For several years, the takeaway industry has been undergoing a digital transformation. More and more customers prefer cashless payments, and the demand continues to rise. Whether it’s in a café, bakery, or restaurant, the trend towards mobile payments is unstoppable. Therefore, as a restaurateur, it is crucial to start offering multiple payment options to your customers. The reasons for doing so are explained in this article.
Do I have to offer card payments or mobile payment as a restaurateur?
You are not obligated to do so legally, but you should. Many consumers now expect to be able to pay via card or contactless everywhere. Consequently, if you do not provide this service, your customers will either have to go to an ATM to withdraw cash, limit their consumption based on the cash they have, or, in the worst case, go to your competition, which is one step ahead of you. None of these scenarios contribute to a desirable guest experience.
Various payment options as a sign of hospitality
Yes, you read that right. Offering customers the ability to use their preferred payment method is part of good service. For many customers, it has become commonplace that they no longer need cash, and this service significantly contributes to their satisfaction. Therefore, you should offer your customers various payment methods and let them decide how they would like to pay.
More and more people want to pay cashless
Studies show that an increasing number of people prefer cashless payment and now consider it an essential option. Especially individuals between the ages of 30 and 50 prefer these payment methods over cash. Even small amounts are often paid with cards or through contactless methods using smartphones or smartwatches. If you do not want to lose guests, you must eventually adapt and offer cashless payment transactions.
Overview of cashless payment methods
Mobile Payment
(via smartphone or smartwatch)
Apple Pay
Google Pay
VISA Mastercard
Girocard (EC card)
Debit card
In the restaurant industry, guests can make contactless payments in two ways. Firstly, with an NFC-enabled debit or credit card, smartphone, or smartwatch. Cards with this function are recognizable by the radio wave symbol. Typically, small amounts can be paid without entering a PIN, the minimum and maximum payment amounts dependant on the payment method. This simplicity makes contactless payments highly attractive.
Avoid offering card payments only for amounts over a certain threshold
Avoid the practice of only offering card payments for amounts over a certarin threshold. It leaves a negative impression on your customers and restricts their flexibility. Additionally, transaction fees are usually calculated as a percentage per transaction, regardless of the amount.
The topic of cashless tipping
Many restaurateurs fear that cashless payments might reduce or even eliminate tips. However, statistics show otherwise. 80.8% of surveyed restaurateurs stated that the introduction of cashless payment systems did not change or even increased the amount of tips.
Benefits of cashless payment
- Lucrative business meals are often paid by card
- Lower time and cost investment
- Easy splitting of bills
- Fast and efficient processing (automated workflows)
- Less effort in bookkeeping compared to cash transactions
- Reduced need for change
- Increased theft security due to less cash on-site
- Fewer cash deposits into business accounts
- Hygienic payment method
- Modern perception
- Higher revenue potential as guests can order more (no limitation due to "not enough cash")
- Often higher tips for employees
- Avoidance of human errors
Security in cashless payment
Cashless payment is generally very secure for restaurateurs because card systems automatically verify the card for restrictions or overdrafts. Cashless payment processing with NFC technology is equally secure as other transactions and even surpasses the requirements of data protection regulations. Payments must be additionally confirmed via PIN, Touch ID, or Face ID in most cases.
Costs and requirements for the cash register system
Modern cash register systems usually have an interface that allows easy integration of card readers or NFC for mobile payment. If your point of sale (POS) is cloud-based, you often do not need additional hardware for enabling contactless payments. For precise information, it is best to contact your cash register provider’s support directly. Additional hardware such as an EC card reader usually costs under 100 pounds. Transaction fees for card payments usually, ranges between 1.5 – 3.5% but can be as high as 6% on each sale depending on the EC provider.
Conclusion: Contactless payment in the takeaway industry
The younger generation, in particular, prefers cashless transactions. By offering multiple payment options, you can increase the revenue of your establishment and positively influence customer satisfaction. Contactless payments like mobile payment have high-security standards and are supported by many cash register systems.
