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PayFacto Inc., a payment solutions provider specializing in the hospitality industry, announced Thursday the acquisition of iShop, a technology provider for restaurants.
The deal, for which terms were not disclosed, gives Montreal-based PayFacto an in-house online-ordering solution, something the company found was missing in its technology stack. As a result, PayFacto can now offer restaurants a full turn-key payment and ordering solution without having to partner with a third party. In addition to enabling online ordering, Quebec City-based iShop also supports payments via QR codes, which have become extremely popular with consumers since the outbreak of the Covid-19 pandemic, especially in restaurants.
“Online ordering has become a key component for restaurants during the Covid pandemic and so has contactless payments, such as QR codes,” says Denis Robert, an executive vice president for PayFacto. “These technologies are an important part of the [technology] mix for restaurants.”
Prior to the acquisition, PayFacto had worked with iShop to provide online ordering in its offering for restaurants. During that time, the company realized that embedding online ordering would create a more seamless offering for restaurants and position the company as a one-stop shop when it came to payments and online ordering technology, Robert says.
“The more you can simplify your offering, the better,” Robert adds. “There is a challenge in connecting to third-party ordering systems and it also kept us from being a one-stop shop. This acquisition brings an element that was missing in our offering.”
While quick-service and medium-size chain restaurants of up to 20 locations are expected to generate the greatest demand for an all-in-one payment and online ordering solution, white-tablecloth restaurants that have shifted part of their business to delivery and take-out will also be in need of such a solution, according to Robert. “Online ordering has become a key factor for survival for many restaurants,” Robert adds. “The industry was transitioning to online ordering prior to Covid, but Covid accelerated the trend and now it’s doubtful the industry will go back [once the pandemic subsides].”
Another benefit of the acquisition is that iShop is a cloud-based application, which in turn will accelerate PayFacto’s plans to transition its Maitre’D and Veloce restaurant POS software systems to being cloud-based, Robert adds. PayFacto acquired Maitre’D and Veloce in 2019.
