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Jamba Juice rolls out mobile payments more broadly following successful pilot

May 23, 2013

Following the success of a mobile ordering pilot with PayPal, Jamba Juice is working on developing its own branded mobile ordering and payment solution that can be rolled out more broadly across its store base.

The smartphone app will enable users to order, indicate their favorite items and pay for purchases. It will be integrated with the NCR Aloha point-of-sale terminals currently in Jamba Juice locations.

“The number one issue for a restaurant is controlling the guest experience,” said Jon Lawrence, director of product marketing at NCR Hospitality, Duluth, GA. “Today, this opportunity extends to their phone.

“Restaurants have three priorities as it pertains to a mobile app,” he said. “First, establish their brand on a consumers’ phone; second, design the app so it is focused and simple to use, and third, it must seamlessly integrate to the point-of-sale.

“This is key for restaurants who want to drive additional transactions and increase the average check value through their app.”

A broader solution
Mobile ordering was piloted at a Jamba Juice location in Emeryville, CA, in January, giving customers a way to order ahead and pay with the PayPal app on their mobile device. Using PayPal’s iPhone app, Jamba Juice customers could locate the Emeryville store, tap on the order-ahead button and place their order.

Once users have placed an order, they can choose a pick-up time and pay, with customers  able to bypass the line and cashier and simply pick up their drink after they arrive.

The Jamba Juice branded mobile ordering and payment solution in being developed with NCR  and PayPal to bring mobile ordering and payments to more customers. NCR expects the app to improve the speed of service while still enabling customers to skip the line pick up their order.  

PayPal will be integrated as a payment option in the new app.

Mobile ordering and payments are gaining a lot of interest from restaurants following the success of Starbucks with its mobile payments app.

The coffee house chain recently said that it sees close to four million mobile payment transactions per week and that mobile now accounts for approximately 10 percent of its total U.S. tender (see story).

Everyday purchases
In addition to Jamba Juice, other merchants offering their own branded mobile payments solutions include Cumberland Farms, Wendy’s and KFC.

It is likely that additional merchants with a loyal customer based and focused on relatively inexpensive, frequently made purchases will also be taking a closer look at mobile payments.

“Historically, restaurants viewed their operations in the context of two key areas – the front-of-house  and the back-of-house,” Mr. Lawrence said. “With the explosive growth of smartphone adoption by consumers, restaurant operators are compelled to now look at a third area – mobile ordering and payment.

“According the 2013 Restaurant Technology study, 62.2 percent report integration to on­line ordering as important to their busi­ness, but only 31.9 percent currently have the capability,” he said.

“The challenge for some restaurants will be staying abreast of the technology trends and being prepared to implement a mobile payment solution in conjunction with their POS. As restaurants consider extending their current POS solution or invest in an upgrade, mobile capabilities will weigh heavily in their selections.”

Final Take
Chantal Tode is associate editor on Mobile Commerce Daily, New York

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