Via Forbes
To see what this future mobile wallet world will look like, don’t turn to Apple, visit your neighborhood Starbucks.
Starbucks’ mobile app is the most used digital payment app in America. About 10 million customers pay for their lattes with the app, making more than 5 million transactions per week. “Not only is it making it easy,” says Starbucks Chief Digital Officer, Adam Brotman. “It’s enhancing the experience and the relationship with the customer.”
Digital payments have little to do with actual payments. Credit cards and cash are easy and reliable. Replacing a card swipe with a phone tap isn’t an improvement—as PayPal president David Marcus says “that’s just technology for technology sake.” For mobile money to truly take off, it must offer more. “It has to be the experience you have online today,” says Marcus. “You’ll get what you want really fast, pay really fast and get out. And the merchant will know more stuff about you, and that will make your experience better.”
Starbucks has discovered how to make the experience better, at least for its coffee customers. Yes, the app let’s you pay with your iPhone, but it also enables customers to refill their Starbucks loyalty accounts with a few finger taps, offers instant discounts for free coffee or food and links to directly to Starbucks’ hot reward program in real time.
The reward program is a big draw. The app has gamified your morning coffee run. Each time you grab a grande you earn a digital star. Five stars get you to the green level, which is good for free refills and coupons. Collect 30 stars and you’re eligible for a free drink for every 12, plus more bonus offers. Like airlines, once you achieve VIP status, you’ll give your business to Starbucks any chance you get. The app makes the loyalty program even stickier.
Another advantage the app gives Starbucks is the built in inbox, which gives the company an exclusive, direct marketing link to customers. To keep people checking the inbox, Starbucks uses it to delivers digital goodies like free iTunes songs, e-books and apps weekly. “It gives us a tighter relationship with the customer,” says Brotman. “It’s a completely different dimension.” A dimension that 10 million customers love. Take note, tech world.
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