News

California Subways now accepting mobile payments

November 11, 2010

Hungry Californians can now get a Subway sandwich, even if they've left their wallet at home.

Doctor's Associates Inc., parent company of the Subway chain, has partnered with Think Computer Corporation to implement the FaceCash system at participating restaurants in California.

The system is currently available at a Subway unit in Palo Alto, with a broader roll-out anticipated. It also has been installed at other restaurants in the area, including Red Mango and Ramona's Pizza.

The FaceCash mobile payment system allows consumers to make a purchase with their cell phones.

By setting up an account online, users can fund their FaceCash accounts by transferring cash from their checking or savings accounts. They can then make purchases at participating locations with their iPhone, Blackberry or Android device.

Transactions incur a flat rate of 1.5 percent, and merchants that use the FaceCash system can save up to 50 percent relative to traditional credit/debit card processing fees.

FaceCash accounts do not require monthly or hidden fees. In order to use the system, merchants need an Internet-connected computer and an optional barcode scanner.

"We are thrilled to be working with Subway. The corporate cafeteria near our office only accepts cash, so I'm looking forward to buying Subway with FaceCash, instead," said Aaron Greenspan, CEO, Think Computer Corporation.

FaceCash's security system includes identity verification, displaying a photo of the user's face -- submitted during the sign-up process -- upon purchase.

Additionally, the FaceCash system keeps track of purchases, so customers don't have to file away receipts.

The FaceCash mobile payment system was launched in April.

This isn't the first QSR test run of a mobile payment system. In August, Bank of America began trying out the concept at New York City Burger King and McDonald's outlets.