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Starbucks Gets Mobile Payment System

Posted by samzenpus on from the keys-and-sugar dept.

Ron writes "Starbucks has started accepting mobile payments. Customers can now use the Starbucks Card Mobile app on their iPhone, iPod touch, or BlackBerry at nearly 6,800 company-operated Starbucks stores in the US plus more than 1,000 outlets inside Target stores. To pay with their phone, app users simply select 'touch to pay' and hold up the barcode on the screen to the 2D scanner at the register. The app also lets users manage Starbucks accounts and find nearby stores. To start using your device as tender, you can download the app now for iOS and BlackBerry. An Android application is also said to be in the works, but the company has not yet given a release date, and there's no word yet on plans for a Windows Phone version."

16 of 149 comments (clear)

  1. Achievement unlocked by DNS-and-BIND · · Score: 5, Funny

    Achievement unlocked: ability to be even more pretentious whilst in line at Starbucks

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  2. Is it me by Dunbal · · Score: 3, Interesting

    Or is this an incredibly stupid idea? Nothing says "hack/steal my phone" like turning into a cash machine.

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    Seven puppies were harmed during the making of this post.
    1. Re:Is it me by jo_ham · · Score: 4, Insightful

      So, what? The thief buys 200 coffees on your account and sells them for cash to punters outside?

      I think it would just be easier to sell the phone itself if you're going to go to the trouble of stealing it.

    2. Re:Is it me by Dunbal · · Score: 4, Insightful

      That's not it. Right now it's Starbucks, but soon it will be McDonalds and Wal Mart and the gas station, etc. Watch, you'll see.

      Now you could argue that there's no difference between this and a credit/debit card. However there is one huge difference. With a credit card the merchant obtains the equipment from the bank, and you obtain your card from the bank. They work together, the card never leaves your presence, the card reader never leaves the merchant's point of sale, and it's hard (but not impossible) for someone to get in between both of them.

      With a cell phone the "equipment" is partly in the hands of the public and relies on software and encryption to prevent hacking and "man in the middle" exploits. Well the first rule of security is never give someone physical access to your system... If the bank is assuming that the cell phone/reader combo is "safe" and does little checking (which is probably the case: banks are masters of "security by obscurity"), soon you'll be able to bill more than a coffee to someone else's account.

            Where's the defectivebydesign tag when I need it?

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      Seven puppies were harmed during the making of this post.
    3. Re:Is it me by Stooshie · · Score: 2

      How would a "man in the middle" exploit be done with a barcode?

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    4. Re:Is it me by Americano · · Score: 2

      So what happens if you devise a means of payment where you don't need to show id and the cashier is just waiting for the machine to go "beep" or the green light to turn on?

      Just a round number guess, but I think what happens is that 95+% of transactions that go through this way are faster, easier, and more convenient for customers.

      I'm not sure why you see more risk with this than there is with a credit card. When I go to the store and use a credit card today, the clerk just waits for the machine to go beep and the green light turns on. They rarely-if-ever compare signatures, and it's not like they're trained in handwriting analysis anyway. When's the last time that a cashier compared the signature on the back of the card with the signature you put on the receipt? Or asked for an ID if you didn't have a signature on the back of your card? I can't even remember the last time I was asked for an ID - part of this is apathy on the part of the cashier, and part of this is the fact that we tend to go to the same places repeatedly, and the cashiers get to know their customers by name & by sight.

    5. Re:Is it me by timeOday · · Score: 2
      Like I said, if the card is cloned and not lost, you have 60 days to notice and report the charges (actually it's longer - 60 days from when the bank sends out the paper statement on which the charge appears).

      Even if you physically lose the card, the two business days is from when you notice it. That's how the regulation is written.

  3. Similar to the new boarding pass system by rhsanborn · · Score: 3, Insightful

    This sounds very similar to the boarding pass system being used at some airports. They send you a copy of a barcode which acts as your boarding pass. The only trouble I ever had was with a blackberry screen not being big enough for the scanner to pick it up. After I got a Droid, I preferred the digital pass to finding a printer every time I needed a boarding pass.

    Likewise, this may be a nice way to manage one's coffee addiction. The only problem is that seeing all your past purchases might not be good for Starbucks. People may finally realize how much money they're spending.

    1. Re:Similar to the new boarding pass system by Thing+1 · · Score: 2

      People may finally realize how much money they're spending.

      One could only hope; but, if they treat it anything like their credit card receipts/statements, they won't.

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  4. Good for them by MrDoh! · · Score: 2

    The stakes to get phone payments working everywhere are so incredibly high. Can see why they'd want to get this in quickly.

    Though... I actually like the idea of a barcode, something I have to select on the phone and hit 'display' (after entering my pin or something first to display it so that if it's stolen, just having the phone to tap against nfc contacts isn't enough to clear my account out). Then swipe/display the barcode as normal. Seems a more flexible way to handle it than embedding NFC stuff in hardware.

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  5. How does this compare to contactless bank cards? by jemnery · · Score: 2

    Just curious - I'm in the UK and have a bank card that I can just sort of wave at a payment terminal for transactions = £15 - handy when buying lunch. This seems a more elegant solution - do you have these in the US?

  6. Re:How does this compare to contactless bank cards by confused+one · · Score: 2

    Yes, but not all the bank cards and card readers / sales terminals have that feature.

  7. Uhh, old news? by Striikerr · · Score: 3, Informative

    I've been using my iPhone app to pay for my Starbucks purchases for a few months now in Florida (so this is hardly new). It has been in the Target stores for a while and in many (but not all) standalone Starbucks stores. It works quite well and I prefer it to using my Starbucks card. I always have my iPhone with me and it's more convenient to use it. Also, it's great because I can reload my card from the same app (which I have done while waiting in line). I'm not concerned about someone stealing my phone and retrieving anything. My phoen is password protected, I can easily wipe the phone if it is stolen and can contact Starbucks to report the lost / stolen cards so that transactions are blocked.
    I had originally thought it to be a waste of time and pointless until I decided to try it out. It's actually quite nice.

  8. So where is the APP for the tip box? by Shivetya · · Score: 2

    Seems they are as common as coffee at Starbucks. I can't imagine that the workers will be pleased if this catches on as their chance of tips will decrease. In some stores it is almost a given if you don't dump the change you get back (at least the coins) you coffee cup won't be as full, let alone having a special drink

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  9. Automatic ordering? by hawguy · · Score: 3, Interesting

    This would be more interesting if it let you pre-enter your drink order in the app then when they scan it, it automatically prints out the drink label.

    That way, those people that order incredibly complicated drinks don't need to yell over the sound of the barista frothing milk 2 feet from the register.

    I even have a hard enough time getting them to hear my simple drink order "Tall coffee with room for cream. Ok Grande coffee, do you want room? No, I asked for a 'tall'! Sorry it's loud here, ok tall latte"

    I order the same thing every time I go in, there could be a single button click on the app that says "repeat last order".

  10. Its about you spending more $ by DirkDaring · · Score: 3, Informative

    When you use cash it hurts (taken from Dave Ramsey). Using a credit card diminishes that 'hurt'. He talked of a study that when McDonalds put in credit cards the average sale went up by 47% (Source: http://www.daveramsey.com/article/the-truth-about-credit-card-debt/)

    Waving or scanning your phone diminishes it even more.

    This is more about getting you to spend more than it is about just providing a new way to pay.