made within its American stores.

The purchases are being made over Android, iPhone, BlackBerry devices in the United States.

The Starbucks Card Mobile App allows customers in the coffee stores to be able to pay for their coffees and treats through the use of their smartphones with mobile payments based on barcode scans at the checkout. The chief financial officer at Starbucks, who is also the chief accounting officer, Troy Alstead, explained that this method of paying for products is “a very sticky transaction by virtue of the fact that people have preloaded their money that we hold for them in anticipation of that coming transaction.”

Alstead explained that mobile payments also provide the opportunity to gain an understanding of their customers.

Starbucks Mobile PaymentsHe explained that by using mobile payments, it gives Starbucks “an ability for us to harvest that information and really determine the most effective ways over time to understand our customer to target products toward them and the appropriate ways to reach them with our messages.” He also noted that in total, the transactions made using the Starbucks Card – using both the mobile app and the actual plastic card – make up nearly a third of all of the purchases made in the United States.

Recently, the company said that the card is now making up approximately 4 million mobile payments transactions every week. This is twice the 2 million transactions that were occurring by the end of 2012 every week. Furthermore, the purchases made over the Starbucks Card Mobile App are now making up a much larger proportion of North American digital wallet transactions than their primary rivals, such as the high profile Isis and Google Wallet. This, according to data issued by Berg Insight earlier in June.

CEO of Starbucks, Howard Schultz, has stated that the company will be boosting its m-commerce services throughout the year and that mobile payments are only expected to grow.

Mobile payments could break the $1 trillion mark in three years

Mobile Payments 1 TrillionThe latest Heavy Reading report has revealed its latest predictions for the market for 2015.

The popularity of mobile payments is already growing, despite a rather slow and rocky start, and according to Heavy Reading Mobile Networks Insider, this has set the market on the path to breaking the $1 trillion mark in transactions by the close of 2015.

The industry is also at the point that it is growing quickly and is creating heavy competition even before becoming mainstream.

The mobile payments industry is now offering a vast array of different solutions for generating revenue. This latest Heavy Reading report has forecasted that within the next three years, the market will have skyrocketed to the point that its transactions will have been worth more than $1 trillion, worldwide.

The report has also predicted that mobile payments will be an important factor in the success of m-commerce.

It looked into mobile payments as a whole and came up with a number of predictions in terms of market drivers in addition to the challenges that this industry could face. It also performed a comparative analysis of the various types of solutions that have become available within this ecosystem and attempted to provide details regarding the types of trends that are likely to happen if the industry continues in the same direction over the upcoming year and a half to two years.

According to Heavy Reading report author, research analyst Denise Culver “Mobile payments have gone from being a cool-to-talk-about concept to a disruptive technology in a relatively short time frame.” She went on to say that “MNOs and payment vendors should be looking at different ways to drive demand for mobile payments, which have the potential to create significant revenue throughout the entire mobile ecosystem.”

Some of the report’s data has indicated that consumers that are already comfortable with making payments online, such as for purchasing products and services and for paying their bills, are among those who are already using their smartphones and tablets for these same tasks. Culver has predicted that as the penetration of these devices continues, it will be “only natural” that these same individuals will increase their desire and likelihood to apply those devices for transaction purposes.