Starbucks partners with Bank of America for new ways to earn rewards
By Jordan Valinsky, CNN
New York (CNN) — Starbucks customers who use a Bank of America card will now get additional cash back for their purchases as part of a new partnership between the two companies.
Beginning Thursday, Bank of America credit and debit cardholders who are also part of the Starbucks Rewards loyalty program will get 2% cash back and one additional star for every $2 spent on orders through the coffee chain’s app. The offer must first be activated on a special website for use.
The expanded rewards are in addition to the existing cash back and stars that both companies already offer to customers. Bank of America’s “BankAmeriDeals” often updates the companies and categories to which it gives cash back, and the new deal with Starbucks makes the coffee chain a permanent cash back partner. Starbucks Rewards currently gives one or two stars for $1 spend (depending on payment method) with enough stars collected giving members free coffee and food.
Both Bank of America and Starbucks are among the country’s biggest companies with millions of users. The bank, according to a press release, has 45 million customers using its “BankAmeriDeals” program, and Starbucks Rewards has more than 34 million members who have used the program in the past three months, a record high for the company.
Expanding Starbucks Rewards gives the chain access to customers’ data and ordering habits, which in turn helps the company target members with deals, a stated goal for the company. In 2022, Starbucks partnered with Delta Air Lines to give bonus SkyMiles to registered customers.
Starbucks members typically spend more money on each purchase compared to non-members. Members “develop a routinized long-term relationship with our brand that increases both ticket and transactions,” the company said in its most recent earnings call. Plus, partnerships with other companies help Starbucks increase awareness and drive growth as well as attract new members.
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