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Mobile Marketing and Commerce Strategies

Popularity of Starbucks Mobile Payments Soars

Daily Insight | Jason Armitage | April 30, 2013

For more, view the survey.

 

Coffee chain Starbucks’ mobile payments platform continues to serve as the gold standard for brick-and-mortar apps. During the company’s recent earnings call, Starbucks officials said the popularity of the company’s platform has never been better.

 

According to Mobile Payments Today, Starbucks CEO Howard Schultz reported that the company’s app now has 10 million active users and accepts nearly 4 million mobile transactions each week. "The revenue and operating leverage provided by the scale and synergies among our digital, card loyalty, mobile and social platforms provide us with strong core muscle in our U.S. business,” Schultz said on the call, according to the news provider.

 

Moving forward, Starbucks knows it will have to continue innovating to keep ahead of the growing mobile payments market. Much of that will be built around a cross-channel promotion for its loyalty program, which will approach 9 million members by 2014.

 

Yankee Group Principal Analyst Jason Armitage comments

 

“Starbucks isn’t the most popular app for mobile payments. That accolade belongs to PayPal. In the U.S., 13 percent of handset owners use the longtime incumbent in online payments for in-store purchases. So will retailers stick to their own mobile wallets or join broader platforms? The answer for big merchants is both. A broad mobile wallet can still win over retail partners if it provides reach, value and visibility.”

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