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The growing backlash against cashless retail and restaurants is forcing merchants across the country to rethink their business models, as local and state legislatures have forced an increasingly urgent debate on financial inclusion, innovation and the cost of doing business in a free society.
Additional legislation to regulate cashless retail is pending after New Jersey and the city of Philadelphia passed laws to require most retailers and restaurants to accept cash, and upstart businesses that have considered themselves progressive-leaning are discovering the need to find a balance between the smart use of new technology and the cultivation of a welcoming and open relationship in the communities they serve.
Late last month, Sweetgreen, a fast casual restaurant chain with 90 locations nationwide — including six in the city of Philadelphia, announced that it would start accepting cash after realizing that the cashless movement that it helped develop was potentially excluding some of its most vulnerable customers.
"A lot of people feel like it's creating sort of an us-and-them kind of split," said Philadelphia City Councilman Willliam Greenlee, who sponsored the cashless ban in that city. "When I talked to the folks at Sweetgreen, they kind of got what I was saying and said, 'Certainly we don't want to project that image that we're discriminating against anybody or excluding anybody.'"
A new establishment in downtown Detroit, Mootz Pizzeria and Bar, also has decided to change its policy and now accepts cash as a form of payment.
Lisa Walters, one of the restaurant's owners, told Mobile Payments Today that the main impetus behind the initial decision to go cashless was a concern about safety and security, as the establishment is open until 3 a.m. on weekends. The policy reversal by Mootz was unrelated to any pending regulations, though, since proposals to ban cashless commerce are not on the table in either the city of Detroit or the state of Michigan.
Walters said that the restaurant was receiving about 95% of payments via credit, debit, Google Pay and Apple Pay, but that staff had gotten some feedback from customers who wanted a cash option. "I think cash will always have to be around," she said.
Pending legislation
In New York City, council member Richie Torres is working with the office of Mayor Bill DeBlasio to make edits to a proposed bill to ban cashless retail, according to Raymond Rodriguez, deputy chief of staff for Torres.
He said the bill has garnered the support of labor unions in the city, including the Retail, Wholesale and Department Store Union. Additionally, Mulberry & Vine, a cashless restaurant, has expressed support for the bill. Rodriguez would not elaborate on whether any final decision has been made on policy, however.
The legislative debate over cashless retail has spread into markets in other parts of the country, as well. Late last month in San Francisco, the city's board of supervisors advanced a bill in committee requiring retailers and restaurants to accept cash.
Standard Cognition, a San Francisco-based technology firm that uses artificial intelligence and machine learning to power autonomous checkout for retailers, has its own AI-powered convenience store in the city. However, unlike rival Amazon Go, the Standard Cognition business model already allowed for cash buyers, according to a spokesperson.
"Cash payments have been part of our roadmap since the beginning," Michael Suswal, founder and CEO of Standard Cognition, told Mobile Payments Today in an emailed statement provided by a spokesperson. "We've talked to hundreds of retailers over the past two years and every retailer wants the option of taking cash."
Consumer flexibility
A study released last week by Origin, the independent research arm of marketing firm Hill Holiday, showed that having a cash payment option is still very important to consumers.
The report, based on a survey of 1,000 smartphone users, showed that 76% still carry cash daily and 55% "hate" the idea of life without cash. The study also showed that contactless cards and digital wallets are not always the first choice for consumers, as 45% of respondents said there is no need to use mobile payments and 63% said there should be clear and consistent visual cues around mobile payment options at the point of purchase.
"It's very interesting to see more and more companies reverting back to cash," Katherine Schilling, vice president and strategy director at Hill Holiday, told Mobile Payments Today via email. "While the convenience and speed of mobile payments are very appealing, based on our research, there are a lot of barriers still holding us back from fully embracing the cashless craze."
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May 2, 2019
Nymbus has reached an agreement with Miami-based Pacific National Bank to provide its SmartLaunch technology platform for a digital-only bank that will initially serve Florida and later expand across the country, according to company officials.
"While the business benefits to innovate with a digital-only bank are clear, we needed a strategy to quickly build and operate the platform while staying fully committed to our established and loyal customer base," Pacific National Bank CEO Carlos Fernandez-Guzman said.
The SmartLaunch technology will provide the bank all the necessary tools to get the digital operation up and running in less than 90 days, according to the announcement.
Pacific National, based in Miami, is the 19th-largest bank in Florida, with $499 million in assets. Besides its main branch in Miami, the bank operates branches in Aventura and Coral Gables, Florida.
