Premium Only Content

When eBay Turned Into a Real-Life Horror Movie

The Airline Bankruptcy That BROKE Iceland’s Entire Economy

YouTube Regrets Banning Ad Block

YouTube's Ban on Ad Block Gets WORSE (Part 2).

The Invincible Dollar Store Model Just Got DESTROYED

Meet The Pastor Behind The Shoplifting Epidemic

Disney’s DUMBEST Business Venture

The Billion-Dollar MISTAKE That Made Google Unstoppable

How Avatar Actually Lost Money

Why Starbucks is the WORST BANK In The World

The Secret Way Rich People AVOID Paying Taxes By Living At Sea

Why Starbucks is the WORST BANK In The World
“Starbucks is a bank” is a genius strategy where millions of Starbucks customers who are members of the rewards programme are essentially loaning the business around $1.6 billion at a 0% interest rate.
That's right, this substantial sum arises from outstanding gift card balances within its loyalty program. Interestingly, this amount exceeds a staggering 85% of the deposits held by conventional U.S. banks, which typically possess less than $1 billion in customer deposits.
However, here's the twist: Starbucks doesn't operate like your typical bank. They employ this substantial $1.6 billion as a zero percent interest rate loan. And the kicker? They pay it back in coffee, not actual money!
Every year, approximately $10 billion is loaded onto the Starbucks Card program, accounting for nearly half of the company's sales. Customers have embraced the convenience of app-based transactions, enjoying rewards and perks with each purchase. This approach encourages them to add funds to their accounts, allowing Starbucks to hold onto their customers' money without incurring costs.
And the plot thickens.
Unlike traditional banks, Starbucks is exempt from the regulations that oversee customer fund storage. No need for segregated banking systems, no investment in low-risk government bonds, and no requirement to manage capital and liquidity for safeguarding customer deposits. They are also free from strict KYC (Know Your Customer) and anti-money laundering rules. Furthermore, they don't need to report to the SEC (Securities and Exchange Commission). In essence, Starbucks can utilize these funds as they see fit, giving them a financial edge in advertising, marketing, and business expansion.
But that's not all.
Starbucks benefits from customers who fail to redeem their gift card balances. This translates to extra revenue for the coffee chain. For instance, in 2018, they gained a profit of $155 million from unused gift card balances. By 2022, this number had risen to $196 million.
In summary, Starbucks not only avoids paying interest on customer deposits but also manages to retain a significant portion of the deposited funds for their use. It's a double win for the coffee powerhouse.
However, there's a catch.
While this strategy benefits Starbucks, its customers miss out on earning interest and withdrawal options. There are no regulatory safety measures in place, and many customers even forget about their deposited money. For these individuals, Starbucks might just be the worst "bank" in the world.
Music:
Dream It - TrackTribe
-
4:26
Mini Money Docs™
3 months agoThe Site So Advanced It DELETED Itself: Boo.com
131 -
The Big Mig™
3 hours agoJohn Bolton Indicted on the Espionage Act on 18 Federal Counts , Who's Next
4.6K9 -
Badlands Media
9 hours agoBadlands Daily: October 17, 2025
26.9K6 -
2:33:45
Matt Kohrs
13 hours agoLive Trading Futures & Options || Payday Friday!!!
20K1 -
1:45
From Zero → Viral with AI
8 hours agoAI Isn’t Taking Over — It’s Leveling the Playing Field | Work Smarter, Not Harder
20.1K15 -
1:09:36
Chad Prather
19 hours agoHow to Love Like Jesus in a World That’s Lost Its Heart!
54.9K41 -
1:05:41
Crypto Power Hour
4 hours ago $1.57 earnedCrypto Trading Strategies You Need to Know
23.3K6 -
1:54:44
The Chris Salcedo Show
15 hours ago $5.90 earnedReckoning on Injustices Perpetrated Against Americans
26.2K2 -
1:33:18
Game On!
22 hours ago $1.69 earnedAnother Football Friday! BEST BETS For The Weekend!
36.1K1 -
21:44
DeVory Darkins
13 hours ago $8.66 earnedMamdani BODIES Cuomo in fatal debate as California gets exposed for homeless fraud scheme
31.1K70