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How Does Starbucks Reward System Work?
Starbucks introduced the Starbucks App to make transactions cashless and easier.
You can deposit money in your Starbucks Account on the App and if you use the balance for buying coffee, you get rewarded in terms of reward points, which could be redeemed at a later date.
According to reports, a total of $1.5 Billion is lying in these Starbucks Accounts all over the world.
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How Is The Initiative Benefitting Starbucks?
An investor is always looking at opportunities to make their money grow. So Starbucks decided to use it for its investing ventures.
So, whenever you put money in the account, you're actually lending it to Starbucks at 0% interest 😎
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A Stroke Of Genius
85% of the banks in the USA have under $1Billion Assets while Starbucks has an aggregate of $1.5 Billion and developing which makes its tasks like those of an unregulated bank.
The money on the app can only be used to purchase coffee allows it to bypass many financial regulations that are otherwise binding on other banks.
Banks are confronted with fluctuating loan costs and the premium it needs to drop for every one of its financial backers.
Starbucks has no such motivation to stress and this puts it at the highest point of the monetary outlines, outperforming a portion of the worldwide banks.
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