Tag: 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 is the leader of mobile payments in the US

Starbucks continues to show strong position in the mobile field

Starbucks is leading the way when it comes to mobile payments. The company has emerged as a sort of unexpected competition for Google, Apple, and others that have invested heavily in mobile commerce. Google was among the most aggressive companies to enter into this market with its Wallet platform. Apple followed suit years late with Apple Pay. Neither of these services have managed to become mainstream successes in the mobile commerce field, but Starbucks’ mobile payment app has.

90% of all mobile payments made in the US in 2013 were done in Starbucks stores

In 2013, 90% of all mobile transactions made in the United States were conducted in Starbucks stores, according to CEO Howard Schultz. Mobile payment volume is also growing by 50% every year, with more than 7 million mobile transactions being conducted at stores every week. Mobile payments now account for 16% of all transactions handled by Starbucks. There have been many questions regarding how Starbucks has managed to find success when competing against large companies like Google and Apple.

Loyalty program provides customers with an incentive to participate in mobile commerce

Starbucks Coffee - Mobile PaymentsOne of the ways Starbucks has managed to establish such a strong position in the mobile commerce space has to do with the incentives it gives consumers to use its mobile app. The company has been using incentives to encourage consumers to use its own payment solutions for several years now, and these incentives have become part of the company’s mobile strategy. Starbucks’ loyalty program provides rewards for those that make mobile payments, which has proven quite popular among consumers.

Convenience is key to finding success in the mobile commerce field

Starbucks also boasts of a prime environment in which mobile payments can thrive. Many of the people that visit Starbucks stores want to take advantage of fast service, and the Starbucks mobile app can help with that. With the app, customers can place orders before they even enter a store, and pay for these orders quickly from their mobile device. By emphasizing convenience, Starbucks has managed to find success where others have failed.