Starbucks " Pay-By-Phone" app... Genuis!

I believe that Starbucks "Pay-By-Phone" app is a brilliant step in the right direction for a couple of reasons. First, in todays digital age and technology entrenched society, it is more unlikely that you will forget your wallet in the car than your phone. Today, users are in such a constant interaction with their smartphones that they might as well classify it as a bodily limb. Whether it’s Facebook, Google search, e-mailing, texting, playing games or making a call, smartphones are indispensible to the end users who own them. An expression that I often use is that I feel naked without my phone. A notion that I find many share considering how much utility my iPhone has on my day-to-day life.

Second, users being able to check their reward points or account balance gives users more intent of participation than a simple debit card. Think about it, "Out of sight out of mind." The fact that consumers can now check how many more lattes they need in order to get the next one free or whether they can afford that mocha-frappachiato drink without having to check at the register is priceless. Not to mention the app also tells you where the nearest Starbucks is to you. Convenience is everything and so the app delivers just that. People today are way to busy to be worrying about checking their reward points online or at a physical register. Why not have all that crucial information to this trivial aspect of your life a short button push away?

Lastly, Starbucks has stated that up to a third of its costumers have smartphones and that those numbers are bound to grow due to the increasing growth of smartphone sales every year. In an intelligent move to address demands of this growing market, Starbucks switched to free Wi-Fi rather than paid thus giving all those data hungry smartphones a place to unload from those saturated 3G networks that everyone is complaining about. It’s even gone as far as teaming up with Yahoo to launch its own Digital Network with exclusive content that can only be accessed at store locations. Starbucks is well aware of the growing tech consumer population and it is doing its very best to retain and grow that base accordingly.

In essence the app offers convenience, builds consumer intent of participation in reward programs and is grasping onto the growing trend of smartphone users in the market.

http://technorati.com/technology/article/new-starbucks-pay-by-phone-will/

http://iphone.firstblogfirst.com/2011/01/24/mobile-payment-debuts-nationally-at-starbucks/