Starbucks is probably the most well-known international consumer brand with a financial service product offering. By now, the coffee store chain offers cards as well, but most people know their wallet product offering, where consumers store more than $1.6 trillion. Strictly speaking, the wallet offering is not even embedded finance because it is more of a voucher since customers can only redeem it at Starbucks. But let’s not split hairs.
What is undeniable is that Starbucks built a loyalty machine around its wallet and card offering that has lifted the company to the next level. The benefits that consumers received in return for storing funds were not expensive for Starbucks (free wifi, birthday discount, and more), but the coffee store chain received in return a massive interest-free loan.
So why don’t other retailers build the same? Well, because it’s really hard. That’s why infrastructure provider Ansa has taken on the mission to enable more companies to offer wallets with embedded loyalty features. I had covered them before (link) when they announced their partnership with Compass Coffee in February. But I just came across them again in a restaurant blog (Restaurant Business) and I thought it was a good moment to re-share their offering.
