How security can boost your bottom line

How security can boost
your bottom line

The restaurant sector faces security challenges like any other, but new developments in payment technologies could help. Customers want restaurants to make payments feel secure and those restaurants getting the technology right could win customers too.

There’s no real surprise where many of these developments will take place. Mobile technology is often hailed as an essential component of people’s lives, and the hospitality sector is capitalising on this trend to help address security concerns.

Consumers are demanding this technology too. Our research shows that by 2020, a third of them expect developments such as apps to make them feel more secure when paying in restaurants. And that number is only likely to increase. So if you’re not offering these types of payments technologies, you risk losing customers.

 

Have you joined the mobile payments revolution?

Paul Manktelow, Strategic New Business Manager, Barclaycard, says that one of the biggest security issues in the hospitality sector is around walkouts, with people leaving without paying their restaurant or bar tabs.

“I know one operator who loses thousands of pounds a year on unpaid tabs. That is a big problem and it needs to be fixed,” he says.

“People cancel their cards, or say they don’t recognise the transaction on their statements. But new digital transactions through apps on mobile devices will help enable payment partners to pre-authorise card payments.”

Putting these types of solutions in place seems like a no brainer in terms of cutting restaurant fraud, but there’s a second benefit – customers like it too.

“Nobody likes handing over their card at a bar, and for security reasons people shouldn’t be doing it,” says Paul. “From a consumer point of view, it feels much safer if you’re using a mobile app on your phone which you’ve logged your card number into already. People are reacting to this type of technology really positively.”

And it’s no wonder people are reacting well. Along with cutting restaurant fraud, the technology can also improve the customer experience by enabling a quicker service, not to mention the discounts and offers that can be given via an app.

 

Stay on top of the tech game

There are other technologies being advanced that could also make restaurants and diners feel more secure while delivering the seamless experience consumers are demanding. One of these is 'biometric’ payments. This is when consumers identify themselves and authorise a payment with something unique about them, such as a fingerprint, iris scan or through voice recognition.

“Biometric payments will absolutely grow from where they are now,” says Paul. “Dual recognition is gaining a lot of traction – for example voice and facial recognition together. This kind of two-step authentication will become more and more popular, especially with higher value payments.”

Are you as concerned about data as your customers are?

Digital technology has fast become a crucial element in the customer journey. From researching and booking online to posting reviews after (or even during) the meal and paying via app, consumers are demanding digital every step of the way.

Restaurants can capitalise on this by adopting an integrated omnichannel strategy. This allows businesses to have a single view of payments and more detailed insight into each customer journey, enabling them to create better and more personalised experiences and tailored offers.

But it’s also important to be aware of consumer concerns around data. Our research shows that, while many diners are willing to provide information in order to get a better experience, 41% of them are concerned about the security of that data. It’s crucial that your systems are not just secure but also inspire confidence in your customers.

Building close relationships with technology  and payment partners can be key in staying on top of this, while having a trusted brand name on your payment page or card terminals can reassure diners that their payments are secure. Otherwise, you could lose customers through lack of confidence.

“Restaurant owners should be aware of the many ways a good secure payment system can help them to grow their business,” says Paul. “As well as helping to reduce crime, restaurants can boost trust among customers while provide the kind of seamless experience they are increasingly demanding.”

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Speak to our experts today

Got to grips with payment security? We’ve got the expertise to help you keep on top of it. So if you need a hand, give us a call on 0800 096 8237* 


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All statistical information is derived from Barclaycard research conducted by Opinium, September 2016.

Please note that the views expressed in this article are personal opinions. Barclaycard cannot accept any responsibility or liability for reliance by any person on this article or any of the information set out in it.