January 23rd, 2011

Star­bucks extends ‘pay by phone’ across the U.S.

Star­bucks rolls out ‘pay by phone’ across the States

Star­bucks has exten­ded its ‘pay by phone’ pro­gramme across the U.S. in what it claims is the biggest mobile pay­ment scheme in the country.

The pilot pro­gramme star­ted in cof­fee shops in Seattle, New York and Sil­icon Val­ley in late 2009 but has been rolled out to 6,800 Star­bucks stores and over 1,000 out­lets in Tar­get shops.

To use the ‘pay by phone’ sys­tem, latte-​lovers with a Star­bucks Card can down­load an iPhone or Black­Berry applic­a­tion, which dis­plays a bar­code on the phone’s screen that is scanned on the ‘coun­ter­top’ to pay for drinks.

In the UK, many people are used to loy­alty cof­fee cards where you often col­lect stamps and get your 20th cuppa free, but pre-​loaded Star­bucks cards are big busi­ness in the US and are loaded with over $1.5bn in the last year, up 21 per­cent from 2009 levels.

The Star­bucks app required for the ‘pay by phone’ ser­vice also allows users to man­age their Star­bucks accounts and loc­ate nearby shops. 1 in 5 Star­bucks trans­ac­tions is now made by store cards, Brady Brewer, VP of card and brand loy­alty at Star­bucks said.

He added: “With mobile pay­ment, the Star­bucks Card plat­form fur­ther elev­ates the cus­tomer exper­i­ence by deliv­er­ing con­veni­ence, reward­ing loy­alty and con­tinu­ing to build an emo­tional con­nec­tion with our customers.”

More than 1 third of Star­bucks cus­tom­ers use smart­phones and nearly three quar­ters of those mobile and coffee-​cup tot­ing con­sumers use a Black­Berry or iPhone.

Mobile pay­ment is just one example of how we’re con­tinu­ally innov­at­ing on behalf of our cus­tom­ers to enhance the Star­bucks Exper­i­ence. A grow­ing seg­ment of our cus­tom­ers use smart­phones, and through the Star­bucks Card Mobile App, we’re provid­ing them with the fast­est way to pay,” said Brewer.

Star­bucks is devel­op­ing an Android applic­a­tion but appar­ently there is no cur­rent plan to extend the pay­ment ser­vice to Win­dows Phone 7.

1 comment to Star­bucks extends ‘pay by phone’ across the U.S.

  • Hi there. I’m Kim Livingers, pleased to meet you.

    I was read­ing into this sub­ject when I came across your blo­g­post “Star­bucks extends ‘pay by phone’ across the U.S. « rosen­berg & asso­ci­ates – mobile, mar­ket­ing & com­mu­nic­a­tions”. At this time I have a blog myself (http://​www​.buyex​haust​muffler​.com/​b​o​sal). … It might be a little offtopic but still, check out the blog :)


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