Ever hear “tap to pay” when you’re cashing out at a retail store, QSR, or fast-casual restaurant? Or have you been to select full-service restaurants and the waiter or waitress comes by with a payment terminal rather than bring a check? What you’ve been experiencing are the new trends of cashless payments and digital wallets.
Ditch bringing a wallet full of cards when all you need is your phone that is conveniently always with you. As technology continues to advance, our phones are increasingly attached to our hips because they’re becoming more capable of carrying everything we need like payment information and restaurant loyalty cards. According to Worldpay's Global Payments Report, 52% of e-com took place on a mobile device in 2021 and card usage at the POS is shifting to pass-through mobile wallets accounting for 29% of all global POS payment methods, with credit card payments at 24% and debit cards at 23%.
The Difference Between Mobile Wallets and Digital Wallets
The terms “digital wallets” and “mobile wallets” have been used interchangeably to discuss a similar concept. However, there is a clear distinction to be made between the two.
A digital wallet allows you to store your credit card(s), debit card(s), and loyalty card(s) in the cloud, then access them from a device like your laptop, tablet, phone, or smartwatch. A mobile wallet is a type of digital wallet that’s accessible through an app on a mobile device; think Cash App.
The reason that these terms become interchanged easily is that many wallets tap into both the digital wallet and mobile wallet definitions. For example, ApplePay acts as a digital wallet because all of your payment information can be accessed in your iCloud account via a laptop or phone. It also acts as a mobile wallet because all iPhones come with the Apple wallet app where you can access your cards to make payments within an app, online, or tap-to-pay at a payment terminal.
4 Benefits of Adopting Mobile Payments in Your Restaurant
Digital wallets have become extremely popular with consumers and are projected to take the lead over credit cards in the U.S. by the end of this year. With the rise of online ordering, delivery, and mobile payments guests want a seamless, on-demand experience when they order from restaurants. Meet your guests in channels they frequently use and prefer payment–mobile apps and online.
Restaurants with mobile payment and a loyalty app have experienced more frequent visits from customers who use the app to pay. The digital wallet trend is here to stay and rapidly growing to become the top payment method by 2025. Hop on the next technological trend before it’s too late.
1) Enhances the online ordering experience.
Guests have more convenience, allowing them to quickly and easily pay how they prefer. It is now easier than ever to open an app, pick and customize food items, and pay directly from their phone either using the digital wallet or a digital gift card from the brand already saved to their phone. Digital wallets also benefit online ordering for restaurant operators because it incentivizes customer loyalty and offers quicker transaction speeds compared to traditional payment methods.
2) Digital wallets are more secure than traditional cards.
We never want to have someone steal our card information and go on a shopping spree. That being said, digital wallets are more secure and powered by NFC for in-store transactions, allowing two devices (a mobile device and a payment terminal) to conduct a transaction and process payment via an encrypted signal. Digital wallets are more secure even when a phone is stolen due to an extra layer of security like Apple’s FaceID or TouchID. Passcodes to unlock a phone is added security. Another security feature is tokenization which happens when your card information is added to a digital or mobile wallet. This means that your account number, expiration date, and security code are turned into a string of random numbers and letters so your information can’t be stolen or used for fraudulent purchases.
3) Mobile payments create repeat visits and loyal customers.
Instant gratification will never go away especially for consumers in this digital age. When guests have the convenience to order and pay online their satisfaction increases. It also helps restaurant operators by reducing wait times which also affects guest satisfaction. Most contactless and mobile payment methods integrate directly with loyalty and reward programs meaning that your customers can generate points/rewards every time they pay with the tap of a card or mobile device. It’s especially helpful when brands offer fully integrated digital gift cards attached to the loyalty program that can be added to a digital wallet and act as a mobile payment for guests.
4) Increased sales from online ordering.
Adopting mobile payments has the potential to substantially increase your brand’s revenue. Guests are likely to spend more on online orders rather than at a brick-and-mortar location. Pair that with a loyalty program and guests are 80% more likely to order from your brand and spend 33% to 10x more over time. If you want more loyal customers and increase your revenue, accepting mobile payments, especially from your own branded mobile app and online ordering is key.
Mobile payments are on the rise in restaurants and show no signs of slowing down. Guests are increasingly looking for ways to pay faster with convenience and ease using their mobile devices. Be ahead of the digital wallet trend and adopt mobile payments for your brand to create loyal customers and increase revenue!
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