Starbucks May Have More Cash Than Your Local Bank

The popular coffee chain is taking in more deposits than some major financial institutions.

A visit to Starbucks is part of plenty of people’s daily routines, whether they’re starting off their day with a cup of joe, stopping for a midday pick-me-up or grabbing some caffeine to power through a late night of work.

With so many people stopping for their daily (or twice daily) cup of coffee, Starbucks is seeing a lot of customers. So many, in fact, that the chain is taking in more deposits than many financial institutions.

According to a MarketWatch report that reviewed data from S&P Global Market Intelligence, Starbucks collected over $1.2 billion in deposits during the first quarter of 2016 from customers looking to purchase drinks, food or merchandise from the ubiquitous coffee chain. The high deposit rate has put the company in a surprising position when compared to some banks and financial institutions.

While Starbucks’ billion dollar plus cash deposit puts it far behind some of the larger players like PayPal, which led the way with $13.02 billion, it placed right next to Bancorp Inc. that saw a cash in-flow of $2.68 billion.

The Seattle, Washinton-based company also brought in more than financial institutions such as California Republic Bancorp, which collected $1.01 billion in deposits, Mercantile Bank Corp., which earned $680 million in deposits, and Discover Financial Services, which brought in $470 million.

According to the latest PYMNTS Global Cash Index, the reason for all that cash coming into Starbucks may just be the result of a higher amount of cash in the marketplace. The Index notes that “cash use is going up simply because people are spending more as a result of economic growth.”

All those deposits seem to be having a positive effect on Starbucks’ bottom line. The company’s shares are up 7.4 percent in the last year, outpacing the 1.6 percent growth seen by the S&P 500 over the same 12 months.


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