Author: Stephen

Starbucks could license off its mobile payments technology to retailers

| March 25, 2014

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

Mobile Payments Technology Licensed to other RetailersSince 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.

Merchants are becoming more conscious of mobile payments security

| March 20, 2014

Security is attracting more attention from merchants engaging mobile consumers

Merchants are beginning to become more aware of the dangers that exist in the mobile and digital spaces, according to the results of the 2nd Annual Mobile Payments and Fraud Survey conducted by Kount, The Fraud Practice, and CardNotPresent.com. These dangers have existed for some time, but merchants have been blind to them as they rushed to enter into the mobile commerce space. While mobile commerce has become quite popular, it has also become quite a risky thing to participate in because of the lack of security that exists on many popular platforms.

Survey shows that many merchants are participating in mobile commerce, but few have adequate security in place

According to the survey, 66% of merchants around the world now support mobile commerce. Mobile commerce support among merchants is expected to rise by 30% annually over the next few years. Merchants are becoming more comfortable with the mobile space as they begin to expose themselves to consumers that primarily shop and purchase products from smartphones and tablets. These merchants are working to become more accommodating to these consumers in the hopes of remaining relevant with changing consumer behaviors.

Mobile commerce continues to be a risky field

Mobile Payments - Merchants concerned about mobile securityThe survey shows that nearly a third of merchants consider the mobile space to be more risky than e-commerce. Mobile commerce has become a popular target for hackers because of the trafficking of financial information. This information can be somewhat easily accessed by hackers because of the lackluster security that exists with most mobile commerce platforms. While this has become a major concern for merchants, it has also caused many consumers to avoid mobile shopping.

As security improves, consumers are likely to become more active in mobile commerce

As merchants become more conscious of the risks that exist in the mobile space, they are beginning to take security more seriously. This means introducing new features to popular mobile commerce platforms that merchants have designed themselves. More security is expected to increase consumer spending in the mobile field because they will feel more confident in the safety of their financial information.