Are you a lover of coffee? Are you a Starbucks customer? Here comes the New Year’s gift. The giant coffeehouse announced on January 19, 2011 that it will begin to accept mobile payments. This will launch in all their 6800 company operated stores in the U.S and another 1000 Starbucks US target locations.
This will allow customers to pay for purchases in their stores using selected smartphones. Their move towards mobile payments began with their earlier launch of the Starbucks Card Mobile Application for the Blackberry and iPhone and the iPod. This will in effect become the largest mobile payment network in the US.
Starbucks has since its inception in 1971 curved a niche in the buying, grinding, and selling of coffee and has many outlets around the world. It is a household name in the US and they are now showing their intention to smart up to the times.
What is mobile payment?
Mobile payment is an alternative payment method that has gained popularity in Europe and Asia. The process allows consumers to pay for goods using their mobile phones. With the increasing shift to mobile services many companies in the US have to consider their strategy in trying to adapt if not catch up with the ever changing technology.
Although technology has kept changing, most companies are still lagging behind in implementing new applications beyond traditional computing. Mobile payments are the worst performers here in the US. The Starbucks deal seems to herald a new era where and it might just be the beginning of the new shift to mobile payments.
What does mobile payment mean for traditional payment methods?
There is no stopping in the manner in which technology is tilting towards mobile payment methods. All the new smartphone makers are keen on ensuring their platforms enable mobile payment applications.
The traditional payment methods like credit cards and even online payment methods such as PayPal seem to be bearing the brunt of this tilt. Although not much has been said about this effect, the Starbucks mobile payment deal will bring to the forefront the emerging threat to the traditional payment methods.
Another important aspect to watch is the fact that Starbucks decided to integrate its mobile payment and its card systems. This means that they are virtually controlling their payment method. Credit card providers should have fear, because soon the old fashioned credit card may have deep competition from the mobile payment platform and the card business might be no more.
For banks, market analysts and business leaders, this is a key trend to monitor as we are likely to see other major players especially in the services sector warm up to mobile payments.
References:
Starbucks Newsroom: Mobile Payments Debuts Nationally at Starbucks
Bobson St. Pierre - Bobson St. Pierre started writing professionally in 2007 as a copywriter for his Web design firm, Bobson Consulting Corp. He keeps a blog ...
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