Starbucks, Bank One, Visa Launch Starbucks Card Duetto™ Visa
Next-Generation Card Offers More Frequent Reward Opportunities, Philanthropic Contribution
NEW YORK - October 13, 2003 - Starbucks Coffee Company [NASDAQ: SBUX], Bank One [NYSE: ONE] and Visa U.S.A. today launched the Starbucks Card Duetto™ Visa*. The first-of-its-kind payment card blends Visa credit card functionality with the re-loadable Starbucks Card, offering Starbucks enthusiasts the power to pay, reload, earn and redeem rewards conveniently with one card.
The new translucent Duetto Card offers the first formal Starbucks customer appreciation program, rewarding cardmembers with Starbucks Duetto Dollars for every Visa purchase and providing special Starbucks gifts and benefits with Starbucks Card Account purchases.
"There is no better way for Starbucks enthusiasts to be rewarded for what they do everyday," said Howard Schultz, chairman, Starbucks Coffee Company. "The Duetto Card extends the Starbucks Experience by rewarding customers, while giving back to our communities. With this innovative rewards structure, Duetto Card users may never have to pay for a latte again."
In keeping with its long-standing commitment to social responsibility, Starbucks will also contribute $5 to the Starbucks Foundation after each cardmember's first Duetto Card Visa purchase. From October 13 through December 31, 2003, Jumpstart will be the recipient of the Duetto donation from the Starbucks Foundation. Jumpstart is a national non-profit organization that recruits and trains college students to serve in a year-long mentoring relationship with preschool children from low-income communities. Every $5 donation to Jumpstart will fund one hour of preschool tutoring to a child in need.
How It Works
By using the Visa Account of their Duetto Card anywhere Visa credit cards are accepted, cardmembers will earn one percent back in Duetto™ Dollars that will be automatically loaded on their Starbucks Card Account after each billing cycle. Duetto Dollars can then be used to purchase anything cardmembers want at Starbucks including beverages, food and store merchandise.
Cardmembers will receive a one-time pre-load of $10 to their Starbucks Card Account after their first Duetto Card Visa purchase. By using the Starbucks Card Account of the Duetto Card, cardmembers can also qualify for additional quarterly gifts and benefits.
"Today, more and more consumers enjoy being rewarded for loyalty to their favorite companies," said Jamie Dimon, chairman and chief executive officer of Bank One. "The Duetto Card is a perfect example of three leading brands creating an innovative payment product that provides cardmembers with more frequent opportunities to redeem rewards."
A Card is Born
A press conference will be held at 10:30 a.m. EDT today in New York City, with Howard Schultz, Starbucks chairman; Jamie Dimon, Bank One's chairman and chief executive officer; and Carl Pascarella, Visa USA's president and chief executive officer, to unveil the Duetto Card design and celebrate the launch of the Duetto Card and the companies' alliance.
"The Duetto Card gives us a glimpse of what the future of payments looks like," noted Dimon. "This two-in-one co-branded rewards card is going to change the way many view the plastic in their wallet. For people who love coffee, this is the way to pay and get great rewards."
Launching on the heels of the original Starbucks Card, which coffee lovers are redeeming 15 times per second, the Duetto Card is on its way to great success. There is already high demand for the Duetto Card -- tens of thousands of Starbucks customers have already pre-registered for it.
"Whether it's coffee or credit, the common thread among our companies is the ability to deliver the quality and convenience our customers value," said Carl Pascarella, president and chief executive officer of Visa USA. "This card is an important step in the evolution of electronic payments, because it speeds the adoption of payment cards in a small-ticket environment, where cash is usually king. With Starbucks broad reach and high customer loyalty, this card will have an immediate impact on the payments industry."
According to Visa research, American consumers spend an average of approximately $5,000 a year on their credit cards, and another $11,000 on recurring bill payments that potentially could be made on those credit cards. It is possible for some cardmembers to triple their rewards earnings by simply shifting existing bill payments from checks to a rewards card. Starbucks Card Duetto Visa offers the following great features:
- Visa credit card and Starbucks Card functionality on a single card.
- One percent in Starbucks Duetto Dollars on all Visa purchases wherever Visa credit cards are accepted.
- More frequent opportunities to redeem Duetto Dollars than other rewards-based credit cards.
- A one-time pre-load of $10 to the Starbucks Card Account after the first Duetto Card Visa purchase.
- A one-time donation of $5 to the Starbucks Foundation after the first Duetto Card Visa purchase, which will be provided to organizations supported by the Starbucks Foundation.
- Earn three percent in Duetto Dollars with each automatic reload of the Starbucks Card Account using the Visa Account of the Duetto Card. The auto-reload feature allows cardmembers to automatically load cash value from their Visa Account to their Starbucks Card Account whenever they like.
- Quarterly opportunities based on usage of the Starbucks Card Account to enhance the Starbucks Experience through product samplings, advance product previews and exclusive coffee tastings.
Consumers may apply for the Duetto Card by visiting www.starbucksduetto.com, a Starbucks retail store or by calling Bank One at 888-894-0032.
Media and consumers may find more information about the Starbucks Card Duetto Visa, including downloadable card art at www.duettopressroom.com.
Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world, with more than 7,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. In addition to its retail operations, the Company produces and sells bottled Frappuccino® coffee drinks, Starbucks DoubleShot™ coffee drink, and a line of superpremium ice creams through its joint venture partnerships. The Company's brand portfolio provides a wide variety of consumer products. Tazo Tea's line of innovative premium teas and Hear Music's exceptional compact discs enhance the Starbucks Experience through best-of-class products. The Seattle's Best Coffee® and Torrefazione Italia® Coffee brands enable Starbucks to appeal to a broader consumer base by offering an alternative variety of coffee flavor profiles.
Bank One Corporation is the nation's sixth-largest bank holding company, with assets of nearly $300 billion. Bank One currently has more than 52 million credit cards issued and it is the largest Visa card issuer in the world. Bank One offers a full range of financial services to large corporate and middle market commercial customers and retail consumers. This press release and more information can be found on the Web at www.bankone.com.
Visa is the world's leading payment brand and largest consumer payment system, enabling banks to provide their consumer and merchant customers with a wide variety of payment alternatives. Nearly 21,000 financial institutions worldwide rely on Visa's processing system, VisaNet, to facilitate $2.5 trillion in annual transaction volume with virtually 100 percent reliability. Consumers in more than 150 countries carry more than one billion Visa-branded cards, accepted at millions of locations worldwide. Within the U.S., nearly 14,000 financial institutions issue 396 million Visa cards, accounting for more than $1 trillion in annual transaction volume. Visa offers a trusted, reliable and convenient way to access and mobilize financial resources - anytime, anywhere, anyway. For more information about Visa, please visit www.visa.com.
*Starbucks, the Starbucks logo, Duetto Card, Frappuccino, Starbucks DoubleShot and Hear Music are either trademarks or registered trademarks of Starbucks U.S. Brands in the United States and of Starbucks Corporation in other countries. Visa and the Visa logo are registered trademarks of Visa USA.