Mobile wallets are here to stay

More people are leaving their credit cards at home when they go out to eat. Instead, they’re picking up the check with their smartphones. Mobile wallet technology is growing on a daily basis. By the end of 2016, Juniper Research estimates there will be more than 200 million mobile wallet users in the U.S.

Mobile wallets work by storing credit card information with near-field communication (NFC) chips. Whenever you make a purchase, a unique code is sent from your smartphone to the vendor to process the transaction. That code prevents your credit card information from being shared with store owners, which helps boost security.

Right now, there are three main players competing for your mobile payments: Apple Pay, Samsung Pay and Android Pay. Apple Pay rolled out first, which is why it’s built up a network of 220,000 merchant locations across the U.S. The technology works with the iPhone 6 and newer models, and uses the fingerprint sensor to complete each payment transaction. Samsung Pay runs on the latest Galaxy devices, but it’s also compatible with regular swipe-based credit card machines. Android Pay is slightly different because it isn’t limited to certain smartphones or tablets. It’s available to anyone who downloads the app.

Mobile wallets are a great opportunity for restaurateurs to better serve their customers. The technology enables owners to track loyalty reward programs in real-time. It also opens the door for special offers and deals on mobile devices, which can help build brand loyalty. CNBC also found that mobile payments can lead to higher tips since customers aren’t counting out physical money at the end of their meals.

As more consumers start using mobile wallets, it’s likely that more companies will launch their own versions of the technology. That means more restaurants will follow suit in order to keep up with their customers.

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