Starbucks continues to see major success in the mobile commerce space
Starbucks has found a great deal of success in the mobile commerce space. The company’s partnership with payments processor Square has been quite lucrative and has given Starbuck’s some ideas for the future. The company recently announced plans to begin selling alcohol and hot food at thousands of its stores in the near future, while also unveiling plans to further expand its Teavana chain. In the mobile space, Starbucks has plans to begin expanding its payments technology beyond its own family of stores.
Company believes that licensing its technology could help retailers engage mobile consumers more effectively
Starbucks CEO Howard Schultz notes that the company has managed to establish a very powerful position in the mobile commerce sector. The company has managed to succeed with mobile payments where others have failed. Many retailers have been struggling to engage mobile consumers through new commerce channels, but none have yet managed to have the impact that both Starbucks and Square have had. Starbucks may be in a position to assist retailers by licensing off its mobile payments technology.
Starbucks generates $1 billion from mobile payments in 2013
Since partnering with Square in 2011, Starbucks has seen a 14% increase in mobile payments throughout its stores in the U.S. In 2013, it was estimated that the company generated more than $1 billion in revenue just from mobile transactions. Nearly 10 million customers have downloaded the company’s mobile commerce application, with 8 million people taking advantage of the loyalty rewards being offered by the application. In licensing its technology to other companies, Starbucks may be able to help retailers engage mobile consumers more effectively.
Starbucks is likely to continue seeing success in the mobile field by addressing consumer concerns
Starbucks has managed to avoid some of the pitfalls that exist in the mobile commerce sector thanks to its partnership with Square. Security and efficiency are two issues that many consumers have problems with when it comes to mobile payments. Starbucks has managed to address these issues quite effectively, providing consumers with a comprehensive service that provides them with more convenience.
Whole Foods Markets teams with Square to enter into mobile commerce
Whole Foods Markets has partnered with Square in order to be more accommodating of mobile commerce. The grocery retailer has taken note of a rise in the use of mobile devices among its customers and has become well aware of the mobile commerce trend. Consumers throughout the U.S. are beginning to demand new mobile commerce services and Whole Foods Markets has turned to Square in order to accommodate consumer needs. Square is currently considered one of the most successful mobile payments organizations in North America.
Square helps Starbucks find success in the mobile sector
Square has been part of some of the most successful mobile commerce initiatives in the world. Starbucks partnered with Square in order to engage mobile consumers more aggressively. In 2013, it was reported that Starbucks managed to generate more than $1 billion in revenue through mobile payments alone. These payments were handled by Square’s mobile commerce platform. Whole Foods Markets believes that it can find similar success through its own mobile commerce initiatives.
Test phase will determine consumer interest in mobile payments and the viability of expanding mobile commerce services to other stores
Whole Foods Markets will be testing its mobile payments venture in a limited number of stores initially. The pilot testing phase is meant to help the company better understand mobile commerce and help determine whether mobile commerce is something its customers would participate in. Depending on the success of the testing phase, Whole Foods Markets will expand its mobile commerce initiative to more stores throughout the U.S.
Many consumers remain concerned about mobile commerce security
Square has been working to make mobile commerce mainstream for some time. The company’s partnership with Starbucks has effectively solidified mobile commerce with many consumers throughout the U.S., but many people are still somewhat leery of mobile payments. The concern that many people have when it comes to mobile commerce has to do with the security of their financial information. Mobile commerce has become a popular target for malicious groups that seek to exploit a consumer’s financial information through hacking and other such practices.
