foodora explains how to scale fast and win customer loyalty with mobile payment methods.
Alexandru Dorobantu is Payments Manager at foodora. Each day brings complex payment challenges under tight time constraints. And he loves it.
“Our customers are hungry. We have to process the payment, check for fraud and deliver, all in under 30 minutes. If we mess up it can cost us tens of thousands of dollars per minute.”
We sat down with Alexandru to understand how he and his team use mobile payment methods to keep the orders flowing and the customers happy.
Winning customer loyalty with mobile payment methods
“Today people want to order food on the go, on their way home, even when they’re in the park. Wherever they, are we need to be there too. Which makes mobile a crucial channel for us.
"iPhone users simply click ‘pay’ and the card is charged."
To make the process even easier, we support mobile payment methods like Apple Pay. iPhone users simply click ‘pay’ and the card is charged. We’ve seen a lot of success with this in Hong Kong, Singapore, Australia, Europe and Canada. We’re thinking about adding Google Pay as well.
The payment needs to be invisible. We don’t want customers redirected to an external page; we want them to do everything in one place, with as few actions as possible.
Adyen’s SDK lets us process cards and mobile payment methods without redirecting the customer, so everything happens in-app.
Adyen also lets us tokenize the customers’ cards so they can pay with one-click. This is helpful since conversions are much higher if the customer doesn’t have to enter card details every time."
Global expansion in one year
“foodora was built to scale. We wanted to grow from one city in one country to 40 cities in 10 countries – in a year.
To do this successfully, localization is crucial. This means language localization, address localization and, of course, payment localization. Adyen has been our partner from the beginning. It has the scale and global reach to help us enter new markets quickly with local payment methods.
"It’s helpful to do everything with just one contract and one platform."
We use Adyen as a processor and acquirer. Operating in many markets across Europe, it’s helpful to do everything with just one contract and one platform. This gives us visibility into every part of the payment flow, which means less work for us, and better results.
Adyen is continuously working on new and innovative ways to increase its acquiring potential. As a payments manager, this is something I really value."
“We rely on our technology partners to keep us one step ahead.
Adyen is always working to add new payment methods and support new functionalities as the market dictates. So we don’t have to wait for half a year of development to get the latest innovations. And, if we have a specific need, Adyen works with us to try to find the solution.
Of course, a big focus for us now is PSD2 in Europe. Adyen MarketPay will play a big role in ensuring we’re compliant both now and into the future.
"I know what the interchange fee is, and I have all the reporting I need."
For me, it isn’t about the fancy stuff – the mobile developments, the new-age voice recognition, or whatever. After all, a transaction is a transaction in the backend. And this is what Adyen does really well. It captures the payment and settles it into our account and I can track its progress every step of the way. I know what the interchange fee is, and I have all the reporting I need. This is really helpful, and I don’t think many payments partners can do it."
Watch: foodora grows with Adyen
Full case study transcript
Joe Gemayel, Global Chief Product Officer, foodora:
foodora started off in Munich. They started off with 30 restaurants. The founders were doing the deliveries themselves. foodora has grown from being in one city, with 30 restaurants in one country to being in 40+ cities, 9000 restaurants in more than 10 countries.
People want to order on the go. They want to be able to order before they get home, they want to be able to order when they’re in the park. Whenever they want food we want to be there as well. So mobile has been a great channel for us, and we can see it constantly growing right now.
Alexandru Dorobantu, Payments Manager, foodora:
We currently try to help our customers have a better shopping experience, by adding mobile payment methods. And this means we want them not to be redirected to some old banking page. We’re using Adyen to save customers cards on the account so he can pay with one-click. He just presses to pay and everything is done.
One of the mobile payment methods that we were very successful with is Apple Pay. This is a payment method where the iPhone user can just click ‘pay’ and it will be debited from the card that was previously saved. So there’s nothing that he needs to do on our side to pay.
Growth and scalability
Our challenge was to grow the company from one city, one country to 40 cities in 10 countries within in a year. There are a lot of challenges that come with this goal of scalability. Adyen has been foodora’s partner from the start and has helped us tremendously and made it easy for us to be able to scale and be in all these markets.
We could use Adyen as a processor and as an acquirer at the same time. This means basically we just have one contract with Adyen and we’re already processing in the whole of Europe through Adyen’s acquiring.
One of the things we’re looking for in a partner is someone who is (let’s call it) one step into the future always. And Adyen definitely has this. Adyen is always working to add new payment methods and to support new functionalities as the market dictates.
The fact that Adyen can take the customer's money and settle it to our account, I know everything related to this, and for each cent that we get into the account I know where it comes from, this is something that’s really helping us. And it is something that I’ve not seen many providers do.