In Britain, the average person spends 25% of their annual income dining out. They then spend an extra 3% on alcoholic drinks in bars and pubs. With all this spending, the hospitality industry needs to utilise their payment options. The amount of payments made using debit or credit cards has doubled in the last 10 years. Card payment is now the preferred way to pay around the world.
Why do people prefer to pay by card and contactless?
Card payment solutions provide customers with fast and convenient transactions. In fact, the average card transaction is 25% faster than paying cash. Card payments offer flexibility when it comes to how to pay. Consumers can opt to pay by chip and PIN, contactless, mobile, or even a smartwatch. Due to this, only one in five people carry their wallet around daily.
The Covid-19 pandemic saw essential shops push for contactless transactions. This was an attempt to limit the spread of the virus. As the pandemic began to dissipate, contactless payments still make up 87% of all face-to-face transactions.
For many people, paying with cash is a hindrance. Consumers must get cash out, count their change, and are then limited to how much money they can spend. Card payments require less forward thinking and more freedom in how much money can be spent.
Why should card machines be used in the hospitality sector?
40% of people carry less than £10 cash on them, yet last year, the average cost of a cash transaction was £13. Thus, if a business was to only accept cash, nearly half of their customers wouldn't have the means to pay.
90% of people prefer to pay by card when dining out. It's an efficient and effortless way to pay, and for many people is their normal payment method. When picking a restaurant, bar, or even pub, people expect to be able to pay how they choose. This means that many cash only businesses run the risk of turning away customers.
Customers who use contactless solutions are 85% more likely to make spontaneous purchases. They also underestimate their total bill by an average of 5%, meaning they are likely to overspend. For pubs or restaurants, customers may buy an extra round of drinks, or be tempted to a dessert, just because they are paying by card. Yet when paying cash, people overestimate their spending by 9%.
For businesses within the hospitality industry, customer loyalty and satisfaction is key. Customers want quick and efficient service, which paying by card provides. Many restaurants and bars supply their customers with pay-at-the-table services. This is where a worker comes over to the table to collect payment from the customer. This payment method shortens the time taken to receive payment. By shortening the time taken to accept the bill, restaurants and bars increase table turnover. Serving one extra table per shift can increase revenue for the business by 20% annually. Customers are also more inclined to tip when they have received speedy service.
UTP card machines
UTP helps businesses succeed with credit and debit card payments. They provide variety of card machine for business. Many businesses within the hospitality sector use UTP's portable and mobile card machines. They are a reliable and effective way to take card payments. It takes on average five days for cash funds to be processed and arrive in a business' bank account. Yet with UTP, businesses can expect to receive their payments within hours, not days.
UTP's portable card machines have a range up to 100 metres from the Bluetooth base. This means that they are easily carried around a business’s premises to take payments. The long battery life means that restaurants and pubs can freely accept payment. UTP's mobile card machines come with a roaming SIM card. This SIM card then connects to the strongest signal anywhere in the UK. Besides restaurants and pubs, mobile card machines are also used among food trucks. Card machines at UTP accept contactless payment, can process gratuities, and enable refunds. These qualities make UTP's card machines perfect for the hospitality industry.
For businesses looking to grow, they need to consider how the public want to spend their money. Over 32% of people would consider leaving an establishment if they were unable to pay by card. For the hospitality sector, accepting card seems like a no brainer.
Organisation: UTP Merchant Services Ltd
Website URL: https://www.utpgroup.co.uk
Email: enquiries@utpgroup.co.uk
Phone: 0330 99 99 900 (Support)