Starbucks’ Customer Cards Have More Money in Them Than Most Banks Carry in Deposits

For most, grabbing a drink at Starbucks is a daily habit, so using the coffee giant’s cards program is a no-brainer in terms of streamlining payment and acquiring rewards points. In a data review recently performed by The Wall Street Journal, numbers revealed that $1.2 billion USD were loaded onto Starbucks cards and its mobile app for the first quarter of 2016. The collective amount was more than what some financial institutions had in their possession — reports revealed that deposits for the California Republic Bancorp were at $1.01 billion USD, while Mercantile Bank Corp. and Discover Financial Services had $680 million and $470 million USD respectively.Starbucks' Customer Cards Have More Money in Them Than Most Banks Carry in Deposits

As for usage, second quarter 2016 fiscal reports revealed that 41% of Starbucks purchases in the U.S. and Canada were conducted using a Starbucks card. 24% were conducted using the Starbucks mobile app for transactions at U.S. retail stores. In total, the company had 12 million active loyalty members in the U.S. in the second quarter alone.

SOURCE: MARKETWATCH