[2019-3-6]Starbucks Works with Bakkt to Enable Bitcoin Payments

[Vladdirescu87]

From the new report, it seems that there is substantial equity held by Starbucks – the biggest coffee and snack provider globally – in the forthcoming cryptocurrency platform Bakkt. The company has earned its shares as part of a jointly constructive agreement. Starbucks’ partnership with Bakkt was initially revealed in August 2018. It is aimed at enabling bitcoin payments.

The giant now plans to install Bakkt’s payment software in all its stores such that clients can make payments using cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Ripple (XRP) and others. The system will be changing crypto to fiat such that cryptocurrencies are kept off of the company’s account.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/starbucks-bitcoin-payments/

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[btyco]

I wonder if it will transact on the lightning network otherwise it would be too slow to use, especially in the busy areas where the queues for a coffee are ridiculous

[pixie85]

I wonder if it will transact on the lightning network otherwise it would be too slow to use, especially in the busy areas where the queues for a coffee are ridiculous

This will work in partnership with Bakkt who will be the crypto holder. SB will not hold any crypto it will go directly through Bakkt. It's a similar system to payment processors that allow you to pay instantly and then prompt your bank to cover the transfer. They are vouching for the transaction for you and will cover the fiat transaction with SB at a later date so you don't have to wait at all. It's also going to be available only for US citizens at first.

[squatter]

I wonder if it will transact on the lightning network otherwise it would be too slow to use, especially in the busy areas where the queues for a coffee are ridiculous

This will work in partnership with Bakkt who will be the crypto holder. SB will not hold any crypto it will go directly through Bakkt. It's a similar system to payment processors that allow you to pay instantly and then prompt your bank to cover the transfer. They are vouching for the transaction for you and will cover the fiat transaction with SB at a later date so you don't have to wait at all. It's also going to be available only for US citizens at first.

The details are really vague. It may not even work like a direct payment processor like Bitpay.

It sounds like you might have to sell on Bakkt, then use the proceeds to buy stored value (like a gift card) that can be used at Starbucks.

That solves the issue of waiting for confirmations but it also means zero innovation beyond what's already happening now. People already buy gift cards with bitcoins all the time.

[1Referee]

That solves the issue of waiting for confirmations but it also means zero innovation beyond what's already happening now. People already buy gift cards with bitcoins all the time.

Coinbase's ecosystem solves the issue of waiting for confirmations too. Bitrefill allows people to pay for their products with their Coinbase balance. It has nothing to do with Bitcoin this, pretty useless so to speak, and that applies to what Bakkt offers too. People can instantly use their debit card, PayPal, Google Pay, etc, in any of the Starbucks shops within the US, and that without worrying about taxation.

The only positive thing about Starbucks "enabling" Bitcoin payments is the free publicity that comes with it, but it ends the moment people actually walk into Starbucks and ask why Bitcoin isn't an option.

[pixie85]

I wonder if it will transact on the lightning network otherwise it would be too slow to use, especially in the busy areas where the queues for a coffee are ridiculous

This will work in partnership with Bakkt who will be the crypto holder. SB will not hold any crypto it will go directly through Bakkt. It's a similar system to payment processors that allow you to pay instantly and then prompt your bank to cover the transfer. They are vouching for the transaction for you and will cover the fiat transaction with SB at a later date so you don't have to wait at all. It's also going to be available only for US citizens at first.

The details are really vague. It may not even work like a direct payment processor like Bitpay.

It sounds like you might have to sell on Bakkt, then use the proceeds to buy stored value (like a gift card) that can be used at Starbucks.

That solves the issue of waiting for confirmations but it also means zero innovation beyond what's already happening now. People already buy gift cards with bitcoins all the time.

Are you sure about that? The way I understood the system after reading a couple pieces about it is that you don't sell on bakkt. You hold funds at bakkt and whenever you buy something at Starbucks your bakkt account gets charged. Bakkt won't pay Starbucks right away. They will rather vouch for your transaction and make sure their bills are covered weekly or monthly.

[squatter]

This will work in partnership with Bakkt who will be the crypto holder. SB will not hold any crypto it will go directly through Bakkt. It's a similar system to payment processors that allow you to pay instantly and then prompt your bank to cover the transfer. They are vouching for the transaction for you and will cover the fiat transaction with SB at a later date so you don't have to wait at all. It's also going to be available only for US citizens at first.

The details are really vague. It may not even work like a direct payment processor like Bitpay.

It sounds like you might have to sell on Bakkt, then use the proceeds to buy stored value (like a gift card) that can be used at Starbucks.

That solves the issue of waiting for confirmations but it also means zero innovation beyond what's already happening now. People already buy gift cards with bitcoins all the time.

Are you sure about that? The way I understood the system after reading a couple pieces about it is that you don't sell on bakkt. You hold funds at bakkt and whenever you buy something at Starbucks your bakkt account gets charged. Bakkt won't pay Starbucks right away. They will rather vouch for your transaction and make sure their bills are covered weekly or monthly.

I'm not sure about anything. I can't find any specific details about how it would work except that funds would be held at Bakkt, meaning no direct Bitcoin transactions at the time of purchase.

Of course Bakkt and Starbucks will have a settlement process like any other merchant/processor relationship. What I'm wondering about is how the POS process will work for customers -- how are they physically going to pay at the counter? Is Bakkt issuing a charge card or something? Or will it be integrated into the Starbucks gift card/app ecosystem?

[onrise]

I wonder if it will transact on the lightning network otherwise it would be too slow to use, especially in the busy areas where the queues for a coffee are ridiculous

Will need t wait and watch how does they proceed and how many people start using it. Because from a line of say 20 people I am sure not more than 5-6 people would make payment via btc and rest would be from card in starting. Might be over months it might chance the situation a bit.