It’s not just sharing the latest Starbucks drink on TikTok that the young Generation Z enjoy; it’s trading crypto coins as well. Starbucks wants to tap into the craze, so Kevin Johnson, CEO of the world’s largest coffee chain, announced that Starbucks would begin accepting crypto in its stores.
It’s fair to say that I’m not a fan of Starbucks coffee, but I do respect the business. I’m also a crypto-cynic, and I’m waiting for the almighty crash so I can tell all of my son’s friends that I told them so.
However, the best use of crypto is the one where they actually have a practical function. Here Starbucks is doing something interesting, and it’s actually pretty cool.
Firstly, Starbucks will allow payment by Bitcoin – a brilliant move that will attract Gen Z’ers because they are finally able to use Bitcoin for something useful.
But did you know that 51% of sales come from customers who are members of the loyalty programme? By using the crypto wallet, the company will be able to store stars, which can be traded and transferred to other companies.
Through blockchain or other innovative technologies, we are exploring how to tokenize Stars [and] create the ability for other merchants to connect their rewards program to Starbucks Rewards.
CEO Kevin Johnson
To illustrate, Johnson used the example of Air Canada’s partnership with Starbucks Rewards, through which airline rewards members can earn points from both companies when they buy coffee at Starbucks.
Over the next year, you will see the first instance of this loyalty points exchange with other consumer brands,” Johnson added. Johnson added: “This approach will also serve as a foundation for a more aspirational concept for new, modern payment rails that align payment expenses with the value received by customers and merchants.
CEO Kevin Johnson
Starbuck’s investors reacted positively to the announcement, although the share price is getting impacted by bigger market forces at the moment.
We think it’s a smart move that shows the company is not out of touch with its customer base.
