Starbucks Launches Smartphone Payment App
BY LINDSEY WOLF
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Starbucks is changing the way you pay for your morning coffee. It now accepts cash, credit and smartphone. Instead of digging to find money, you can scan your phone and pay digitally - but how does it work?
“You download the app and then the phone becomes your prepaid Starbucks debit card. Just flash the bar code there at the store to pay for your order. You can refill your virtual card either through your mobile device or online. And the app will also help you find the nearest Starbucks to where you happen to be standing.”
The Seattle-based coffee giant has been testing the 2D scanner system since September of 2009, but with the new technology comes fear of security breaches. An analyst at Computerworld thinks we’re on the cusp of a new era, but fears if there are holes in the app, it will be a major setback.
“A stupid design mistake today can have long-term impact on all of us. … If a new payment system is rolled out to consumers only to be quickly cracked by attackers, no one wins. … We have to get this right."
That’s a concern, but Bob Sullivan at MSNBC is more hesitant because of the information Starbucks will be gaining.
“If I had managed to fully register, Starbucks would know my birthday, my address and, most important, when and where I buy my coffee all the time. ... I wish the company would promise not to store that data, or to delete it after a certain reasonable amount of time.”
This method of payment may be a new concept in the U.S., but Tech News World points out it’s old news in other parts of the world, where smartphones can be used to buy from vending machines, stores and even to pay for taxis.
So will Starbucks’ app catch on? TechNewsWorld doesn’t think so -- quoting a product marketing manager who thinks only one mobile payment app will be necessary in the future.
“Just as you wouldn't carry a separate credit card for every store you use, very few consumers would be willing to have a separate payment application per store.”
The mobile payment option is available at 6,800 U.S. stores and more than 1,000 locations inside Targets. The app works on iPhone, Android and BlackBerry models.
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