Propel Morning Briefing

QSR mobile payments in US grow 75% in 2017 to reach ‘tipping point’

Mobile payments at quick-service restaurants (QSR) increased 75% in 2017 with the trend set to keep on growing, according to an industry expert.

Glenn Fodor, head of strategic intelligence at US-based payments technology company First Data, said 2017 felt “more like a tipping point as mobile payments raced across the fast food industry”.

He told Nation’s Restaurant News: “Almost all the major brands now offer services at scale. Future projections are massive. As much as 10% of all fast-food sales may be made via mobile in just a few years.”

Fodor pointed out pizza brands Papa John’s and Domino’s both averaged more than 60% of their US sales through digital this year, while online orders grew 50% at Chipotle Mexican Grill, which has led it to plan a wholesale rewrite of its mobile app.

Meanwhile, McDonald’s will have brought mobile order and pay to 20,000 sites around the world by the end of the year.

Fodor said although the increase in mobile payments had been especially acute among QSR operators, the trend was expected to spread to other sectors, especially casual dining and convenience stores as well as traditional retailers.

However, he warned operators would have to increase cyber security to keep customer data secure.

Quoting security breaches this year at companies including Chipotle and Pizza Hut, he said: “As the digital frontier continues to expand, cyber security must be a top priority and seemingly even benign data needs to be secured and protected.”

 

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