Guest Post: Where Payments Technology Makes a Difference: Restaurants & the Impact of COVID-19

By Dirk Izzo, President & General Manager, NCR Hospitality

This year alone, more than 30,000 restaurants across the United States have closed due to the COVID-19 pandemic. Restaurant operators faced dire straits as they navigated shelter-in-place orders, reopening procedures and the ongoing litany of laws and regulations designed to protect our communities. That’s not to mention keeping their business up and running throughout a global crisis.

Operators recognize there are challenges on the horizon. The coming winter months and flu season will force many restaurants to shutter outdoor dining and reimagine how they serve guests, if they have not already. And with just one-third of consumers saying they feel safe going into a restaurant, operators will need to implement processes and strategies that help guests stay (and feel) safe.

From make-shift drive-thrus to mobile ordering and third-party apps, operators are working to keep their restaurant running and commerce moving.

A Key Ingredient: Payments Technology
A core element of any restaurant’s business strategy is how they accept and process customer payments. This has evolved throughout the years alongside technology. Cash or gift cards; the use of debit and credit; and today even mobile payment options on a customer’s phone. Each of these payment methods have helped reduce friction at the point of sale (POS) and driven user satisfaction, for both restaurants and guests.

The previous decade was focused on the rollout of EMV at the physical POS. More secure than traditional debit and credit cards, the transition from legacy magnetic-stripe transactions to chip transactions is ongoing to this very day. Restaurants however, are in need of new payments technologies that not only keep sensitive customer data safe, but their health as well.

Although it has long enjoyed widespread adoption overseas, this year has seen a rapid uptick in the use of contactless payments. Including tap-to-go cards, mobile wallets and QR-enabled methods, according to Mastercard’s Contactless Consumer Polling, more than 51% of Americans are now using some form of contactless payment.

Likewise, research Mastercard published in April of this year indicated that 82% of consumers feel it is a cleaner way to pay. Factor in the convenience element and 74% of consumers say they will continue to use contactless payments post-pandemic. As payments technology continues to help restaurants better manage their books and enable frictionless food service, data such as this demonstrates the perceptive benefits as well.

Contactless & Mobile Payments
Restaurants are also making creative use of mobile payments. And while, the two are oftentimes synonymous, not all contactless payments are mobile, though all mobile payments should, in practice, be contactless.

For example, some operators are experimenting with QR codes for guests to download menus, place an order and pay for their meal – all from the comfort of their personal device. This eliminates the need for shared surfaces or menus that could serve as a carrier for the coronavirus. It also limits the amount of interaction between staff and guests as they do not need to hand over their card or touch a reader.

The financial services industry has long worked to create and address the need for omnichannel experiences. Today, that same conversation is taking place in the hospitality industry. Operators recognize that mobile payments platforms must reflect their brand and the experience they want to create for guests.

And while mobile wallets may not include as broad of functionality, it is equally imperative for operators to be flexible and accept a diverse range of payment methods. Accepting NFC-enabled cards is just as critical as the online ordering and payment platform an operator selects.

Payments Industry Leadership
Restaurants specialize in exceptional meals and service, not payments.

As the payments landscape continues to evolve, however, restaurant operators will look to fintech industry leaders for guidance. Whether it is educating guests on the benefits and safety of contactless or sharing mobile implementation strategies, payments companies have the unique opportunity to ‘serve’ restaurants and not only keep their guests and staff safe but help them feel safe as well.

The next few months will be challenging. Cold weather and the coming flu season will have an outsized impact on all industries and businesses. Only through open communication, openness to change and a commitment to collaboration will our hospitality partners be able to weather this pandemic and help our communities thrive.