Endpoint: Putting Mobile on the Menu

Selling small businesses on mobile payments is an exercise in frustration, but signs of a breakthrough are appearing where the benefits are most obvious—restaurants, says Rick Berry.

There is a lingering perception among the smaller business owners that mobile is out of their reach, too expensive, and too complicated to pursue.

Rick Berry is chief executive of ABC Mobile Pay, Valencia, Calif. Reach him at rick@abcmobilepay.com.

Those of us in the trenches of the m-commerce and mobile point-of-sale movement are constantly confronted with two contradictory impressions. On the one hand, we hear that mobile is coming, or it’s here, or it’s almost here, or one way or another; it’s the “Next Big Thing.” But on the other hand, it seems to dance out there, just out of reach, maintaining its status as the Next Big Thing, just not the “Now Big Thing.”

So, how do we move mobile from being the Next Big Thing to being the Now Big Thing?

Let me try to explain why this question is so important. We experience the following kind of thing constantly. We deliver a message to a prospective client, typically a small- to medium-size merchant or restaurateur. We boil it down to this: “You can take mobile payments using an iPhone or iPad.” And the prospect thinks: “Oh, you mean like Square. I don’t need that. I take payments at my cash register.”

You see, these Level 3 and Level 4 retailers (also known as SMBs or small-and-medium size businesses) and restaurateurs are really in a different state of mind from that of the larger retailers. The big merchants are all in and on board with mobile. They’re developing their mobile systems, even if those systems are not fully deployed yet.

But these large retailers—the Dunkin’ Donuts, Wal-Marts, Denny’s, and Lowes of the world—are pursuing their own solutions, their own technologies. And while these larger companies are finding great ways to use mobile technology, there is a lingering perception among the smaller businesses or SMB owners that this sort of thing is out of their reach, too expensive, and too complicated to pursue.

Cracking the Code

How do we break down that perception and get the SMBs to realize that, not only is a mobile solution affordable, when you truly consider all the benefits and stack them up against the minimal costs, they can hardly afford not to employ it.

I think this point is more or less clear to at least some SMB owners. Yet still they hesitate.

I wish I had all the answers on this. The truth is, we haven’t cracked the code yet. But we’re working on it every day, and I believe that we’re getting very close. Here’s a quick rundown on our thinking.

For a considerable period of time, we have felt that restaurants and other eateries are a key target because the benefits are so obvious. For example, consider pay-at-the-table capability in a restaurant.

In the current scenario, what happens? The traditional customer experience is that you decide it’s time to pay your bill and you start looking for your server. You tell the server you want your bill. Then the server (often while taking another order or delivering someone else’s food first) goes to the point-of-sale register and enters the data necessary to generate a bill (or hands it off to someone else to do this).

Then he or she brings the bill back to your table (perhaps stopping to respond to customer requests along the way). Then the bill is left with you while you study it. Then the server picks up your bill and credit card and takes it to the POS register. Note that the card is now out of your sight and control. The server runs it through the POS register (or waits for a cashier to do this) and then carries the receipt back to the table (again, possibly getting distracted along the way).

Whew! How long did all that take? How many steps? That’s a lot of time and energy just to take a payment.

Consider this: As a customer, when I’m ready to go, I’m ready to go. My time is valuable. And there are plenty more like me.

Here’s where mobile comes in. With the benefits of mobile, it works like this. You decide you want to pay. You flag down your server. The server arrives, pulls out an iPhone or iPad, and swipes your card. You sign on the device and the server hands you a receipt. Done (e-mail and text receipts to follow).

What took 10 to 15 minutes with the old way just got taken care of in less than 60 seconds. No muss, no fuss. And no loss of control of your card. The customer experience is spectacularly better.

The restaurant operation is spectacularly more efficient. Fewer servers. Faster turns. Happier cusomers.

It’s that simple. Yet still, many SMB restaurant and eatery owners are standing on the edge, hesitant to take the plunge.

Is there a solution? It seems there are no easy answers, but I can say more and more restaurant owners are getting the message. The tipping point is coming.

The Next Big Thing is becoming the Now Big Thing. It’s starting with eating establishments, where the benefits are, perhaps, most obvious. That much I can say. Don’t ask me how long the full transition is going to take. But at the very least, one day we’ll take mobile payment in restaurants for granted.