Starbucks has expanded its Starbucks Card Mobile payment test to nearly 300 company-operated stores in New York City, and Nassau and Suffolk counties on Long Island. This builds on the successful launch of Starbucks Card Mobile App for select BlackBerry smartphones, iPhone and iPod touch, and the Starbucks mobile payment test which started in fall 2009. Now, Starbucks next mobile move will offer customers in the New York City area an enhanced Starbucks Experience, including the ease and convenience of paying for their favorite Starbucks beverage with their mobile phone.

"Mobile technology is part of our customers' daily routine and with the expansion of mobile payment in our test cities, we're seeing more and more customers using their smartphones as their mobile wallets," says Brady Brewer, vice president Starbucks card and loyalty. "We've heard from our customers on My Starbucks Idea that they want a faster, more convenient way to pay. Now we're inviting customers in New York City and Long Island to experience mobile payment and the fastest way to pay at Starbucks. Mobile is just one of the ways we continue to innovate and enhance the experience for our customers."

n response to customer feedback, the Starbucks Card Mobile App was first developed for select BlackBerry smartphones and iPhone as these devices are used by more than 71 percent of Starbucks smartphone-carrying customers. To experience mobile payment at participating New York City-area Starbucks, customers just need to download the free Starbucks Card Mobile App on their supported BlackBerry smartphone, iPhone or iPod touch. In addition to the mobile payment feature, the app allows customers to manage their card account, reload their card balance directly from their smartphone with a major credit card, check their My Starbucks Rewards status, or find nearby Starbucks stores. With the Starbucks Card Mobile App, customers will have a barcode on their screen that they'll hold in front of a 2-D scanner on the counter to pay for their purchase.

Program to date
The expansion of mobile payment into New York City builds on the successful test program currently in 16 stores in Seattle and Northern California and at more than 1000 Starbucks in U.S. Target stores. The overall Starbucks Card program is experiencing impressive growth and performance, and currently almost one in five of all in-store transactions are paid for with a Starbucks Card, an activity made even more convenient with the introduction of Starbucks Card Mobile App. Customers are on track to load more than $1 billion on Starbucks Cards this year, and at the end of the third quarter, sales of cards were up 17 percent over last year and the reload on existing cards was up more than 59 percent compared to last year.

"With the expansion of mobile payment to New York City, we expect to see more and more customers trading their plastic Starbucks Cards for the digital version on their mobile phone. In addition to the payment capability, customers can also keep track of their My Starbucks Rewards status and reload their card while they are on the way to Starbucks or in line," says Brewer. "Expanding our mobile footprint gives our customers a new way to connect with Starbucks on the go and transforms the way customers experience their Starbucks Card through the mobile app."

 

Knowland: Hotels Slow to Act on Mobile Apps despite Belief in Their Future

The Knowland Group, a data firm in the global meetings and conventions industry, today released a survey on hoteliers' and meeting planners' attitudes and experience with mobile apps. Results show that while the majority believe mobile apps are the wave of the future, few have any firsthand knowledge of them. This inexperience means hotel sales professionals are currently unable to fully capitalize on the popular new technology.

A majority of respondents agree that mobile apps are here to stay. Sixty-seven percent said they believe apps are useful tools that are going to be around for a long time. "I think they are going to have a very big impact and are just now starting to break through with business," said one event coordinator for a Colorado Springs association.

However, 54 percent said they had not had any exposure to mobile apps for the hospitality industry. In addition, 20 percent said they had only heard about these types of mobile apps once or twice and only six percent said that they used them all the time. One Director of Sales at a San Francisco Hotel said she has had no exposure to mobile apps for the hospitality industry; they are not even allowed to use their cell phones at work. Mobile apps, she explained, are, "for the younger generation."

While hoteliers and meeting planners for the most part agreed that mobile apps will be important in the future, 50 percent said they are not having an impact on the meetings and convention industry today. Those who have seen an impact recognize the benefits of using mobile apps to enhance the attendees' experience. Of the half who believe mobile apps are having an impact, 100 percent said that it was either very positive or somewhat positive.

The Knowland survey was conducted over a three day period from October 20-22, 2010.