SEATTLE—Credit unions, and all issuers, have a new card competitor—Starbucks.
The announcement comes at the same time the company is also exploring blockchain technology.
Starbucks has launched a co-branded Visa credit card that enables cardholders to rack up points, called Stars, redeemable for drinks and food at more than 8,000 participating Starbucks, USA Today reported.
Customers may earn points on purchases at Starbucks and anywhere Visa is accepted, USA Today said.
The Starbucks Rewards Visa Card is named for the company's loyalty program and cardholders automatically become members who get exclusive perks, explained USA Today.
Meanwhile, with mobile payments on the rise at Starbucks, the company says it is eyeing blockchain technology.
Starbucks said its mobile order and pay service grew to 11% of transactions in U.S. company-operated stores in Q1 2018 from 10% in the prior quarter, Mobile Marketer reported.
The Starbucks Rewards loyalty program helped to drive mobile growth with an 11% membership gain to 14.2 million from the prior year. Member spending made up 37% of U.S. sales, Mobile Marketer said.
The company, which now has the ability to offer mobile order and pay to customers who don't belong to its loyalty program, plans to ramp up the service to all customers in March, company president and CEO Kevin Johnson said in a conference call with investors. As CUToday.info reported, the growing popularity of mobile payment is leading the company to test cashless stores in the U.S.
On the call, Starbucks Howard Schultz, executive chairman and former CEO, stated that the company is keeping an eye on blockchain technology as part of its efforts to be a leading innovator in mobile payments, Mobile Marketer reported.