Jul 24, 2023
 min read

No More Passwords: The Hassle-Free Future of Digital Payments for Restaurants

This article outlines:

Why the restaurant industry is primed for a passwordless future

How Olo’s Borderless checkout feature works—and why it matters

Borderless in practice: Din Tai Fung case study

There’s little room for friction in the world of e-commerce—and that’s even more true in the restaurant industry. After all, guests turn to digital channels for convenience, and there’s no harder time to handle unexpected hurdles than when you’re hungry.


With the likes of Amazon, Shop Pay, and Bolt raising the bar for e-commerce checkouts, it’s no wonder 91% of consumers say a satisfying checkout experience significantly influences the likelihood they will return to a given merchant.

Keep reading to find out how the Borderless checkout feature of Olo Pay irons out some common wrinkles in the restaurant checkout process—so you can deliver a smoother ordering experience that leads to satisfied guests rather than abandoned carts.



Why the Restaurant Industry Is Primed for a Passwordless Future

Recent research reveals the average person has roughly 100 passwords across their various online accounts. Even if the bulk of those are more likely to be reset than remembered due to lack of usage, it’s still a staggering amount.

It should come as no surprise that across all e-commerce segments, 42% of consumers prefer to use the “guest checkout” option when making a purchase. And even for those who do create an account, 75% use a burner email address, according to a 2022 study from Capterra. 

Restaurant guests are no different. Aside from frequent users and those looking to accrue and redeem loyalty rewards, most don’t want to add to their password pile by creating an account every time they order from a new brand. 

To eliminate friction in the checkout process, restaurant brands are beginning to adopt modern payment solutions similar to the ones guests have grown accustomed to within the traditional retail e-commerce segment. 

Olo’s Borderless checkout feature is one example. 


How Olo’s Borderless Checkout Feature Works—and Why It Matters

Borderless was purpose-built to make the restaurant checkout process as quick and simple as possible. The first time guests enter their payment and contact details, they can save that information for future use. 

Because that information is saved at the platform level, guests can securely speed through checkout for each subsequent purchase—with that specific restaurant brand or others in the Borderless network they’ve never ordered from before—without having to remember a password or re-enter their information. All they have to do is enter their email address or phone number and then input the one-time code they receive to verify their identity and authenticate the purchase.


3 Ways Guests Benefit From Borderless

1. Easier Ordering

Guests want to complete their order, yet the average online shopping cart abandonment rate is nearly 70%. Two of the main reasons cited by consumers are mandatory account creation and a long/complicated checkout process. With Borderless, guests can speed through checkout without the hassle of recalling passwords or manually entering information.

2. Increased Security

Another often-cited concern about digital payments relates to security. With data breaches making headlines on a routine basis, it makes sense for guests to have second thoughts every time they’re asked to input their credit card information and try to limit the number of accounts they create. Borderless eliminates the need to re–enter payment information with each transaction and protects sensitive payment information through full PCI compliance.

3. Loyalty Rewards

We’ve integrated Borderless with loyalty partners on Serve to ensure guests can earn and redeem loyalty rewards while enjoying the passwordless login and accelerated checkout experience provided by Borderless. Additionally, guests who sign into their loyalty account can have their delivery address and payment details pre-filled from their Borderless account.


Borderless in Practice: Din Tai Fung Case Study

Din Tai Fung was one of the first adopters of Olo's Borderless checkout feature. In the seven months following its implementation, 60,000 Din Tai Fung guests created a Borderless account. Since then, Borderless has positively impacted order frequency, guest sign-ins, and saved cards during checkout.

Lift in Orders Per Guest Using Borderless

Due to the convenient checkout process, existing guests who signed up with Borderless are likely to place 61% more orders throughout the year—or 1.5 more orders per existing guest—compared to those who have not signed up for Borderless.

Increase in Guest Sign-Ins

After Borderless was enabled, Din Tai Fung saw guest sign-ins (Olo legacy and Borderless) before placing an order jump from 31% to 65%—a 109% increase. This strong guest engagement has driven the increase in orders.

More Guests Saving Cards on File

With the introduction of Borderless, more Din Tai Fung guests are opting to save their credit cards on file for smoother checkouts in the future.

Download Olo's Payments Playbook

Ready for the Passwordless Future?  

As guest behaviors rapidly evolve, brands are ramping up investments across their tech stack to keep pace. Unfortunately, payment processing has largely remained a commodity and most legacy providers don’t meet the unique challenges posed within the restaurant industry. 

In the passwordless future, restaurant brands that offer a frictionless checkout will have a competitive advantage. Guests crave convenience as much as their favorite food items. Fortunately, you can give them both. 

Contact our team of restaurant experts to learn how Olo’s Borderless checkout feature can help you meet the needs of today’s digital-first guests.

Photo by Anete Lusina at Pexels

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