Burger King adds mobile payments

Burger King (NYSE: BKW) is updating its mobile app to allow customers to pay for their meals using a smartphone. The app will be rolled out to U.S. locations next month, reports Bloomberg.

Payment values will be tracked via a virtual card within the app which customers can use to store cash value and pay for items in stores. Customers will also be able to use the app to redeem coupons and view nutrition facts.

The new move is an attempt to target millenial shoppers who are more comfortable using mobile technology. Burger King has been testing a few other tech initiatives, including a website, bkdelivers.com, that allows users to order online and have a burger and fries delivered to their doorsteps. The BK Delivers website and mobile app was launched in 2012 with service to the Washington, D.C.-area and later expanded to 13 states.

Mobile payment systems are in place at several fast-food and quick-service restaurants. Starbucks has been the industry leader in the category, with about 1 in 10 purchases in its shops made with a mobile device. Last summer, CEO Howard Schultz revealed that the company was ringing up 2.1 million mobile payment transactions each week.

Dunkin Donuts (NASDAQ: DNKN) recently upgraded its mobile payment and points system. In November, the company revamped the app which rewards customers by providing points for every dollar spent. Once members have accrued 200 points, they get a free medium beverage. Additionally, the DD Perks Rewards app allows customers to pay via their smartphone, send gift cards to others, and locate stores using a GPS feature.

Dairy Queen last year also introduced a mobile-payment app that uses check-ins—rather than an onscreen bar code or a contactless NFC signal—to authenticate the customer and allows them to pay for their order.  

For more:
-See this Bloomberg article
-See the BK Delivers website

Related stories:
Why can Burger King do mobile delivery where its rivals can't?
Starbucks dominates mobile payments. Why isn't anyone else even in the game?
Dairy Queen to test mobile-payment-by-check-in
OpenTable to add pay-by-phone, but there are still a few bugs in the system
Mobile payment apps are still bad at failing (but they're getting better)

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