NEW YORK | Starbucks continues to expand its role as a leading mobile payments provider as evidenced in comments made last week by a company executive who said more than 2 million mobile payment transactions occur every week.
The comments were made by Howard Schultz, president/CEO of Starbucks, during a conference call with analysts to discuss the company’s fourth quarter results. Mr. Schultz also said that the burden is on companies to recognize the seismic change in consumer behavior as a result of the emergence of mobile commerce and mobile payments as well as social and digital media.
“We believe the rapid adoption of mobile gives us an opportunity to create a unique and much deeper relationship with our customers directly and in the moment like no other consumer brand or retailer,” Mr. Schultz said during the conference call. “We have the unprecedented ability to reach new customers, create awareness to new products, drive incremental transactions and explore new revenue streams in music and digital publishing.”
Mr. Schultz also reported that Starbucks has had more than 100 million mobile payment transactions since the Starbucks mobile app launched in January 2011.
The number has jumped since early October, when Starbucks said the app had seen over 70 million mobile payments.
Starbucks continues to look for ways to expand its mobile payment offering and recently partnered with square. As a result, later this month Starbucks customers will be able to use the square wallet app to pay for purchases with their mobile phones.
Additionally, the company has plans to include tipping as a mobile payments feature next year and is also looking to add mobile ordering and personalization.
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Chantal Tode is associate editor on Mobile Commerce Daily, New York