Mobile Ordering and Payment Taking Hold in Market

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mobile food

Within China, mobile devices seem to be used more and more for routine calls, accessing the internet, and accessing social media. So it comes as no surprise that several restaurants and other companies are looking for ways in which they can cash in on the mobile boom being seen in China. This is especially true of McDonald’s Corp and Yum Brands, who have seen a rough past year in the Chinese market.

McDonald’s is starting to test mobile ordering and payment for customers in select McDonald restaurants throughout China. The hope is that with the faster ordering and payment, more Chinese consumers will be interested in what the restaurant has to offer, while also meeting the demands that consumers may have. A spokeswoman for McDonalds stated:

“Given Chinese consumers being so digital – we are now preparing.”

Yum brands have teamed up with Alibaba Group Holding Ltd, in order to offer mobile payment options for several of their stores throughout China. As of right now, they only offer the ability to pay for an order in store via mobile, through the use of Alipay. Though this may not speed up any processes, it is giving consumers an added payment option that many utilize daily.

Even supermarket giant Walmart has gotten in on the mobile trend, by allowing for consumers to pay with Alipay on their mob device. They have found through offering mobile payment options, the checkout process gets much easier.

Why Companies are Going Mobile

Many people are wondering while companies are going more mobile, and this is due to the high popularity of mobile users in China. There are about 885 million mobile users throughout China, and tapping into this market could result in businesses seeing more revenue rather than losses in a tough economy.

Secondly, there are many consumers who would rather pay with their mobile rather than carrying cards or paper money with them. Most people say that this is more convenient for them than other payment methods the store may accept. Ms. Wang, a Forrester analyst stated:

“Convenience is really important. If you don’t provide it, your competitor will.”

With McDonalds and Yum Brands already feeling the heat from the last year of business slow down, this could be the best way for the company to regain their foothold on the consumer market in China.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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