It was The Year of Upgrades in the Restaurant Industry

Stronger security and a better customer experience are among the benefits restaurants are gaining by adopting EMV-compliant technology this year.

Although we’re now more than two years beyond the EMV (EuroPay, MasterCard, and Visa) liability shift deadline (Oct. 2015), 2017 is the year where many restaurateurs opted to make the jump. Table-service restaurants are arguably most impacted by the migration to EMV due to the change in processes for restaurants. The widespread release of restaurant-centric EMV functionality like EMV tip adjust, PIN suppression, pay-at-table, and consumer-based mobile payment apps have enabled these merchants to move to EMV-enabled payments without negatively impacting their customer base. 

Better Security, Better Customer Experience

The upgrade has accelerated payments functionality in restaurants, which directly impacts the consumer experience. Not only are the latest payments offerings more secure for both the merchant and consumer by utilizing a combination of EMV, P2PE (point-to-point encryption) and tokens, the consumer experience has been drastically improved with new features like user-friendly mobile payments and online ordering.

A Look Ahead at Restaurant Trends in 2018

ISVs should expect to see more competitors (e.g., other ISVs and associated sales channels) to aggressively push new functionality into the restaurant market for both new and existing restaurateur clients next year. Installers should perform an on-site needs assessment to determine how each merchant can directly benefit from new and more secure payments functionality.

Options for pay-at-table and consumer-based mobile payment apps are becoming more prevalent and viable for savvy restaurateurs. ISVs with integrations to payment providers that offer mobile payments functionality will be aggressively pushing these feature updates to both existing and prospective merchants.

Anticipate These Threats Next Year

Payment processors with proprietary point of sale (POS) packages are making a push into the restaurant market. While most of these packages are still lacking features to meaningfully compete against established POS players in table-service restaurants, ISVs need to be able to push their unique value propositions in order to remain competitive. These value propositions include the capacity to provide expert-level POS installation and troubleshooting along with the distinctive ability to perform on-site needs assessments and proactively implementing value-added services that solve real problems.

Don’t Miss These Big Opportunities

ISVs should be aggressively pushing feature updates to new and existing merchant customers. Additionally, ISVs that aren’t selling security, mobility, gift, loyalty, online ordering, and CRM on each and every sales opportunity are missing out on building recurring revenue and leaving the door open for the competition to provide a more comprehensive offering.

What can ISVs expect to see from Datacap Systems in 2018?

ISVs can expect to see ongoing feature development and product enhancement, including new EMV hardware certifications, more mobility options, and the move to frictionless installation and support of payments solutions. 


Justin Zeigler is the director of product strategy at Datacap Systems. 2018 marks Justin’s 11th year at Datacap where he’s responsible for the assessment of new technology in relation to market conditions and the subsequent development path for payments solutions utilized by Datacap’s current and prospective Point of Sale integration partners. Justin’s primary focus relates to the growth of Point of Sale developer partnerships where Datacap provides a conduit for POS providers to drive EMV-enabled payments and POS peripherals through a simple integration path. When not talking integrated payments at Datacap, Justin spends his time with his wife and two daughters just outside of Philadelphia.