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BK Pay is currently available as a separate app which hinders discovery, adoption and creates friction for users who’d like pay with BK Pay. Moreover, users may be confused seeing both apps, as they are tring to download the main Burger King app.

❔ Hypothesis

Primary:

1. Introducing BK Pay as a payment method to web/app will

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1. increase MARU by X% by introducing

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1. another convenient way to of payment method in-restaurant by accommodating all users with a checking account in Germany that are not able to use Apple or Google Pay. Since the vast majority of banks don‘t support Apple Pay with Girocard (the local debit card) and almost none Google Pay, BK Pay will have an advantage over other digital payment wallets on the market.
   

2. Introducing BK Pay as a payment method to web/app will Increase an average check value for a restaurant customer by X%, assuming X% of current cash payers will transition to BK Pay, based on the fact that non-cash papers tend to have a higher average check by X%.

Secondary:

3. Introducing BK Pay as a payment method to web/app will decrease overhead cost by X%, assuming that X% of cash payers and X% of credit card payers will transition to BK Pay.

Payers' behavior:
The SPACE 2022 results show that:

• Cash was the most frequently used payment method at the point of sale (POS) in the euro area and was used in 59% of transactions, down from 79% in 2016 and 72% in 2019.

• Card payments were used in 34% of POS transactions, up from 19% in 2016 and 25% in 2019.

• Other payment methods were used for 7% of POS transactions. The share of payments using mobile apps increased from less than 1% in 2019 to 3% in 2022.

• In terms of value of payments, cards (46%) accounted for a higher share of transactions than cash payments (42%). This contrasts with 2016 and 2019, when the share of cash transactions was higher than the share of card transactions (54% compared to 39% in 2016 and 47% compared to 43% in 2019).

• Contactless card payments at the POS increased considerably in three years, from 41% of all card payments in 2019 to 62% in 2022.

• Cash was most frequently used for small value payments at the POS, in line with previous comparable surveys. For payments over €50, cards were the most frequently used method.
  

Proposed Objectives:

Primary:

1. Increase MARU (Monthly Active Registered Users) by X% in order to collect user data.

2. Increase an average check value by X%(usually higher with cc than cash) (whats the average check value for cc and whats for cash, is the split 50/50)- overall average check.

Secondary:

• Reduce overhead costs by X % by decreasing in-restaurant cash and credit card payments (in selected restaurants) to X% combined, by the end of 2024, maintaining the same level of sales X EUR/ month at least.

  • Decrease cash-handling costs by X% (From X to X )

  • Decrease credit card processing fees by X% (From X to X )
    
    
    convenience- only Kaufland has this use case- attempt to differentiate the BK app- ties back to MARU, decrease time to place an order (difficult to measure) -

___________ If loyalty program is involved______

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• Any perspective on cross-store/ venue promotion?

  • Kaufland - do they incorporate loyalty? What was their objective?

  • How do we envision the cross-promo? What’d be the objective?

• Follow up on the data insights from Bluecode on the current BK Pay usage:

  • Payment success rate =>
    we had 1763 payment attempts where 45 transactions happened at other merchants!). of the transactions at BK, only twice was a token expired (user can try again), twice the payment was cancelled by the user and 41 users were blocked due to clear and proven fraud attempts. 

  • What % of users paid successfully out of the users that opened the BK Pay app =>
    we had about 15.9K app openings, 10% of openings end up as payment, the rest was informational or onboarding processes.

  • What % of users downloaded the app but ended up not inserting the bank account details => 
    we had 1656 wallet installed, 803 onboarded and 513 made at least one payment, so 853/1656 = 51% did NOT onboard

  • What % of users inserted their bank account details and did not pay with BK Pay => 
    513 did at least one payment so, 290/803 = 36% did onboard but no payment

  • Average # orders paid via BK Pay app per BK Pay app user =>
    1598 payments in BK restaurants, on a contract basis (IBAN equivalent, ie unique users) it was 312 different contracts, 5.12 payments per contract!

  • Average order value per BK Pay user => 
    1598 payments had an total value of 18 218 Euro, average order value 11.40 Euro, average order value per contract 58.39 Euro.
    
    
    1% of users have current Bk Pay,
    page visints 5% clickable
    

• DE market survey on demand for BK Pay

  • Script

  • Sample size and demographics

  • Results

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