Apple Pay, the mobile –payment system is trying to expand its operations in the U.S. Apple Pay executive, Jennifer Bailey during the Code/Mobile conference announced that they will make available the mobile payment systems in selected Starbucks establishments by the end of this year.
Stores like KFC and Chili will get the service from 2016. Bailey confirmed that all the stores owned by Starbucks will get the Apple pay service in 2016. There are more than 7,500 Starbucks stores located in different parts of the country.
Apple launched the mobile –payment service Apple Pay last year, but till now Apple Pay comes to only 1% of the total retail transactions in the country. The slow rollout is due to the fact that the retail establishments are yet to accept this payment method.
Apple believes that rolling out the payment system to the popular stores like Starbucks, Chili and KFC will help to widen their acceptance and will give some boost to the service.
The Starbucks coffee vendors were one of the major business chains to accept mobile payments through barcode method using its app. The pilot service of Apple Pay will start in some Starbucks stores by the end of 2015.
According to Bailey, Apple Pay has gained momentum in acceptance in the last one year and merchants have started to use it. Bailey claims that more than 80% of the Apple Watch users are depending on Apple Pay to make payments. It is expected that the Apple Pay service will hit the KFC restaurants during the next spring as “Pay at The Table”.
We were hearing about using Smart phones as digital wallets for more than one year and Apple started the technology with contactless payments using mobiles last year. When Apple launched Apple Pay last year, more than 1 million people used the service within 72 hours.
Starbucks revealed that mobile payments make up 20% of their U.S customer transactions and company wants to provide all the possible payment systems to their customers. Starbucks is already using e Apple Pay service in U.K for a few months now and has been well received by the U.K consumers.
According to the spokeswoman for Chili’s, Apple Pay would be the first mobile payment system to be adopted by the company.
Though Bailey has confirmed that the loyalty programs feature will be available for Apple Pay in Whole Foods, Walgreens, Coca Cola, Panera Bread, kohl’s, etc., it is not clear whether Starbucks will include the transactions made using Apple Pay in their rewards program.