Category Archives: Contactless Payments

Author Whitney Larson Posted on

Are Credit Card Processors and POS Dealers Cannibalizing Themselves?

There’s no question COVID-19 turned all our lives upside down. For the restaurant industry, it meant pivoting as quickly as possible just to stay alive.

One of those pivots is adopting technology at a rate faster than any other time in history. From new ordering platforms making it easier to sell curbside/delivery to new contactless payment options for when guests are dining in, there’s no shortage of new solutions that have streamlined operations.

But what have these changes meant for the credit card processing industry? Or even the POS dealers and resellers?

Getting Cut Out of the Deal

Many processors and dealers have been so quick to accept and push solutions to their restaurant clients without stopping to think that they’re actually cutting themselves out of the deal.

What do we mean by that?

Restaurant POS dealers and credit card processors make a significant portion of their revenue from credit card transactions. However, most of the solutions that have emerged are using third-party online processors like Stripe and PayPal; they aren’t leveraging the restaurant’s existing processor.

So when a credit card processor or POS dealer strikes a deal with a third-party contactless payment solution and resells it to their restaurant clients, what they’re actually doing is driving business away from themselves and into the hands of a different online processor.

Yikes.

And most don’t even know they’re doing it. They’re being so reactive to the state of the industry that they aren’t stopping to think through how the transactions are being processed from these systems. Sure, a commissioned-based kickback program from that solution sounds great. But that’s not where the money lies. The money always has and still does lie within the transactions themselves. And once these processors get the restaurant onboarded with a contactless payment system, it’s hard to switch them away. Which means as consumers continue to accelerate their adoption of mobile payments, the processor and dealer put a knife to their own revenue stream for years to come.

There’s a Better Way. Vemos Pay.

We at Vemos do not believe credit card processors or POS dealers should be cut out of the mobile payments revolution. In fact, we see it as an opportunity to increase revenue for not only the restaurant, but also the processor and POS dealer.
Because our legacy and upbringing has been in the inner-workings of this industry, we understand first-hand how the supply chain works and where the opportunities exist for all parties. That’s why we built Vemos Pay with the credit card processors in mind, and remains to be the only solution that is completely agnostic to work with multiple processors and POS systems.

How does that work?

Our unique technology allows the tokenized credit card to be sent directly through the restaurant’s existing credit card processor. This ensures the processor and POS dealer is still getting their cut of revenue from transactions, whether those transactions are happening on a mobile device or with a physical card at the POS.

Vemos Pay is also completely free to the restaurant as well as the customer, and integrates with over 16 POS systems. So dealers and processors alike can feel confident in recommending Vemos Pay to their clientele, while also ensuring they have a business model themselves for years to come.

Author Whitney Larson Posted on

Vemos Pay Now Available on Upserve POS

Upserve by Lightspeed is the latest POS system to become fully integrated with Vemos to accept our Vēmos Pay contactless payment solution. Any restaurant, bar, or hospitality venue using Upserve POS can quickly begin to accept Vēmos Pay by selecting it from the integrations section in your Upserve POS. And it’s free. Seriously. There’s no added fees or subscriptions.

What is Vemos Pay?

Vēmos Pay allows your guests to view and pay their check from the convenience of their own device. Guests view their check as soon as they sit down, and pay whenever they’re ready by using a stored payment method – without needing a printed check first. It’s truly contactless, gives your guests the transparency and control they didn’t have before, and allows your staff to focus on providing a great experience.

Watch a quick 2 minute demo of how it works:

How does it help my venue and staff?

  • Unlike other contactless payment solutions, Vēmos Pay doesn’t change your current operations. Your staff starts and adds to checks as they normally would, and guests access the check using their table number. This makes it seamless for your staff.

    • Payments are sent directly through your Upserve Payment Processing and are tokenized to make sure you stay EMV compliant. This also ensures that there’s no operational or accounting changes to your business.

      • We have the customer create an account on Vēmos Pay and securely store a payment method before accessing their check, which drastically reduces walkouts. If a guest does forget to pay, their check automatically closes with 20% gratuity – just like when you walk out of your rideshare.

        • Vēmos Pay reduces the 12-17 minute wait time that occurs between finishing a meal and closing a check. This not only means faster table turns, but also an increase in average check spend and tips with staff focusing more on the experience and less on closing checks. In fact, our smart tip buttons have been shown to automatically increase servers’ tips by at least 4% compared to the national average.
          • If you have a busy bar area, your guests can start a tab using Vemos Pay. They order with your bartender as they normally would and mention they have a tab open under their name. When it’s time to leave, they simply pay in the app and leave. They don’t need to go back up to the bar and take time away from your bartender settling the tab. Instead, your bartender is freed up to spend that time getting more drinks out to guests to increase your bottom line.
            • Vēmos Pay is integrated directly with your Upserve POS system so all payments are sent through your Upserve payment processing.
              • Vēmos Pay is free for both you and your guest. There are no added fees or subscriptions.

