New payment technology- what you need to know

Here at Lockhart Catering Supplies we have taken a little look at the emerging new payment technologies for the hospitality sector, helping you decide how and where to invest your dosh for efficient cash collection.

Here are the new payment methods that are persuading punters to open their purses - or in many cases - allowing them to keep them shut.

Contactless payment

According to Worldpay, over the past year the use of contactless payment has trebled with banks now issuing cards designed for use without chip and pin. Instead, for transactions of £20 or less, customers are able to wave their card over the payment ready. This is already proving a time saver in busy coffee shops, pubs and bars where speeding up payment is helping to ease queue congestion.

Though there have been concerns that contactless payments are less secure, card issuers say fraud is less likely because the maximum transaction threshold is set so low. There is scope for this figure to fatten up a little in future, which is good news for any customers who find themselves on a large lunch of coffee run. To offer contactless payment in store you’ll need an enabled card reader. If you bought your card reader fairly recently you may find the technology is already built in, if not, it might be time to upgrade.

Bitcoin

The virtual currency Bitcoin isn’t staging a massive takeover when it comes to food and drinks payment in the UK but there are takeaways, delis, coffee shops and even some restaurants accepting the online currency. Customers paying with Bitcoin use an app on their phone to transfer funds from their virtual wallet to that of the vendor and the process is generally far faster than credit card payment and boasts lower transaction fees too. However, there are still few people with stashes of the cyber currency here in the UK. Since there are relatively low costs associated with vendors allowing it as a payment method it is something that we may see more of in the future.

Paypal pay at table

Even if you’ve not paid for a pizza with Paypal yourself you’re likely to have seen the recent TV adverts telling you about the new possibilities associated with Paypal payment. In addition to funding ill-advised late night purchases on eBay and providing a quicker alternative for payment at the online checkout when you don’t fancy filling in your life story just to buy something from a new site, you can now use Paypal to order ahead at participating restaurants and to pay too. You can see which chains are already signed up to the scheme here.

Again, payment is processed via a smartphone app, with many eateries offering discounts and coupons to lure customers alongside the promise of faster payment. Paypal even allows you to pay using your Paypal profile photo and you are able to split the bill between a group of people.

Smartphone apps

Paypal aren’t the only ones trying to speed up payment and tackle that awkward period at the end of a meal when no one knows whether to split things equally or count out their pennies. Other app options include US based app, Cover, and in the UK, Flyplay, which is currently offered as a payment method in popular Mexican chain Wahaca. Apps like Swipely are taking the technology beyond payment and offering owners access to data that could improve their service offering or even help streamline their menus. Of course, while all of these apps offer the prospect of clearing tables faster due to quicker payment, they do make it even more likely that people will be dining with their smartphones firmly in hand, so you may find food photography and texting delays service a little!

Have you started using any of these payment methods in your own business yet? What are your finding works well? We’re always interested to hear about your experiences, so please share them below.