SBUX Starbucks Corporation

By Julie Jargon 

Starbucks Corp. on Wednesday said customers using its new branded prepaid Visa cards would be able to earn points for free coffee and other perks.

The company outlined its latest plans to expand its rewards system beyond its own coffee shops during its annual shareholders meeting in Seattle. The Starbucks prepaid cards would be able to be used at any retailer that accepts Visa cards.

Meanwhile, a bogus news release was issued by an unknown group on Wednesday morning claiming the annual meeting had been canceled. A Starbucks spokesman said the company doesn't know who was behind the hoax.

The Starbucks prepaid Visa card, which is expected to be available by the end of the year, would allow card holders to earn "stars" for all purchases made on the card, which can then be redeemed at Starbucks cafes. Customers would be able to apply for the card through the Starbucks mobile app or on its website.

Restaurants and retailers in an increasingly competitive environment are vying to draw repeat customers, and Starbucks has made its loyalty program a central part of its growth strategy.

Even fast-food chains are jumping onto the bandwagon. McDonald's Corp. recently said it plans to develop a loyalty program later this year or early next year.

Write to Julie Jargon at julie.jargon@wsj.com

(END) Dow Jones Newswires

March 23, 2016 13:46 ET (17:46 GMT)

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