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Starbucks iPhone Mobile Payment Demo

2009 September 29

Here’s a video recorded of John Cook using the Starbucks iPhone Mobile Payment application for the first time.

The application lets you pay using 2D barcode readers from your Starbucks card. You can also enter a credit card number that lets you reload your Starbucks card in round increments starting at $10. He has a bit of trouble figuring out exactly how to scan the barcode image the first time, and I suspect some critics may cite this as a problem. However, I think most users and Starbucks employees will quickly get used to the process.

I think this application will succeed in reducing lines in the stores which is a huge boost to their retail business. I’m sure the mobile application will be a big boost to their Starbucks Card business as well. It’s a cool reason to reload your Starbucks card which is good for Starbucks as well.

I think this is a breakthrough and a model that will be emulated worldwide. The biggest barrier to this approach seems to be the POS hardware (2D scanners). I don’t see a reason why this model can’t work with NFC stickers or even PIN codes.  NFC stickers could take advantage of underutilized NFC readers at many chain stores. PIN codes could use existing PIN Debit pads.

The race is on!

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  1. September 29, 2009

    You know, I have to tell you, I really enjoy this blog and the insight from everyone who participates. I find it to be refreshing and very informative. I wish there were more blogs like it. Anyway, I felt it was about time I posted, I?ve spent most of my time here just lurking and reading, but today for some reason I just felt compelled to say this.

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