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Starbucks expands Mobile Order & Pay in Canada following consumer interestBy
Starbucks is building on its faith in Mobile Order & Pay by expanding to Toronto and Vancouver, following successful adoptions in major markets in the United States as the concept gains wider acceptance in retail.
More than 130 store locations in Vancouver will see mobile ordering for the first time and while it was already available to iOS users in Toronto, Android users will now also have access. Customers will need to update the application for the new feature, and will then be able to purchase and order products for pickup through the mobile platform.
“Starbucks has been innovating in the mobile payment space since 2010,” said Madeleine Löwenborg-Frick, public affairs at Starbucks Coffee Canada. “Mobile Order & Pay represents the next evolution in our guests’ convenience and a meaningful opportunity for Starbucks to continue its leadership position in mobile commerce and customer loyalty.
“As a leading innovator in mobile payments, we will continue to ensure that we offer not only secure and convenient solutions to our customers, but world class experiences that extend beyond loyalty and payment to facilitate meaningful connections between our baristas and our guests,” she said.
Rollout in Canada
Starting Jan 12 the coffeehouse retailer will be rolling out the mobile ordering program to locations in Vancouver, Canada, accessible on iOS and Android, while also proving Android support in Toronto. Starbucks originally tested mobile ordering for Canada in Toronto with a launch for iOS devices.
Starbucks has blazed a trail for mobile ordering, allowing customers a more convenient experience by allowing them to skip the line at bricks-and-mortar locations. Its mobile rewards program is regarded as one of the preeminent apps in mobile retail, so its order and pay introduction was well received.
The retailer saw a need to enter into the Canadian market with mobile after data showed that mobile makes up 18 percent of transactions at locations in Canada. Starbucks’ rewards program has more than one million users in Canada.
To participate on mobile, users select order within the Starbucks app, select products and then the preferred location. Customers can pickup their order at the counter of whichever location they have chosen.
Mobile Order & Pay past
Starbucks experienced a considerable rise in revenue this third quarter, with sales toppling 18 percent higher, with stores that were early adopters of the chain’s mobile ordering and payments options the biggest winners (see more).
In June the retailer rolled out its mobile order-and-pay feature to thousands of United States stores after recognizing its potential in Portland, the initial test market, to increase sales, shorten store lines and drive customer satisfaction (see more).
“Mobile payments now represent 18 percent of all in store transactions in our Canadian stores and we have seen a significant increase in incrementality and more transactions through Mobile Order & Pay,” Ms. Löwenborg-Frick said. “We have learned that our customers love the simplicity of the order-ahead feature, ability to customize their drink and food orders, the time savings and access to exclusive MOP promotions to earn Stars.
“This program allows us to provide our customers with a tailored experience to meet their needs as they move through their day,” she said.
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