Starbucks takes a bite out of Apple Pay

In the article I looked at, Howard Schultz, chairman and CEO of Starbucks, gives his views on Apple Pay and how he thinks it will revolutionize business. Many retailers have expressed their dislike for the new payment platform but Schultz says that “he is not intimidated by Apple Pay.” He explains how anything, like Apple Pay or Paypal, that consumers can trust, is better for his business model, referring to the new cash-less system set up at Starbucks. Schultz predicts that in the coming years, cash and coins with be obsolete in the marketplace and people will solely use mobile payment methods.


If anyone has been to Starbucks recently, you’ve probably noticed that people pay with their mobile devices all the time. This new option has definitely added speed and efficiency, which is perfect for a place like Starbucks considering it gets a lot of  its customers during the morning rush-hour. This is an example of operations management because it addresses two of the strategic operations management decisions: managing quality and process and capacity design.

Apple Pay helps to put Starbucks on the cutting-edge, in terms of technology. Some customers have come to expect the mobile payment option and when Starbucks offers this system, it can help to increase customer satisfaction because it creates more flexibility for them. In regards to process and capacity design, Apple Pay adds this specific technology to the Starbucks system and, again, makes things easier and more efficient for customers.

I, personally, have never used a mobile payment system but I definitely think it is effective and could possibly replace cash in the future. In today’s world, everything is based on speed and convenience and I think Apple Pay addresses both of those needs. The one aspect that I think could pose a problem for mobile pay systems is cyber fraud. As society is introduced to more technology, we are exposing ourselves to a whole lot more, in terms of the cyber world, which I think comes with a lot of unknowns. As our technology continues to advance, I think we need to think about safety and make sure that we take precautions in order to keep our money safe.

Overall, I think mobile payment has helped to improve the business model at Starbucks and will continue to do the same for many other companies. As technology revolutionizes our world, business models and operations will continue to change and grow in order to fit the needs of consumers.

What are your thoughts on Apple Pay? Have you used it? Do you think methods of mobile payment will replace cash and coins in the future? Can you think of any examples of businesses that could not use a mobile payment method?


5 thoughts on “Starbucks takes a bite out of Apple Pay

  1. As long as the technology works, I have no problem with mobile payment. A bridge between swiping a credit card and taping your phone was the tap to pay symbol on your credit card. Initially I thought it was a great idea because more often than not the bar code on the credit card wears out. However, a lot of times the tapping of the credit card will not work and I just end up looking kind of dumb. I found that main place this method does not work are in cabs. With the introduction of apple pay, other electronic payments will enter the market as well, a reason for which PayPal did a spin-off from E-bay. This competition is already adding problems though as some businesses are making their own electronic payment and declining apple pay and google wallet. This becomes a headache for consumers and can turn them off from using electronic payments.

  2. I think this is a great idea. You don’t need to carry your wallet with you anymore. You can just upload the cards on your app, scan your phone and pay. This will save a lot of time at the check out. When Apple came up with the Apple Pay, it made me think how is this going to affect the banks. Are bank customers still going to need the actual credit card in the future since they are going to use Apple Pay? It would be really interesting to see how this type of payment will affect the banks and how many users will be using this app. I think the only business that are probably not going to use this technology are the small family owned businesses. They don’t have the money to invest in this new technology or if they do a cost-benefit analysis investing in the new technology might not be worth it for their business.

  3. I think that Apple Pay is a wonderful idea. It solved the issue of not needing credit/ debit cards and cash on you to purchase products or services. I think it is a more efficient way to pay. It also increases security and safety because to authenticate transactions you can do so with the fingerprint scanner. I think with such new mobile payment options,, with the increased use of technology Apple Pay, Google Wallet and similar digital payment platforms will replace cash and card transactions in the future. I think that a lot of companies will accommodate to the use of these kinds of payment systems, yet a lot of smaller less progressive companies might have trouble catching up and might potentially go out of business.

  4. I think Starbucks implementing and supporting Apple pay is a great idea. The whole concept of Apple pay is brilliant and it is a true innovation. Starbucks, is a company that many other companies look up; this can influence many other companies to start using Apple pay as well and overall can have a positive effect on retail. This just might be the new method of checking out of a store. If other retailers also start using Apple pay this will create a universal payment method, resulting in faster checkouts and happier customers.

  5. This post is very relevant to current issues in our society. I personally have been debating whether I want to begin using the Apple pay systems. Like you said in your post, my only doubt is the possibility of fraud through putting my credit card information on my phone. Starbucks incorporating Apple pay however would be a great! They would be able to be much more efficient and effective in their business.

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