I personally think this is a genius move by Starbucks and I would imagine that many other companies in many different industries will follow suit. It is convenient for everyone involved, if done correctly. It makes things easier on Starbucks, the customer, and even the customers waiting in line behind the paying customer. If this trend continues, it may actually make the need to carry a wallet obsolete. Now I am sure we are years away from the wallet becoming non-existent as there are going to be questions and concerns over this payment method, but who knows what could happen if it proves successful?
As far as the transaction time, it makes perfect sense that paying with your phone SHOULD be faster. The issues probably arise when the person paying with their phone hasn't even pulled it out of their pocket yet. If they have their phone out, with the bar code up on the screen ready to use, it should be faster than a credit or debit card, and definitely faster than cash, with the exception being exact change. Although even exact change is probably a slower process for the Starbucks cashier. But this mobile device has to be faster than a card simply because they won't have to ask "credit or debit?" before they even swipe the card. And as I said before, with cash, the cashier has to count out change.
However, as this article points out, Starbucks themselves admits that it doesn't speed the process up on their end as they still have to make the coffee. But even if you save just a few seconds per customer in transaction time, this will add up over the hundreds of customers per day.
I think this is a great idea for Starbucks that will translate well, maybe even better, in other industries. It is a win-win considering it increases convenience for all parties. I do believe this is the future of the "flow of compensation." I do not see too many downsides to it. I think whatever the downsides may be are easily outweighed by the positives.
I agree with you in that it is a win-win situation. Even though Starbucks did not speed up their process, the app makes it convenient users; which means higher customer satisfaction and therefore higher retention. It can also increase customer satisfaction by allowing customers to avoid talking to the baristas. Since most people are in a bad mood until they have their fix of coffee, some customers will definitely enjoy this perk about the app. It also makes it more convenient for customers who do not always have their wallet or purse. With Starbucks leading the way, I bet that several other companies will follow in their footsteps.
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