QSR Payments acceptance, 14 stories from N. America

December 8, 2014     By : LTP Team

We recently reviewed the payment systems at 14 leading quick service restaurants (QSRs). Here is a summary of what we observed:

  • 10 have their own online/app checkout systems.
  • 3 of them accept Apple Pay/Google Wallet/ISIS/Other contactless payment system.
  • Only 1 of them has its own checkout system and accepts either of Apple Pay/Google Wallet/ISIS/Other contactless payment system.

Following are the highlights of what we found on each of them:

McDonalds

One of the most popular QSRs throughout the world, McDonalds’ provides different payments systems across its outlets in different regions. McDonalds’ Sweden app has integrated the SEQR mobile payments solution developed by Seamless. Swedish customers can use the mobile app to scan a QR code at checkout and enter the PIN to enable payment via the SEQR digital wallet.

In Singapore, McDonalds’ had launched a mobile payments system in collaboration with Visa. The system requires users to create a one-time user account and register their Visa cards. This enables a one-click payment via the app.

The QSR offers the McDelivery 1711 service in Thailand using a mobile payment service developed by Swiff in collaboration with Thailand’s AEON Thana Sinsap Ltd. The mobile payment service uses credit cards. In France, McDonalds uses a mobile payment system in collaboration with Airtag, a company specialized in POS payments. The mobile payment system is an iPhone app that provides the GOMCDO function using which one can order ahead before arriving at the restaurant, and then pay using the “one-click” payment feature compatible with credit cards as well as PayPal. The function, integrated into the ordering app, provides QR codes along with 6-digit codes which can be used at POS to finalize transactions.

In U.S., McDonalds’ already has a collaboration with Softcard to enable payments using the mobile wallet across 14,000 locations. This enables customers to make NFC based mobile payments. McDonalds’ has also adopted the new NFC based Apple Pay mobile payments system.

Own System: QR codes

Apple Pay/Google Wallet/ISIS/Other Contactless:  Yes

New York Fries

The Canada based 200-location QSR chain recently launched a mobile loyalty, rewards, payment and gifting program dubbed as ‘Fry Society’. The payments system completely skips the plastic card and relies on a virtual card. A single Fry Society account enables loyalty, mobile payments and exchange of virtual gift cards. The payments system has been developed along with Virtual Next and does not require users to download an app. It is a mobile platform and works on any web-enabled device. Fry Society members can preload their virtual cards and use it for cashless payments. Fry Society members also earn points upon each purchase at an outlet, which can be further redeemed for free food. Also, after 10 visits, members can select any one item from menu for free.

Own System: Online/App Checkout

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

Subway

In the U.S., Subway has a collaboration with Softcard to enable NFC based mobile payments using the mobile wallet service. Softcard is active across 26,000 outlets across U.S. and is integrated into the SUBWAY Card Rewards Program as well. The QSR also has a collaboration with Paydiant and offers customers a cloud based mobile wallet app. Paydiant has integrated mobile wallet technology into the Subway app. A smart phone user can scan a QR code at Subway’s POS in order to make the payment. Subway has also started accepting Bitcoin in a few outlets.

Recently, Subway added support for Apple Pay as well.

Own System: QR codes

Apple Pay/Google Wallet/ISIS/Other Contactless:  Yes

Taco Bell

This QSR offers a smartphone app for ordering and payment. The app lets customers place an order, customize it and then pay using credit cards and even gift cards. A special feature that the app includes is the GPS locator which gives an estimate for order pick-up. The Taco Bell mobile app was recently updated to support food customization, ordering and payment. The new mobile ordering app works for in-store as well as drive-through purchases. Payment for the order can be completed using credit cards or Taco Bell cards before arriving at the selected Taco Bell location. The app sends a notification once the user is 500 feet away from the location.

