Networld Media’s QSRweb recently posted Greg Burch’s – VP of Strategic Initiatives for Ingenico Group, North America – key technology trends that the quick service restaurant industry (QSRs) need to be on the lookout for in 2016. These important trends will not only shape the QSR future, but will play a big role in attracting new customers and increasing customer retention. Burch breaks it down to 5 key trends.
Omni-channel payments get real
More and more QSRs want to differentiate themselves by allowing customers to pay in multiple ways via multiple channels, and also by enabling customers to start a sale in one channel (such as via mobile device) and finish it in the restaurant or via a kiosk. The objective is to stay connected to consumers throughout the entire buyer’s journey — whether in-store, online, or on mobile devices. Major retailers such as Walmart and Home Depot have already begun deploying multi-channel solutions to provide their customers with a seamless payment experience no matter what channel they come through. This helps build trust and familiarity with the brand, while also providing consumers with a consistent experience when they go to pay. Burch expects to see QSRs to follow suit to stay competitive and keep customers engaged.
Continued EMV adoption
The EMV migration has begun, and the pace of adoption is faster than industry analysts predicted over the last couple years. An Ingenico Group survey found that 60 percent of consumers have already received EMV cards, and of that group, almost half — 48 percent — had actually used one to make a purchase. I expect that this number will continue to significantly increase through 2016 and also anticipate that card issuers will begin to transition to PIN-based EMV Chip cards in 2016.
Consumers will begin to associate these cards with identity protection, making EMV migration as much about brand protection than a liability shift. EMV is taking off and adoption will only continue to grow; QSRs will be left behind if they are not prepared.
Multi-layered security solutions become the norm
Major card data breaches in late 2014 and 2015 caused many merchants, including restaurants, to re-think their security approaches.
“I recommend a multi-layered approach that, in addition to EMV, incorporates point-to-point-encryption (P2PE) and tokenization. Further, the PCI Standards Security Council and analyst firms such as Gartner recommend PCI-certified solutions for merchants that are implementing P2PE,” says Burch.
Further, the PCI Standards Security Council and analyst firms such as Gartner recommend PCI-certified solutions for merchants that are implementing P2PE.