Starbucks mobile payments eclipse 10% of U.S. store transactions
More than 10 percent of Starbucks' in-store transactions in the United States are made via mobile phone, the coffeehouse chain announced.
"Mobile devices have become increasingly important part of the customer experience at Starbucks as the fastest and easiest way to pay in our stores, and we will continue to bring more innovation to this space," Starbucks Chief Digital Officer Adam Brotman said during the company's fiscal third-quarter earnings call, according to a Seeking Alpha transcript.
"[The mobile platform] is growing at rates that are just unbelievable and put us in a position where we've more transactions on mobile than any other retailer in the world," added Starbucks Chairman, President and CEO Howard Schultz. "[It] is also creating speed of service and efficiency and also satisfying our customers in ways that they have not been satisfied before."
The Starbucks Card Mobile App connects iPhone, Android and BlackBerry (NASDAQ:BBRY) devices to prepaid Starbucks Card accounts to enable barcode-based checkouts. "In our third quarter, we saw 3 percent year-over-year growth in total dollars loaded on Starbucks cards in retail North America and nearly 100 percent year-over-year growth in dollars loaded on our cards via Starbucks mobile apps and Web properties," Brotman said.
Starbucks recently expanded mobile payment solutions to iOS and Android device owners in the Hong Kong market. "We're already seeing strong response from that," Brotman said. "In fact, these iOS and Android apps became the number one free applications in the Hong Kong app stores within less than a day of having launched."
With mobile activity increasing, Starbucks also announced a partnership with battery and smart power systems manufacturer Duracell to trial wireless device charging systems at select Starbucks stores in Silicon Valley. "The installation of multiple wireless charging tarmac surfaces in our stores will allow our customers to recharge their smartphones quickly and effortlessly," Brotman said. "This is the kind of improvement to the digital experience that our customers expect from Starbucks and the kind that we will deliver at scale moving forward."
Speaking with analysts in January, Schultz said Starbucks will increase its menu of mobile commerce services this year, with mobile tipping as well as new ordering and personalization tools slated to launch in the months ahead. Starbucks is also exploring new opportunities to exploit partner Square's mobile payment technologies, which rolled out across 7,000 U.S. stores late last year.
Starbucks' net revenues increased 13 percent in its most recent quarter to $3.7 billion. The company opened 341 net new stores during the period and now operates 19,209 stores globally.
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