Many companies in the food and beverage industry are exploring blockchain technology as a way to simplify transactions and reduce costs. For most people, Bitcoin trading involves buying this cryptocurrency on a cryptocurrency exchange like quantum code app. In addition, Starbucks wants to jump on the bandwagon with plans to use blockchain technology for in-store purchases, loyalty program memberships and, most importantly — gift cards.
The company has announced that it has embraced this new tech by integrating bitcoin into its mobile app payment system. This new payment method is poised for success, considering that more than 15 million people use their app globally daily. They have also created a Blockchain Center of Excellence within their Seattle HQ.
The company is betting heavily on blockchain technology and will test it out by giving away cryptocurrency gift cards. Starbucks has announced that customers will now be able to use their mobile app to get digital versions of their in-store or a printed barcode for redemption. The idea is that each time a consumer purchases with this gift card at any of the retailers that will accept it, the consumer will earn reward points that people can eventually use to buy more coffee.
Use of bitcoin on the Starbucks Payment App:
When MNCs started accepting bitcoin payments for their product services in 2014, Starbucks was intimidated by the volatile nature of bitcoin. Therefore, it did not accept this digital currency as a payment method. However, as the company realized this currency’s potential, they integrated the currency for gift cards and payments in their official app.
Starbucks is getting creative with NFTs:
NFTs (non-fungible tokens) are exceptionally well suited for this type of consumer engagement—giving consumers the ability to collect and trade digital items that make a personalized statement about their consumer experience. For example, instead of issuing gift cards that people can only use to buy around $5 worth of coffee, Starbucks is creating an asset that users exchange over multiple transactions. It means they’re attached to customers’ wallets, making them highly versatile and valuable in ways other gift cards cannot compete.
Moreover, as blockchain enables these assets to be purchased and sold in secondary markets, they become more valuable as they become rarer. The Starbucks cryptocurrency gift card could become even more valuable over time than the company’s iconic green gift cards.
The Starbucks cryptocurrency gift card is an excellent example of how blockchain technology can provide added value to a reward points program. By using their digital currency, the integrity of Starbucks’ loyalty program memberships is increased, giving consumers peace of mind knowing that they’re not at risk for fraud.
The tokens are also more versatile than other reward points, making them more valuable. But, more importantly, linking them to a digital economy allows for higher levels of engagement with customers. It is a big deal considering that one of the core tenets of Ethereum is decentralization.
In addition to moving its NFT implementation off the Ethereum platform, Starbucks has indicated that it has been considering its future involvement with the Ethereum community to provide a better customer payment experience and integrate smart contracts into its app.
Starbucks announced the impending release of tokens backed by loyalty points that people can integrate into mobile apps to make payments more accessible for consumers. Starbucks has been studying blockchain technology for over a year and plans to release the tokens for use next month.
This announcement indicates Starbucks’ commitment to expanding beyond digital payment capabilities and their search for new ways to engage customers by providing valuable consumer goods that users can trade in secondary markets. In addition, Starbucks has been looking at other ways to add real-life value to its loyalty program that rewards, thus increasing engagement and growing its consumer base. The tokens will purchase food and items in the coffee chain’s new cryptocurrency mobile app. It is Starbucks’ latest endeavour into the digital space, as they join other companies who’ve also implemented blockchain solutions.
Starbucks Blockchain Innovations:
Starbucks has been exploring blockchain technology for over a year and plans to release cryptocurrency gift cards in the next month; it has decided to move away from Ethereum in favour of a proprietary blockchain platform. This new blockchain platform can be freely used in many projects, thus creating better payment options for Starbucks’ customers. In this way, customers will not only be able to use the mobile app to pay for their orders but also gain access to real-world value through the tokens they receive.
By using a proprietary platform, Starbucks will be able to integrate intelligent contract applications into its app in the future. For example, it would allow customers to purchase goods with their loyalty points using Ethereum’s smart contracts. With blockchain technology, Starbucks is looking at new ways to monetize its loyalty program, allowing them to create more engagement through a broader range of rewards and goods.