Mobile
Payment is making inroads in virtually every industry: from retail to
e-commerce, and from roadside food joints to the sit-in trendy restaurants. With
all the hype around mobile payments, the fear of restaurants before jumping the
bandwagon is fully justified. Like any technology adoption, mobile payment
adoption in Restaurant industry can be plotted on the adoption curve as:
Image Source: An article by Scott W. Ambler published
on Dr.Dobb’s website
If
the mobile payment adoption in restaurants has to cross The Chasm, it has to
address the top concerns facing these businesses:
Seamless Experience for customers:
Customers go to different restaurants i.e. Mexican, Chinese, Indian etc., and
would not want to install separate apps for each of the different chains.
Customers should be able to use the same app across multiple chains, which mean
success for payment companies means forming alliances with key partners in
restaurant industry.
Security: Restaurants have to be
convinced that the application is secure i.e. their customers’ card details
won’t be hacked. Brand name is a big asset for restaurants, and any dent would
be difficult to eradicate. Any mobile company vying for restaurant business
should get their app certified through an industry standard like PCI.
Existing Infrastructure: Most of the
restaurants have already invested in some sort of POS terminals like VeriFone,
or loyalty solutions such as Belly and Fivestar. Asking these restaurants to
throw away the existing investment, and start from scratch would be a sure
recipe to be shown the door. Mobile
payment app should integrate seamlessly with existing POS and loyalty
systems.
Customer Adoption: Once restaurants
have embraced a particular payment technology, how should the customers be
educated about it to drive the adoption? The restaurants and the mobile company
both have stakes in making it successful, so it makes sense that it’s a joint
marketing effort. Explainer videos and blog content can be used to explain the
usage and the benefits.
Do
you think there are other factors that should be tackled to help restaurants
cross the Chasm?
