Starbucks to launch internal digital currency next year

This is not the first time Starbucks has been involved in digital currency. Long ago, consumers have been able to use Bitcoin to spend at Starbucks through Fold . But the brand seems to have a bigger plan - issuing Starbucks digital currency. This so-called Starbucks Rewards Club star badge is likely to become the brand's new official digital currency in the future. It will be directly connected to Starbucks' upcoming prepaid debit card .

Proper use of Starbucks Rewards Club badges

Similar to most brands and chains in the world, Starbucks has launched a series of promotions to retain old customers. In the future, the new Starbucks Rewards Club badge will be stored in the user's mobile APP (application ) or physical card , and users can enjoy certain discounts if they use the badge to pay.

However, many old customers forget to use this discount, which is a common phenomenon, especially for customers of big brands. It is really a headache for consumers to check the consumption points of various cards one by one, and most people think it is not worth it. As a result, a large number of Star Club badges are idle, and company executives are also thinking about this problem.

According to the situation, Starbucks will launch its own prepaid debit card next year in cooperation with JPMorgan Chase . What's more exciting is that users can accumulate Stars anywhere Visa is accepted , which not only promotes the Starbucks brand but also further increases its popularity. In addition, the card has very low handling fees . It has no monthly fee, no additional insurance fee, and even no additional fee for overdraft.

Consumers no longer have an excuse to resist using prepaid debit cards, and they can also accumulate stars to redeem for free coffee.

Unfortunately, the method for awarding stars has not yet been determined. Moreover, compared with the current reward system, the process of accumulating stars to exchange for coffee and food will probably be very slow.

Under the existing rewards system, consumers can get two stars for every dollar they spend. However, when dealing with prepaid debit cards, this data becomes useless. If the prepaid debit card rewards system is processed according to this data, consumers can receive hundreds of dollars worth of free coffee every month! Therefore, data processing must be taken seriously. Therefore, creating a viable digital currency is not as simple as we think.

No threat to Fold users

Unlike many people think, this project will not be a threat to Bitcoin enthusiasts using the Fold app at the beginning. Starbucks will not offer discounts immediately, and consumers will first need to accumulate stars. Moreover, the prepaid debit card will not be launched until next year .

There are differences between using Bitcoin to pay through the Fold APP and using a prepaid debit card. The main difference is that for the former, consumers can get an instant discount when they make a purchase, while for the latter, consumers need to spend more money to enjoy the subsequent discount. So of course consumers would rather get a 20 % instant discount when they make a purchase than deal with another prepaid debit card.