#RBTE2018 McDonald’s benefiting from outsourcing card payments

Moving it’s cashless payments to a managed solution is delivering myriad benefits to McDonald’s, which ultimately improves the customer service.

Burger chain McDonald’s’ managed service approach to its payment infrastructure has quicker processing times and almost eradicated the frequent down-times that negatively impacted its business.

Jon Braithwaite, senior director at McDonald’s global IT delivery, says the legacy systems it had in place were designed for 40 million card transactions per year but McDonald’s has been doing 400 million annually with the result that problems occurred.

“We couldn’t scale anymore. It was too old and we had insufficient capacity with lots of points of failure. It was unreliable and we’d frequently lose the system for hours,” he says.

The answer was a managed service solution from Ingenico that provided McDonald’s with the scaleability, resilience, security and improved processing speed that it required.

Ian Benn, SVP commercial at Ingenico Enterprise Retail, says that taking this approach also gives clients like McDonald’s the opportunity to remove customers’ payment data from its data centres, thereby removing it from the PCI environment. Clients also enjoy the benefits of the ongoing development Ingenico undertakes with its software.

The roll-out of the solution is part of a £70 million IT investment in the UK & Ireland by McDonald’s that is also seeing it introduce a mobile Order & Pay option in its restaurants. Although Braithwaite says card usage is reasonably static, the fact that 60% of its business is via ‘Drive Thru’s’ where customers are encouraged towards cashless payments highlights the importance of a robust, fast card payments proposition for its customers.

To date he says the managed solution delivers processing speeds of a mere 0.2 seconds and the system has only been down for 12 seconds in the past six months compared with a typical one hour per week with the old legacy system.