Estimated credit and debit card payments at Starbucks last month fell by more than 20 billion won from a month earlier. The number of monthly users of the Starbucks app also dropped by nearly 1.13 million in the same period.

People pass in front of a Starbucks store in Seoul./Courtesy of News1

On the 3rd, according to Mobile Index by AI data tech corporations IGAworks, Starbucks' estimated credit and debit card payments in June totaled 100.39 billion won. That is about 20.8 billion won less than 121.19 billion won in May.

It is not only the lowest monthly payment amount this year but also the lowest among the monthly payment amounts in the past eight months since November last year.

Starbucks' monthly payment amount recorded 147.4 billion won in November last year and then continued to fluctuate. However, the decline became pronounced in May, and in June it fell to the low 100-billion-won range. Compared with the 134.3 billion won paid in April this year, it decreased by about 33.9 billion won in two months.

App usage metrics also worsened. The monthly number of users of the Starbucks app fell from 8,190,191 in May to 7,060,541 in June. That is a decrease of 1,129,650 in one month, a drop of about 13.8%.

Starbucks' share of users in the food and beverage brand and membership app market also declined. The Starbucks app's share, 47.7% in May, fell by 5.4 percentage points to 42.3% in June in just one month.

However, Mobile Index's payment amount is an estimate based on domestic credit and debit card spending. Payments via corporate account transfers, cash, gift certificates, simple payments, and in-app payments are not included.

Earlier, on May 18, the anniversary of the May 18 Democratization Movement, Starbucks Korea sparked controversy by using expressions such as "Tank Day" in a tumbler discount promotion.

Afterward, criticism spread online and on social networking services (SNS). Shinsegae Group dismissed the head of Starbucks Korea and issued a public apology, and is continuing remedial measures such as providing history education for all Starbucks Korea employees.

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