The concept of mobile payment landscape in 2013 was a very hard for customers and merchants to grasp because there weren’t many people in that industry. A lot of mobile payment companies were preset, but had their ups and downs and none of them were market dominant. With no one really dominating the market and tried to expand this into different industries, managers as such didn’t think whether customers would pay with their mobile phones. But there was need to make the payment process simple and convenient for customer. Starbucks was confronted with picking between three types of mobile solutions:
Banks: Where retailers accept payments by debiting funds directly from their customer’s debit or credit card. The retailer would use a regular
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Stand-alone was the solution that Starbucks Canada was currently using, so it was difficult for Starbucks Canada to choose the solution out of these three available options.
Starbucks Canada should put its emphasis on the solution which is adaptable and could work through various payment option additionally accommodated with simplicity of correspondence between the Starbucks customers and the organization itself. Before adopting any new mobile payment system, the management should understand about the cost and other hidden cost that is integrated with the installation of new mobile payment system across 1350 stores. While selecting the system they should see that whether this system is good in long run. There are many reasons that contribute to success of the system, one of them is whether the mobile payment system is compatible with each mobile device or not. For example, IOS does not support NFC, this would reduce the chances of system to be successful. Further management should keep in mind that the mobile payment technology they are choosing is also compatible with their current system because if the mobile payment technology does not go well with the current system then this will lead to technical problem which would increase the expense to solve