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McDonald’s widens support of mPOS to drive delivery sales

March 31, 2014

McDonald's offers delivery service in Thailand

McDonald’s burgeoning mobile payments strategy continues its international expansion by pairing the McDelivery service in Thailand with a mobile-enabled point-of-sale service.

The service enables customers who order delivery service to pay by credit card using a mobile device. With the new method of payment, McThai Co., which operates McDonald’s in Thailand, expects to see cashless payments grow by 10 to 20 percent and for the McDelivery program to increase by 30 percent.

“QSRs are embracing mobile apps to provide consumers with faster and more convenient ordering options,” said Bill Aurnhammer, founder/CEO of Aurnhammer, New York. “Yet McDonald’s is definitely a forerunner in the global competition.

“Regardless of location and culture, all customers favor a more elegant purchasing process,” he said. “McDonald’s has adopted a brilliant digital strategy and traveled quite far around the world.”

Mr. Aurnhammer is not affiliated with McDonald’s and commented based on his experience in mobile.

McDonald’s did not respond to a request for comment.

Boosting sales
The mobile POS for McDelivery in Thailand was developed in partnership with McDonald’s, Swiff and AEON Thana Sinsap Public Co.

There are currently 194 McDonald’s restaurants in Thailand.

Quick-service chains such as McDonald’s are increasingly looking to delivery service as a way to boost sales. However, consumers frequently want to be able to pay with cards instead of cash and mobile POS is an easy way to meet those needs.

The McDelivery menu from McDonald’s site in Thailand

The news follows the introduction of mobile POS for the McDelivery program in Singapore, with Visa as McDonald’s partner (see story).

Active testing
While fast food chains in general continue to explore a variety of ways to take advantage of mobile to simplify payments, McDonald’s has been particularly aggressive in rolling out numerous mobile payments and loyalty programs. The chain is likely looking to gain insights that will be used to develop a wider scale mobile payment offering in the future.

Earlier this month, McDonald’s Sweden integrated mobile payments into its application, enabling customers to scan a unique QR code at checkout and enter their personal PIN code to pay. The technology is being powered by Seamless’ SEQR mobile wallet solution (see story).

Last fall, McDonald’s began testing mobile payments, order-ahead functionality and offers through the Isis mobile wallet in Austin, TX (see story).

The chain is also testing loyalty-based app Front Flip in the United States.

“Convenience is the most significant reason, and the foremost concern for consumers choosing home food delivery,” Mr. Aurnhammer said. “For a QSR giant like McDonald’s, replacing the traditional cash-on-delivery payment is a considerable benefit for both the business and its customers.

“The move to mobile payments will be an evolution, and both customer and merchant adoption will drive growth,” he said. “Now people can simply use their smart phones to order and pay with a few taps, while McDonald’s receives the payment and fulfills the order seamlessly.”

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

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