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The Bank of Starbucks

Sunday - 5/5/2013, 6:00pm  ET

Increased spending from Starbucks loyalty cards helped the company report great sales growth so far this year. In fact, the company's success with prepaid cards has been phenomenal. 

Consider these statistics:

  • Starbucks customers add $3 billion annually to their cards, a pace that rivals many banks.
  • One-third of all Starbucks transactions in the U.S. are made using prepaid cards.
  • Starbucks expects its rewards membership base to double this year, to 9 million people.

In the following video, Fool contributor Demitrios Kalogeropoulos discusses how important loyalty cards have been to Starbucks, and how prepayments have been a good indicator of sales growth in future quarters.

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