                  • How do I get started?

                  Follow these quick 6 steps to get set up to accept Vemos Pay. You can also contact us directly at upserve@vemos.io for any additional questions or to receive a demo.

                  Author Whitney Larson Posted on

                  Mobile Payments Driving Traffic at Restaurants

                  While mobile payments have been available for the restaurant industry for the past few years, restaurants were slow to adopt them, especially compared to other industries. And then COVID hit.

                  The immediate need for reduced interaction between waitstaff and guests, increased efficiency and lower overhead is what brought mobile payment solutions to the forefront.

                  But it’s more than just payments. There’s several added benefits that came along with mobile payments that most restauranteurs did not anticipate: a surge of guest adoption that drove increased traffic, increased tipping, and increased spending.

                  What’s driving the surge? Customer Experience.

                  The very thing that was holding the restaurant industry back on adopting technology became the thing that ended up catapulting engagement. And that’s meeting customer experiences in a way that they expect.

                  What do I mean by that?

                  For the past several decades, the hospitality industry has believed that customer experience is in-person, face-to-face, physical interactions. But what other industries have proven over the past 10 years is that customer experience goes far beyond the in-person exchange.

                  Customers have become increasingly digital, and as a result the experience they expect is a mix of in-person and digital offerings. In fact, 74% of consumers in a survey stated they prefer to use their phone to pay for food. So while the physical interaction may feel important to the restaurant, it’s not an important driver for experience with consumers.

                  Let’s look at the airline industry with Delta – it’s similar in how they provide hospitality, but radically different in how they provide customer experiences.

                  Historically, the only way to check into a flight was to stand in a long line to wait for a person to help you. That was also the only way you could pay for a checked bag and get your seat assignment. And while we were greeted by a person, the wasted time spent waiting around for that person to be able to help us caused more friction and distaste than the face-to-face interaction made up for.

                  Then Delta digitized this entire process with an app and gave all their customers the gift of time. Now I’m able to check into my flight, pay for my bags, see my seat assignment, and get real-time updates on my gate and departure time right in the app. I don’t have to wait in line when I arrive at the airport — I drop my pre-paid bag off at the kiosk, walk through security, and head to my gate. It’s seamless, it meets me where I expect the experience to be, and it allows me to enjoy the personal engagements that much more.

                  The restaurant industry is finally seeing this for themselves. Having a digital solution that allows your guest to pull up their check the moment they sit down, transparently see the information that’s been added, and pay whenever they’re ready gives them that same gift of time and meets them where they expect the experience to be.

                  How significant is that time?

                  According to Lumina data, speed of service is a key driver for consumers when eating out. The average time it takes to finish a meal, ask for the bill, and pay that bill takes between 12 and 17 minutes. That’s 12-17 minutes of friction that’s bringing down your level of customer experience. Even if you had the opportunity to physically present them a check and say thank you, that’s not going to make up for the annoying delays (in fact, I vividly remember all the times I was late due to waiting for my physical check, but I’ve never once had a thank you leave a lasting impression). That’s why QR codes at the end of the receipt aren’t working for restaurants — they’re more of the same experience. Consumer apps like Vēmos Pay put the power in the consumers hands and allows this waiting time to disappear, increasing the perception of experience of their overall visit.

                  So how does this translate to increased traffic & sales?

                  Customers continue to go where they have great experiences. That’s always been the case with restaurants & hospitality, and that part hasn’t changed. When you deliver customer experiences in a way that they expect — both physically and digitally — you win in multiple ways.

                  When it comes to mobile payments, joining a consumer-facing app has shown to unlock many residual benefits beyond paying a check:

                • Get discovered. Consumer apps like Vēmos Pay have thousands of users on them already. Getting listed on these apps allows you to show up to these consumers who are already enjoying contactless payments elsewhere and shows them that your experience is in line with what they’re looking for.
                • Increase cost per head. Time is money. Literally. Mobile payments reduce the wait time after finishing a meal, which not only means faster table turns, but also an increase in spend and tips. That’s because mobile payment apps provide transparency for what’s on the check throughout the meal. This has proven in many studies to increase the guest’s overall spend. Mobile payment apps also auto calculate tip percentages, which has proven to increase tips for your staff.
                • Integrate loyalty. You can now turn mobile payments into loyalty without having to manage a separate system. You already have a line of communication with your customers with a history of Sku level purchases, which allows you to promote your deals and offer rewards directly to your guests while they’re in the venue making purchasing decisions. This allows you to unlock the power that the Starbucks app has created without needing to build it yourself.
                • Repeatable business. Not only do all of the above increase customer experience that drives them to come back, but 84% of Americans are more likely to go back to brands to redeem an offer, with 57% spending more with those brands. It’s this cycle of reduced friction from eliminating wait times, increased experience from allowing guests to pay on their own terms, and driving loyalty through that same system that’s driving traffic and increasing sales.


