Slideshow 11 Ingredients in Starbucks' Bold Mobile-Payments Blend

Published
  • March 28 2013, 8:56pm EDT
12 Images Total

(Image: Bloomberg News)

Store by Store

Starbucks' early moves in mobile payments were tentative. It worked with mFoundry Inc. to test an iPhone-only mobile payment system in just 16 stores back in 2009. (Image: Bloomberg News)

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Getting On Target

By April 2010, Starbucks tweaked its app's technology to make it work in a thousand locations. The rapid expansion took advantage of the scanners in place at Target stores, many of which have Starbucks locations inside. (Image: Bloomberg News)

Ringing Up Rewards

In May 2010, Starbucks added a loyalty feature to its payment app, allowing users to track the rewards points they earn through their coffee habit. (Image: Bloomberg News)

Winning Formula

Even in the app's early months, Starbucks considered it a success. App users spent less time at the register because they could use the app to top up their Starbucks card accounts while standing in line. (Image: Bloomberg News)

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Betting on Blackberry

After the iPhone, Starbucks made its app available to Blackberry users, bucking the conventional wisdom of developing for Android next. Starbucks' decision to prioritize Blackberry stemmed from its knowledge that many coffee buyers visit its stores on their way to work — with their company-issued Blackberrys in hand. (Image: ShutterStock)

Apple Takes Notice

By early 2011, Starbucks' success was too much for even Apple to ignore. Apple began featuring the Starbucks app in its television advertising. (Image: Bloomberg News)

Coffee Klatch

As Starbucks' mobile payment app grew in popularity, it inspired an odd experiment: customer Jonathan Stark chose to share his card account online, allowing anyone to fund and spend from it. Starbucks was initially supportive, but changed its mind within a month and closed Stark's account.

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Square Deal

Starbucks made a $25 million investment in Square in 2012, a move that also placed Starbucks chairman, president and CEO Howard Schultz on Square's board. Starbucks agreed to use Square for processing but it did not agree to use Square's flagship product, a mobile card reader. (Image: Bloomberg News)

More and More Mobile

Starbucks later agreed to list all of its 7,000 stores in the Square directory and accept purchases from the Square Wallet. Starbucks also updated its own app to work with Apple's Passbook wallet, allowing the mobile Starbucks card to sense when a customer walks into a favorite store. (Image: Bloomberg News)

More than Coffee

At the start of this year, Starbucks began selling Square's readers in its stores. Starbucks still does not use the readers to accept payments.

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Tea Time

In March, Starbucks announced plans to expand its loyalty and payment programs across its brands. This integration allows customers to use the Starbucks mobile app to make purchases in Teavana stores. (Image: ThinkStock)