Bank of America and Starbucks Unveil Joint Rewards Program

The recent collaboration enables Bank of America cardholders and Starbucks Rewards program participants to enjoy a 2% cashback from the bank and earn one star for every $2 spent at Starbucks, in addition to existing offers, reports PacSpace Magazine. This information was disclosed in a joint press release by the financial institution and the international cafe chain's owner on Thursday, February 15. Customers can connect an eligible credit or debit card to their Starbucks Rewards accounts, and thereafter, they will receive benefits when making in-app purchases using the linked card. Rewards are granted for actions like reloading a Starbucks digital gift card, pre-ordering, or making in-app payments at the register.

Shikha Narula, Head of Consumer and Small Business Product Strategy and Transformation at Bank of America, emphasizes that partnering with the international cafe chain owner aligns with the financial institution's commitment to appreciating customers who choose to engage with them.

Ryan Butz, Starbucks's Vice President of Loyalty Strategy and Marketing, notes that collaborating with one of the largest U.S. banks exemplifies the company's ongoing investment in deepening engagement with its most loyal clients, offering exclusive benefits and experiences within this corporate space. This collaboration is part of Bank of America's implementation of the BankAmeriDeals program, launched in 2012, which allows customers to receive cashback on chosen transactions when using eligible debit or credit cards, as stated in the press release.

The Starbucks rewards program, established in 2009, currently boasts 34.3 million active users for the past 90 days, marking a record high that is 13% higher than last year's figure.

In an effort to expand its loyalty program, Starbucks CEO Laxman Narasimhan revealed targeted offers aimed at bringing occasional customers into the program during the company's quarterly earnings report in January. He highlighted that program participants develop long-term relationships with the brand, leading to increased transactions and ticket volumes.

Back in August, Bank of America announced the expansion of its Customized Cash Rewards credit card, aiming to offer cardholders more benefits and additional cashback opportunities across various categories. Jason Gaughan, Head of Consumer Credit Card Products at Bank of America, expressed the institution's ongoing commitment to enhancing solutions to meet customer needs.