According to the source, McDonalds will start testing mobile ordering and mobile payment in China under a pilot program in the current Q3. The aim is to speed payment and meet consumer demands.
Yum has unveiled that its KFC business teamed up just recently with technology giant Alibaba Group to launch mobile payment services for 700 of its 4,500-plus stores in China. Customers can pay for their in-store orders of fried chicken in a few seconds by scanning bar codes generated by Alibabas mobile-payment application Alipay.
Industry consultants say that across the board, Western companies need to experiment more to connect online and in-store business in a market of 885 million mobile users, who employ smartphone apps to book all sorts of real-life services -from hailing taxis to ordering personal chefs to their homes.
Companies want to cater to a growing Chinese trend of consumers who would rather pay with their phones than pull out their wallets, said Forrester analyst Xiaofeng Wang. Many homegrown Chinese chains, like hot-pot restaurant chain Hai Di Lao, which serves meats and vegetables dipped in boiling broth fondue style, are already using mobile payments.But KFC and McDonalds, should it continue the mobile-payment program after its pilot run, are early entrants to the online-to-offline market compared with their direct rivals.
McDonalds already uses mobile payment in the US and was an early adopter of Apples Apple Pay. But analysts say mobile payment is taking off faster in China because, unlike US consumers, Chinese dont widely use credit cards.
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