More and more people are starting to order food or drinks via their mobile devices, and then paying for them with the use of a mobile app or mobile payment system. Indeed, coffee giant Starbucks already lets its customers buy and pay for their daily dose of caffeine via its own mobile app. Also just this week, Firehouse Subs and Burger King have also revealed that they are teaming up with MasterCard’s MasterPass digital payment solution. Taco Bell also recently announced that is mobile ordering solution is made possible through a partnership with Heartland.
The latest to join in on the fun is Subway, who is joining forces with PayPal in activating the latter’s OneTouch mobile checkout experience in the former’s updated mobile app. The two business entities are targeting to bring its mobile payment system to 27,000 Subway locations across the United States by the end of 2015.
Subway had actually debuted, although quietly, its own mobile payment solution in its app in autumn of last year, but it is only in May this year that the company started talking publicly about it due to the fact that it needed some time to polish the system as well as train its staff regarding the machinations of the mobile payment solution. However, Subway hopes to promote the system more in the second half of the year.
For those not in the know, Subway’s mobile app lets consumers specify what goes into their sandwiches via their mobile devices, complete payment in advance (or while standing in line at the counter), and then pick up their orders.
Subway’s mobile apps were previously developed by Paydiant, a firm that PayPal had acquired in March early this year for a sum of $280 million. Paydiant was the startup behind the mobile wallet championed by the Merchant Customer Exchange (MCX), a consortium of companies led by Walmart, with members that include Target, CVS, Rite Aid, and Best Buy, among many others. MCX had been developing CurrentC, its answer to Apple Pay, the mobile payment system developed and launched by Apple in October of last year. Paydiant also counts Harris Teeter and Capital One as part of its impressive list of clients.
Because Paydiant is now part of PayPal, it will be working to integrate PayPal’s OneTouch mobile checkout into Subway’s mobile app as an additional checkout option (the Subway app also has support for Apple Pay and Android Pay). One huge advantage of PayPal’s OneTouch is that it works across all mobile apps that got installed with PayPal. This means that consumers need not log into PayPal every time, they just need to sign in on one supported mobile app.
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