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. It makes you feel comfortable, but both need the right amount of money.
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
| 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 food delivery payment 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.
| 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.
| 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.
| 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 |
Supercharge your deliveries with Enatega.
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 online 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.
Supercharge your deliveries with Enatega.
Frequently Asked Questions
- 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 methods for Foodpanda?
Online banking, credit/debit cards, cash on delivery, and e-wallet are the payment methods for Foodpanda.
7. Can I pay with cash on Uber Eats?
Yes, you can pay with cash on Uber Eats for ordering food and groceries online.
Conclusion
The rise of online payments and digital wallets positively impacts the food and beverage industry. With the right strategies and technologies, food business owners can reduce costs, improve customer experience, and increase profits.
So, if you want to increase your restaurant sales and use multiple payment methods in your food ordering platform, contact the best food delivery app development company, Enatega.
About the author
Hudaibia Khalid is the creative force behind the blog—a maestro of words and ideas. Her distinctive style not only imparts wisdom but also leaves an indelible mark, transforming each post into a captivating journey through her unique perspective on the world.
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