Starbucks' In-Store Mobile Payments Estimated to Be More Popular Than Apple Pay in U.S.

Discussion in 'MacRumors.com News Discussion' started by MacRumors, May 22, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    By the end of 2018, an estimated 23.4 million users in the United States will be paying for their coffees and bakery items at Starbucks using the company's own in-store mobile payment system. The estimate comes from research firm eMarketer (via Recode), which also predicts that Apple Pay will hit 22 million users by the end of the year.

    Starbucks itself says that its mobile order-and-pay system accounted for 12 percent of all U.S. transactions in the quarter that ended April 1, and eMarketer predicts the company will hit 29.8 million in-store mobile payment users by 2022. According to the data, Starbucks rises above Apple Pay (predicted at 27.5 million in 2022), Google Pay (14.9 million), and Samsung Pay (13.2 million).

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    This could be due to the Starbucks app's cross-platform availability on iOS [Direct Link] and Android, whereas Apple Pay is locked to iPhones for mobile payments and Google Pay and Samsung Pay are found on Android. Still, it's an impressive feat for a single-restaurant payment app to gather enough users to compete with mobile wallets that are aiming for more universal, multi-location appeal, if eMarketer's estimates are correct.

    eMarketer also points out that Starbucks launched in-store mobile payments before Apple, Google, and Samsung debuted their dedicated mobile wallets, so early adoption could be helping its success. The app also includes a rewards program that earns customers free food and drinks every time they pay using the Starbucks app.

    Other points in the report state that Apple Pay is accepted at more than half of U.S. merchants, while Samsung is the most widely accepted at around 80 percent of merchants, while still being the least popular on a user basis. In total, a quarter of U.S. smartphone users over the age of 14, around 55 million owners, will use their devices to make an in-store purchase by the end of 2018.

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    Image via eMarketer and Recode


    Apple doesn't divulge its Apple Pay usage, leaving researchers and analysts to estimate how many users might be paying for items in store using the NFC system. Earlier this year, Loup Ventures did just that, estimating that 127 million people were using Apple Pay globally at the end of 2017, 38 million of which were in the U.S. -- a much higher estimate in comparison to eMarketer's report.

    About one year ago, The Wall Street Journal highlighted Apple's launch troubles with Apple Pay. In an interview around the same time, senior vice president Eddy Cue said that Apple Pay was growing faster than other mobile wallets and believed it could go so far as to replace cash, debit and credit cards as a primary payment system. "Does it matter if we get there in two years, three years [or] five years?" Cue asked. "Ultimately, no."

    Article Link: Starbucks' In-Store Mobile Payments Estimated to Be More Popular Than Apple Pay in U.S.
     
  2. bookwormsy macrumors 6502

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    Personally, the only reason why I use my Starbucks app to pay is for the points.
     
  3. RCS31 macrumors 6502

    RCS31

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    I opened an extra bank account locally because they supported both Android pay (at the time) and Apple Pay. I used Android pay like twice. It's cool for a few times, but after that it just looks like a gimmick. Maybe there are some more benefits to Apple/Google pay in the US, but where I live I might as well just use my contactless card.
     
  4. cknibbs macrumors regular

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    It’s generational. I exclusively use Apple Pay (in Canada). I doubt it will ever catch on with my parents, but I can bet my kids will almost exclusively use Apple/Google Pay as well.
     
  5. bigboyz12000 macrumors member

    bigboyz12000

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    Nice to look at easy to use. Sounds a lot like the first iPhone sales pitch hehe.
     
  6. dannyyankou macrumors 604

    dannyyankou

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    Does it take into account people that reload their cards with Apple Pay?
     
  7. patrickdunn macrumors 6502a

    patrickdunn

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  8. 69Mustang macrumors 603

    69Mustang

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    I don't think reloading a card is considered a transaction. Transactions in this instance are typically qualified as making a purchase.
     
  9. yockster macrumors newbie

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    Of course, this makes sense, the Starbucks app is where I get points, not the apple pay, I wish they would tie them together. In addition, I live in a big city and it is still spotty where apple pay can be used. however, I can go to a small town in the Seattle area, and apple pay is all over. lol.
     
  10. l3it3r macrumors regular

    l3it3r

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    I use both almost every single day. Apple Pay way more, in more places.
     
  11. Sethal macrumors member

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    This is the way I see it too. It’s just like the younger generations embracing streaming vs traditional cable. Most will have hardly used regular tv in 10 years, and it’ll be the same with plastic cards. It’s how you grow up. Older folks used cards most their lives, that’s what they’re use to. Most younger folks don’t even carry their credit cards let alone have that many.
     
