Starbucks Clarifies! Not Accepting Cash is Just a Decision by Individual Stores!

Starbucks Clarifies: Going Cashless Is Just a Local Store Decision

On the morning of August 30, a British customer posted a photo of a notice hanging in a local Starbucks. It read: "From October 1 this year, we will accept card payments, mobile payments, or payment through the Starbucks app." A British media outlet later reported that a second Starbucks store had put up exactly the same sign.

Because the same notice appeared in two stores, many people assumed that refusing cash was a company-wide Starbucks policy. They called the move unreasonable, and the debate spread quickly.

Critics argued that even though electronic payments are increasingly common, that does not mean everyone uses them; plenty of customers still prefer cash. Dropping cash might lower the risk of virus transmission, they said, but it also strips other people of their freedom to choose.

As the backlash grew and tempers flared, Starbucks UK responded on social media that same evening. The company explained that its UK stores are operated by several different franchise partners, so some decisions can vary from store to store. Starbucks has no plans for a cashless initiative, it added, and most stores will continue to accept cash.

Starbucks' Earlier Payment Experiments

Back in 2018, the American network CNBC reported that Starbucks had tested whether removing cash support would affect the customer experience in some US stores. The experiment was never widely promoted at the time.

The thinking came from then-CEO Kevin Johnson, who noted that 30% of payments at Starbucks stores in the US were completed by mobile phone, while 40% went through Star Value (similar to the Starbucks Card) because it offered more discounts and rewards. In China, electronic payments accounted for as much as 60% of transactions.

Where Starbucks Stood During the Pandemic

When the pandemic began in 2020, Starbucks started offering more rewards and discounts for contactless payment to reduce the risk of the virus spreading through cash. Even then, it never said it would stop taking cash, and it stated clearly that "cash is also an option."

So the cashless policy that caused the uproar was a decision made by individual franchise stores in certain areas. It does not represent Starbucks' official position.

Image source: Internet

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