Venmo is a new app on iPhones and Androids that allow you to link a credit card to your phone, and transfer money right there to your friends accounts. You can simply send them money on your phone, and it will take it out of your account and put it in theirs. They also created a feature called "trust" that allows you to take money from friends accounts without permission.
So where does this fit into the restaurant industry? A restaurant in New York City called the Simple Kitchen is using this new Venmo app and even the trust feature. Regulars who eat at the restaurant frequently are getting up and leaving without asking for the bill after, "trusting" the restaurant to take the money out of their account.
I think that the use of this app in the restaurant industry can gain support by customers if Venmo became commonly used. However, I do not think that this will ever happen since it is hard to trust anyone with access to your bank account these days. If people were not so decieving and people were able to trust, I think that this would help restaurants since time is a major issue. People do not always have time to sit down, eat, and wait for the check, resorting to more fast food. However, by not having to wait for the check, people could take time off their visit and sit at restaurants more often.
http://bits.blogs.nytimes.com/2010/20/25/venmo-wants-its-users-to-trust-each-other/?scp=3&sq=restaurant%20industry&st=cse
I'm surprised by this app...and that people will use it. I would not trust other people with my accounts...I really do not understand the idea of this app. If I wanted to transfer money into a friend's account, I would feel better taking the money out of an ATM and giving it to them. But maybe that just makes more sense to me.
ReplyDeleteI agree with your analysis. Though, I believe some people will begin using this app until something happens where friends are taking money out of an account when they shouldn't be or when they decide to not pay back the "borrowed" money. I guess it could help restaurants with the "time" issue...but usually when people are in a rush, they ask for the check consistently until they receive it. I'm not shooting the idea of this app and its benefits down, I just do not see the logic behind it.
Even though I have an iPhone and love everything about it, I think this app is kind of stupid. When people go out to dinner they are usually not on a strict time frame where they can't wait an extra five minutes for the check. Also we have to take into account how many restaurants will accept payment from this app. I like the point you proved at the end but I honestly don't think it will make a difference.
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