Popular coffee chain Starbucks is thinking about expanding its long-term payment strategy. Part of this includes cryptocurrencies to expand the company’s digital customer relationships.
Starbucks and Cryptocurrency
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With cryptocurrency going mainstream, Starbucks is also thinking of ways to incorporate this into its system. After a quarterly investor call, Mr. Howard Shultz, the chairman of Starbucks stated that they want to take advantage of the changes.
“I believe that we are heading into a new age, in which blockchain technology is going to provide a significant level of a digital currency that is going to have a consumer application.” – Howard Shultz
Mr. Shultz stressed that the company does not have any plans to develop its own digital currency or investing into one. What he is interested in is to lend the coffee chain’s credibility to these technologies.
Starbucks and Bitcoin
However, Mr. Shultz doesn’t think bitcoin has the ability to “be a currency today or in the future.”
Bitcoin is the currently the world’s best performing cryptocurrency. Although, in the past few weeks and months, the bitcoin network is crippled with slow transactions and high transaction fees. Moreover, some observed that people are now looking at bitcoin as a store of value rather than a payment method.
Starbucks and Cashless Payments
“We think we have something to offer the companies that are chasing this, because we are in a position to create the trusted legitimate place in which this could be accepted and possibly take advantage of the mobile payment digital platform that we have created.” – Howard Shultz
Aside from credit card, debit card, and its own reloadable card, Starbucks has a mobile payment app initially aunched in 2015. This app enables customers to order and pay online with the bonus of getting rewards.
Note: Starbucks Philippines
Starbucks opened in the Philippines through a local partner – Rustan Coffee Corporation. Contrary to what people think, it is not a franchise but a joint venture between Starbucks and Rustan. Appsolutely, the company behind the cryptocurrency rewards platform – LoyalCoin, has created rewards programs for Starbucks.
With Starbuck’s long history of innovative payment solutions, it is no surprise that it is looking into cryptocurrency payments in the future. The company’s mobile payments in the US constitutes one-third of its transactions. This is another reason why Mr. Shultz is also thinking of having cashless stores in the US.
With Bitcoin out of the equation, one has to wonder what cryptocurrencies it will accept.