(TechCrunch) – Starbucks is experimenting with a new method of payment that doesn’t even require customers to take out their phone. The business acknowledged an internal test of “scanless pay,” a novel contactless checkout technique that would use a user’s current geolocation from the Starbucks app to identify them in the drive-through lane so they wouldn’t have to take out their phone to pay.
According to the firm, TechCrunch, the experience is presently only being tested as a proof-of-concept with Starbucks employees. There is no clear timeline for when or even if such a function would be made available to users.
If it did, however, such an innovation would likely speed up drive-through times, as customers wouldn’t have to launch the Starbucks app, display their barcode, then wait for the employee to scan their screen — something that can often be tricky in bright sunlight or when the customer isn’t well-positioned at the drive-through window. Instead, a scanless checkout system would allow the employee to simply hand over the customer’s order and have them then be on their way.
Due to the drive-through’s capacity to serve more customers in less time, this could also have an effect on the business’s bottom line.
Developer and researcher Steve Moser spotted references to scanless pay in the most recent iteration of the Starbucks mobile app, which led him to the new technology. “Scanless pay in the drive-through helps you get your order fast,” additional language in the app added. In order to save you time while paying at the drive-through, we use the location services on your smartphone to recognise you when you arrive.
The app claimed that the feature was accessible in some areas, but the business informed us that it is not currently accessible to users.
Right now, the system asks the user to choose to use the functionality. Once activated, consumers would use the mobile app to check in when they arrived at a participating drive-through restaurant. After placing their order, they would tell the barista their name and that they had checked in. Customers probably have enough time to play around with this extra step while waiting in the drive-through queue, even though this system does not let you to leave your phone at home. The only option is to take your order and leave when they get close to the window.
Starbucks is a leader in cutting-edge payment methods, thus the development is noteworthy. The idea of the digital wallet at checkout was invented by Starbucks long before Apple Pay became as commonplace as it is now. Today, the company’s mobile order and pay system for placing orders in advance contributes significantly to revenue generation. For instance, the business said that in Q2 2023, Mobile Order & Pay accounted for 74% of company-owned revenue in the United States when combined with drive-through and delivery.
We are constantly testing and investigating new features to ensure an effortless, delightful, and personalised experience for our customers and partners as we continue to innovate and invest in the Starbucks Experience for our partners (employees) and customers, a Starbucks spokesperson said, confirming the test to TechCrunch.
Of course, Starbucks isn’t the only store testing out scanless payment technology. In order to enable customers to just exit a store after doing their shopping, Amazon has been working on its own Just Walk Out technology. This system employs video systems, an app, and machine learning technology to identify what a customer purchased there. The store has also been working on creating Amazon One, a palm-scanning system utilised by a variety of locations and merchants, including Panera Bread.
Customers’ discomfort with the biometrics included in Amazon’s systems—having their palms scanned to follow them, that is—is a drawback. Contrarily, Starbucks’ scanless approach would be quite similar to grocery pickup applications like Instacart or even Starbucks mobile ordering, where you briefly grant location access so the store knows you’re on the way.
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