January 16, 2015
The coffee giant has launched its mobile payment app in Germany and France to allow its customers to make payments using a mobile version of their Starbucks card. More than 10 Mn consumers utilize the Starbucks mobile payments app to pay for their coffee and other menu items. According to the company, they witness more than 5 Million mobile payments every week. A majority of its more than 8 Mn loyalty reward customers also use its payment apps.
Starbucks recently launched its ‘Mobile Order & Pay’ service in Portland and is expected to introduce this feature across all U.S. outlets in 2015. It’s not certain whether the feature is coming to European nations as well. Mobile Order & Pay allows customers to place orders in advance of their visit and pick them up at their chosen Starbucks store. The mobile ordering experience is seamlessly integrated into the Starbucks mobile app and the My Starbucks Rewards loyalty program.
The new service is available for customers using the Starbucks app for iPhone. The app interface shows store locations which appear based on the GPS functionality of the customer’s iPhone. The mobile ordering process simply involves scrolling through the menu on the app interface, picking your choice of items and your store of preference and then paying using the in-app payment system. The particular store gets notified of the order, which is kept ready by the time the customer arrives at the store.
Starbucks has been highly focused on developing its own mobile payment system considers it a key business activity. Starbucks has the capability to keep the mobile payments service in-house. Starbuck’s mobile payment has seen accelerated growth with the volume leaping to $517 Mn in 2014 from $302 Mn in 2013.
Starbucks has had the most success in their in-store mobile payments and are held up as a shining example. Other businesses look at their success and want to emulate it. There’s a whole cottage industry that crops up to help merchants in the in-store payment space (because of Starbucks.) There’s clearly a revenue opportunity. And Starbucks itself is creating more revenue opportunities for itself by expanding in new geographies.