These days, we live in a futuristic world where smart devices perform dozens of everyday tasks. This is typically done with the help of our voices or facial and touch recognition. Similarly, customers can use mobile payments to complete transactions instantly as one of their go-to restaurant payment options.
The restaurant industry is growing increasingly tech-reliant. In fact, restaurant industry trends and restaurant technology trends are constantly evolving. One trend that more restaurants are beginning to incorporate is mobile payment technology.
To some restaurants, mobile payments are a newer concept, whereas for others, it has been a necessity for years. Nevertheless, mobile payments are becoming more popular than ever thanks to their convenience. Keep reading to learn everything you need to know about mobile payments and why you should use them as part of your eCommerce accounting processes.
Mobile Payments: What Are They?
Mobile payments include numerous ways that customers can complete transactions using their mobile devices, including their smartphones or tablet. It’s possible to make mobile payments in person, such as at a brick and mortar location, or online, such as O2O.
There are at least seven different kinds of mobile payments. The following are the most common mobile payment types:
- Mobile wallet. These payments are made using a mobile wallet or app that is connected to a bank or credit card account. Mobile wallets use near-field communication (NFC) technology to complete contactless payment transactions.
- Mobile bank. This payment method involves transferring money from one bank account to another on a mobile device or app.
- SMS. With SMS payments, you can complete transitions using special text codes.
- Mobile-to-mobile. These payments are made from one mobile device to another.
- Near-field communication (NFC). NFC payments are commonly referred to as touchless payment methods. Payments are made using radio waves once a device is held within close proximity to a contactless POS system.
- QR code. It’s possible to complete mobile transactions by scanning a QR code on a mobile device. This is one of the dozens of QR code uses.
- Magnetic secure transmission (MST). When paying with a mobile device, the device will emit an electromagnetic signal that mimics the magnetic strip data on the physical payment card.
Key Takeaway: Making mobile payment technology available to customers at your restaurant ensures that they have a fast and convenient way to pay. This compares to traditional payment methods such as cash or physical credit or debit card.
4 Benefits of Mobile Payment Technology
Businesses, like restaurants, can benefit from accepting mobile payments, aside from traditional payment methods like EMV payment. This is because they streamline the checkout process and increase sales while creating a better customer experience.
Contactless payment transactions are fast which means they save employee and customer time. There’s no need to deal with cash, change, or punching in a PIN.
Mobile payments are a type of contactless payment that allows for quick restaurant bill pay. They take only a few seconds to complete. All the customer has to do is swipe or tap their mobile device near the contactless reader.
Security is a huge factor when it comes to payments. When using mobile payments, credit cards are encrypted by the apps and locked thanks to the device’s security features. This makes credit card fraud less likely to occur.
In order to access mobile payments and the mobile wallet, customers have to unlock their devices using their set security features. This way, you can rest assured that even if your device falls into the wrong hands, your mobile wallet is secure.
These days, we’re living in an increasingly cashless world. People are paying more attention to efficiency and convenience when it comes time to pay.
Customers that don’t like carrying cash and credit cards or tend to forget their wallets at home enjoy being able to use mobile payments. This is because not many people will forget their phones at home.
Mobile payments can be made from anywhere and all customers need is their mobile devices. There is no need to stand in line, especially if you have an mPOS system.
4. Reward Programs
It’s common for mobile payments and rewards programs to go hand in hand. This is because it allows restaurants to offer mobile apps to their customers.
Through the apps, you can incorporate restaurant marketing strategies. This includes offering rewards points, sending out coupons, and running exclusive promotions.
As a result, it will encourage customers to come back while boosting sales. A customer rewards program is one of the customer retention strategies to consider, especially if you’re running a restaurant business.
How Mobile Payments Improve the Restaurant Business
Deciding whether or not to accept mobile payments is simple. It all comes down to the restaurant point of sale systems you decide to incorporate and whether it’s compatible.
Mobile payments are improving the restaurant industry in a number of ways. It provides an opportunity to offer online food delivery, real-time analytics, push notifications, and faster payment processing.
1. Online Food Delivery
Food delivery platforms such as Google Food delivery, DoorDash, and UberEats provide innovative ways for restaurants to expand their business. Customers can use their mobile devices to place orders, pay, and track their food as it moves through the delivery process.
Paying through these platforms is easier than ever thanks to different payment methods. A common payment option is using your mobile wallet, which includes Apple Pay, Samsung Pay, and Google Pay.
2. Real-Time Analytics
Using restaurant mobile payments allows customers to keep track of their spending habits. Customers can get insights related to which restaurants they dine at the most.
This information is great for budgeting purposes. Restaurants can also use it to suggest specific products, promotions, and discounts.
3. Push Notifications
Restaurants that offer mobile payments through their apps can stay in touch with their customers through the use of push notifications. These notifications may include app updates, special offers, discounts, and cashback opportunities.
4. Fast Payment Processing
Mobile payment technology offers quick payment processing options. There is no need for data entry, and it reduces wait times.
Customers also receive the option to choose digital receipts or invoices. These can be sent through email, text, or to be stored in the app.
Frequently Asked Questions About Mobile Payment Technology
Do you think about offering multiple restaurant payment options to your customers? Providing customers with what they want is essential for a restaurant business. One thing customers look for these days is convenience and that’s what mobile payments offer.
Incorporating mobile payment technology into your restaurant will give you a competitive edge. Look into the following commonly asked questions regarding mobile payments to better understand why you need them for your business:
Can You Use Your Phone to Pay at a Restaurant?
Yes, you can use your phone to pay at a restaurant, as long as that restaurant accepts mobile payments. Common mobile payment options include Apple Pay, Samsung Pay, Android Pay, and Google Wallet.
To use this kind of mobile payment technology, consumers need to add their payment card information to one of these services. Then, they can use their preferred authentication method to complete the payment. Authentication methods often include passwords, facial recognition, or fingerprints.
How Do Mobile Payments Work?
Mobile payments work as any credit or debit card would. However, instead of using a physical card, you use an internet-connected mobile device and a payment app to complete the transaction. These payments are secure because of the short frequencies required to process the payment between the POS system and the mobile device. This makes it less likely for information to be stolen through interference.
Which Mobile Payment System Is Best?
The best mobile payment system will depend on what you value most. This includes convenience, security, and fees. It’s best to do your research to decide which form of mobile payment technology is best for you to incorporate into your restaurant.