Loyalty the key to mobile payments

Starbucks announced poor sales for the last quarter on Thursday, but CEO Howard Schultz said the company was 'playing the offence'. And on Mobile Payments Schultz said "Starbucks will have a major role to play, both inside and outside of our stores." loyalty the key to mobile payments

And the CEO of Starbucks has got a point. The company is the strongest mobile payments success story in the United States. Check out our in-depth look at Starbucks from earlier this year. The key to the coffee giant's success is its embracement of adding value beyond convenience to its customers. Schutlz thinks Starbucks can compete with the more traditional technology providers because:

"Starbucks is the only local, national or global business of any kind to succeed in crossing both the most difficult and the most critical chasm standing between success and failure in mobile payments: Transforming consumer behavior. We have accomplished this by integrating the convenience of mobile payment to a compelling and enjoyable program that gives our customers rewards."

And while Starbucks sales for the quarter were disappointing for the company, the numbers posted for mobile payments is far stronger than any other retailer exploring mobile payments:

"In 2013, payment for purchases by use of all mobile devices in the U.S. totaled $1.3 billion... over 90 percent of those purchases taking place in a Starbucks store."

Starbucks are showing that loyalty and rewards can play a huge part in driving adoption of mobile payments. We think the company's strategy is spot on and that's why loyalty plays such an integral part in the Ensygnia plug and play platform.

By Matthew Taylor 31st October 2014

Related stories around the web

Starbucks CEO thrors down gauntlet on mobile payments, says coffee company will have 'major role to play' - Geekwire

Starbucks plans delivery after sales fall short - Huffington post

Starbucks American sales disappoint on softer traffic - Reuters