Starbucks to enable ‘digital tipping’

NEW YORK — Want to leave your barista a tip? Starbucks is making an app for that.

The Seattle-based coffee company says a digital tip function will be added to its mobile payment application starting next summer. A similar option will also be available on Square, a new payment app that Starbucks customers will be able to use starting in November.

To use either of the programs, customers download the app then link a credit or debit card to the account. When it comes time to pay at the register, they open the app and wave their phone in front of the scanner.

The Starbucks app can only be used at the company’s cafes and customers earn rewards when using it; the Square app can be used wherever it is accepted. Square was founded in 2009 by Jack Dorsey, the creator of Twitter.

Users of Square mobile payments app are currently mostly small businesses and individuals, with Starbucks being the first major national chain to sign on for the program.

Starbucks Corp. doesn’t break out the percentage of payments that are made with mobile phones, but says a quarter of payments are with a Starbucks card, which can be either a physical or mobile payment. The company also said its existing app is now integrated with Apple’s Passbook, meaning a customer’s Starbucks card automatically appears on their iPhone screen when they enter one of the cafes.

The announcements were made at the company’s leadership conference in Houston, where about 10,000 Starbucks store managers are for gathered for training through Saturday. A similar conference in New Orleans was held to motivate managers about four years ago, when the company was hit by the downturn and sales were struggling.

Since then, the coffee company turned around its business and emerged from the downturn stronger, rapidly expanding into new categories such as the single-serve coffee brewer and fresh juice markets.

More in Herald Business Journal

Camano artist mixes flask, paintings for successful cocktail

Art flasks prove popular as bachelorette gifts, birthday presents and wedding favors.

Small retailers aim for emotional ties big chains may lack

“Put yourself into the community more and the money will come back to you.”

A look at what some stores have planned for Black Friday

With unemployment low, stores are hoping customers are in a mood to shop.

Boeing bolsters team for potential 797 with leading engineer

Terry Beezhold has been chief project engineer for the 777X program.

Uber paid off their hackers — they’re far from the only ones

“More and more companies have their own Bitcoin wallets for such cases.”

Airline defendants to pay $95 million in 9/11 settlement

The litigation claimed that security lapses led the planes to be hijacked in the Sept. 11 attacks.

Trump SoHo to shed ‘Trump’ amid reports of sagging business

The president’s company said it would have no comment beyond its news release announcing the move.

Uber reveals cover-up of hack affecting 57M riders, drivers

Uber acknowledges paying the hackers $100,000 to destroy the stolen information a year ago.

Mountlake Terrace-based 1st Security Bank wasn’t traded publicly during the recession, but it has seen a steady growth since the recession. (Jim Davis / HBJ)
How stocks in local banks fared since the recession

Every bank was hit hard during the recession, but most have bounced back in a big way.

Most Read