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TLDR
Starbucks has long been a reference point for how digital systems can transform brick-and-mortar retail. Since launching its mobile app in 2009, the company has treated online infrastructure as a core part of its store operations. Today, its mobile payments account for more than 30% of U.S. transactions, and the chain is known for selling coffee with the most profitable banking models ever.
This growth has been methodical. The app isn’t designed around novelty features, but around three in-store functions that directly impact operations: ordering, payments, and rewards. Each one is built to reduce friction, shorten wait times, and increase return visits.
Independent cafés don’t need to match Starbucks in size to apply the same structure. With tools like Per Diem, it’s now possible to bring these mechanics into your local coffee shop context. The systems are smaller by design, but the value they deliver is immediate with faster checkouts, smoother service, and a more consistent customer experience.
How Starbucks Uses Its App In-Store
Starbucks’ app is one of the most successful retail mobile apps globally, generating over $16 billion in customer deposits through its stored-value features. But its real power shows inside the store. Here are the three core ways Starbucks uses its app to run a smoother, faster in-store experience:
Mobile Ordering and Advance Payment
Mobile ordering has been standard at Starbucks for years. Customers browse the menu, customize their drinks, and pay for their order in the app. When they walk into the store, their coffee is already in progress or waiting.
Despite how common this has become, many independent cafés still rely entirely on in-person ordering or direct website ordering. That delay may seem small, but it creates avoidable friction, especially during peak hours. Without mobile ordering, queues grow, staff take on more pressure, and customers have less flexibility in how they order.
It’s not a new feature anymore. But in many neighborhoods, even well-loved coffee spots are missing out on the advantages this model provides.
In-App Store Credit and Barcode Payments
A less visible but incredibly powerful feature in the Starbucks app is its stored value system. Customers can load funds into their account using Apple Pay or a credit card, and that balance can be used to pay in-store. When it’s time to check out, they show a barcode on their phone, which the cashier scans to deduct the purchase from their stored credit.
This turns the app into a fast, cashless wallet. No need to take out a card, wait for chip readers, or carry cash. The customer adds funds once and pays instantly from their phone whenever they visit.
Per Diem offers this same functionality under the label of store credit. Customers can add funds inside the app, fund their balance using their preferred method, and use a built-in barcode to pay at the counter. The result is a more streamlined, touch-free transaction experience that works just as smoothly in a local café as it does in a multinational chain.
Loyalty Tracking and In-Store Redemption
Starbucks allows its customers to track loyalty points, known as Stars, and plan how and when to redeem them. This information is always visible and current, allowing customers to make purchasing decisions based on what they’ve earned.
Starbucks links these rewards directly to in-store behavior. The more frequently someone visits, the more value they see in returning. This builds a feedback loop between the app and the café, where digital activity translates into in-person visits.
With Per Diem, your customers can also track loyalty progress, view earned credit, and redeem rewards directly through the app. Whether they’re earning store credit through purchases or tracking their activity, they stay informed and engaged without needing to ask staff for their status.
Incentives That Strengthen Customer Retention
Loyalty systems built into mobile apps have a direct impact on store performance. They increase visit frequency, encourage customers to add funds in advance, and help standardize payment behavior. When these tools are connected to the in-store checkout experience, they improve both operational flow and customer retention.
Per Diem includes features that support this structure. Each one is designed to work inside the app and function automatically with minimal input from staff.
Daily Streaks with Store Credit
Per Diem offers a streak-based reward system that tracks how often a customer visits within a set time frame. If they visit consistently, the app adds store credit to their account. The credit appears automatically and can be used during checkout like any other balance.
This system encourages regular visits within short intervals. The streak format makes the incentive time-bound and visible, increasing the likelihood that a customer will return within the targeted window.
Bonus Credit for Funding Milestones
Shops using Per Diem can set funding thresholds that unlock bonus credit. For example, adding $25 to the app balance might trigger a $2 bonus. This structure encourages customers to preload larger amounts, which reduces time spent on individual transactions.
Bonus credit remains tied to the store. It can’t be transferred or withdrawn, which helps keep the value circulating within the same business. Unlike one-time discounts, this method builds future visits into each funding action.
Centralized Credit Tracking and Redemption
The app gives customers a simple way to view their store credit, bonus rewards, and active streaks all in one place. Everything is visible in the app, so there’s no need to ask how much credit is left or when a reward is available.
At checkout, they scan their barcode, and the app automatically applies any eligible credit. There’s nothing extra to select and no delays at the counter. The process is fast, consistent, and easy for both staff and customers.
With streak progress and credit balances always up to date, the app keeps people informed and more likely to return.
Operational Benefits of In-Store Mobile Payments
Speeding Up Order Processing
Implementing in-store mobile payments revolutionizes order processing, transforming it into a seamless experience. By allowing customers to order and pay ahead through mobile apps, cafés can significantly reduce wait times. Transactions are completed swiftly, meaning baristas can focus on crafting drinks rather than handling complex payment processes. This efficiency translates to faster service and increased customer satisfaction, encouraging repeat visits and building loyalty.
Fewer Order Mistakes and Repeats
When customers order through the app, they select their drink, size, modifiers, and any specific notes themselves. This eliminates guesswork and reduces the chance of mistakes caused by verbal miscommunication or rushed orders. The result is more accurate drink preparation and fewer remakes, which helps conserve ingredients and time. It also minimizes frustration on both sides of the counter, especially during peak hours when speed and precision matter most. With fewer corrections and clearer tickets, staff can focus on making drinks well instead of fixing errors that could have been avoided.
Less Cash Handling and Back-End Admin
Cash management takes time. Counting tills, storing money securely, and balancing shifts at the end of the day can be tedious, and small discrepancies are common. Mobile payments, especially through stored credit, reduce the amount of physical cash coming into the business. This simplifies accounting, lowers the risk of loss or theft, and saves time for both front-of-house and back-office teams. It also means fewer trips to the bank, fewer opportunities for error, and a more controlled record of every transaction. The result is cleaner reconciliation and a more organized closing routine.
Stronger Focus on Customer Interaction
When technology removes routine tasks from the hands of staff, it creates more time for personal service. Without the need to explain loyalty programs, handle small change, or enter customizations manually, baristas can direct more attention to each customer. A simple greeting, remembering a name, or checking in on someone’s usual order adds value that systems can’t replicate. The more that tech handles the backend, the more space staff have to build the kind of customer relationships that make people return. In this way, automation becomes a support tool, not a replacement for hospitality.
Final Thoughts
Starbucks set a high bar by turning its mobile app into a daily utility for millions of customers. Few businesses have the same reach or frequency of visits, which makes their scale unique. But the core idea behind that success is replicable. Mobile tools that make ordering, paying, and earning rewards easier are not exclusive to national chains. When built with the right structure, they work just as well in neighborhood cafés with strong community ties. What matters is not how big the business is, but how consistent the experience feels. Platforms like Per Diem make that consistency possible by helping coffee shops bring mobile convenience and loyalty into the day-to-day flow of their store. The opportunity is less about matching Starbucks and more about applying the same principles in ways that make sense for your own customers.
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