Starbucks launching prepaid Visa card to boost its rewards program

Starbucks Corp. is extending its payment platform to extend its reward program beyond its own stores.



The coffee giant announced at its annual shareholders meeting on Wednesday that it will launch the Starbucks Rewards Prepaid Card from Chase by the end of this year.



Cardholders will be able to use the reloadable card nearly everywhere Visa is accepted and earn points, or Starbucks "stars," for all purchases made with the card. The points will be automatically deposited directly into the cardholder’s Starbucks Rewards account to be redeemed at Starbucks stores or online. (Last October, Starbucks announced that Chase Commerce Solutions had replaced Square as its payments processor.)



Starbucks COO Kevin Johnson told the New York Times that people would not earn points on the Visa prepaid card at the same rate that they do for purchases made at Starbucks stores. He said the rate of rewards for the new card would be announced at a later date.



Consumers can apply for the card through the website or the Starbucks mobile app.



The annual meeting came on the heels of a record year for the company. Starbucks reported record revenues of $19.2 billion for fiscal 2015, up 17% over the previous year.