Tag: mobile payments data

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

| June 24, 2013

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 currently comprise a tiny fraction of American POS volume

| April 18, 2013

Mobile Payments POSThe latest research indicates that it makes up only 0.01 percent of the total in the United States.

According to a report that was just issued by Javelin Strategy & Research, mobile payments using contactless technology at the point of sale (POS) made up only a tiny sliver of the total volume in the United States in 2012.

The report indicated that this technology was used for only 0.01 percent of the total POS volume in the U.S.

The research data showed that the total amount spent over contactless mobile payments was approximately $500 million. At the same time, though, the report did not see a grim future for this form of smartphone based transaction. In fact, based on their predictions, things are looking bright in that area.

The forecast made by the report is that there will be an increase in mobile payments at a CAGR of 61 percent.

According to Javelin’s predictions, the compound annual growth rate that will be seen for mobile payments using contactless technology will be 61 percent this year. This will mean that the method will experience growth at a rate that is higher than any other method. In fact, it is predicting that this trend will continue over the next five years, and that in 2018, the total volume will have reached 5.4 billion. This will mean that it will make up 0.13 percent of the total POS volume in the United States in that year.

A Javelin industry analyst, Aleia Van Dyke explained this trend by saying that the point of sale market in retail is experiencing a very rapid evolution, as the popularity of smartphones and mobile payments takes off. There is a much greater expectation from consumers today, as they feel that the retail businesses where they shop should be providing an enhanced shopping experience while inside the walls of the store through the use of smartphones.

The rapid implementation of mobile payments and other transaction options such as prepaid and gift cards have helped with the adoption of other technology based options, among consumers, according to Van Dyke. As a whole, retail POS purchases last year brought in $3.98 trillion. The prediction for five years down the road is $4.2 trillion.