Chaos looming for Australia’s hospitality industry

03/07/2014

Chaos may be looming for Australia’s 37,700 restaurants, cafes and pubs1, when in one month signatures are to be officially abolished on all credit and debit card payments.

 

PIN Usage 2014-07-02

According to new research by Tyro Payments, PIN usage regarding transactions that offer a choice between PIN and signature increased from 59% in November 2013 to 78% in June 2014 for 10,000 small-to-medium businesses, including many restaurants, cafes and pubs. Specifically, eating places and restaurants are laggards with 66% PIN usage. That reflects the lack lustre acceptance of mobile terminals and the waiter staff’s fear for their tips.

Tyro Payments co-founder Andrew Rothwell said, “While PIN usage has increased in the past six months, the fact is on 1 August 10% of customers will have to use their PIN for the first time. Imagine cardholders searching in panic for cash, when they can no longer sign. The simple act of paying for a meal could ruin the entire dining experience,” Mr Rothwell said.

Tipping is also likely to be a casualty with tips expected to fall by double digits, similar to the UK experience. The solution to this problem however is available today.

“A simple, fast and secure payment process integrates the restaurant management software and the payment terminal allowing patrons to use the EFTPOS terminal at the table at their own pace to split the bill, tip and pay using their PIN2. It also make restaurateurs life easier when reconciling payments at the end of the shift,” Mr Rothwell said.

Tyro launched its mobile EFTPOS technology two years ago working with the hospitality community developing and testing its solution. “We beat the big banks,” Mr Rothwell said. “With appropriate wait staff training, to give customers privacy when paying with the terminal, and Tyro’s easy to navigate workflow on the terminal, loss of tips need not be the nightmare restaurateurs imagine.”

“We knew that customers and restaurateurs would be impacted by the change and have worked on a solution that would ensure that nobody would be unnecessarily inconvenienced. Tyro’s solution is supported by diners, restaurant staff and restaurant managers who no longer have to spend lonely nights, after staff have gone home, punching numbers into terminals to process tips.”

“The PIN requirement puts the customer back in control. It’s virtually impossible for a fraudster to ascertain a PIN, while forging a signature is easy. Our wireless integrated pay at table EFTPOS system is a perfect complement to eliminating credit card signatures. Tyro’s mobile terminals revolutionise the customer paying experience and makes restaurant staff and owners lives much easier,” said Mr Rothwell.

BENEFITS OF USING TYRO’S INTERGRATED EFTPOS TERMINALS

  • Current users of the terminals have reported positive outcomes such as halving the number of trips a waiter makes to the table to close it off.
  • The end-of-day reconciliation and tip completion cease being problems for the restaurateurs.
  • Customers never lost sight of their credit cards as they did in the past, which means they have total security over them.
  • Diners have a broader choice of cards. They will no longer be limited to today’s signature based credit cards, but will be able to use Australia’s popular EFTPOS debit card at the table.
  • Restaurateurs using mobile terminals potentially save in merchant service fees when their patrons use the EFTPOS debit card instead of a credit card.

Media inquiries:

Andrew Rothwell
Tyro Payments
+61 2 8907 1732
+61 417 667 884


1 http://www.restaurantcater.asn.au/magazine/tipped-off/
2 http://tyro.com/hospitality/

 

 

Media enquiries

Christine Kardashian
Launch Group
02 9492 1000 | 0416 005 703
christine@launchgroup.com.au

Want to know more?

Get in touch