Category: QR Codes

The coffee chain giant will now be accepting WeChat smartphone transactions to pay for purchases.

The Starbucks QR code based payments are now being accepted in Chinese locations. The coffee chain announced that WeChat users will now be able to pay for their food and beverage purchases with the mobile app’s Weixin Pay.

The initial introduction of the QR codes will include around 2,500 of the company’s Chinese cafes.

To use the Starbucks QR code, customers must simply scan the code at the checkout counter. This is completed through Weixin Pay. The mobile payments technology makes it possible to carry out the entire transaction over the smartphone.

Customers will be using mobile payments at Starbucks as a result of a new agreement between the café and Tencent Holidings Ltd. This makes the coffee chain only the latest fast food company to offer Chinese consumers a mobile wallet payment option.

The Starbucks QR code has already proven to be very popular in other countries including the United States.

In China, mobile payments are becoming increasingly commonplace. Disney, KFC and Uniqlo already offer m-payment opportunities in their Chinese locations.

At the moment, there are approximately 200 million Chinese consumers using Weixin Pay and Alipay – Weixin’s rival owned by Alibaba Group Holdings Ltd. Consumers have embraced the technology due to the checkout speed it offers in-store.

That said, as popular as mobile payments are becoming in China, many foreign retailers are hesitant to introduce them. The main worry is regarding a customer privacy breach through the data collected during the transaction.

According to China Market Research Group managing director Shaun Rein, “Accepting mobile payment would unlock massive value for Starbucks.” He also added that “Since they couldn’t move customers through the line faster, they were losing 5 to 10 percent of business.”

The Starbucks QR code will provide precisely that opportunity. Customers can step up to the counter, order their beverage and scan the quick response code to verify and complete the transaction. This will also help to boost its strength in the competition with its top rival Costa Coffee. That company has been accepting mobile payments for more than a year.

A pilot program is now underway using QuickPay for WeChat customers in the country.

McDonald’s is now running a pilot project using QR code payments with a cashback offer. Customers using WeChat can get 50% cash back when they use the QuickPay service. This is exclusive to select restaurants in South Africa.

The goal is to encourage people who are already using the social messaging app to pay with their smartphones.

Participating restaurants are located in Cape Town and Johannesburg. Customers using the WeChat mobile app are being offered a special 50% cashback offer. This is mean to encourage them to use the QuickPay QR code payments at McDonald’s in a participating location.

This incentive is meant to help to encourage customers to try the mobile payments for the first time. By showing them how easy it is to pay for an order simply by presenting the QR codes at the point of sale so they can be scanned, McDonald’s hopes that consumers will be taken with the service and will continue to use it.

The QR code payment cashback offer is available to the first 20,000 customers to use the service.

Those customers will receive 50% cash back when they pay for their meals with their smartphones. According to the McDonald’s South Africa chief marketing officer, Daniel Padiachy, “We are continuously searching for innovative ways to enhance our customers’ experience.” He added that “We believe that WeChat’s Quick Pay will further assist us in upholding these principles.”

The WeChat app first launched in the country in November 2015. The app is owned by Tencent, the ecommerce giant from China. Payments through the service have been made possible in South Africa through a partnership with Standard Bank.

WeChat makes it possible for users to make P2P transfers as well as to scan QR codes to make payments in-store at any of 30,000 merchants across the country that support the SnapScan platform. The mobile app can also be used to purchase wireless services such as airtime and data, as well as to pay certain utility bills.

While Quick Pay is functioning within the SnapScan WeChat feature, that QR code payments option is currently available exclusively at McDonald’s.