Starbucks Adds PayPal As Funding Method

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SEATTLE – Starbucks Corp. now includes PayPal Inc.’s payment system as a funding method for its mobile payment application.

The update, which went live on Apple Inc.’s App Store Nov. 18, adds PayPal as a funding method alongside conventional payment cards. The coffee shop chain’s customers can use the app to add funds to the Starbucks stored-value card that is connected to the app, which then can display a bar code to scan at the point of sale at some Starbucks locations, eliminating the need for a separate plastic card.

Starbucks has said one of the clearest benefits of its mobile payment app is the ability to add funds while customers are waiting in line to place their order. Without this capability, many customers instead load funds at the point of sale – making an additional transaction that takes up time. As more customers load their cards before they reach the register, the line in its stores can move faster.

Starbucks’ payment system can be used at some stores on the West Coast and in New York and on Long Island as well as at all Starbucks stores within Target Corp. retail locations, which have special bar-code scanners that work with the app.


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