If you‘re a frequent Starbucks customer and avid iPhone user, you‘ve likely wondered, "Does Starbucks take Apple Pay?" The answer is a resounding yes! In fact, Starbucks was one of the earliest major retailers to adopt the wildly popular mobile wallet, allowing coffee lovers to easily pay with a tap of their iPhone or Apple Watch.
As a consumer and retail expert, I‘ve witnessed firsthand the rapid growth of contactless and mobile payments in recent years. The global pandemic has only accelerated this shift, with 67% of retailers now accepting contactless payments, up from 40% in 2019, according to a survey by the National Retail Federation. And it‘s no wonder – contactless payments are faster, more secure, and more convenient for both customers and merchants.
The Rise of Mobile Wallets
Apple Pay, which launched in 2014, is now accepted at over 85% of retailers in the U.S., with 43.9 million users as of 2021. It‘s part of a broader trend toward mobile wallets, which store users‘ payment information securely and allow them to make purchases with their smartphone or smartwatch.
Other popular mobile wallets include:
- Google Pay (25 million users in the U.S.)
- Samsung Pay (16 million users in the U.S.)
- Starbucks app (31.2 million users in the U.S.)
The appeal of mobile wallets for consumers is clear: they offer a quick, safe, and contactless way to pay without having to carry physical cards or cash. For retailers, accepting mobile payments can speed up checkout times, reduce fraud, and enhance the customer experience.
Starbucks, for its part, has been a pioneer in mobile payments. The Seattle-based coffee giant launched its own mobile app in 2011, allowing customers to pay by scanning a barcode linked to their Starbucks card. The Starbucks app now has over 31 million users in the U.S. who use it to pay, order ahead, and rack up rewards.
In 2015, Starbucks added Apple Pay as a payment option within the app and in stores, giving iOS users another seamless way to pay for their latte fix. Then in 2022, Starbucks expanded its Apple Pay integration, allowing customers to load their Starbucks Card with Apple Pay as well as use it for in-store purchases.
Benefits of Apple Pay for Starbucks Customers
So why should Starbucks loyalists use Apple Pay over cash, physical cards, or even the Starbucks app? For one, it‘s incredibly convenient – you can pay with your iPhone or Apple Watch without having to dig through your wallet or even open an app. Just double-click the side button, glance at your device to authenticate with Face ID, and hold it near the payment reader. The transaction is completed in seconds with a satisfying ding and a checkmark on your screen.
Apple Pay is also more secure than swiping a credit or debit card. When you add a card to Apple Wallet, your actual card number isn‘t stored on the device or on Apple‘s servers. Instead, a unique Device Account Number is assigned, encrypted, and stored securely in the Secure Element, a dedicated chip in your device. And every purchase is authenticated with Face ID, Touch ID, or your passcode.
On top of the convenience and security, you‘ll still earn rewards for Apple Pay purchases. Whether you‘re earning credit card points or Starbucks Stars, you can get rewarded for your Starbucks runs without carrying the physical cards. Any Starbucks Card linked to your account earns 2 stars per $1 spent.
How to Use Apple Pay at Starbucks
Using Apple Pay at Starbucks is simple. First, you‘ll need to set it up by adding your preferred credit or debit card to the Wallet app on your iPhone:
- Open the Wallet app and tap the "+" button in the upper-right corner.
- Select "Debit or Credit Card" and follow the prompts to add your card info by scanning it with the camera or entering it manually.
- Wait for your bank to verify the card, and you‘re ready to use Apple Pay.
Once your card is set up, you can pay with Apple Pay at any Starbucks location in a few different ways:
In-Store
To pay with Apple Pay at the register, just let the barista know that‘s your preferred method when they ring you up. Double-click the side button on your iPhone or Apple Watch, authenticate with Face ID, Touch ID, or your passcode, and hold the top of your device near the contactless reader until you feel a vibration and see a checkmark on the display.
Starbucks App
You can also use Apple Pay within the Starbucks app to reload your digital Starbucks Card. Open the app, select "Add Money," choose the amount, and then select "Apple Pay" as your payment method. Use Face ID, Touch ID, or your passcode to approve the transaction. You can then use your Starbucks app balance to pay by scanning the barcode at the register.
Drive-Thru
Yes, you can even use Apple Pay when picking up your morning coffee from the comfort of your car! At the drive-thru window, simply hold your iPhone or Apple Watch near the contactless reader. The barista may need to extend the payment terminal to within a few inches of your device.
Starbucks‘ commitment to digital innovation has been a key driver of its success. According to the company‘s Q1 2023 earnings report, a record 58% of U.S. store tender came from Starbucks Cards, including digital cards in the mobile app as well as physical gift cards. The Starbucks app drives loyalty too, with Rewards members accounting for 56% of U.S. revenue in Q1.
The Future of Mobile Payments
With the rapid adoption of mobile wallets and contactless payments, we can expect to see even more innovations in the space. Starbucks, for its part, continues to enhance its digital offerings. In March 2023, the company announced plans to launch a new Web3 rewards program called Starbucks Odyssey, which will allow members to earn and purchase digital assets that unlock access to immersive coffee experiences.
Other potential developments in mobile payments include:
- Increased use of QR code payments, which are already popular in China and other markets
- Integration of biometric authentication methods like facial recognition
- Adoption of cryptocurrency and blockchain technology for payments
- Growth of "buy now, pay later" options like Apple Pay Later
As a retail expert, my advice for businesses is to embrace the shift to digital and mobile payments. The benefits are clear: faster checkouts, increased security, and a better customer experience. By accepting a variety of payment options, including mobile wallets like Apple Pay, merchants can cater to their customers‘ preferences and stay competitive in an increasingly digital world.
Of course, there are costs and considerations for retailers when it comes to accepting mobile payments. Merchants may need to invest in new point-of-sale hardware and software, train staff on new procedures, and educate customers on how to use the technology. There are also transaction fees to factor in – for Apple Pay, merchants pay a fee of 0.15% of each purchase, capped at $0.25 per transaction.
But in my experience, the benefits of accepting mobile payments far outweigh the costs. Customers increasingly expect a seamless, personalized, and secure checkout experience. By meeting them where they are – on their mobile devices – retailers can build loyalty, drive sales, and stay ahead of the curve.
Key Takeaways
To sum up, here are the key points about using Apple Pay at Starbucks:
- Starbucks accepts Apple Pay at all company-operated locations in the U.S. and some licensed stores.
- You can use Apple Pay in-store, in the drive-thru, and in the Starbucks app to reload your digital Starbucks Card.
- Apple Pay is secure, fast, and convenient, allowing you to pay with just a tap of your iPhone or Apple Watch.
- Using Apple Pay still earns you credit card rewards and Starbucks Stars just like paying with a physical card.
- To set up Apple Pay on your iPhone, add your credit/debit card in the Wallet app.
- Starbucks‘ adoption of Apple Pay and other digital payment innovations has helped drive its success and customer loyalty.
The next time you‘re hitting up Starbucks for your caffeine buzz, give Apple Pay a try and experience the ease and convenience for yourself. And take a cue from Starbucks – no matter what type of retail business you‘re in, staying open to new payment technologies is key to thriving in the digital age.
