Starbucks and Square to roll out mobile payments
|08 Oct 2012 2:05 BST||Back|
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Technology start-up Square and Starbucks have just announced one of the largest mobile-payments roll-outs yet.
Square has begun processing all credit card transactions at Starbuck’s 7,000 plus US shops and, from next month customers will be able use Square’s Wallet app to buy their coffee.
Starbucks CEO Howard Shultz and Square CEO Jack Dorsey presented the plan at the Starbucks Leadership Conference in Houston on Thursday 4 October.
“There are seismic changes to [consumer] behaviour because of technology,” Shultz said at the conference. Explaining why he chose Starbucks, Shultz told delegates, “Jack cracked the code on customer experience.”
Starbucks is the largest retailer accepting mobile payments, with over one million mobile transactions a week.
However, adoption rates are still lagging because of consumer perception that mobile payments are less secure than cash or credit cards.
A survey of mobile insiders by Banktech.com at this year’s Mobile World Congress in Barcelona found that 38% believe that the main obstacle to large-scale adoption of mobile payments is the perception that using a mobile device to transfer personal financial data isn’t safe.