National Restaurant Association Show Recap: Three Themes in Payments

The National Restaurant Association (NRA) show just wrapped up in Chicago, where the leading restaurant and store owners, chefs, supply chain managers, and solution providers came together for three days to explore emerging concepts and practices that will impact the industry.

A big point of discussion at this year’s event was how payments technology is influencing the way restaurateurs do business. Changes in payments standards and consumer expectations have touched all industries and hospitality and foodservice is no exception.

Here are three key payments themes to know that emerged from the show – and how they impact businesses and solution providers alike:

The New Mobile POS

Mobile ordering has seen an uptick in 2015, and shows no sign of slowing down. Big brands like Taco Bell, Dominos, and Starbucks are just a few recent restaurants to join the ranks – even McDonald’s is testing a new service at select New York locations–suggesting now is the time to get in the mobile POS game.

At traditional and fast casual restaurants alike, leveraging mobile apps can be effective not only for providing targeted offers but also for facilitating in-app payments. Mobile payments are an opportunity for businesses to turn their app into an e-commerce engine. Mobile POS services within an app can draw up more sales, build out loyalty programs and deliver behavioral insights based on purchasing data faster than ever before.

The Truth about Payment Card Security

The EMV liability shift on Oct. 1, 2015 has turned into a market grab where solution providers are using scare tactics to rush restaurant owners into purchasing decisions. The reality is some of the most widely circulated “facts” about EMV are fiction.

For example, businesses will not be fined if they do not integrate EMV terminals by Oct. 1. While a restaurant that does not have the equipment to process chip cards will be held liable for any fraudulent card-present transactions that may occur, the decision on when, how and even if to make that switch is up to the restaurant. And unlike compliance to the Payment Card Industry Data Security Standard (PCI DSS) that is required, EMV is not mandated – for any industry, including food service. Consult a payments partner you can trust. Industry experts believe only 30 percent of cardholders will have EMV-ready cards by October.

Better Data-Driven Business

New generation inventory management solutions are helping grocers and convenience store owners make better-informed decisions – and these solutions are rooted in payments. Now businesses can receive real-time updates on purchases so they can track and manage stock, re-order or re-fill inventory and even promote certain food items or reallocate floor space. The more advanced platforms can even integrate right into existing payment systems so no upgrade is needed.

For smaller operations in particular, payments-driven data analytics is an opportunity to expand. Selling across payments channels, opening new locations and penetrating new markets all become within reach. Solution providers and processors have the chance to help the restaurant and hospitality business flourish and, if NRA is any indication, 2015 might be the industry’s year of payments.

Chester Ritchie, SVP, Worldpay US
Chester Ritchie is SVP of Worldpay US, a leading global payments technology and services company that offers services across the entire payments value chain and in any environment: in-store, online and via mobile devices. To learn more about Worldpay visit www.worldpay.com.