Starbucks' Innovative Approach to Payment

As I listened to the online radio, I notice an ad for Starbucks. Puzzled by the content I listened carefully, so now there is a new concept of paying for your coffee with your Smartphone! As I’m intrigued by this I do a little research, this is what I found in their website. (www.starbucks.com)

 

So it is basically a mobile app with five core features:

1. Users can manage their Starbucks card 
2. Reload their balance 
3. Find their nearest location (available in 6,800 stores nationwide and 1,000+ at Target stores)
4. Check their Starbucks Reward Star balance
5. Make Mobile payments

How does it work? there is a bar-code provided in the mobile payment feature and when customers are ready to pay they just hold up their phone to the scanner and it’s done! It claims that it makes it easier and faster for customers to get their coffee for the day. 

I think Starbucks is doing a great job at customer value, and possibly even attracting more customers. Starbucks found out that 75 percent of their customers have a Smartphone and it is more likely that they carry their phones instead of their wallets. With this modern society this is pretty much unquestionable.This will prove that it is more valuable, beneficial, for the customer's needs and wants.

So what is the biggest concern? Since this is a new technology, it still has flaws and security can be an issue.View article

Are you ready to pay for your latte with your phone? Do you find it easier and convenient?

Sources:
http://news.starbucks.com/article_display.cfm?article_id=491 
http://bits.blogs.nytimes.com/2011/01/18/now-at-starbucks-buy-a-latte-by-waving-your-phone/