Mobile payments now account for 1 in 10 transactions at Starbuck, according to its Chief Financial Officer.
Speaking at the Jefferies Global Consumer Conference, Troy Alstead, Starbucks’ chief financial officer and chief accounting officer, explaining how customers are opting to use the coffee chain’s app in increasing numbers.
The Starbucks Card Mobile App connects iPhone, Android and BlackBerry devices to prepaid Starbucks Card accounts to enable barcode-based checkouts.
“Mobile payments not launched all that long ago represents greater than 10% now of our U.S. transactions,” Alstead revealed during the presentation.
The Starbucks executive praises the mobile channel for its ability to drive the efficiencies, speed of service, and a lower cost transaction within the store.
All of the growth Starbucks has experienced of late is “really empowered by what we do digitally,” Alstead added.
“We had significant success in reaching our customers digitally, significant benefits both in terms of cost, but also the halo that comes from providing these opportunities around payment methods and loyalty to the customer,” he concluded. “Starbucks card in all it’s entirety and that means the physical card, but also mobile forms of card, store value card payments represents now greater than 30%, almost a third of transactions in our U.S. system. The loyalty program in the U.S. just introduced a couple of years ago represents now 25% and rapidly growing of our U.S. transaction.”
