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Nearly one in four payments at US Starbucks made via mobile

COFFEE ON TAP: Starbucks has seen another rise in mobile payments in its US stores

Mobile payments now account for 24% of all transactions across Starbucks’ US locations, the company’s president and COO Kevin Johnson has revealed, with an average of 8m transactions per month taking place through the coffee chain’s Mobile Order & Pay service and representing approximately 4% of the total volume of payments recorded in Q2 2016.

“Mobile payment represented 24% of total US tender in Q2 and Mobile Order & Pay continues to be increasingly embraced by our customers,” Johnson said during the company’s second quarter earnings call.

“Mobile Order & Pay transactions represented approximately 4% of total transactions in the quarter, which was a 40% increase sequentially.”

Full benefit

“We are just beginning to see the full benefit of Mobile Order & Pay beyond the speed and convenience it affords to both our customers and partners,” Johnson continued. “Consider this — though still in its infancy, in 300 of our busiest urban stores, Mobile Order & Pay represents over 10% of transactions.

“In those same stores at peak, Mobile Order & Pay represents nearly 20% of transactions. In Portland, where we first introduced Mobile Order & Pay in December 2014, Mobile Order & Pay transaction volume in March was up approximately 150% from March of last year.”

Starbucks reported that 22% of all its US transactions were made via mobile in December 2015. The coffee chain rolled out its Mobile Order & Pay service across the US in September last year.

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