The use of mobile wallets was growing slowly but steadily in the U.S. at the start of last year, but with the onset of the COVID-19 pandemic, mobile payments saw a significant increase. Consumers have been seeking out ways to go contactless, either through e-commerce like online ordering or tap-to-pay at the store. Currently, 90% of stores across the country accept Apple Pay,andGoogle Pay is used by more than 150 million people worldwide on a monthly basis.
These new payment methods are fundamentally changing the guest experience with regards to dining. Here’s how.
Mobile payments are super convenient and secure
Using a phone to pay for items is faster, easier and more secure than using cash or a credit card. The NFC technology that enables the transfer of payment information also prevents sensitive card details from being exposed. For example, Apple Pay creates a unique token each time it’s used, so merchants never receive the guest’s actual card number.
Plus, there’s no need to fumble around in a wallet to find the right credit card. Today’s guests will never leave home without their phone, but some may opt to leave a bulky wallet full of cards behind if they can.
Mobile wallets can carry loyalty IDs, too
Guests appreciate frictionless experiences as the fastest and easiest means of accomplishing their goal, whether it be ordering a meal or checking out at the counter. With a mobile wallet, guests can use their phone to both make a payment and identify as a loyalty member with a single tap, allowing them to avoid inputting a phone number and ultimately saving them time.
Paytronix data shows that mobile payments have been adopted primarily by brands’ most loyal and youngest guests. On average, mobile wallet users visit 42% more frequently and are five years younger than average loyalty program members, making them a group that brands should be eager to accommodate.
Mobile payment isn’t limited to Apple Pay and Google Pay; brands can enable mobile payments with an app
Want to make it easy for guests to carry their gift cards digitally? With mobile payment, they can pay for their order with the tap or scan of a barcode on their phone via a mobile app. A great model is the Starbucks program, which has propelled the coffee giant to over $1 billion in stored-value liabilities.
Not only is this quick and easy for the guest, but it seamlessly marries payment to loyalty, ensuring that restaurants never miss out on collecting valuable data.
Disclaimer: Paytronix is not affiliated with Starbucks, nor is this slideshow sponsored or endorsed by Starbucks. This content is strictly based on publicly available information and Paytronix’s independent analysis of the industry.
When it comes to e-commerce and digital ordering, payment can make or break an order
The longer it takes guests to check out when ordering online, the more likely they are to abandon the purchase altogether. Integrating the online-ordering platform with providers like Apple Pay and Google Pay lets guests fill in their payment info with the click of a button, saving time and keeping them engaged. In fact, Apple Pay and Google Pay increase conversion rate in online ordering by more than 20%.
Mobile payment providers like these also capture delivery information in the same tap. While guests are enjoying a seamless experience, reliable information is provided to the restaurant for fulfillment.
Payment options for guests are more important than ever
With today’s technology, guests have come to expect personalized experiences—and that includes paying how they want to. In the same way that guests will often switch brands in favor of one that provides more ordering flexibility—online, onsite and so forth—consumers will soon opt for brands that provide the most convenient payment options.
Even beyond guest preference, brands stand to gain much from contactless payments. The benefits include greater loyalty penetration and conversion, which ultimately lead to a healthier top line through incremental increases in visits and spend.