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Mobile Payments Fuel Starbucks Growth

Starbucks reported a strong Q2 performance, with revenue up 11 percent, a 23 percent increase in quarterly profit. Mobile payments were a particularly strong performer for the company, contributing 15 percent of total quarterly revenue.

In a call with investors, CEO Howard Shultz said Starbucks processed 6 million mobile transactions per week in the U.S. during the quarter that ended June 29. Shultz further noted the extremely popular Starbucks mobile app has 12 million users in the United States and Canada.

The company also tipped its hand slightly about forthcoming technological advances coming to consumers via the mobile app.  The Seattle-base coffee retailer will be pushing its mobile order and pay initiative in a major U.S. market this year, which will allow users to make and pay for coffee and food orders via smart phone in advance of arriving at a physical Starbucks location to pick-up their order.

Shultz also credited the mobile application for the strength of the Starbucks loyalty program, which claims nearly 8 million active users in the Unites States.

“By integrating mobile loyalty, payment, and in-store digital experiences, we are creating game-changing technologies and experiences for our customers, and the opportunity to introduce new lines of business for our company,” Shultz told investors. “A prime example of this is our forthcoming mobile order and pay initiative that will allow customers to use their phones and MSR accounts to order ahead of arriving at a store where we plan to pilot in a major U.S. market later this year.”

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PYMNTS STUDY: THE CROSS-BORDER MERCHANT FRICTION INDEX – JUNE 2020

The PYMNTS Cross-Border Merchant Friction Index analyzes the key friction points experienced by consumers browsing, shopping and paying for purchases on international eCommerce sites. PYMNTS examined the checkout processes of 266 B2B and B2C eCommerce sites across 12 industries and operating from locations across Europe and the United States to provide a comprehensive overview of their checkout offerings.

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