Tag: mobile payments starbucks

Mobile payments now make up 16 percent of Starbucks purchases

The most successful smartphone transaction service is continuing to rise in popularity.

As much as Apple Pay may be holding the spotlight, at the moment, when it comes to mobile payments services, on the side of actual successes that have been proving themselves over time, Starbucks has remained at the very top of the list.

An earnings call from Howard Schultz, Starbucks CEO, revealed considerable data and insight.

Schultz explained that in the financial quarter that came to an end on December 28, 2014, Starbucks had more than 13 million mobile payments app users throughout the United States. This shows a rise of 1 million people from the previous quarter, when there had been just over 12 million users of that mobile application. Overall, this brought about a considerable user base for the smartphone based transactions in its store locations.

Schultz reported that 16 percent of the total transactions processed by the company were through mobile payments.

starbucks - mobile paymentsComparatively, Apple Pay had been reporting early victories in the use of that mobile wallet at Whole Foods, where 1 percent of the sales had been processed using smartphones. Clearly, Starbucks has been able to not only create a success out of its service, but it has managed to do so in a solid way that is generating a rapid, steady increase in the number of people who are actually using it. They have managed to avoid becoming a flash in the pan gimmick and have provided their customers with a transaction method that they are happy to use on a regular basis.

In his own words, Schultz stated that “We continue to see broad customer acceptance and adoption of our mobile payment technologies,” adding that “Today in the U.S. alone, over 13 million customers were actively using our mobile apps. And we are now averaging more than 7 million mobile transactions in our stores each week—representing 16% of total tender. That’s more than any other bricks-and-mortar retailer in the marketplace.”

Starbucks isn’t planning to simply stay put with the current offerings of its mobile payments app. It now intends to roll out a smartphone based ordering service, which is already underway as a part of a trial in Portland, Oregon.

Starbucks continues its push into the mobile payments realm

Starbucks is growing bolder with its mobile initiatives in order to better engage consumers

Starbucks is beginning to more aggressively promote its mobile payments application. The app can already be considered a resounding success for the company, but Starbucks is keen to see its use expand among its customers. The company is beginning to promote the app as the best way to avoid long lines at its local stores, giving customers a way to order and purchase products quickly from their mobile devices while also being rewarded for doing so.

Mobile commerce is quickly winning over consumers

Mobile commerce has won favor with consumers because of its convenient nature, but relatively few people are willing to embrace mobile payments fully. This is due to their security concerns and the fact that most mobile commerce platforms are exactly the same. The majority of mobile commerce applications currently available to consumers only facilitate mobile transactions, offering little else in the way of convenience or rewarding consumer loyalty. Starbucks has managed to find strong success with its app through a focus on consumer loyalty, noting that more than 8 million people are currently registered with My Starbucks Rewards.

Starbucks begins promoting mobile transactions in more of its stores located throughout the US

Mobile Payments - StarbucksApproximately 14% of all payments made at Starbucks store now come from the company’s mobile application. Starbucks suggests that its customers are becoming quite interested in mobile payments because of how easy and convenient its mobile application is. The company is beginning to rapidly increase the number of locations that accept mobile transactions in the hopes of further promoting its application as a viable tool for consumers.

Company has big plans for mobile commerce and plans to see success in this highly competitive market

Mobile commerce has become one of Starbucks’ most lucrative business sectors. Rumors suggest that the company was able to generate more than $1 billion in revenue just from mobile payments in 2013. The company is eager to continue capitalizing on the increasing mobility of its customers, offering them services that are designed to be convenient and mobile-centric in nature.