You've probably never walked into a Starbucks and thought, “Wow, this place feels like a bank.”
But maybe you should.

I want to show you a surprising financial truth hiding in plain sight—Starbucks is doing more than just brewing lattes.

Key Takeaways

• Starbucks holds billions in prepaid card balances through its loyalty app.
• These funds act like no-interest loans from customers to Starbucks.
• Unlike a traditional bank, you can’t withdraw the cash—you have to spend it at Starbucks.
• This makes Starbucks one of the largest institutions in terms of “deposits” without paying any interest.

Let’s Break This Down

We all know Starbucks as one of the biggest coffee companies in the world.
With over 40,000 locations and $36 billion in annual revenue, they’ve got scale.
But they’ve also got $1.7 billion sitting in their loyalty app as of 2022.

That’s money people have loaded onto Starbucks cards—money just sitting there, waiting to be spent.

Now think about a bank.

Banks take your money, pay you interest (usually), and then use that money to make loans or invest.
Starbucks?
They take your money, pay you nothing, and only let you “withdraw” it by buying coffee.

In fact, with $1.7 billion in prepaid balances, Starbucks ranks among the top financial institutions when it comes to held funds.

So… Should You Stop Buying Coffee?

Not necessarily.

But think about how you're using your money.
If you preload $100 onto your app and let it sit there for weeks or months, that's $100 not earning any interest.
You’ve essentially given Starbucks a free loan.

That might not be a big deal for a few bucks here or there.
But it’s a good reminder to stay aware of where your money sits and what it's doing for you.

Whether it's a coffee app, a checking account, or an investment portfolio, your dollars deserve to work as hard as you do.