JPMorgan Chase has partnered with Starbucks on a branded, prepaid rewards card, expanding its relationship with the coffeehouse chain.
The Starbucks Rewards Prepaid Card will be available to Starbucks customers at the end of this year, Kevin Johnson, the coffee chain's president and chief operating officer, told attendees at the company's March 23 shareholder meeting.
The reloadable prepaid card will allow customers to earn "stars" for all card purchases made anywhere Visa cards are accepted to apply toward Starbucks purchases. The current Starbucks gift card, which also lets patrons earn rewards, is among the most popular holiday gifts in the U.S. In 2014, one in seven Americans received a Starbucks card as a holiday gift.
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Chase Pay is tied to the issuer's 94 million credit, debit and prepaid card accounts, representing half of U.S. households. Depending on the perspective, this means Chase's wallet either starts with or excludes half of the market.
February 24 -
Chase Pay, JPMorgan Chase's mobile wallet, has just landed an unlikely early partner with a history of going it alone: Starbucks.
February 23
"This new model is just the beginning of Starbucks opening up its digital ecosystem as well as extending its payment platform," Johnson said.
Last month, Starbucks struck a deal with JPMorgan to include the upcoming Chase Pay mobile wallet in the Starbucks mobile app for payments. Starbucks also recently chose JPMorgan to handle nonmobile payments and U.S. card payment transactions in the stores, replacing Square as its payment processor.
Starbucks continues to have success with its QR code-based mobile payment and loyalty system, including its new order-ahead feature, which the company says accounts for as many as 10% of transactions in some stores.
"Our focus on connecting with customers and delivering experiences across our retail, channel development and digital businesses continues to elevate the Starbucks brand," Johnson said.
