Payment Terminals in the Hospitality Industry

Introduction
Nowadays, whether enjoying a cappuccino in a bustling city bistro or savoring a five-course meal in a gourmet restaurant, customers expect the payment process to be as seamless as the rest of their experience. The old cash drawer has been replaced by a modern payment terminal that quickly connects with banks, hospitality POS systems, and sometimes even loyalty programs. The cash drawer has been transformed into a hospitality payment terminal that swiftly communicates with banks, POS systems, and loyalty software when needed. No longer an exception, the payment terminal has become the nerve center of financial transactions in restaurants, cafes, food trucks, shops, and hotels.

With the rise of digital payments, the importance of payment terminals for hospitality businesses wanting to offer quick and smooth transactions has grown. In this article, we explore why entrepreneurs are making the switch in droves, examine the features that make a difference today, and take a look into the future.

From Cash to Contactless: A Quick Evolution
Back in the 1990s, the average bar-goer often paid for their beer with cash. Coins and bills were exchanged hand to hand. Cash registers clinked, and errors in change were common. The first fixed payment terminals were bulky devices that communicated via analog phone lines. Payments were not much faster with these slow, error-prone connections, offering little advantage over cash.


The breakthrough came with three technological advancements:

1. First ISDN, then broadband internet
   Stable, rapid connections that reduce transaction times.
   
   
2. Integrated POS systems for hospitality
   The cash register and terminal "talk" to each other, eliminating the need for manual input.
   
   
3. NFC technology
   Contactless payments that speed up transactions to just a few seconds.

Today, the majority of Dutch consumers prefer digital transactions, even for amounts under two euros. Research shows that over 73% of all hospitality payments are now electronic, a figure that is slowly increasing. Hospitality businesses lacking payment terminals risk losing customers before the order is even placed. Younger generations, in particular, expect this payment option as standard and are increasingly impatient with cash-only venues.

Speed and Flow
During peak times, every second counts. A contactless payment takes an average of five to fifteen seconds. In contrast, cash payments range from twenty to sixty seconds, depending on change and possible calculation errors. That’s a significant time saver.

Take a busy lunchspot, for instance: If 120 lunchtime customers spend 30 seconds less on paying, the entrepreneur gains back an hour. This means: providing better service, serving more customers (more revenue), or saving on staffing costs.

Higher Customer Satisfaction
Consumers appreciate the freedom of choice. They can pay by card, mobile, scan a QR code, or use a credit card. This is perceived as "more control" and convenience. Restaurateurs and café owners find that guests who can complete transactions without fuss are more likely to leave a positive review. This comes as no surprise, as payment is the final touchpoint and influences the entire experience. This translates into more repeat visits and word-of-mouth referrals.

Security and Accuracy
Cash is prone to theft, counting errors, and counterfeit bills. Digital transactions are encrypted, automatically logged, and seamlessly integrated with accounting. For employees, this means: less stress, fewer fears of robbery, no debates over change, and no discrepancies at cash-up. A café owner in Amsterdam noted: "Since switching to card payments, our cash-up errors have reduced by 92%. We can see everything clearly through our hospitality POS system. It saves time and prevents debates with staff."

Increased Revenue
Psychological studies show that consumers experience less "pain" when spending electronic money versus cash. In practice, that extra dessert, a second glass of wine, or a generous tip is more likely. Hospitality entrepreneurs report an average increase of 12 to 18% in order value when guests pay electronically rather than with cash.

The Modern Consumer and Payment Expectations
Today's consumers have become accustomed to digital experiences.
They expect the same convenience when visiting hospitality venues:

Generation Z (born 1997-2012)
This generation has barely any connection with cash.
Research shows that 86% would rather spend a day without a wallet than without a smartphone.

Millennials (born 1981-1996)
This group appreciates innovative payment methods like Apple Pay and Google Wallet, often choosing venues based on this convenience.

Generation X (born 1965-1980)
Though more accustomed to cash, this generation has fully embraced card payments for their ease and expense tracking.

Tourists
For international visitors, a card terminal that accepts global cards is a relief.
No need to exchange local currency; they can pay directly.

No More Currency Exchange
A restaurant owner in Utrecht noted: "When we switched to card payments, we immediately noticed an increase in international guests walking in spontaneously. Previously, they often walked by because they didn't have cash and were looking for a currency exchange."

Many entrepreneurs in the hospitality industry are opting for handheld models that work with WiFi and/or 4G. These devices fit in an apron pocket, run on a daily battery, and can print a receipt via Bluetooth if desired.

The Benefits:

• At-table payment prevents congestion at the register. Guests no longer need to stand up and queue to pay, enhancing flow and overall experience.
  
  
• Flexibility outdoors on patios, in food trucks, or at festival stands. In good weather, entrepreneurs can expand seating areas spontaneously without worrying about cables or payment capabilities.
  
  
• Quick onboarding: new employees master all steps within fifteen minutes. The interface is generally so intuitive that extensive training is unnecessary.
  
  
• Robust design with splash and drop protection, essential for busy services. The latest models can withstand a beating and operate flawlessly in hectic hospitality environments.

Tessa, owner of a beach pavilion, shares: "Our wireless payment terminals and our POS system have completely transformed our service model. We can now take orders and payments anywhere on the beach, even to the water's edge. This has increased our revenue by 30% during peak season."

Lisa has been running a cozy lunch café in the city center for five years. Until recently, she only accepted cash. The switch to a modern payment system fundamentally changed her business.

Before, Without a Payment Terminal:

• Lisa had to go to the bank daily to deposit cash, which was time-consuming and posed a security risk.
• Occasionally, customers would leave because they didn't have enough cash, directly impacting revenue.
• Reconciling the cash register daily took a lot of time and errors were frequent.
• Lisa worried about security, especially when closing in the evening.

Now, With a Payment Terminal:

• Increased Revenue
  "People are less hesitant about ordering an extra coffee or a slice of cake when they can pay by card," Lisa explains. "Our average order has increased by €3.50 since offering electronic payments."
  
  
• Time Savings
  "I no longer need to go to the bank every day. And in the evening, the cash register tally is much quicker. It saves me at least an hour a day! Now, I spend that time planning menus and on social media, which attracts more customers."
  
  
• Fewer Errors
  "We used to have debates over change. Now, you can see exactly what was paid. It provides peace of mind, even for my staff. Since the introduction, we haven't had any cash discrepancies."
  
  
• Safer Feeling
  "I feel much safer now that there is less cash in the business. Especially when I'm closing up alone in the evening. That constant worry is gone, and that alone is worth the investment."
  
  
• Happy Customers
  "Customers love having a choice in how to pay. Tourists, in particular, are relieved to see we accept card payments. We regularly receive compliments on how smoothly the checkout process goes."
  
  
• Better Insight
  "Card payments give me much better insight into my revenues. It helps greatly with planning and purchasing. Now I know exactly which days are busy and can adjust my stock accordingly."
  
  
• More Professional Image
  "Customers now see us as a more modern business. It fits well with our brand. We also attract more business customers who appreciate receiving an itemized receipt for their expenses."

Lisa's Advice to Other Hospitality Entrepreneurs: 
"I should have gotten a payment terminal earlier! It costs a bit, but it brings so much convenience and extra revenue. Just do it, you'll be amazed at the difference.