Thursday 20 January 2011

Starbucks mobile payment service goes national

Starbucks is taking the mobile payment system it has been testing in a limited number of stores in Seattle, New York and San Francisco national. The system, which enables iOS and BlackBerry users to "pay by phone" has expanded to nearly 6,800 company-operated Starbucks stores in the U.S., starting Wednesday.

Once the application is installed onto an iOS or BlackBerry phone, users can load their Starbucks card information onto the device. The app will display a barcode that is scanned for payment, just as with customers' Starbucks cards. Customers can check their balance and reload cards, as well.

Although Starbucks could have opted for the near-field communication system (NFC) that Google is touting as a potential future replacement for credit cards, it decided to go with its own custom system.  NFC, the company said, is too limited in adoption and too new, at least for now.  Google recently added NFC support to Android 2.3 (Gingerbread).

20 percent of transactions at Starbucks stores are paid for with Starbucks cards. Brady Brewer, vice president of card and brand loyalty, said in a release:
“Mobile payment is just one example of how we’re continually innovating on behalf of our customers to enhance the Starbucks Experience. A growing segment of our customers use smartphones, and through the Starbucks Card Mobile App, we’re providing them with the fastest way to pay.”
One reason Starbucks thinks the program will be successful is that while waiting in line, customers are always fiddling with their mobile devices. Of course, in order to be truly successful, they'll need to add an Android version, and that is reportedly being built. There's no word on any plans for a Windows Phone version.