Starbucks: Over 10% of Our U.S. Transactions are Mobile Payments
Starbucks now gets more than10% of its U.S. transactions as mobile payments, and more than 30% of its U.S. transactions are made with the mobile or plastic version of its Starbucks Card.
"We've had significant success in reaching our customers digitally," says Troy Alstead, the company's chief financial officer, in a presentation at the Jefferies Global Consumer Conference June 18.
Starbucks Card payments are "a very sticky transaction by virtue of the fact that people pre-loaded their money that we hold for them in anticipation of that coming transaction," he says. Starbucks also benefits from the data it gets through Starbucks Card spending.
Starbucks' loyalty program is used for 25% of transactions, Alstead says.
The Seattle-based company is also working on ways to increase the size of each transaction. A third of purchases made in U.S. stores are food purchases, and Starbucks plans to improve its menu to encourage more visitors to purchase food.
"Many of these people want food they're ready to give us money," Alstead says.
Starbucks is a pioneer in mobile payments. The company launched its mobile card app in just 16 stores in 2009, and rapidly expanded the program's presence. It linked its app with its loyalty program in 2010.
Starbucks invested $25 million in the mobile payment company Square last year and accepts payments made with the Square Wallet app.