Technology has been advancing at an exponential rate, and this remains true for the payment industry as well. Financial technology is redefining the payment industry in a massive way, leading to unprecedented growth. According to Juniper Research, financial technology companies stand to generate $638 billion by 2024. In an even shorter timescale, the industry can expect a growth of 143% to $263 billion by the end of 2019. This opportunity can be felt in every industry, especially the restaurant and food industry. According to a survey by the International Restaurant and Food Service,
“More than half (52 percent) of restaurant and food service industry decision makers foresee online ordering as having the biggest impact on payments in the industry in the next two years. That’s followed by mobile payments (22 percent), self-order kiosks (14 percent), and cybersecurity (10 percent)” (“International Restaurant and Food Service Show Survey Findings,” 2019, TD Bank).
It is clear that financial technology is creating a revolution within the payment industry, with consumers wanting ever more convenience and security. Online ordering, where customers can purchase their food without even entering the business, has become a major source of said convenience for customers and an even larger source of revenue for those businesses. Even more concerning is despite the expectations, according to the survey, 57% of respondents stated that they do not currently offer online ordering. More so, according to TD Bank’s survey, 71% of survey takers stated that they do not offer rewards or loyalty programs, despite over half of respondents for the 2018 edition stating that it would help them.
How will this affect my business?
The opportunities that this offers companies are substantial as both Millennials and Generation Z make more use of technology and the seamless customer experience that accompanies it. These advances have become a requirement for any business to compete. Restaurants that fail to advance will almost certainly fall out of use and close their doors.
The necessity of financial technology to compete also presents a large opportunity for merchant service providers, who offer POS solutions to businesses, including payment options. As the world becomes more technologically advanced, these companies serve to grow more crucial to the success and survival of most businesses. Merchant processing providers can offer a company more than just transaction processing. They offer solutions for merchants, such as loyalty and gift card programs, advanced POS terminals, and online payments. In addition, merchant service providers also offer processing for EMV and contactless payments, allowing a company to embrace a new audience without alienating an older one.
Beyond this, as financial technology continues to advance and services such as online ordering, loyalty programs, and security become more common, businesses should be turning their attention to what will come next. While it may be some time before a technology with a similar impact appears, it is almost certain to come.
How can I stay with the times?
In the meantime, feel free to check out FlashBanc, who offers all of the services described above, and many more, such as check acceptance, mobile payments, and merchant cash advances. We also offer wireless terminals, online ordering capabilities and all things merchant services. You can check out our website here.