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Mobile payment’s untapped market: restaurants

December 18, 2012

The 2012 holiday shopping season is in full swing and mobile payments have increased drastically for retailers in shopping centers as well as online merchants.

The 2012 holiday shopping season is in full swing and mobile payments have increased drastically for retailers in shopping centers as well as online merchants. This trend reflects both growth in technology and increasingly sophisticated methods of transactions and merchant services. At the same time, Veriphone has announced that it will be cutting down on its services for small businesses, citing a lack of cost effectiveness. This reveals a shift in payment trends that is affecting retailers across the United States.

Food service is one sector that has yet to fully embrace mobile payments. Starbucks is an exception, and the coffee giant’s partnership with Square is leading the trend for better integration of mobile devices to include functions that consumers can use to order from restaurant menus or settle transactions. KFC and Taco Bell have also piloted mobile payment solutions at Los Angeles, California-area stores.

Insiders believe that mobile pay is most appealing to individuals in the 21-to-36 year old age bracket, and sit-down restaurants could take advantage of this demographic by investing in new technology. Fast food restaurants might move to more mobile credit card processing operations in the future, and hip eateries could use mobile payments to simplify transactions, establishing a future thinking public image.

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