Our increasing reliance on smartphones isn’t a secret. Ask anyone under 50 if they’d rather lose their phone or their wallet and you’re likely to have more people answer wallet than phone. The answer makes more sense if you think about it. More personal, sensitive information is contained on someone’s phone than in their wallet – including forms of payment.
Starbucks has recently reported that 10% of its customers in the US pay via smartphone. This is largely possible due to the company’s payment app that allows users to pay using a virtual copy of their Starbucks card. All a customer has to do is pull up the barcode on their phone and have the cashier scan the screen.
The big news is how effortlessly the transaction works. Companies like Google have been trying to create wallet-free payment methods for years with little to no success, yet Starbucks seems to have found an answer.
However, you have to take into consideration Starbuck’s clientele. The company services a more tech-savvy, financially affluent crowd than most. What works for Starbucks isn’t likely to work on a grander scale. But still, it’s something other companies should find worth looking into.
Do you use your phone to pay at Starbucks?
Source – The Verge