Why does Starbucks accept payment by MoMo, ZaloPay in Vietnam?08/02/2023
The year 2022 marks a new step in payment for Starbucks Vietnam when this unit allows customers to use QR codes to pay, with two major partners, MoMo and ZaloPay.
Opening its first store in Ho Chi Minh City in 2013, by February 1st, 2023, Starbucks will mark the 10-year milestone of entering the Vietnamese market. By the end of 2022, the coffee brand from the US has a total of 78 stores, present in Hanoi, Ho Chi Minh City, Hung Yen, Hai Phong, Da Nang, Hoi An (Quang Nam), Nha Trang ( Khanh Hoa), Binh Duong. In which, Hanoi alone has 24 stores.
In addition, 2022 also marks a new step in payment for Starbucks Vietnam when this unit allows customers to use QR codes to pay, with two major partners, MoMo and ZaloPay. Previously, guests only had the option of paying by cash, by bank card or by Starbucks Rewards membership card. In particular, Starbucks Rewards is likened to a “secret bank” when customers deposit money and can only withdraw with… coffee.
With Starbucks Rewards, customers top up through a bank card or gift card. After that, customers will use the money in this card to pay for products at Starbucks stores, and receive accumulated points. Customers using Starbucks Rewards cards also often receive more promotions and discounts.
Starbucks’ Q3 2022 report says that there are 27.4 million active Starbucks Rewards members in the United States alone, nearly double the 14.2 million members at the end of 2017. By 2022, Starbucks Rewards also accounted for 53% of sales at US stores. In the third quarter of 2022, Starbucks publicly disclosed $1.7 billion stored in Starbucks Rewards accounts. This makes many people liken Starbucks as a bank that attracts billions of dollars in deposits with 0% interest and can earn more profits by using the money to lend, invest,…
By allowing the use of e-wallet payments, the CEO of Starbucks Vietnam also said that there is no concern that customers will reduce the use of membership cards.
“All just to serve more payment methods for customers, convenient for customers. That is always the first criterion of Starbucks, in every way. E-wallet is now becoming a very popular payment method, the company will also always create the best conditions for customers to use the most convenient payment method.
Honestly, we have a lot of payment methods right now. Having an e-wallet does not affect Starbucks Card but has a positive effect on customers using less cash. The low use of cash by customers has changed since Covid happened. In Vietnam, there is a very good payment method that foreign countries do not have, which is wire transfer. Now, wherever customers go to eat and drink, they can also transfer money with their pre-glued account numbers, which are not available in foreign countries. The company’s criteria is to reduce the amount of cash, to minimize the risk of losing money or keeping money in the store,” said Ms. Patricia Marques – CEO of Starbucks Vietnam.
In fact, despite sucking a large amount of money from the membership card, Starbucks currently has no plans and only uses Starbucks Rewards as working capital.
In 2023, Starbucks Vietnam said it will continue to look for premises with a moderate area so that customers can sit and enjoy coffee with family and friends or serve customers only for takeout. The model of this brand will be towards leanness, looking for more space in new urban areas, high-rise buildings or local communities. Starbucks Vietnam also expects to reach 100 stores by 2023. The specific expansion plan has not been disclosed, but the CEO of Starbucks Vietnam said that they will maintain the expansion strategy as before, that once they open a store, they will look for potential locations in the same area.
“When opening a store, in addition to serving a community of customers, we also want to create a community for our employees to better support each other. If they open a store and there is only one store 10km away, they will have certain difficulties. Or for example, when customers go to drink coffee at a restaurant 3km away, they like it, but if they are 6km away, they won’t want to go. If we have 2-3 stores, within a radius of 3km, we will serve more customers, and the staff will also support each other better,” said Ms. Patricia Marques.