Starbucks mobile payment app nears 4M transactions per week
Impressive numbers for its mobile payment app are now a regular part of Starbucks' quarterly analyst calls. They've been catnip for payment analysts and last week's call was no different.
Discussing Starbucks earnings for Q2 2013 last week, company CEO Howard Schultz told analysts that the company's mobile payment application now has more than 10 million active users. The company is approaching 4 million payment transactions per week, Schultz said. That's about 10 percent of total U.S. tender.
To increase usage of its rewards program, Starbucks recently ran an offer for two weeks for a $5 credit to U.S. Starbucks cardholders who join the program, Schultz said. The result was an increase in nearly 1 million members and nearly half a million global app downloads during the offer.
Schultz said the company expects to have 9 million members in its loyalty program by year's end.
Starbucks isn't resting on its laurels, though. Schultz noted growth in the company's rewards program in markets outside the U.S. "The revenue and operating leverage provided by the scale and synergies among our digital, card loyalty, mobile and social platforms provides us with strong core muscle in our U.S. business and increasingly in multiple channels in markets across the globe," he said.
Schultz promised a new effort in its rewards program, which is expected to launch next month.
"(B)eginning in May, we will unveil the market's first cross-plan, cross-channel rewards program, a capability only made possible by the unique combination of Starbucks national retail store footprint, broad consumer package goods presence and industry-leading digital capabilities," Schultz said.
The program will let customers earn My Starbucks Rewards stars for purchasing Starbucks packaged coffee in grocery stores. Rewards will be redeemable for free food and beverages in Starbucks stores.