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.

How Does Starbucks Reward System Work?

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 😎

How Is The Initiative Benefitting Starbucks?

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.

A Stroke Of Genius

<img height="248" src="https://g.foolcdn.com/editorial/images/556096/sbux-mermaid-sign.jpg" width="400"><div> There are a few
things in this world that go so hand-in-hand that it eventually becomes
unfathomable to use the two things or words separately.&nbsp;</div>For example, when we
hear “Coffee” our mind takes us straight through the doors of a
Starbucks, filled with the aroma of coffee beans, stimulating our senses to
want to order our favorite beverages. This renowned brand
didn’t have it this easy back in 2008, when recession hit America and just like
every other company, Starbucks was in a bit of a turmoil. The company
reorganized itself to the optimum by appointing fresh talent, amongst them was
their CEO Howard Schultz, who is primarily responsible for making Starbucks a
global name. Schultz made some
drastic changes in the company, some of which are still used across the world
even today. One of the
initiatives was the Starbucks Rewards System.How Does the
Starbucks Reward System Work?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. Starbucks being the
global brand that it is, 41% of its customers pay using the Starbucks App. According to reports,
a total of $1.5 Billion is lying in these Starbucks Accounts all over
the world. How is the
initiative benefitting Starbucks? A smart investor
never lets hid money sit idle. Even if he/she may be sitting idle, an investor
is always looking at opportunities to make their money grow. Similarly, instead of
letting the money in the Starbucks Account sit idle, the company 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!How is Starbucks
functioning like an unregulated bank?85% of the banks in
USA have less than $1Billion Assets whilst Starbucks has a total of $1.5
Billion and growing. This makes Starbucks operations like those of an unregulated
bank.The money on the app
can only be used to purchase coffee and can never be withdrawn as cash. This
allows Starbucks to bypass many financial regulations that are otherwise
binding on other banks. Starbucks Reward
System is indeed a stroke of genius. It has helped the brand grow even during
periods of recession as the coffee chains were no longer solely dependent on
market purchases. Banks are faced with
fluctuating interest rates and the interest it needs to lay aside for all its
investors, but Starbucks has no such reason to worry because not only is the
lending at 0%, but it is also done in a very obscure way which seldom commands
attention. The ingenuity puts
Starbucks at the top of the financial charts, surpassing some of the
international banks, who are indeed concerned about the future potential of the
brand in the financial space. Written By - Tushna
Choksey

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For example, when we hear “Coffee” our mind takes us straight through the doors of a Starbucks, filled with the aroma of coffee beans, stimulating our senses to want to order our favorite beverages.

This renowned brand didn’t have it this easy back in 2008, when recession hit America and just like every other company, Starbucks was in a bit of a turmoil. The company reorganized itself to the optimum by appointing fresh talent, amongst them was their CEO Howard Schultz, who is primarily responsible for making Starbucks a global name.

Schultz made some drastic changes in the company, some of which are still used across the world even today.

One of the initiatives was the Starbucks Rewards System.

How Does the Starbucks Reward System Work?

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.

Starbucks being the global brand that it is, 41% of its customers pay using the Starbucks App.

According to reports, a total of $1.5 Billion is lying in these Starbucks Accounts all over the world.

How is the initiative benefitting Starbucks?

A smart investor never lets hid money sit idle. Even if he/she may be sitting idle, an investor is always looking at opportunities to make their money grow.

Similarly, instead of letting the money in the Starbucks Account sit idle, the company 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!

How is Starbucks functioning like an unregulated bank?

85% of the banks in USA have less than $1Billion Assets whilst Starbucks has a total of $1.5 Billion and growing. This makes Starbucks operations like those of an unregulated bank.

The money on the app can only be used to purchase coffee and can never be withdrawn as cash. This allows Starbucks to bypass many financial regulations that are otherwise binding on other banks.

Starbucks Reward System is indeed a stroke of genius. It has helped the brand grow even during periods of recession as the coffee chains were no longer solely dependent on market purchases.

Banks are faced with fluctuating interest rates and the interest it needs to lay aside for all its investors, but Starbucks has no such reason to worry because not only is the lending at 0%, but it is also done in a very obscure way which seldom commands attention.

The ingenuity puts Starbucks at the top of the financial charts, surpassing some of the international banks, who are indeed concerned about the future potential of the brand in the financial space.

Written By - Tushna Choksey

How Starbucks Functions As An Unregulated Bank

How Does Starbucks Reward System Work?

How Is The Initiative Benefitting Starbucks?

A Stroke Of Genius

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