Starbucks Updates Security for Mobile Payments

Starbucks has released an update to its mobile app that's designed to enhance security following reports of vulnerabilities related to how its app stores passwords.

"We have released an updated version of Starbucks Mobile App for iOS that adds extra layers of protection. We encourage customers to download the update as an additional safeguard measure," says Maggie Jantzen, a Starbucks spokesperson, in an email to PaymentsSource on Jan. 17.

Starbucks did not elaborate on what has been done to improve security, and did not answer follow-up questions by deadline.

Starbucks has faced criticism this week after a report that it had been storing user passwords in clear text on iPhones. Hackers with physical possession of the user's phone could theoretically find the password to gain access to the user's Starbucks Card account.

Starbucks says there's no sign that anybody has been victimized by fraud as a result of its password storage.

The Starbucks app is used to make payments for 11% of U.S. and Canadian Starbucks purchases. Users can reload their Starbucks Card accounts from within the app by linking a bank account. The app presents a bar code that is scanned at the point of sale to make a purchase.