Importance of FinTech in The Takeaway Food Industry

When people are talking about how they want to revolutionize the financial industry, one of the questions is whether or not everyday consumers will be embracing these new technologies or not. For most consumers, it comes down to how and where they will be able to use these disruptive payment methods. Even if a new payment creeps up, which may be the single most awesome innovation in the finance industry, it will stand or fall based on merchant adoption. The food industry presents an interesting use case for FinTech, as people want convenient access to food and payment methods alike.

Revolutionizing Payment Methods For Takeaway Food

One of the most important aspects of FinTech is gaining a critical mass of users. Testing this new solution is one thing, but the everyday consumer needs to be able to use it as well. If there is one market that is booming outside of the world of payments, it is the takeaway sector. Quick and convenient access to food, without having to prepare it yourself, is a great way to spend the evening, even if it comes at a premium cost.

Whether or not takeaway food is healthy or not, is a topic for a different discussion. But one thing’s for sure: more and more people start to appreciate the option of ordering food and simply grabbing it from the restaurant, or having it delivered at home. In most cases, prices are still relatively low, although preparing the food yourself will always be less expensive. Sometimes one does not have time to buy groceries and prepare food. On other occasions, one just wants to enjoy a hot meal without all of the fuzz. Takeaway food has become normalcy in our society, and that doesn’t have to be a bad thing. What originally started out as a very niche market, is now often the topic of conversation among friends and family.

In truth, the takeaway food industry is not without its fair share of problems. Even though there are plenty of profits to be made, not all companies treat their employees fairly. Just look at chains like McDonald’s, for example, where employees make headlines after yelling at their supervisor about unfair wages and working conditions. Even though these events may be localized and low in number, there is always room for improvement.

This is one of the main reasons why the FinTech sector is of great importance to the takeaway industry as a whole. Bringing exquisite tastes to people all over the world is one thing, but getting them to pay for it in a convenient manner is a different hurdle to overcome. Depending on which payment methods can be used at the restaurant or takeaway location, customers may or may not make a purchase right then and there.

In most countries, paying with a bank or credit card is perfectly acceptable. In other countries, takeaway locations prefer cash payments, although that is not the safest solution either. One thing all of their customers have in common, is easy access to mobile devices. It only makes sense to develop mobile payment solution in the FinTech industry to bring both of these markets together.

Are Mobile Payments The Solution To Bite-sized Food Purchases?

While there are many interesting projects being developed in the FinTech industry, most of these payment solutions rely on traditional financial infrastructure. Integrating support for plastic cards and bank accounts gives these payment tools the widest reach possible, but they aren’t innovating or solving anything in that regard.

Creating a completely new payment platform that does not rely on traditional finance might not be the answer either though. Bitcoin, for example, has been trying to gain more mainstream adoption for years now. However, consumers are wary of the digital currency’s nature, as there is no government or bank in control of this global payment method. Despite offering a worldwide currency, without meddling from a third-party, very few people put their trust in Bitcoin right now. Whether or not they are right or wrong in the end, remains to be seen.

Regardless of how FinTech industry members feel about Bitcoin, the underlying blockchain technology is a valuable tool for innovation in the financial sector. Distributed ledgers hold the answers to many problems, albeit it is a matter of figuring out the exact problem and solution at this stage. Having no central point of failure in the financial ecosystem gives customers the option to pay anything, anywhere, assuming the developers implement the technology properly.

Creating the right mobile payment for smaller (takeaway-related] purchases is not an easy task. Transaction fees can make or break FinTech innovation in this sector. Mobile payments seem the way to go, assuming the infrastructure is easy to set up for takeaway locations, and the staff isn’t faced with a steep learning curve. Personally, I wouldn’t mind paying for a sandwich or kebab by sending a mobile payment, rather than using a plastic card or paper money.

Partial Source; Tech In Asia

Header image courtesy of Shutterstock

Originally published at Fintechist.

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