The food and beverage industry is in the midst of a major transformation, driven by advancements in payment solutions and digital ordering systems. As customers now expect faster, more seamless transactions and businesses face rising operational costs, embracing new technologies is no longer optional, it’s pivotal to surviving in a highly competitive market. Michael Ault, UK country manager at MyPOS, explores how payment technologies are reshaping the industry and why embracing these tools is now essential for staying competitive in a rapidly evolving market.

The UK has one of the highest adoption rates of contactless payments in the world. In March 2024, there were 1.59 billion contactless card transactions, a 5.9% increase from the previous year, and this number is only projected to grow. Consumers now expect fast, hassle-free payments, whether they’re picking up a coffee on the way to work or dining at a high-end restaurant.

Contactless payments have become the norm, allowing customers to tap their cards or smartphones to complete transactions in seconds. Mobile wallets, such as Apple Pay and Google Wallet, further streamline the process, enabling users to store multiple payment methods and loyalty cards in one place. This shift has reduced wait times and improved overall customer experience, particularly in high-traffic establishments like quick-service restaurants (QSRs) and pubs.

Integrated point-of-sale (POS) systems are also revolutionising how businesses operate as they go beyond simple payment processing and provide real-time analytics and inventory tracking. By analysing transaction data, businesses can tailor promotions and menu offerings based on customer preferences, boosting both sales and customer satisfaction.

Digital orders mean service efficiency

The way people order food and drinks has changed significantly in the last few years. A survey by Barclaycard found that 42% of UK consumers prefer to order digitally rather than interact with staff, particularly in fast-paced environments like coffee shops and takeaway restaurants. Online ordering systems, mobile apps and self-service kiosks are now commonplace, offering customers greater flexibility and convenience.

Online ordering platforms enable customers to browse menus, customise their orders and schedule pickups or deliveries without needing to call or visit in-person. Mobile apps take this a step further by offering tailored experiences, like personalised recommendations, order history and exclusive loyalty perks.

Self-service kiosks are becoming a familiar sight in restaurants, allowing customers to place orders and pay without waiting for staff. McDonald’s, for example, has seen significant success with this model, reducing queue times and improving service efficiency. These kiosks not only enhance convenience but also boost order values, with orders 11% larger when using kiosks, as customers tend to spend more when they have the freedom to browse menu options are their own pace.

Artificial intelligence (AI) is playing an increasing role in digital ordering. AI-powered chatbots assist with orders, provide recommendations and answer frequently asked questions, further streamlining the experience. Personalisation driven by AI fosters customer loyalty, encouraging repeat visits and higher spending.

The challenges ahead

While the benefits of frictionless payments and digital ordering are clear, businesses face several challenges when adopting these technologies.

• Cybersecurity risks: As digital transactions increase, so does the threat of cybercrime. The UK saw over £570 million stolen due to payment fraud in the first half of 2024, highlighting the need for robust security measures. Businesses must prioritise encryption, tokenisation and strong authentication to protect customer data. Luckily, some fintech platforms combine intuitive, user-friendly interfaces with high-level security – making it easier for businesses to adopt them and even encouraging higher customer spending.

• Integration with legacy systems: Many F&B businesses still operate on outdated technology that is not always compatible with modern payment and ordering solutions. Upgrading infrastructure requires investment in both technology and staff training.

• Upfront costs: While digital solutions often lead to long-term savings, they typically require an initial investment. Businesses must weigh the costs against the benefits and look for pay-as-you-go providers.

• Staff training: Implementing new technology successfully depends on employees being comfortable using it. Comprehensive training ensures staff can assist customers effectively and troubleshoot issues quickly.

Opportunities for F&B businesses

Embracing these technological advancements presents a number of opportunities for F&B businesses.

Digital platforms allow businesses to engage with customers through personalised promotions, loyalty programmes and direct feedback mechanisms. This fosters brand loyalty and drives repeat businesses.

Automation also reduces manual errors, speeds up service and allows staff to focus on delivering exceptional customer service. Real-time data analytics improve inventory management and demand forecasting.

Additionally, online ordering and delivery services help businesses reach a wider audience beyond their physical locations, creating new revenue streams. The UK’s takeaway and food market were valued at approximately £23.1 billion in 2024, demonstrating the potential for growth.

Overall, keeping up with technological trends ensures businesses can adapt quickly to evolving consumer behaviours and expectations and therefore stay ahead of competitors.

What’s next? The UK is moving closer to a cashless society, with only 14% of transactions expected to be cash-based by 2026. Restaurants will need to prioritise contactless payments, mobile wallets and even biometric authentication methods.

As e-commerce becomes increasingly mobile-first, restaurants and food vendors must optimise their digital experience for smartphones to stay competitive.

Additionally, concept of a checkout-free store, where customers can simply pick up items and leave without scanning or queueing, is gaining traction. This model could redefine the traditional restaurant and takeaway experience.

The integration of cutting-edge payment solutions and digital ordering systems is transforming the UK’s F&B sector. While challenges exist, businesses that proactively embrace these technologies will be better positioned for growth. Those who prioritise seamless payments, personalised digital experiences, and operational efficiency will not only meet customer expectations but also future proof their businesses in today’s increasingly digital world.