BII
Starbucks conducts 6 million transactions weekly through its mobile app
While many mobile payment apps like Google Wallet are struggling to gain traction with consumers,Starbucks’ mobile payment app is a real success.
With an average of 6 million weekly transactions in the US, it now accounts for a full 15% of all transactions in US stores operated by Starbucks.
In a new research note from BI Intelligence, we dive into how the Starbucks app works, explain why it’s so popular, and whether other retailers could find success with a similar mobile payments model.
Access the full report and data by signing up for a free trial today >>
Here are some of the key takeaways from the note.
-
A billion-dollar volume driver: We estimate that the Starbucks app will process over $1.5 billion in U.S. payments in 2014. In the second quarter, the app accounted for 15% of transactions at Starbucks-operated U.S. stores, an average of 6 million transactions per week.
-
Customer loyalty to Starbucks plays a role: Starbucks branches are everywhere, coffee is bought regularly, the app rewards regular purchases through its loyalty program and the app works on most smartphones. The success of the app is not due to the easy payment by phone. So it has been possible to despite the fact that it is no more convenient than credit or debit cards or cash.
-
Growth opportunities: Numerous features could stimulate growth again, including the ability to pre-order and beacon-based alerts and offers.
-
Other retailers could emulate Starbucks’ success: These retailers include quick-service restaurants, gas stations, grocery stores and pharmacies. Starbucks has announced that it is in talks to license the app’s technology as a white-label solution.
The full research report states:
To get full access to all BI Intelligence charts and data on the payments industry, sign up for a free trial.
The post “A look behind the scenes of the Starbucks app, the most successful mobile payment system in the US” first appeared on Business Insider.
