Starbucks Expands Mobile Payment Test to 300 NYC-area Locations
Starbucks has expanded its Starbucks Card Mobile payment test to nearly 300 company-operated stores in New York City, and Nassau and Suffolk counties on Long Island. This builds on the successful launch of Starbucks Card Mobile App for select BlackBerry smartphones, iPhone and iPod touch, and the Starbucks mobile payment test which started in fall 2009. Now, Starbucks next mobile move will offer customers in the New York City area an enhanced Starbucks Experience, including the ease and convenience of paying for their favorite Starbucks beverage with their mobile phone.
"Mobile technology is part of our customers' daily routine and with the expansion of mobile payment in our test cities, we're seeing more and more customers using their smartphones as their mobile wallets," says Brady Brewer, vice president Starbucks card and loyalty. "We've heard from our customers on My Starbucks Idea that they want a faster, more convenient way to pay. Now we're inviting customers in New York City and Long Island to experience mobile payment and the fastest way to pay at Starbucks. Mobile is just one of the ways we continue to innovate and enhance the experience for our customers."
In response to customer feedback, the Starbucks Card Mobile App was first developed for select BlackBerry smartphones and iPhone as these devices are used by more than 71 percent of Starbucks smartphone-carrying customers. To experience mobile payment at participating New York City-area Starbucks, customers just need to download the free Starbucks Card Mobile App on their supported BlackBerry smartphone, iPhone or iPod touch. In addition to the mobile payment feature, the app allows customers to manage their card account, reload their card balance directly from their smartphone with a major credit card, check their My Starbucks Rewards status, or find nearby Starbucks stores. With the Starbucks Card Mobile App, customers will have a barcode on their screen that they'll hold in front of a 2-D scanner on the counter to pay for their purchase.
The expansion of mobile payment into New York City builds on the successful test program currently in 16 stores in Seattle and Northern California and at more than 1000 Starbucks in U.S. Target stores. The overall Starbucks Card program is experiencing impressive growth and performance, and currently almost one in five of all in-store transactions are paid for with a Starbucks Card, an activity made even more convenient with the introduction of Starbucks Card Mobile App. Customers are on track to load more than $1 billion on Starbucks Cards this year, and at the end of the third quarter, sales of cards were up 17 percent over last year and the reload on existing cards was up more than 59 percent compared to last year.
"With the expansion of mobile payment to New York City, we expect to see more and more customers trading their plastic Starbucks Cards for the digital version on their mobile phone. In addition to the payment capability, customers can also keep track of their My Starbucks Rewards status and reload their card while they are on the way to Starbucks or in line," says Brewer. "Expanding our mobile footprint gives our customers a new way to connect with Starbucks on the go and transforms the way customers experience their Starbucks Card through the mobile app."