Topics: Mobile Banking, Technology Providers
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May 2, 2019
Rappi, a Bogota, Columbia-based on-demand delivery startup, has agreed to raise a record $1 billion in funding from SoftBank Group Corp. and SoftBank Vision Fund, according to a company release. Rappi will use to funding to expand its delivery service throughout the region and develop additional products.
The SoftBank Group and the SoftBank Vision Fund will invest up to $500 million each. The SoftBank Group investment will be transferred to the SoftBank Innovation Fund, which launched in March.
Rappi, which launched in 2015, provides services in a variety of sectors, including restaurant, grocery, drugstore medication and digital payment services. The company, which also offers a mobile wallet called RappiPay, operates in Brazil, Columbia, Mexico, Argentina, Chile, Uruguay and Peru.
"Rappi's founders have a bold vision to create the premier multi-service super-app for Latin America, improving the lives of millions in the region," said Marcelo Claure, COO of SoftBank Group, CEO of SoftBank International and CEO of Softbank Innovation Fund.
"SoftBank's vision of accelerating the technology revolution deeply resonated with our mission of improving how people live through digital payments and a super app for everything consumers need," Rappi co-founder and President Sebastian Meijia said in the announcement. "We will continue to focus on building innovations for couriers, restaurants, retailers and startups that translate into new sources of growth."
Jeffrey Housenbold, managing partner of Softbank Investment Advisors, will join the Rappi board of directors. Existing investors in the firm include DST Global, Delivery Hero, Sequoia Capital, Andreeson Horowitz and Y Combinator.
Topics: Mobile Apps, Mobile/Digital Wallet, Region: Americas
Companies: Softbank Vision Group
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May 1, 2019
Hertz has announced the release of an upgraded mobile app that includes several enhancements to help customers book their rental cars faster, track loyalty rewards and manage expenses.
"When redesigning the Hertz app, we listened to our customers and what they wanted most," Jayesh Patel, brand senior vice president at Hertz, said in the announcement. "Our customers told us they wanted faster reservations, better visibility to their loyalty program rewards and easy access to their rental history and receipts."
The new features include the following:Customers can log in quickly using facial recognition or Touch ID, access previous rental searches and current reservations, and make changes to future reservations.Hertz Gold Plus Rewards members can see member status, rewards number and points in a single viewing, as well as pay for bookings using rewards points and exchange points faster. Members can make profile changes, change payment information and access rental information and receipts.Customers can get customer service or emergency roadside service through the app, find nearby Hertz locations and find available parking spaces using SpotHero.Topics: In-App Payments, Loyalty Programs, Mobile Apps
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May 1, 2019
Phoenix-based True Food Kitchen has launched its first loyalty program and custom-branded app — True Insider. The chain, which released a digital ordering platform earlier this year, partnered with Thanx to develop the app with a goal of giving customers a more personalized brand engagement program, according to a company press release.
The app, which integrates directly with the restaurant's digital ordering platform, allows guests to order and pay online, make reservations, manage their accounts and earn and redeem rewards at any of its 27 locations.
How it works
Structured as a tiered program based on annual spending, the program provides incentives to guests as they earn status in higher tiers. The introductory tier — referred to as bronze — includes a welcome offer of $10 off a $25 purchase, a free birthday dessert and invitations to special events, including cocktail workshops, gardening classes, nutrition seminars and the chain's seasonal four-course community dinners, according to the release.
The program's silver and gold tiers — achieved after spending $500 and $1,500, respectively — provide members with even richer rewards including preview tastings of seasonal menu changes, lifestyle merchandise from ShopTrueFoodKitchen.com, priority seating and free dishes and beverages. True Food will leverage the program to make the brand even more memorable for guests with year-round, surprise-and-delight offers and personalized, one-of-a kind experiences such as an intimate chef's dinner for some of the brand's most loyal guests, True Food Kitchen CEO Christine Barone, said in the release.
The app will also help the chain gain insight about guest preferences, individualized behavior, interests and past purchases to send targeted and personalized emails and offers, according to the release. Lastly, it will unify current email marketing with the new app, loyalty program, online ordering and SMS messaging.
Registration to True Insider requires guest to register a credit card to track spending progress, but the platform includes a camera that allows guests to take a photo of a card to scan and save payment information with bank-level security, according to the release. Cash-paying guests have the opportunity to upload receipts to earn spending progress and redeem rewards.
Topics: In-App Payments, Loyalty Programs, Mobile Apps, Mobile Payments, Restaurants
Companies: True Food Kitchen
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