According to Phan, these users load or reload around $10 billion of value onto their cards each year. Turning the coffee shop into a bank is that not all of it gets spent at once. As at the end of March, $1.9 billion of stored card value sat on the company’s balance sheet waiting to be spent – kind of like customer deposits. To give that some context, 85% of US banks have less than $1 billion in assets.
Sounds like a lot...
I still have a small balance on my Starbucks card
Someone gave me a 50 dollar gift card
reply
I have a near allergic reaction when people give me a gift card. Don't. Give me cash or better sats, not some 2nd rate corporate fiat shitcoin.
reply
31 sats \ 1 reply \ @nichro 28 Oct
It's always such a moment at office Xmas gift exchanges when people who barely know each other just trade 40$ gift cards around.
The net result: everyone just lost 40$ of cash in exchange for 40$ in spending restricted to one store
reply
there are also Visa/Amex/etc gift cards that are not restricted to one store or brand
Yet Joel Waldfogel, U.S. economist, University of Minnesota professor and author of the 2009 book, ‘Scroogenomics: Why you shouldn’t buy presents for the holidays’ has not wavered in his belief that the “orgy of wealth destruction” that takes place each Christmas needs to change.
reply
it was a Starbucks gift card
I prefer cash too
Gift cards are tradeable
reply
this. 10/10
reply