Starbucks Corp. wants to cash in on one of its customers’ addictions – to their smart phones – to profit even more from their other addiction – to java.
On Tuesday, the giant chain will break new ground in Canada in offering mobile payment, starting from an iPhone and, in the coming months, Android and BlackBerry devices. It’s betting that by transforming shoppers’ phones into mobile wallets, it will get consumers to splurge more – and return more often.
Starbucks’s free iPhone app requires users to enter their prepaid Starbucks card number and tap a scanner. The company learned from its experience in the United States, where it launched mobile payment this past January and has processed more than 20 million transactions digitally since, Mr. Brotman said. About 65 per cent of Starbucks’ U.S. customers have smart phones, which is similar in Canada, he said.
