Starbucks Corporation (NASDAQ:SBUX) and Visa Inc (NYSE:V) have teamed up to roll out a prepaid card for customers who love their coffee but don’t want to limit themselves.
The two companies announced a new cashless payment program as part of a partnership with Chase. The Starbucks Rewards Visa Prepaid Card is designed for customers who are worried about credit card debt as the card acts as a preloaded debit card, giving users the option to make non-Starbucks purchases.
Customers will earn “stars,” or reward point with the card, much like a standard loyalty card. The new card differs from the Starbucks Rewards Visa Card as it has no annual fee and customers get a bonus 125 stars when they sign up and use the prepaid card for the first time.
That is 100 stars fewer than the deal offered for first-time Chase Visa card users. Consumers who use the card will earn one star for every $10 in purchases and their reward perks include random promotions for free food and beverages, as well as exclusive invitations to the chain’s recently revamped Happy Hour.
The move is part of an initiative by Starbucks to increase digital relationships with customers as only 15 million of its 75 million monthly customers are active Starbucks Rewards members.
SBUX stock gained a fraction of a percentage Monday, while V shares fell about 0.3% Monday.