                  • Why QR Codes Payment Solutions at Restaurants Don't Work
                  Author Whitney Larson Posted on

                  Why QR Code Pay at the Table Systems Don’t Work for Restaurants

                  The restaurant industry has been forced to adapt in the face of COVID, and one emerging trend that has come out of it is contactless payments. This is a great solution to not only aid in keeping your guests and staff safe, but if done well, also solves two core problems your guest has been facing for years when it comes to paying: transparency and control.

                  The issue, however, is not all contactless payment solutions are made equally. In fact, most aren’t even contactless nor do they begin to solve the two core guest problems.

                  I’m talking about QR Code / Pay-at-the-Table solutions.

                  QR Code contactless payment solutions are a dime a dozen. Everyone’s doing them – where a QR code is printed at the bottom of the receipt for the guest to scan and pay through a web browser. The issue is it’s just a band aid fix to the real problem, not to mention the fees they charge restaurants cut into already thin margins.

                  On the other hand, there are contactless payment solutions like Vēmos Pay that do solve all issues for both the guest and the restaurant — for free.

                  But first, let’s look at why QR Code / Pay-at-the-Table systems aren’t a great solution for restaurants or its customers.

                  1. It’s not actually a contactless payment experience

                  Let’s start with the most obvious — QR codes printed on the check aren’t contactless. Your server delivers the printed check to the guest, the guest then grabs that check to look it over and, should they choose to, scan the QR code to pay. If they’re splitting the check, they then need to pass that same piece of paper to others in the party who then follows the same process. Everyone’s touching the same item and passing it around, which defeats the whole contactless concept.

                  2. Your guest still spends an average of 12 minutes paying their check

                  Did you know it takes an average 12-15 minutes for a guest to pay their check once they’re done with their meal? That’s a lot of wasted time for both you and your customer. QR codes printed on checks don’t fix this. Your guest still needs to wait for your server to bring the check in order to review the bill and pay it. It also takes more time and effort for your guest since they’re now the ones in charge of manually choosing or entering their payment information on a browser.

                  3. QR codes don’t solve guest transparency

                  The guest experience of not knowing what you owe until after you’ve consumed the product is a broken one. No other experience in any other industry is this way, and the digital age has caused consumers to expect transparency in all of their interactions. So putting a QR code at the bottom the check is more of the same. The only thing it solves is the guest not handing a credit card over to the server. Instead, consumers are looking to solutions like Vēmos Pay that allow them to view their check the moment they sit down and have complete transparency throughout their entire dining experience.

                  4. There’s no consistency

                  Most QR Code / Pay-at-the-Table solutions are proud to promote that there’s no app required. This sounds great on the surface, but this actually causes more headaches for the guest. Apps allow for a secure centralized place for guests to store payment information, so that when it’s time to pay they simply click a pay button rather than needing to whip out their credit card and enter it into a web browser every single time.

                  Imagine a world where Uber wasn’t an app and was a QR Code cab system. In this world, the cab driver would print a receipt when you got to your destination, you’d scan the QR code to bring up a browser, you’d enter your payment information, and only then would you be able to leave the cab. Sounds silly compared to what you know, right? Uber automated all of that by having an app where riders could transparently see their cab fare and could pay automatically using a stored payment method in the app. The app is what allowed rides to be consistent, fares to be transparent, and payments to be simple.

                  So what’s a better solution?

                  Just how Uber automated paying for a taxi service, Vēmos Pay automates paying a restaurant bill.

                  Contactless Payment Solutions for Restaurants- Vemos Pay vs QR Codes

                  Vēmos Pay is a consumer app that allows your guests to view, split and pay their check from their own device. Your guest has transparency throughout their entire dining experience by being able to see their check the moment they sit down by entering in their table number. Others in their party can do the same, so when it comes time to split the check they can do so by choosing which items they ordered right in the app. And when it comes time to pay, they have the control to pay whenever they’re ready by using a stored payment method — without needing a printed check first.

                  It’s truly contactless, gives consumers the transparency and control that they didn’t have before, and it’s free for both the restaurant and consumer.