Starbucks is prepared to launch a new Starbucks Rewards Prepaid Card with partner JPMorgan Chase, further strengthening its ongoing relationship with the bank.
The new card will be available to Starbucks customers at the end of this year, Kevin Johnson, the coffee chain's president and chief operating officer, told attendees at the company's March 23 shareholder meeting.
The reloadable prepaid card will allow customers to earn "stars" for all card purchases made anywhere Visa cards are accepted to apply toward Starbucks purchases. The current Starbucks gift card, which also lets patrons earn rewards, is among the most popular holiday gifts in the U.S. In 2014, one in seven Americans received a Starbucks card as a holiday gift.
"This new model is just the beginning of Starbucks opening up its digital ecosystem as well as extending its payment platform," Johnson said.
Last month, Starbucks struck a deal with Chase to include the upcoming Chase Pay mobile wallet in the Starbucks mobile app for payments. Starbucks also recently chose JPMorgan Chase to handle non-mobile payments and U.S. card payment transactions in the stores, replacing Square as its payment processor.
Starbucks continues to have success with its QR code-based mobile payment and loyalty system, including its new order-ahead feature, which the company says accounts for as many as 10% of transactions in some stores.
"Our focus on connecting with customers and delivering experiences across our retail, channel development and digital businesses continues to elevate the Starbucks brand," Johnson said.