October 10, 2013
Following the footsteps of McDonald’s, KFC and Burger King, SUBWAY® has announced the launch of a cloud based mobile wallet app. The mobile wallet app provides mobile payments, loyalty capabilities and offers to its customers. SUBWAY® has chosen Paydiant to roll out this app. The users of this app will not be aware that Paydiant is involved in the process as they will mostly see SUBWAY’s messaging and branding.
Chris Gardner, Co-Founder, Paydiant said We don’t’ compete with the Google's and PayPal's of the world, we believe big brands will want their own apps, payments and wallets.
Paydiant offers a cloud based white label mobile wallet. Through the mobile wallet, Paydiant offers payment solutions that enables retailers, banks and processors to launch a branded contactless mobile wallet and payment platform without the need for middlemen.
Carman Wenkoff, SUBWAY’s Chief Information Officer said Paydiant offers a platform that makes the most sense for our customers and franchisees. Their mobile capabilities will be a key factor towards providing our customers with innovative services and an exceptional experience.' The mobile wallet app is set to be rolled out later this year according to a press release by Paydiant.
SUBWAY® however is not the first restaurant chain to enter this space. Burger King introduced a mobile payment service for its fast food chain in 2012 with Firethorn Mobile Inc. In April 2013, KFC partnered with Airtag to power their mobile app. Recently McDonald’s also began testing mobile payments with ISIS.
LTP View: Mobile payments could increase the revenue due to the high volume of repeat customers at SUBWAY® outlets. The order ahead facility could see faster sales and fewer queues by allowing customers to build their own subs and pay before entering the outlet. SUBWAY’s mobile wallet can also provide an opportunity to attract customer loyalty, which could drive increased spending.