Tag: starbucks mobile payments

The question that many are now asking is whether or not the achievement is of the brand or the system.

Dunkin’ Donuts has had its own mobile app for a while now, and this application allows smartphone users to be able to accumulate loyalty points as well as make mobile payments in order to complete their transactions while in stores, but recent data is now causing many to ask whether the same successes seen at Starbucks could be possible in this rival franchise.

Some data regarding the usage of this mobile app has provided insight into this coffee shop trend.

According to a report issued by BI Intelligence, which provided then results of some number crunching with regards to the data that Dunkin’ Donuts has made available, there are a number of points that can be understood about the way that the mobile payments app is being used at that company’s locations. Though that company does not report the actual dollar volume that is achieved as a result of transactions over mobile devices, the data that they have provided still shows some interesting trends.

The Dunkin’ Donuts data has provided some indications with regards to the traction of the mobile payments app.

Among the points reported by BI Intelligence included the following:

• The Dunkin’ Donuts mobile app has, according to the company’s own figures, already been downloaded more than 10 million times. It was originally launched in August 2012.
• The Starbucks application is currently reported to be maintaining 12 million active users in North America.
• At Starbucks, more than 15 percent of all of the transactions completed in the United States locations are m-payments.

The BI Intelligence report stated that one of the primary drivers of success of the Starbucks mobile payments app is the company’s loyalty program. Dunkin’ Donuts has clearly used a similar strategy in encouraging the adoption and use of its own application. When using that app, customers are able to build “DD Perks” rewards points, which can later be redeemed in order to obtain free items such as beverages. QR codes are also central to the verification process for transactions in the apps of both companies.

Even large companies are struggling to compete with Starbucks

In the past, mobile commerce has been considered something of a novelty, with several small companies offering services that would allow people to shop for and purchase products from with their mobile devices in stores and online. Now, large companies like Apple and Google are involved in the mobile commerce space, but they may not be finding the success that they had hoped to see in the field. Starbucks has come to dominate the mobile space and other companies may be struggling to keep up.

Majority of mobile transactions made in 2013 were done in Starbucks stores

Starbucks accounted for 90% of all mobile transactions made in the United States last year, according to the company’s CEO, Howard Schultz. According to Schultz, more than $1.3 billion in mobile payments were made during 2013, with the vast majority of these transactions taking place in Starbucks stores throughout the country. The company’s success in the mobile field last year is just the beginning, as Starbucks has plans to continue dominating mobile transactions.

Company plans to accelerate its mobile commerce plans

The company intends to accelerate its mobile commerce plans over the next few years, putting more emphasis on its mobile audience, but not sacrificing its traditional brick-and-mortar interests. Schultz notes that many consumers are beginning to migrate away from traditional forms of commerce, showing more favor for mobile services. In order to accommodate the changing behavior of consumers, Starbucks will be following suit.

New partnerships will help Starbucks remain dominant in the mobile field

Over the next few years, Starbucks plans to make careful, strategic partnerships that will further its mobile interests. Earlier this year, the company announced plans to begin offering its mobile payments technology to other companies, allowing them to engage mobile consumers more effectively. The company will also be highlighting the convenience of mobile payments in order to further its popularity among consumers with various types of mobile devices. Starbucks also has plans to enhance its My Starbucks Rewards program, providing more incentives for people to purchase products with their mobile devices.