  12. Kelly the Dude macrumors member

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    I can't believe this. I feel like someone is operating on inflated/inaccurate numbers here. I remember there was a story that Wal Mart Pay was beating Apple Pay even though Wal Mart pay was only available at Wal Mart at the time-- Couldn't believe that one either. I believe Apple Pay isn't doing as well as people expect, but I can't believe that Starbucks' system is getting more daily users than a payment system available to almost every other retailer on earth.
     
  13. WestonHarvey1 macrumors 68020

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    Best public restroom finder app on the App Store.
     
  14. dontwalkhand macrumors 601

    dontwalkhand

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    #14
    I’m in the US and I use Apple Pay for everything most days. Only time I have to use my card really is restaurants as they don’t have contactless and Walmart, but I do use Walmart pay as well. I’ve never used Starbucks Pay.
     
  15. tasset macrumors 6502a

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    I believe this for many reasons: Starbucks points as others have said, coffee crackheads wanting their fix as soon as possible, and that non-Starbucks retailers (Walmart, Target, Kroger) are discincentivized to letting customers use ApplePay.
    If Apple works in better promos for non-1%'er high end stores it would help. But I do find more and more retail/restaurants are accepting ApplePay etc who are helplessly behind the biggest big box stores in data collection as to it even mattering for them to try to do.
     
  16. ronntaylor macrumors regular

    ronntaylor

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    It would be foolish to miss out on the points. I've never used Apple Pay and have no intention on using any time soon. Never used Android Pay when I used Android phones.
     
  17. HadrianQ macrumors newbie

    HadrianQ

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    #17
    "OMGee gurl I got gold status at Starbucks, lets go there" -nobody

    I do not want to use Starbucks app to pay for anything - except mobile orders.

    I don't care about points, I don't care about free stuff. I want to walk in, swipe my phone, and get to work. Their app is pretty and all, but loading it and giving Starbucks free interest on my money stored in their bank isn't something I want to participate in. It even uses Apple Pay to load the card - proving what a money grab it is.

    Even mobile orders shouldn't require me to load money first - it should just get it from my ApplePay.

    If Starbucks supported ApplePay, I think people would use it and their app would crash and burn.
     
  18. HobeSoundDarryl, May 22, 2018
    Last edited: May 22, 2018

    HobeSoundDarryl macrumors 604

    HobeSoundDarryl

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    #18
    You might want to re-read the story. I don't believe it's saying what you think it's saying. Instead, I believe this is about purchases ONLY at Starbucks, not Starbucks vs. cumulative transactions "with every other retailer on earth." However, if this is some worry about Apple not being #1 in the latter, I suspect good old plastic card usage still probably thoroughly thrashes any of these pay-by-phone options.
     
  19. e-coli macrumors 68000

    e-coli

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    For the life of me I don't know why people would allow a company to hold their personal funds in escrow, making money off the interest. It's puzzling, but hey to each his own I guess.
     
  20. Infinite Vortex macrumors member

    Infinite Vortex

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    What I think everyone seems to forget is that using Apple Pay (or Samsung Pay - or whatever equivalent) isn't any simpler than using my credit card. I still have to do something… I still have to pull something out… I still have to validate. So where's the advantage? Apple doesn't offer me points or any rewards program so why would I prioritise it over something that does??
     
  21. DBDukes macrumors newbie

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    #21
    What about people who use Apple Pay reload their Starbucks card?

    I suppose it doesn't matter.
     
  22. Iphtashu Fitz macrumors regular

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    #22
    I use the Starbucks app a few times a week. Part of the reason I like it is that I can place an order while I'm still 5 minutes away from Starbucks and skip any lines, etc. when I get there.

    I'd use Apple Pay that much, if not more, if only more stores supported it and/or contactless payments in general. It seems like some stores are actively avoiding it (looking at you, Home Depot), while others just don't want to deal with upgrading their POS terminals until they absolutely need to.
     
  23. mithion macrumors regular

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    #23
    I feel like merchants need to do better to advertise the contactless payment methods. Many merchants don't have contactless payment options. And those who do, frequently don't have the apple pay logo so you don't know if they support it or not. I don't know how many times I've just stood there with my phone with nothing happening because apple pay wasn't specifically supported at that establishment. I mean how hard is it to put a sticker on the terminal. Visa, Mastercard and Discovery have been doing it for years...
     
  24. bandalay macrumors regular

    bandalay

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    #24
    That Starbucks app is such a mess. If it weren't for the addictive effects of coffee, it really wouldn't deserve the popularity.
     
  25. Precision Gem macrumors 6502

    Precision Gem

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    #25
    Apple Pay is tied into one of your credit cards, so you still get the points.
    Apple Pay really shines on the Apple Watch. Almost all my Apple Pay transaction are done from the watch.
     

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