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Starbucks iPhone App Updated With Digital Tipping, Shake to Pay

The new version of the app will be released on March 19


Starbucks (SBUX) customers who use the coffee-chain’s iPhone app will soon be able to do something new with their mobile phones — they will be able to give electronic tips to their baristas.

Starbucks coffee stocks
Source: Flickr

Currently, the Starbucks app for Apple’s (AAPL) iPhones allows customers to make credit or debit card payments through their smartphones, but coffee-lovers cannot add tips to the bill electronically. Starbucks will release an update to the app on Mar. 19 that will permit customers to tack on a tip as long as two hours after the actual sale is made, CNN notes.

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In the new version of the Starbucks iPhone app, customers won’t have to scroll through menus to make their payments. Now, just shaking the iPhone while the app is open will activate the payment screen. Customers can chose to tip their baristas 50 cents, $1, $2 or not at all through the app.

Mobile phone apps have been a big hit with Starbucks customers. Sales through mobile phone apps now account for roughly 11% of purchases made in Starbucks locations. The apps have been downloaded by 10 million people.

An updated mobile app featuring the tipping feature will be release for smartphones running Google’s (GOOG) Android soon, according to Starbucks officials.

Starbucks stock rose modestly in Wednesday morning trading. SBUX stock has gained more than 25% over the past 12 months.

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