Starbucks to maintain m-payments momentum via mobile ordering expansion

Tuesday 27 January 2015 00:28 CET | News

Starbucks is set to rollout a new service across the US that enables customers to order coffee on their mobile device and then collect it in-store.

The coffee chain launched Mobile Order and Pay in Portland in December 2014 and will now expand the service to over 600 stores in the Northwest over the coming months. The service will be rolled out nationally later in 2015.

Starbucks customers now make an average 7 million in-store mobile transactions per week in the US, representing 16% of the firms total transaction dollar volume. The company processed approximately USD 535 million in mobile payments last quarter, a 41% year-over-year (YoY) increase, in comparison to 139% YoY growth in the same quarter of last year. This is notably decelerating growth; however, thats likely because so many people have already adopted the app.

Furthermore, 900,000 new My Starbucks Rewards (MSR) members were added in the last quarter, marking 9 million total MSR members, a 23% YoY increase. MSR is Starbucks customer loyalty program that lets customers accrue rewards points by making payments with their mobile phone or a plastic card.

Sources also claim that 1 in 7 Americans (18 and over) received a Starbucks gift card over the holidays and USD 1.6 billion were loaded onto gift cards in North America, a 17% increase YoY.

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Keywords: Starbucks, m-payments, momentum, mobile, ordering, expansion, in-store, mobile device, Mobile Order and Pay, app, mobile transactions, mobile payments, rewards, payments
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce