The Key Payment Innovations ImpactingRestaurants
A deep dive into the trends reshaping how restaurants take payments and respond to customer demand
Convenience is top of mind for today’s diners. Mobile wallets — apps that store users’ payment information and allow them to pay by placing their device near a POS system — have gone mainstream as consumers seek a faster, more convenient payment experience.
say they prefer contactless payment methods at restaurants, a 7% increase year over year. This option is even more popular with young consumers. 3
say they prefer contactless payments. 4
Investing in the right technologies can help set your business apart by allowing you to meet customers’ growing demand to use contactless payments, which is the ability to pay by tapping a credit card or mobile device to a retailer’s point-of-sale terminal. An innovative payment solution like Tap to Pay on iPhone allows restaurants to accept payment via the tap of a customer’s credit card to your mobile device. You can also allow customers to use other preferred contactless methods like paying via mobile wallets such as Google Pay, Apple Pay, or Cash App Pay.
It’s critical for restaurants and cafes to implement the right technologies. According to the 2024 Square Future of Restaurants report, 5 40% of surveyed restaurateurs say they rely on tech tools to take and process orders. And the benefits of offering contactless payments are growing more and more obvious.
For example, a cafe during the morning rush is likely filled with customers using their mobile devices as they gear up for their day. Customers who can pay with their already-handy mobile device will appreciate the convenience and speed of this method. And other patrons will also directly benefit from a faster-moving line.
Start taking contactless payments at your restaurant via iPhone in just four easy steps.
QR codes are visual internet shortcuts that, when scanned on a mobile device, send customers to relevant information like menus or a purchase link.6
Restaurants are increasingly looking to QR codes to enhance the customer experience by easing the speed and convenience of ordering and paying for their meals. QR codes allow restaurants to:
Health and safety are consistently top of mind for every business, and QR codes can play a key role in helping consumers feel safe. By reducing physical interaction between customers and staff and offering touch-free menus, visitors can feel like they have control over every step of their experience, from ordering to payment.
QR codes can produce a gold mine of data to help inform restaurants’ promotional and marketing efforts. By tracking mobile purchase data at your restaurant, you can monitor the most popular dishes and busiest hours of the day, then send automated promotions to encourage customers to come in during slower hours, test new menu items, or even promote less popular ones. 7
Notably, 25% of Gen Z customers say having the option to order with a QR code or at a kiosk would increase their interest in a new restaurant. 8
Adding QR codes to physical or digital signage makes it easy for diners to access promotions or discounts. They can also integrate with loyalty programs, automatically counting customers' purchases towards rewards, which is especially helpful for the 42% of U.S. restaurants that offer a customer rewards program. 9 On Square, purchases made via QR codes are automatically synched in your dashboard for easy tracking.
Start driving repeat sales with a customer rewards program that integrates seamlessly with all sides of your business. Quick customization, easy enrollment and automated engagements are a click away.
Finally, online-based ordering allows restaurants to manage their menus digitally, so it’s easy to make real-time adjustments to pricing or item availability as needed. Restaurants can use this data to optimize their menus to guests’ preferences or to adjust to low inventory levels. Square seller Scaffidi’s saw a 57% decrease in voided orders due to out-of-stock items when it started tracking orders digitally through Square for Restaurants mobile POS. 10
Here’s how QR codes create a seamless experience:
Restaurant invests in technology that generates QR codes: Restaurant uses their payment solution, such as the Square Point of Sale app.
Restaurant sets up QR code ordering: Ordering cards are placed where customers dine.
Customers scan QR code and order using their mobile device: Selected items are reviewed, special instructions are added, and the order is submitted.
Customers pay directly using their mobile device: The POS solution uses a QR code to direct customers to a purchase link. Customers can check out using their preferred payment method, such as credit or debit card or via their mobile wallet.
Plus: Customers can easily leave a tip during checkout without touching the POS.
The surge in delivery during the pandemic permanently reshaped how restaurants connect with diners — and convenient online and mobile payment options are now essential to compete.
For one, the ability to accept orders online allows restaurants to connect with customers directly, giving diners the option to forego third-party ordering and delivery services.
say they’re interested in placing delivery orders through a restaurant’s website, according to the National Restaurant Association. 11
If you’re selling directly with customers through Square Online or by adding Square Payment Links to your website, you can follow up after their service with promotions, discounts, and perks that keep diners coming back.
