Starbucks to ramp up mobile payments as it climbs to 19% of US store tender

Starbucks is to “significantly” ramp up the rollout of its mobile order-and-pay capability, which it has claimed now accounts for 19 per cent of its US store tender.

After launching last December, Starbucks said it now receives 8 million weekly mobile payments, which customers can currently use in 650 stores across the US.

Speaking on a call with investors Starbucks chief digital officer Adam Brotman said he is “really pleased” with the results so far.

“We will actually see a significantly ramped up, accelerated pace of rollout in the second half of the year,” he said. “We have a big wave of stores coming on this summer and while we continue to learn and optimise a couple of areas, for example, the estimated wait time pick-up, we are dialling in-store level menu and inventory management.”

A new Android app to enable mobile payments is set to launch later this year in both the UK and Canada.

Global net revenues at the coffee company jumped by 18 per cent to a record high of $4.6bn in the second quarter while global store sales were up by 7 per cent.

Meanwhile in EMEA Starbucks delivered its “strongest Q2 performance in history” with sales rising by 2 per cent.

The company attributed much of this success to innovation in its products and technology with chief executive Howard Schultz hailing it as the force that will continue to drive forward the business.

“If there is one word to describe Starbucks' record performance in the quarter, I think it would be innovation,” he said.

“Innovation will continue to drive our business in the future and provide us with the confidence and ability to continue growing our business in markets and channels on a global basis.”

More innovation on mobile is set to be announced in the coming months.

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