The coffee giant entered into an equity deal with Bakkt, a new digital asset ecosystem.
Cryptocurrency: much discussed, difficult to implement. Starbucks appears to be on its way to trying, though.
While the coffee giant isn’t accepting Bitcoin in exchange for its products anytime soon, Starbucks did receive significant equity in a newly-formed digital asset company called Bakkt, according to The Block. Starbucks is not a cash investor in the company, the article makes a point to note.
As a result of the partnership, Starbucks is heavily involved in developing the card and app that will allow it to serve as Bakkt’s first merchant-on-platform, the article explains. QSR Magazine noted that Bakkt’s software will be used as a third-party intermediary system to buy products using cryptocurrency such as Bitcoin, meaning Starbucks skirts risk by not holding any digital assets directly.
The success of this strategy could open the door for other brands, franchises included, to explore similar software that accommodates these alternate forms of payments down the road.
Read the full article in The Block here.