Starbucks is reportedly storing mobile app users' passwords in a manner that makes them accessible to a hacker with access to a user's phone, creating potential security risks that could erode consumer confidence in mobile payments.

Mobile commerce is a large part of Starbucks brand; 11% of its U.S. and Canadian sales are made as mobile payments. Its app displays a bar code to be scanned at the point of sale to pay from a linked Starbucks Card prepaid account. The app can draw funds from a linked bank account to reload its balance.

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