KBW Takes a Look at the Mobile Payments Impact of Adyen / McDonald’s Team-Up

January 6, 2020         By: Steven Anderson

McDonald’s has actually done quite well for itself in recent years with its mobile payments connections. We’ve seen order-and-pay kiosks get set up in the front-of-house, and we’ve likewise seen a growing trend in mobile order-ahead operations besides. Now, McDonald’s has recently made a new advance in bringing in a new mobile payments tool to the operation—specifically, Adyen—and our friends out at Keefe, Bruyette & Woods (KBW) offered up some commentary on the concept.

The new addition to the lineup will see Adyen put to work globally, but the first market to get access to Adyen will be the UK in the early going of 2020. Using Starbucks as a basis for revenue projection—which isn’t exactly one-to-one, but not too far off—KBW estimates that about five percent of McDonald’s sales are done through the app, which means a substantial potential boost for Adyen.

Naturally, this won’t be available immediately, as it will take time to ramp up to the full potential sales. Even then, it’s something of a personal taste thing; Adyen’s penetration rates haven’t exactly been as grandiose as, say, PayPal or one of the mobile Pay variants. However, it’s also the kind of thing that could gain ground over time as consumers get used to the change and, potentially, see some value in it.

Basically, KBW’s take on this is pretty much what anyone else’s probably would be. This won’t do a lot for McDonald’s one way or the other. It’s another option, and that’s never a bad thing, but it’s not like there were tons of people clamoring to use Adyen at McDonald’s. Still, considering the sheer sales volume that McDonald’s sees in a typical year, even one percent of that going through Adyen’s systems is a serious boost to its overall fortunes.

With Adyen now attached to the McDonald’s corporate structure, all Adyen really need do now is demonstrate its practical appeal to more end users, who are probably also at least occasional McDonald’s customers anyway. Now would likely be a good time for a promotion or two to step in, but in the end, this is likely all gravy for Adyen anyway.