Starbucks Introduces a New, Co-Branded Visa Card!

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If you’re a die hard Starbucks fan and can’t live without their beverages, we have some great news for you! According to USA Today, the company is planning to launch a new, co-branded Visa card in the upcoming months, including a lot of perks for coffee lovers and not only.

Yes, we’re talking about a rewards credit card, enabling customers to receive Starbucks Rewards with any purchase they make both in and out of the coffee chain’s stores.

More loyalty products, coming in the near future!

CEO Kevin Johnson declared that this move is part of the company’s “continued investment in loyalty and technology platforms.”

“It gets their name out there. It’s very much a marketing ploy,” added Robert Harrow, credit card analyst with the consumer research website ValuePenguin. “It’s the same reason why Macy’s or Best Buy (has credit cards). It locks you in. It gets people coming back.”

The card will be issued by J.P. Morgan Chase and it’s an update to their current method of earning rewards. Specifically, only purchases made through the mobile app can help buyers gather rewards. In the future, they are also planning to offer a prepaid Visa card.

For the moment, these are all the details we have about the upcoming credit card, as Starbucks refused to discuss any other details. As for Visa, the credit card company they’re partnering with, in order to release the card, couldn’t be reached.

Starbucks failed to reach analysts’ expectations

However, the real reason behind this upcoming launch is the results the coffee chain registered in the third quarter of the year until now. The sales were impacted in part by two back-to-back hurricanes, reaching a total of $5.7 billion on October 1st, flat with the year-ago period. In contrast, analysts were expecting $5.8 billion for this period.

As for the same-stores sales, they went up by 2%, thanks to a 2% increase gain in the average ticket, as well as a 1% increase in the total number of transactions. Globally, the comparable sales rose 3%, while in the United States, same-store sales also rose 3%.

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