Digital Payments in the Restaurant Industry

Digital Payments in the Restaurant Industry

Digital payments are the wave of the future for restaurants, as less and less customers are carrying traditional credit and debit cards these days. While cash, credit, and debit payments are still the bread and butter for most establishments, restaurants are expanding their acceptance of the digital wallet. In this post, we’ll look into the benefits of digital payment methods and why accepting them should be in the cards for your restaurant.

It’s Convenient

Apple Pay and Google Pay are two of the most popular “digital wallets.” These secure forms of payment enable users to go cashless, even affording the ability to send and receive money from anyone they choose. By making transactions directly through the app, customers no longer have to carry physical cards or cash. Consumers today, especially millennials, are increasingly opting to carry their entire lives on their phones—which obviously includes their banking options. It was reported by Statista that “The number of mobile phone users in the world is expected to pass the five billion mark by 2019.” Furthermore, a consumer is much more likely to forget his or her wallet than their cellphone. Therefore, it’s in your best business interest as a restaurant owner to follow the trends right to these digital wallets.

It’s Safe

With convenience covered, we can talk a bit about security. People tend to think of transactions made through a smart phone as highly risky, but it’s worth noting this isn’t necessarily true. According to Business Insider, “the top mobile wallets on the market are perhaps more secure than chip payment cards because they authenticate not only the device being used for a transaction, but also the person using the device through fingerprint scanning.” Credit card fraud tops the most common types of identity theft today. It’s no wonder tech-savvy patrons are leaning away from these payments.

It’s important we mention the security of mobile payments for merchants as well. Even though it’s unlikely you’ll phase out the acceptance of credit or debit cards altogether, if more and more patrons are able to use their phones, you’ll be handling less credit card numbers and your liability will go down.

It’s Quick

If you’ve ever made a payment with your phone, you know just how quickly they go through. We looked at the numbers from a Toast POS article and were surprised to read that “chip cards” take up to 12 seconds to process, which is a lifetime when you’re in the thick of the lunch rush. On the contrary, Apple Pay, Google Pay, and Samsung Pay are nearly instant. By increasing the speed with which you can get your customers in and out the door, you subsequently increase table turn (and revenue).

As a merchant, you’ll need to research whether you have the appropriate hardware and software to accept mobile payments. And if you don’t, you’ll need to determine what to get and how to get it. Assuming you’re already equipped to take EMV chip cards and your POS terminals, you may just need an upgrade to ensure your terminals are NFC-enabled. Talk to your payment processor to see where you stand.

With consumers adopting digital payments at a higher frequency than ever, it’s time for your restaurant to join the masses. It’s convenient, it’s safe, and it’s quick—the trifecta of success, if you ask us.