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John Cook blogged about using the new Starbucks iPhone app this morning, and posted a video about his experience.
I don't see single-product-payment solutions like this taking off - especially ones tied to a clunky bar-reader type device that doesn't actually work very well (see video). I could understand this if it were a supermarket payment alternative, but is sure seems like a lot of work if you're only ever going to buy coffee using the app...