Tag: mobile apps

1 in 6 of purchases made at the coffee company is via mobile phones.

According to Howard Schultz, Starbucks CEO, during the company’s third quarter earnings, 16% of the nearly 7 million transactions occurring each week at its shops are via mobile payments and this success is due to the early launch of its mobile version of its payment card, which has lead to Starbucks transacting over 90% of purchases made via mobile devices in the US, last year.

Shultz says that “the real growth is yet to come”.

The company’s upcoming mobile order and pay app will be its most significant technological innovation released in 2014. The CEO said that “Starbucks Coffee has cracked the code to tying mobile payment to loyalty.”

He explained that the success Starbucks has achieved has to do with leveraging “the intersection of three powerful mobile trends.” According to Shultz, these trends include a change in consumer behavior as people are spending more time online and less time in physical stores. There is also the trend of people eating out and less at home and the growing trend of people engaging in online activity via their mobile devices.

Shultz explained that Starbucks mobile order and pay” seamlessly integrates mobile ordering and our proprietary mobile program with point of sale and store operations.” He said that this enables Starbucks to enhances the experience of its customers, exceed their expectations and extend their loyalty.

Starbucks is seeing a growth of 50% in mobile payments every year.

The new mobile order and pay app is set to be launched in the Portland market in December and throughout the nation in 2015. The new app will enable consumers to place their order before heading to select stores, so they can pick up their order without having to wait in line.

The number of Starbucks cafés continues to expand in 2014, with more drive-up options being added to stores. Shultz said that even though the company does not have the software or the hardware expertise of its competitors it has managed to alter consumer behavior, which is something its competition has not done. The CEO stated that Starbucks has achieved this by integrating mobile payments convenience into an enjoyable and compelling program that gives customers rewards.

Japanese app developer is beginning to expand its services into mobile commerce

Developers of mobile messaging applications are beginning to push into the mobile commerce space. These apps have won popularity for allowing people to message one another for free, but soon people may be using the apps to pay for goods and services and money transfers. Line is the latest app developer to show interest in the mobile payments space and the company is beginning to develop its own payment platform.

Company has major plans for the future after delaying its initial public offering

Line had plans to launch an initial public offer this year, but these plans have been delayed due to the company’s interests in expanding its services. The Japanese company has plans to develop a ride-share application that is similar to Uber, allowing people to purchase rides from private drivers that are associated with the company. Line is also developing an in-door map service and a food delivery service. The company is also branching into the online music streaming sector, offering mobile consumers a way to listen to music through an app.

Line Pay will allow users to pay for goods and services and transfer money to friends and family

The company is showing particular interest in mobile payments, however, due to the massive revenue potential that the field of digital commerce represents. The Line Pay app, as it is called, will allow users to make payments at convenience stores by linking the app to their bank accounts or credit cards. The app can also be used for money transfers to friends and family. It will also allow users to split restaurant bills easily.

Line will face strong competition in the mobile commerce space

Line will face major competition in the mobile commerce space. The market is currently crowded with a vast number of payment startups that are looking to take advantage of the growing interest consumers have in mobile shopping and payments. Companies like Tencent and Alibaba currently hold a commanding presence in the Asian mobile commerce space, and Line will have to battle these two companies for the favor of consumers.