McDonald’s Team Up With PayPal To Test Mobile Payments in 30 Restaurants

Purchase your burgers with a few clicks on your mobile phone and be out the door at McDonald’s much faster. According to a report from Reuters McDonald’s is running a test of a McDonald’s mobile app at 30 of their locations in France. Customers will be able to place their orders using their mobile phones, tablet or desktop computer and use PayPal to pay for the order.

At the thirty test locations there will be separate lines for picking up the meals. This will hopefully cut down on the lines and give technology savvy, on the go customers a way to grab a meal in less time. A demonstration of the entire process was done during a conference that the company held in Orlando, Florida. The hope is that this will go live at all locations sometime in the next couple years.

As revolutionary as this move might seem McDonald’s is not a leader in this aspect. This trial comes just after Starbucks joined forces with Square Inc to facilitate mobile checkout. Merchant Customer Exchange is also working with a few big names like Target, Best Buy and Wal-Mart to develop an app that customers can use to checkout using their smartphones.

PayPal has been hard at work to get a bite of the offline market share and starve off major competitor Square. Mobile payments seem to be a solution that both retailers and consumers will welcome with open arms since it will improve the efficiency of the checkout process and give customers another convenient way to pay for purchases.

A deal with McDonald’s could definitely give PayPal a one up or at least place them on par with the deal that Square signed with Starbucks. As it stands PayPal already signed deals with 15 retailers including Office Depot, Home Depot and others. If McDonald’s test proves satisfactory PayPal could get their hands in at their 30,000 restaurants. In case you didn’t know that is huge when compared with the 7,000 Starbucks stores that Square got in their deal.

A part of McDonald’s corporate culture is the speed efficiency at which they serve their customers. If this move proves successful it will help them improve efficiency, accuracy and speed which will go a long way in improving their business model in the minds of their customers.

As electronic payments become more and more accepted we can expect to see more companies emerge. Analysts already predict that payments via smartphone will dominate other payments by the end of the decade. PayPal, an early adapter and industry leader with a solid footing and wide customer acceptance will continue to dominate even when major players try to enter the market.