[Courtesy of Starbucks Korea]
SEOUL -- "Quick and easy payment at cashless stores!," reads a catch line adopted by global coffee giant Starbucks which will test three cashless stores in South Korea next month following the successful launch of its first test location in the United States.
The local branch of Starbucks said Thursday that two outlets in Seoul's commercial districts and the third one in Pangyo south of Seoul would introduce a cashless payment system on April 23, reflecting the growing use of digital and credit card payments.
Starbucks opened a cashless store in Seattle in January to see how digital and credit card payments affect the behavior and experience of customers. Digital payment is growing in South Korea, but cashless stores are rare.
Starbucks Korea, a joint venture between the American coffee giant and South Korea's retail conglomerate, Shinsegae, said cash accounted for seven percent of total payments last year, compared to 31 percent in 2010.
"As the use of mobile payments and credit cards by our customers continues to increase, we are trying to provide a more innovative and seamless payment experience through the test run of cashless stores," Starbucks Korea head Lee Seock-koo said in a statement.
Starbucks Korea said it would analyze the impact of its cashless system to reflect its outcome in its operations, indicating there would be more cashless stores. The company has maintained its top position in South Korea's franchise coffee industry since its first outlet opened in 1999. Sales hit a record high of 1.26 trillion won (1.18 billion US dollars) last year, up 26 percent from a year ago, and its operating profit rose 34 percent to 114 billion won.
reporter
Lim Chang-won
cwlim34@ajunews.com
