Who's Getting Pay-By-Phone Right? The Fast Food Industry

jfruh writes "Techno-enthusiasts have been predicting for years that cell phones will become one of the main means that we use to pay for items — but most Americans stubbornly cling to cash and credit cards, mostly because cash and credit cards are infinitely more convenient. In order to woo people into buying things electronically, merchants need to make phone purchases better than traditional payment systems, not just another option. The fast food industry is leading the way with a plethora of apps that make ordering remotely a snap."

NOT pay-by-phone

[soundguy]

This has precisely jack squat to do with "pay-by-phone". The article is about "order-by-phone". In the case of the author, he has a credit card on file with a fast food burger joint staffed with high school drop-outs (what could possibly go wrong) and the order is placed, charged, and processed thru the restaurant's internet-facing computer system. It's no different that buying something from Amazon except that you have to go get the product yourself instead of having it delivered by UPS

Speed and reducing cost

[EMG at MU]

I use to work in the store systems group of a major fast food chain. Having the customer order via app and pay via phone reduces the chances that cashier messes up the order, reduces the amount of money stolen because the cashiers handle less cash, and just reduces the need for cashiers.

If you can get 20% of your customer base ordering via an app, thats one less casher you have to train and pay to stand at the counter and take orders (made up the number but you get the point). The orders also come in in parallel, you have to pay more cashiers if you want people to take orders in parallel.

One big problem QSR franchises have is that the people applying for the jobs don't know english. Look over at a McDonalds register, its mostly pictures and numbers on the screen, with very few words. If you can get the customers to order themselves you don't have to pay as many english speakers to be cashiers and thus you can pay lower wages. You don't have to know english to work in the kitchen.

Pay by phone apps require outrageous permissions

[knorthern knight]

A few reasons I will not use pay-by-phone in its current state.

http://www.citeworld.com/security/22535/mobile-payments-apps-outrageous-permissions [citeworld.com]

* Google Wallet
* Camera -- Allows the app to take pictures and videos with this camera. This permission allows the app to use the camera at any time without your confirmation.
* Read your contacts -- Allows the app to read data about your contacts stored on your phone, including the frequency with which you've called, emailed, or communicated in other ways with specific individuals. This permission allows apps to save your contact data, and malicious apps may share contact data without your knowledge.

* Paypal
* Retrieve running apps -- Allows the app to retrieve information about currently and recently running tasks. This may allow the app to discover information about which applications are used on the device.

* Starbucks
* Phone calls -- Allows the app to call phone numbers without your intervention. This may result in unexpected charges or calls. Note that this doesn't allow the app to call emergency numbers.