Starbucks CEO Howard Schultz said the coffee chain is the number one company in the world in terms of mobile payments. Speaking on an analyst call following the company’s quarterly results last week, Schultz said: “…we are the number one company not in the US but in the world in terms of mobile payment, transactions and dollars”. The quote came as part of a reflection on what digital and social media has done fo the company's performance. Separately he made the comment that mobile payment and commerce “is going to change the way in which consumers buy things”.
Schultz also said there are almost four million users of the Starbucks Card. One in four cardholders pay in the coffee chain using their cards. “One of the differentiating factors of the last year or so has been the loyalty and the stickiness of the Starbucks Card,” he said. The company has also been very strong in using social media such as Facebook, Twitter and Foursquare to lower customer acquisition costs according to Schultz. Starbucks has enjoyed popularity with the payment app it launched in the US in January 2011 and which hit 26 million transactions in its first year. Usage of the app has quickened in recent months it said.
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