Starbucks unveiled a first-of-its-kind app today that lets users pay for in-store purchases using their iPhone, a move that could pave the way for a new generation of e-commerce applications on Apple’s popular phone.
With the Starbucks Card Mobile App, users can sync their prepaid Starbucks Card with the app, check their balance and refill it using a credit card. At some stores, they can also use the app to pay for Venti coffees and Frappuccinos.
When users select the “payment trial” function on the app, a QR code appears on the iPhone screen. A barista then scans the iPhone, deducting the cost from the Starbucks Card balance, and completing the purchase.
The trial is being rolled out at 16 locations in Seattle and Silicon Valley, where there is high usage of both iPhones and Starbucks Cards. But expect the programme to go nationwide soon, and for other retailers to follow.
To get its loyal caffeine addicts hooked on the new technology, Starbucks is offering perks like free coffee refills and 2 hours of free wifi for early adopters of the app. Unfortunately, the app doesn’t let you jump to the front of the line or let you order in advance, two services that would doubtlessly appeal to true junkies. The most practical use case scenario would be a customer who forgot their wallet at home, but had their phone on them.
The race is on for the “mobile phone wallet”. Nokia is integrating payment system into its phones. PayPal is also plotting an offline expansion. Other, more cumbersome iPhone apps have tried to achieve in-store payments, but required additional additional hardware for the phone — a deal-breaker.
In-store mobile phone payments aren’t likely to catch on overnight. Consumers are used to credit cards, which generally work just fine. Besides, if your mobile phone was also your wallet, it would be doubly painful to misplace it.
But as the technology becomes more secure, and mainstream consumer companies like Apple get on board, mobile phone wallets could become ubiquitous as, well, Starbucks.
