ARCHIVES: This is legacy content from before Industry Dive acquired Mobile Commerce Daily in early 2017. Some information, such as publication dates, may not have migrated over. Check out our topic page for the latest mobile commerce news.

Starbucks mobile pay solutions increase to four with Chase Pay

Known as a leader in mobile commerce apps, Starbucks is one of the first retailers to include Chase Pay into its app and just updated to launch the partnership live. This means Chase customers can easily integrate their payment information into the Starbucks app without having to continually identify their credit card number, but it is the fact that the retailer has now partnered with so many mobile pay providers that could possibly impact the industry.

“As consumers become increasingly comfortable using their smart phones as digital versions of the credit card they are used to carrying in their wallets or purses, smart retailers are partnering to allow point-of-sale integration,” said Wilson Kerr, vice president of business development and sales at Unbound Commerce. “Point-of-sale software and hardware integration has been a big stumbling block, regarding mobile wallet adoption.

“Starbucks is a pioneer in the mobile space and has typically kept their app as the only in store mobile payment solution,” he said. “By branching out and allowing Chase Pay to be accepted at 7500 retail locations, they are giving their customers choice and added convenience.”

Shaping Starbucks
Starbucks is continually shaping its app and rewards program to ensure the highest conversion rate for purchases and the integration with so many mobile pay platforms is its latest bid for leadership. Users are much less likely to follow through on a purchase when the checkout process is difficult and includes many steps.

The easier it is for consumers to checkout on mobile, the more likely they will. Four different mobile pay platforms included in the checkout process appeals to a wider range of consumers so that no matter what solution the customer uses, they are likely to be able to use it on Starbucks.

After months of development and partnerships, Chase Bank finally released its mobile payments application, Chase Pay, on the market last week.

The app is compatible with thousands of locations around the country. It is now available for download from both the App Store and Google Play store (see more).

Users simply create an account on any Chase Pay platform, enter their credit card information and then only have to log in on platforms that accept the solution without having to reenter their information.

Mobile pay competition
As mobile payments reach critical mass, Chase Pay is also competing with Citibank as the two join the onslaught of providers with standalone digital wallets as a part of its quest to provide consumers with a wide array of options of interest.

Mobile pay is expected to increase at an 80 percent compounded rate annually by 2020, which has prompted a slew of financial institutions, technology providers and retailers to create their own platforms. The two are the latest to join in the hopes to appeal to consumers who are interested in the convenience and not lag behind with its mobile pay platform that allows users to pay on apps, Web sites and Android users to pay in store (see more).

To use Chase Pay on the Starbucks app, users who wish to reload their rewards cards can select “reload” then “add more payment options” to log into their Chase Pay accounts. Once logged in, their information should already be included and should not have to log in again or enter any credit card information.

“Since this is a tokenized payment, Chase Pay users can rest assured that, since the plastic card never comes out of their wallet, their credit card information is not being scooped up by a unscrupulous barista,” Mr. Kerr said. “It is also very likely that they are going to be doing some cross promotion with Chase and offering perks to the millions of consumers Chase hopes will adopt its mobile wallet app.

“Chase will very likely be encouraging use at Starbucks by giving bonus points. Partnerships like this are the grease on the skids for mobile wallet adoption, and it seems the tipping point has finally been achieved,” he said.