New Starbucks App for iPhone Launches in U.K.
Starbucks (NASDAQ:SBUX) is introducing a new app for iPhone users allowing them to pay with their phones. Customers will be able to scan a unique barcode on their iPhones (NASDAQ:AAPL) at the register and their accounts can be charged.
Customers must have a Starbucks’ loyalty card, which will synchronize with their account. Customers paying with a registered Starbucks Card will get a free drink every 15 visits. After 50 visits, they move to Gold Level and get extra benefits such as free espresso shots, soy, syrups and whipped cream. The company has been using technology to increase its sales like offering free iTunes music and free Wi-Fi for a while.
More than 600 U.K. stores will start using payment by the Starbucks mobile app today. Ian Cranna, vice president of marketing for Starbucks U.K. said, “Customers are looking for extra value. This scheme allows us to be more personal, rewarding the most frequent customers with extra benefits. We also know that fewer customers want to use cash, so putting My Starbucks Reward on mobiles offers a faster, easier way to pay.”
Since the debut of the mobile payment in the U.S. in January 2011, there have been 26 million mobile transactions and $110 million spent on Starbucks Cards through the mobile app. An Android version will be launched soon.
Here’s how Starbucks and Apple are trading on the news:
Starbucks Corp. (NASDAQ:SBUX): SBUX shares recently traded at $45.97, down $0.2, or 0.43%. They have traded in a 52-week range of $30.75 to $47.04. Volume today was 1,691,504 shares versus a 3-month average volume of 6,086,290 shares. The company’s trailing P/E is 28.38, while trailing earnings are $1.62 per share.
Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $415.15, up $1.71, or 0.41%. They have traded in a 52-week range of $310.50 to $426.70. Volume today was 4,159,206 shares versus a 3-month average volume of 15,347,000 shares. The company’s trailing P/E is 15.00, while trailing earnings are $27.68 per share.