Home > Uncategorized > Starbucks Starts Accepting Mobile Payments Nationwide

Starbucks Starts Accepting Mobile Payments Nationwide

Since the advent of mobile invention, there have been great changes in humans’ living behaviors. In the past, people used mobile phones as a way to contact their friends; however, nowadays, mobile phones are not just handset phones but multifunctional devices that allow people to listen to music, surf the internet, take pictures, shoot video and play video games on. The functions of mobile phones are not limited to these. Today, using smart phones to pay for the purchases can be seen everywhere. To catch up with this trend, many companies, like Starbucks, have applied this trend to their businesses. This practice makes it convenient for customers to purchase goods. Although accepting mobile payment brings some opportunities for businesses, there are several concerns that cannot be ignored.

 In January of this year, Starbucks launched mobile payment via the Starbucks Card Mobile iPhone and BlackBerry applications at 6,800 company-operated stores. According to Starbucks, it showed that more than 3 million people have paid using the Starbucks Card Mobile, making the past financial quarter the best performing ever. The success of this mobile payment contributes to the ease and convenience of grabbing a cup of coffee. The customers do not need to carry their wallets and purses when buying coffee but just need their super smart phones. Providing such an easy way to buy a cup of coffee enables the company to attract more people to Starbucks.

 On the other hand, while mobile payments may be an appealing method for companies to differentiate from one another, we should think about whether the companies should use mobile payments as a main marketing strategy to attract consumers. First, the adoption of mobile payments will still take a few years because most consumers are still not interested in mobile payments. In the report “Mobile Payments Enter a Disruptive Phase,” Forrest analyst Thomas Husson says that only 12% of adults in the U.S. have made transactions via their smart phones. Forrester finds that mobile payments have the potential to disrupt existing payment systems.

 Secondly, people are still concerned about security when they use mobile payments’. If the companies do not use secure Wi-Fi network to store customers’ credit card data, consumers cannot trust that it would be safe to use mobile payments.

 Finally, it is kind of risky to regard your mobile phone as your wallet. Think about if you lose your smart phone or someone steals it, it would be just like giving your money to someone to spend. Once you lose your mobile phone, you would lose all your money. Without making sure that mobile payments require a secure code, we cannot say mobile payments are safe.

 To sum up, even though mobile payments may be a future trend for companies to market their businesses, considering consumers’ concerns about personal privacy and security is crucial.

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