Starbucks has expanded its mobile payment system from 16 shops to more than 1,000 locations in Target stores, according to americanbanker.com.
The system, created by mFoundry Inc., generates a coded image on the customer’s smart phone, which is passed under a reader at the point of sale.
The amount purchased is automatically deducted from the customer’s digital gift card.
Instead of requiring built-in hardware, Starbucks’ system uses software which can easily be installed on available smart phones.
Analysts say the bar code system may be a quick fix for mobile payment until NFC chips are more widely available in smart phones.
Read more here.