With 16 million active users, coffee chain Starbucks is now clocking 9 million mobile payments per week. In terms of transaction value, it is around 20% of all transactions in US stores. Since December 2014, the number of active users has grown by 3 million and the number of weekly payments has grown by 2 million.
In 2010, Starbucks rolled out US’ largest mobile payment program with the goal of offering a truly innovative mobile experience for its customers. The Starbucks Card stored within the app provided a convenient and faster way to pay for Starbucks purchases. Since its launch, it has gained stupendous momentum. In the first nine weeks of the program, there were 3 million transactions. By 2011, the program gave customers access to pay at 9000 US stores and the company witnessed around 26 million mobile transactions.
The major driver in achieving the 9-million-transactions-per-week mark, is the Mobile Order and Pay facility. The company launched Mobile Order & Pay in Portland, Oregon in December 2014. Mobile Order & Pay allows customers to place orders in advance of their visit and pick them up at a participating Starbucks store. By Q2 2015, the coffee giant expanded the facility to more than 650 stores in Washington, Idaho, Oregon and Alaska. In the last quarter i.e. Q3 2015, they have accelerated further and now, Mobile Order & Pay facility is available at 4,000 stores. The Mobile Order & Pay facility is gaining tremendous popularity because it leads to shorter queues and faster, efficient service. The company plans for a full deployment at all US stores.
At present, Mobile Order & Pay facility is only available to iOS users. The Seattle-based company is planning to bring the capability to its Android app and will also roll out the facility internationally.