Starbucks Says It Handles 90% of All Mobile Payments
Mobile payments are becoming increasingly popular, especially with the introduction of Apple Pay. Starbucks was one of the first retailers to allow mobile payments in their coffeehouses, and this early entry is now paying off for them.
Of the seven million transactions that take place at Starbucks each week, one out of six, or 16%, are paid for through mobile devices.
When releasing their fourth quarter earnings to investors, the CEO of Starbucks, Howard Schultz, claims the company made up 90% of the mobile payment market in 2013.
Schultz said the launch of the company’s mobile order and pay app is the most important innovation the company has introduced in recent years. The app allows customers to order and pay for their coffee and treats through a mobile device, then pick up their order in the restaurant without waiting in line.
“Allowing consumers to conveniently conduct their lives and complete commerce from wherever they have to be was actually occurring as a cultural shift in time allocation away from retail experiences,” said Schultz. “Starbucks is uniquely well positioned to benefit from this convergence as a destination experience.”
Starbucks plans to grow their mobile order business even more in the coming year by adding mobile drive-up options and delivery services in select location.
“That’s our version of E-commerce on steroids,” Schultz said.