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5 top tech trends for 2016

There are a number of key trends for tech savvy QSRs to think about and plan for if they want to attract new customers and increase customer retention this year.

January 18, 2016

By Greg Burch, vice president, Strategic Initiatives, North America for Ingenico Group

There are a number of key trends for tech savvy QSRs to think about and plan for if they want to attract new customers and increase customer retention this year. Here are the five I believe are most important for QSRs to be aware of for 2016.

Omni-channel payments get real — More and more QSRs want to differentiate themselves by allowing customers to pay in multiple ways via multiple channels, and also by enabling customers to start a sale in one channel (such as via mobile device) and finish it in the restaurant or via a kiosk. The objective is to stay connected to consumers throughout the entire buyer's journey — whether in-store, online, or on mobile devices. Major retailers such as Walmart and Home Depot have already begun deploying multi-channel solutions to provide their customers with a seamless payment experience no matter what channel they come through. This helps build trust and familiarity with the brand, while also providing consumers with a consistent experience when they go to pay. I expect QSRs are going to follow suit to stay competitive and keep customers engaged.

Continued EMV adoption — The EMV migration has begun, and the pace of adoption is faster than industry analysts predicted over the last couple years. An Ingenico Group survey found that 60 percent of consumers have already received EMV cards, and of that group, almost half — 48 percent — had actually used one to make a purchase. I expect that this number will continue to significantly increase through 2016 and also anticipate that card issuers will begin to transition to PIN-based EMV Chip cards in 2016. Consumers will begin to associate these cards with identity protection, making EMV migration as much about brand protection than a liability shift. EMV is taking off and adoption will only continue to grow; QSRs will be left behind if they are not prepared. 

Multi-layered security solutions become the norm — Major card data breaches in late 2014 and 2015 caused many merchants, including restaurants, to re-think their security approaches. I recommend a multi-layered approach that, in addition to EMV, incorporates point-to-point-encryption (P2PE) and tokenization. Further, the PCI Standards Security Council and analyst firms such as Gartner recommend PCI-certified solutions for merchants that are implementing P2PE. The best practice in this area includes using a PCI PTS-approved device to accept and encrypt card-present payment across traditional QSR point of sale, tablets and phones.

More mobile payment options emerge — Today, the predominant mobile payment solutions are Apple Pay, Android Pay and Samsung Pay — but it seems there's a new market entrant every week, including merchant-specific solutions such as Walmart Pay. Newer features include loyalty program integration to help drive stronger customer engagement. From a customer engagement and mobile integration standpoint, restaurants have generally been ahead of this curve, as many, including Taco Bell, McDonald's and Pizza Hut, offer their own mobile apps with payment features, and many also accept mobile wallet payments in-store. I expect the mobile payments sector will become even more crowded in 2016. Many QSRs plan to be flexible and accept as many wallet types as possible to ensure they are meeting all of their customers' needs and specific payment preferences.

mPOS adoption soars — Until now, it may seem mobile point of sale (mPOS) has largely been a strategy for micro merchants and SMBs, however, many larger merchants have also been experimenting with mPOS as an extension of their traditional POS. In 2016, I believe mPOS will make big headway among larger merchants, including QSRs. mPOS is no longer just about the "cool factor" — merchants are reporting real ROI on their mPOS investments, thanks to benefits such as faster checkout, shorter lines, increased upsell and cross-sell opportunities, and the ability to create pop-up stores in high-traffic, out-of-store locations.

Making sure you are on top of these payment trends is one way to stand out from competitors in the QSR space. It's all about making payment secure and seamless for your customers on whichever device they prefer while avoiding long lines when they are going out to eat. 

What is your QSR doing to prepare for that future?