The way we understand doing payment and online money transactions has changed drastically in the past two years. The transition from cash to card, bank transfers to wifi card payments took almost a decade to become a common practice in the market. And yet, cash payment was one of the most prominent forms of transaction.
This changed recently when the pandemic hit and it did not just affect global economies but also instilled a fear of contamination among customers. In this case, to reduce paranoia and keep the currency actively circulating, the contactless form of payment became prominent. In fact, currently, the online mode of payment has become such an integral part of our daily lives that as per a survey conducted by the Committee on Payment and Market Infrastructure (CPMI), due to Covid-19, there was a global average decline in cash withdrawal from 23% to 10% from 2019 to 2022. The stats clearly project the change in customers’ perspective towards the traditional modes of payment.
Being one of the industries that were the most affected globally, for the restaurant markets, technology adoption was critical to survival. It is one of the most customer-centric industries and is very prone to be affected by the slightest of changes. And so, the retail F&B sector was the quickest to adopt the digital mode of payment.
It goes without saying that third-party online food delivery apps and online payment platforms played a major role in simplifying the whole cycle of purchase, and payment and even taking quick feedback. The private players and even the government’s own initiatives have pushed the digitalizing and smoothening of the entire payment process.
In the last two years, the face of online payment in the restaurant industry has changed drastically and is upscaling at a breakneck speed. Online payment platforms are bridging the gap between paranoid customers and restaurants. Apps such as GooglePay, Paytm, Amazon Pay, Razor Pay and Phone Pay, etc. offer reward points and discount coupons on food orders. Right now, booking a table, ordering food and making payments have become a process of minutes.
Digital payment modes have definitely helped in expediting the food ordering process. Customers hardly stand in line anymore to place orders or struggle with change to pay for their meals. Online payment modes have automated the customers’ experience.
More and more payment integrators are entering the market. This is improving businesses’ visibility and making them accessible from anywhere. Digital payment modes are offering businesses something that they didn’t have before, easy access to the customers and their details like mobile numbers. Using this crucial data, CRM programs are helping restaurants with customer reward and retention.
Although the pandemic has pushed global economies a decade behind, it also wiped off the traditional ways of doing business and made a vast space for technological evolution. This massive digitalization of the payment process has been initiated and adopted in less than 18 months. That says something about business’ need for upscaling.
(The author is Mr. Jatan Vala, VP of Revenue, Petpooja and the views expressed in this article are his own)
