Starbucks to Update Mobile App with New Payment Features

Starbucks, which handles more than 11% of its weekly transactions as payments from its mobile app, is planning to add several new features for iPhone owners.

When the update reaches the U.S., U.K. and Canadian app stores on March 19, patrons will be able to tip baristas in denominations of 50 cents, $1.00 or $2.00, the Seattle coffee company says in a press release. The ability to tip was one of the top requests customers made on the company’s MyStarbucksIdea.com website.

The update will also add a “Shake to Pay” feature that displays the Starbucks Card bar code when users shake their phone. To make a payment, patrons must show the bar code to be scanned at the point of sale. The Starbucks app also enables users to reload their Starbucks Card account and track rewards.

Starbucks is one of the few clear success stories in mobile payments, handling 5 million mobile payments a week from 10 million app users.  In January, Starbucks CEO Howard Schultz shuffled the responsibilities of the company’s top executives to allow him to devote more of his attention to expanding its mobile payments offering.

“This update to the Starbucks App for iPhone is an important next step in digital innovation at Starbucks and one of the many ways we’ll expand and improve our digital experience in the months to come,” says Adam Brotman, chief digital officer for Starbucks, in the release.

The digital tipping function and other updates will come to Android smartphones later this year, Starbucks says.