Own System: Online/App Checkout

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

Starbucks

Back in 2009, Starbucks launched a mobile card app for Starbuck Card customers. The app enables customers to reload their cards by using credit cards. In 2012, Starbucks partnered with Square to launch a mobile wallet for smartphones. The QSR invested in Square to process its credit and debit card transactions. Now Starbucks uses its own mobile payments app developed in-house. The app is also linked to the customer reward program. The app uses QR code technology to initiate payments. Starbucks uses Square’s payments platform to provide an in-app payment platform and for linking the app to credit and debit card credentials.

Payments at Starbucks can also be done using a smartwatch. Vesh Ventures has developed an app called Wearbucks which generates a bar code on the small smartwatch screen that can be scanned at the payment terminal. Users can set up their cards in the app and set the default one for payment. Starbucks recently started the Mobile Order & Pay service as well which allows customers to preorder from a particular outlet using the app.

Own System: QR codes

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

Chipotle

The QSR has invested $10 million to integrate mobile payments into its branded app. Ordering can be completed on the app itself and payment can be made using credit card information. The app gives an estimate of the pick-up time for the order made.

Own System: Online/App Checkout

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

Wendy’s

The payment method basically involves use of an app on your smartphone which generates  a six-digit code to be provided to the cashier for payment. The My Wendy’s mobile app can be loaded with money and acts as a mobile wallet.

Own System: Online/App Checkout

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

Burger King

Burger King had introduced a mobile payment service for its fast food chain in 2012 with Firethorn Mobile Inc. They also offer an application that will allow customers to pay for Whoppers with their smartphones. BK is powering its in-app payment with PayPal’s cloud-based, PIN-driven solution. In addition to paying via PayPal, users can also add a BK Crown Card digital gift card or activate a virtual card to pay from the app.

Own System: Online/App Checkout

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

KFC

For its outlets in UK and Ireland, the QSR has partnered with AIRTAG to provide mobile and web app for ordering and payments called “KFC Fast Track”. Users can create a Fast Track account using their existing PayPal account details by simply entering their username and password. Entering personal/bank/card details is not required. This is because the information is stored securely within their PayPal account and works like any other PayPal transaction.

Own System: Online/App Checkout

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

Dominos Pizza

The popular pizza delivery chain has integrated Google Wallet into its Android ordering app. This allows app users to pay for their online order using Google’s digital wallet service. Google wallet allows user to store debit cards, credit cards and loyalty cards as well.

Own System: Online/App Checkout

Apple Pay/Google Wallet/ISIS/Other Contactless:  Yes

Pizza Hut

The QSR has integrated the Visa Checkout online payment platform into its mobile ordering app. The same checkout process is available on the website as well.

Own System: Online/App Checkout

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

Chick-Fil-A

The quick service restaurant launched its standalone mobile payment app back in December 2013 during its pilot programs across markets in six U.S. states. The app provides an effective user interface complete with pictures and a fully categorized menu. Customers have the option to choose the pickup method and for actual payments, credit card information is stored to speed up the orders.

Own System: Online/App Checkout

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

Tim Hortons

One of the largest restaurant chains in North America, the chain offers mobile barcode payments at restaurants across Canada and the U.S. This is possible only after a prepaid Tim Card is registered on the company’s well-liked TimmyMe App. It also offers NFC based payment using Host Card Emulation (HCE) at 3500 locations in Canada and 800 locations in the USA.

Own System: Online/App Checkout

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

Dunkin Donuts

The food chain has its dedicated mobile app for iPhone as well as for Android devices. The app provides a virtual Dunkin Donuts card which can either be linked to a physical Dunkin Donuts card or to an actual credit card. The app also provides in-built PayPal payment facility. Upon ordering, the app generates a QR code used by the employee to confirm the payment. The mobile payment system is available across 7000 U.S. stores.

Own System: QR codes

Apple Pay/Google Wallet/ISIS/Other Contactless:  No

LTP Team

A group of content writers, bloggers, journalists and editors from the Lets Talk Payments team.

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