According to First Data Corp, smartphone based transactions hit a tipping point with a 75 percent growth rate.
Following an exceptionally slow rate of adoption over the last few years, restaurant mobile payments are finally starting to catch on, particularly in the quick service industry. This year saw an impressive growth rate and it is expected to continue in this strong and positive direction.
Payment technology company, First Data Corp, reported a massive rise in smartphone transactions.
Quick service restaurant mobile payments were especially high performers, according to the firm’s figures. “What made 2017 so impressive was that it felt more like a tipping point as mobile payments raced across the fast food industry,” said its head of strategic intelligence, Glenn Fodor. “Almost all the major brands now offer services at scale: McDonald’s, Burger King, Quizno’s, Chick-fil-A, Krispy Kreme, Baskin-Robbins.”
They estimated that in the restaurant industry, mobile payments grew by a rate of 75 percent this year, according to Fodor when speaking at the firm’s “Top 10 Trends in the Payments Industry” webinar. He also pointed out that this rapid growth trend is expected to continue through next year.
“As much as 10 percent of all fast food sales” will be completed via restaurant mobile payments, said Fodor.
The rise in the use of smartphones for making payment transactions has been experienced in all types fast food restaurants. This includes everyone from cafes to burgers and pizza. Big name chains such a Domino’s and Papa John’s have shown powerful mobile numbers. Moreover, Starbucks is considered to be among the leaders in the world’s success stories regarding mobile payments.
Yum Brands division, Pizza Hut, has been regularly adding new features to encourage the use of mobile commerce and payments. For instance, in 2016, it added the Visa Checkout feature. It has also made it possible for customers to be able to track the delivery of their order.
Throughout this past year, the use of restaurant mobile payments has been rising at a more than healthy level. According to Fodor, First Digital anticipates a continuation of this growth rate throughout 2018 and that it will head beyond that year as well. He stated that this will not only change the way people interact with quick service, but that it will also make its way into casual dining as well as retail and convenience stores.