STARBUCKS CANADA THE MOBILE PAYMENTS
DECISION by Deborah Compeau Cato Pastoll Tyler
Rochwerg Brandon Vlaar
Discussion Questions:
1.(Why) does Starbucks Canada need to re-assess its mobile payments strategy? How serious is this
issue for the company?
2. Given the shape of the mobile payments landscape in 2013, what are the most important criteria
that management should be using to assess the various mobile payment options?
3. What caused the issues faced by Starbucks US after their rollout of Square mobile payments?
4. As a senior manager for Starbucks Canada, what would you recommend and why?
, W15170
Teaching Note
STARBUCKS CANADA: THE MOBILE PAYMENTS DECISION
CASE SYNOPSIS
This case, written on the basis of published sources, concerns the decision facing management of Starbucks
Canada about how to implement mobile payments. While Starbucks has currently been using a mobile app
to accept payments through their proprietary Starbucks card, rival Tim Hortons has recently introduced a
more advanced mobile payments solution and the company now has to consider its next moves. The case
reviews various aspects of mobile payments technology and platforms that must be understood to make a
decision about the best direction for Starbucks Canada.
TEACHING OBJECTIVES
1. To introduce the complex challenges of mobile payments solutions, particular the necessary
technologies, the providers, and the user adoption issues that confront companies seeking to implement
mobile payments as an option.
2. To consider the current landscape of mobile payments options, and formulate technology strategy even
in the face of an emergent marketplace, considering the risks of path dependent decision making when
standards are not fully formed as against the risks of failing to innovate.
SUGGESTED ASSIGNMENT QUESTIONS
1. (Why) does Starbucks Canada need to re-assess its mobile payments strategy? How serious is this
issue for the company?
2. Given the shape of the mobile payments landscape in 2013, what are the most important criteria that
management should be using to assess the various mobile payment options?
3. What caused the issues faced by Starbucks US after their rollout of Square mobile payments?
4. As a senior manager for Starbucks Canada, what would you recommend and why?