If Starbucks were a bank, it would be bigger than 90% of institutions covered by the US Federal Deposit Insurance Corporation by deposit size, with a new model of banks. It is not a place for customers to reserve money for cash withdrawals. Its reserve can be applied to coffee and small snack orders only.
The Starbucks app boasts nearly 31 million active users. Customers can preload money into their accounts via Starbucks gift cards. Alternatively, they can link Apple Pay or payment cards to the app. Every purchase made via the app earns users loyalty points that can be redeemed for perks such as free refills, drinks, or sandwiches. The total amount loaded onto the app by coffee drinkers that has not been spent yet amounted to $1.8 billion in the last quarter. This idle cash has been likened to interest-free capital for Starbucks.