KFC and McDonaldâ€™s now equipped with Digital Payment in China
Published By : 06 Jul 2015 | Published By : QYRESEARCH
The trend of using digital payment in restaurants is on the rise. Several popular restaurants and food chain firms are adopting digital payment in China. According to Yum, their KFC business has now collaborated with Alibaba and in late June they launched a mobile payment service for around 700 of their stores in China. Consumers can pay for their orders in the store of fried chicken in a couple of seconds by simply scanning their bar codes which is generated via mobile payment app called Alipay.
Recently, McDonald’s has also launched a digital kiosk called Create Your Taste. This kiosk is available at their two food outlets based in Shanghai. In one of these kiosk, a person can build their own burger, which can be done by selecting from 24 available ingredients using a touch screen. The purchases of these burgers are now around five times higher than what McDonald’s had initially anticipated.
These digital strategies are attracting more consumers and increasing number of sales at both McDonald’s and Yum. Firms that cater to a promising trend of consumers that are willing to pay using their phones than wallets is benefitting companies. However, KFC and McDonald’s need to continue their digital payment programs after their trial run. These are the early entrants to the shifting trend of online to offline market which is compared with their direct competitors.
At present, McDonald’s is using their mobile payment system in the U.S. and was one of the earliest adopter of the app Apple Pay that was launched in 2014. According to analyst, the trend of mobile payment is catching faster in the Chinese market as compared to the U.S. consumers and Chinese consumers widely don’t use credit cards. For Chinese consumers, convenience is really important and if one firm can’t provide it then its competitor will, which will influence sales to a great extent.