Food delivery services innovate payment options to combat rising costs

About 30% of consumers globally prefer digital wallets for food orders.

Food delivery services are adapting to rising living costs by introducing innovative payment options to enhance accessibility and convenience for consumers, according to Euromonitor International.

For instance, China’s largest food delivery app, Ele.me, introduced a buy now, pay later (BNPL) service with Ant Group in 2020. Similarly, India’s Swiggy partnered with Simpl in December 2023 to launch a one-tap checkout feature, enabling customers to pay later while receiving consolidated bills from various operators.

A recent survey by Euromonitor revealed that 30% of consumers globally prefer digital wallets for food orders, and 19% favor bank transfers.

To meet this need, fintech companies have teamed up with foodservice operators to enable payments through bank accounts or digital wallets. Notable partnerships include Hungry Panda and Atom in the UK, Justo with Fintoc, and PedidosYa with Yape in Latin America, allowing customers to pay directly from their bank accounts.

Despite experiencing a -1% decline in market value CAGR from 2018 to 2023, the foodservice sector is leveraging fintech to drive recovery. 

By digitising payments and enhancing operations, the industry aims for a 4% growth in global value CAGR from 2023 to 2028. 

Moreover, fintech solutions are also facilitating access to business loans, giving early adopters a competitive advantage in a market projected to reach $4t by 2028.

The global value of deilvery services is projected to grow at a 10% CAGR from 2023 to 2028.