Food Delivery Payment Methods for Seamless Transactions

In the rapidly growing food delivery industry, where 60% of consumers in the U.S. order takeout at least once a week, offering diverse payment options is more critical than ever. 

Frost & Sullivan estimated the online food industry is estimated to have seen $82 billion in gross revenue bookings in 2018. It is expected to double by 2025.

Whether through traditional methods like cash on delivery or advanced digital wallets, providing multiple payment options can significantly enhance customer satisfaction and loyalty. By using these payment solutions, your business can stay competitive, boost sales, and cater to a broader audience, ensuring you’re prepared for the future of food delivery.

Types of Online Payment Methods 

Here are some common types of food delivery payment methods.

Cash on Delivery (COD)

Cash on delivery is a traditional food delivery payment method. With COD, customers can easily pay the rider when receiving their order.

The main purpose of food delivery cash payments is to:

• Help customers pay at the time of delivery
• Provide convenience to customers
• Build trust between customers and restaurants

UberEats, Grubhub, DoorDash, Deliveroo, and Just Eat provide cash on delivery to customers for delivery orders. It allows customers to pay with cash but it depends on the restaurant and if they’re willing to accept cash payments.

Pros	Cons
No advance payment	Limited options
Maintenance of security	Hassle of change
No dependency on payment cards

Credit/Debit Cards

Credit/debit cards are the most commonly used online payment food delivery method. Many food delivery apps accept this method and provide a seamless experience to customers. 

With this online payment for food delivery, customers can save their card details and use them for future orders. Security features, like two-factor authentication, enhance the safety of transactions.

The major purpose of using a credit/debit card is:

• Ease of use
• Globally accepted
• Save you from fraud
• You have a detailed record of your transactions
• Support contactless payments

Pros	Cons
Customers get rewards and discounts	Upfront deposits
No need to carry cash
Boost credit score

Digital Wallets

For food and beverage ordering, use digital wallets to pay the bill. Customers can order easily and securely without carrying a lot of cash. This online payment for food delivery is faster and cheaper than the traditional methods.  

With digital wallets, businesses can streamline their operations and access customer data (with their permission) that can be used to create better personalized and targeted marketing campaigns. This method allows food business owners to improve their operations and enhance customer experience. 

Further, with this food delivery method, customers can make payments via Samsung Pay, Apple Pay, and Google Pay. These services use tokenization and encryption to save customer data.   

Example: DoorDash uses digital wallets for its Dasher Red Card and DasherDirect virtual card. Customers can use it for online purchases, bill pay, transfers, and other transactions that don’t require a physical card. 

Pros	Cons
Instant payment	Limited acceptance
Secure payment method	Dependence on technology
Loyalty programs and vouchers	Sometimes customers face technical issues
In-wallet refunds

Internet Banking 

Internet banking is one of the common restaurant online payment systems that allow customers to pay directly from their bank accounts. This method provides convenience; users can easily and seamlessly track their payments.     

Online ordering payment methods help restaurants to get more online sales and expand their reach. 

Pros	Cons
Unlimited transfer at no cost	Possibility of frauds and scams
Time-saving	Privacy issues
Cost-effective	Potential for technical issues
Secure

  

Contactless Payment Systems

With NFC (Near Filed Communication) technology allow contactless payments. Customers simply tap their cards or smartphones and make the payment. This method is popular due to its uniqueness and minimal physical contact.  

Contactless ordering and payments for restaurants improve the guest experience and, most importantly, make more money. With this food delivery method, restaurants get customer satisfaction and gain more revenue.   

Additionally, with this method, customers don’t have to wait in long lines at the register or hand over any cash. The QR code payment is expected to reach globally $3 trillion by 2025, according to Juniper research.

Example: UberEats uses contactless ordering in which customers can scan their unique QR code from their mobile device. 

Using this technology, customers easily browse the menu, order, pay, and tip. It is all possible from the UberEats app or mobile website. 

Pros	Cons
Improve security	Potential for cybersecurity threats
Lower cost	Dependence on mobile devices
Speed and convenience

Cryptocurrency

Some food delivery companies accept crypto payments. With this latest food delivery payment method, restaurants can gain a competitive edge in the food delivery industry. Restaurants can cut down third-party involvement and expensive costs by offering crypto payments. 

Moreover, here is a list of restaurants where customers can pay for their meals using cryptocurrency. 

• Starbucks
• Subway 
• Burger King 
• Bitcoin Coffee 

Pros	Cons
Lower transaction fees	Lack of acceptance
Less chances of fraud	Competitive market
Transparency	Non-reversible transactions

On-Table Tablets

It is another food and beverage payment gateway method used in restaurants, coffee shops, and bars where a waitstaff brings a table tablet to customers for payment. From the table, customers may order food, share bills, and give immediate comments. It gives your guests a wonderful customized experience.    

Pros	Cons
Faster service	Staff and customers may need time to learn how to use the system
Improve customer experience	Technical issues
Reduce the risk of fraud
Less paperwork

Benefits of Online Payment For Food Delivery Businesses 

Here are a few benefits of online payment for food delivery businesses.

Increase Security

Online payments are a secure method to protect customers and restaurant owners from fraud. These are secure due to technology like tokenization, encryption, and SSL (Secure Sockets Layer). Use innovative technologies to privatize all sensitive data. 

Reduce Fraud

The common issue faced by businesses is fraud. With payment gateway software, businesses can save them from fraudulent activities. Use encryption techniques to protect customer-sensitive information such as credit card details.   

Reach a Wider Audience

Now, 82% of people in the USA use digital payments. Providing convenient ways for customers to pay for their food online is a great way to expand your reach.  

Refrain from putting yourself in a difficult situation by merely taking cash. You’ll reach a new market when you allow customers inside your eateries who prefer to pay online.

Easy and Quick Set up

If you provide online payment in your online food ordering platform, simplify the whole process, and paying online takes a few minutes.    

Stay Ahead of the Competition

It is a great opportunity to stay ahead of the competition and make your restaurant available for the customers. With a growing demand for faster and more convenient ways to order, restaurants should invest in the latest ordering technology. 

FAQs

1. What is the mode of payment in Foodpanda?

Foodpanda offers multiple payment options, such as:

• Online banking
• Cash on delivery
• credit/debit cards
• E-wallet

2. How do you use cash on delivery?

The customers do not make payments while ordering their food, but they make payments when they receive their order.

3. Which food delivery services don’t accept cash?

Below is a list of food delivery services that don’t accept cash.

• Postmates
• Caviar
• Bite Squad
• Favor
• Shipt

4. Which food delivery app takes cash?

EatStreet, Seamless, DoorDash, and Grubhub are the few food delivery apps that take cash.

5. Can you pay cash with DoorDash?

Yes, but only pay with cash on DoorDash Drive.

6. What are the payment options for Grubhub?

Grubhub accepts various payment methods, such as:

• Cash
• Credit cards
• Apple Pay
• Android Pay 
• eGift

7. Can you change the payment method on Grubhub?

Yes, you can change your payment method on Grubhub by going to your account settings, selecting “Payment,” and then updating your payment information.

8. Can I pay cash with UberEats?

UberEats offers cash payment options in select cities. Customers can choose the “WALLET” option during checkout and then select “CASH” as their payment method.

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