If you‘re a frequent fast food customer, you may be wondering: does McDonald‘s accept PayPal? As the world‘s largest restaurant chain by revenue, McDonald‘s is often at the forefront of adopting new technologies to improve the customer experience. From self-order kiosks to mobile ordering apps, the Golden Arches aims to make dining as fast and convenient as possible. And with digital wallets and mobile payments on the rise, it‘s natural to expect that PayPal would be a natural fit for paying for your Big Mac and fries.
However, the short answer is that unfortunately, McDonald‘s does not directly accept PayPal as a payment method at this time. Whether you‘re ordering at the counter, going through the drive-thru, using the McDonald‘s app, or even ordering McDonald‘s delivery through Uber Eats, you won‘t find PayPal listed as an option during checkout.
But that doesn‘t necessarily mean you‘re out of luck. While McDonald‘s may not take PayPal directly, there are a few alternate ways you can still use your PayPal balance to satisfy your McDonald‘s cravings. And you‘ll still enjoy many of the benefits of PayPal, like secure transactions and not needing to carry cash or cards.
McDonald‘s Payment Tech History
To understand McDonald‘s approach to payments, it‘s helpful to look at the bigger picture. With nearly 40,000 locations in over 100 countries, McDonald‘s serves an estimated 69 million customers per day. The company reported $19.2 billion in revenue for 2020, even in the midst of a global pandemic. And with an average check size of around $6, that translates to millions of individual transactions processed on a daily basis.
Historically, cash was king at McDonald‘s and other quick-service restaurants. But over time, consumer payment preferences have shifted towards credit cards and digital methods. McDonald‘s first started accepting credit cards way back in 2002, and later rolled out support for touchscreen ordering kiosks and a mobile app.
According to the 2020 McDonald‘s Annual Report, digital sales exceeded $10 billion or nearly 20% of total sales in their top 6 markets. CEO Chris Kempczinski called it "a significant opportunity that will drive sales and guest counts for years to come as we further scale and roll out these capabilities."
PayPal Workarounds for McDonald‘s
So while a direct "Pay with PayPal" button may not be coming to McDonald‘s any time soon, there are a few ways to leverage your PayPal account to cover your fast food purchases.
Connect PayPal to Google Pay
The first option is to link your PayPal account to Google Pay. McDonald‘s recently started accepting Google Pay as a payment method, both in-restaurant and in the mobile app. So by connecting PayPal as a funding source in your Google Pay digital wallet, you can essentially use PayPal at McDonald‘s with Google Pay as the go-between.
Here‘s a step-by-step guide:
- Open the Google Pay app on your phone
- Tap "Payment methods" from the navigation menu
- Select "Add payment method"
- Choose "PayPal" from the list of options
- Sign into your PayPal account and confirm the connection
- Choose your preferred funding source (PayPal balance, bank account, credit card, etc.)
- Start using Google Pay at McDonald‘s – your payments will pull from your PayPal account!
Keep in mind that any Google Pay transactions will be subject to PayPal‘s usual fees, typically 2.9% + $0.30 for US transactions funded by credit/debit cards or PayPal Credit. Payments pulled directly from your bank account or existing PayPal balance are fee-free.
Pay with PayPal Cards
Another way to access your PayPal funds is to use a PayPal-branded debit or credit card. These physical cards are linked to your PayPal account but work like any other bank-issued card, so they‘re accepted anywhere that takes Mastercard.
Some popular options include:
- PayPal Cash Card: A debit card that draws directly from your PayPal balance
- PayPal Prepaid Mastercard: Lets you transfer funds from PayPal and use them anywhere Mastercard is accepted
- PayPal Extras Mastercard: A rewards credit card that earns points on every purchase
While you can‘t add funds in real-time, you can easily transfer your PayPal balance onto these cards and then swipe them at McDonald‘s or any other retailer. Just be sure to load enough to cover your total purchase amount.
You can even add your PayPal card to the McDonald‘s mobile app for faster ordering. Choose "Profile" then "Payment Methods" in the app menu to get set up. The app also lets you apply any available deals or coupons automatically.
Other Fast Food Restaurants That Take PayPal
If you prefer to pay with PayPal directly, you have plenty of other fast food options to choose from. Unlike McDonald‘s, many of its top competitors have already partnered with the payment giant to enable secure transactions.
Some major chains that accept PayPal include:
- Burger King
- Subway
- KFC
- Dunkin‘
- Chick-fil-A
- Panera Bread
- Domino‘s Pizza
Food delivery apps like GrubHub, Uber Eats and DoorDash also let you pay for all sorts of local restaurants with your PayPal account. So even if you can‘t use it directly at McDonald‘s, you have plenty of alternatives to satisfy your cravings and earn cash back or other PayPal perks.
Why Some Retailers Are PayPal-Hesitant
With over 375 million users worldwide, PayPal is one of the largest digital payment platforms around. The company processed a whopping $936 billion in payment volume in 2020 alone. And according to a 2018 Forrester study, a third of North American online shoppers prefer to use PayPal when given the option. So why would mega-retailers like McDonald‘s resist offering such a popular payment method?
There are a few potential factors at play:
Fees and Margins
Payment processing fees can take a significant bite out of already slim margins, especially for high-volume, low-ticket merchants like fast food restaurants. For in-store payments, McDonald‘s likely pays well under the standard 2-3% credit card fee. That‘s due to the restaurant‘s size and negotiating power, as well as the lower risks of card-present transactions.
In contrast, PayPal typically charges 2.9% + $0.30 per transaction for online payments – a rate that could quickly eat into profits when multiplied across millions of burger sales. Of course, McDonald‘s could likely negotiate a lower rate if it were to pursue a direct partnership. But it may have decided that the added costs don‘t justify the potential benefit of accepting PayPal.
Partnerships and Priorities
Many major retailers and restaurants opt to partner with only one or two digital wallets to simplify the checkout process and avoid overwhelming customers with too many options. McDonald‘s, for example, has chosen to focus on Apple Pay and Google Pay – two of the most widely adopted mobile payment platforms.
Opting for Google Pay also enables Android users to pay indirectly with PayPal, even if the PayPal button isn‘t there. And McDonald‘s may have scored better rates or other incentives through its existing partnerships with Apple and Google.
Security Concerns
While PayPal is known for its strong security and buyer protections, some merchants worry that it also opens up more opportunities for fraud or disputed transactions. That‘s because PayPal allows customers to request refunds or file claims when their orders don‘t arrive as expected.
For in-person transactions like at McDonald‘s, it can be tricky for a merchant to prove that an order was fulfilled correctly. Scammers may try to exploit this policy by claiming they never received their food, even when they did. Dealing with chargebacks and disputed claims can be a time-consuming headache that some retailers would rather avoid, especially for low-value transactions.
The Future of Fast Food Payments
While McDonald‘s may be taking a wait-and-see approach to PayPal, there‘s no doubt that digital payments are the way of the future for the fast food industry. According to a recent study by PYMNTS, nearly half of all restaurant orders are now placed digitally. And mobile orders are growing 300% faster than in-person ones.
Contactless payments and digital wallets offer a host of benefits for both restaurants and customers, including:
- Faster checkouts and shorter lines
- More hygienic, socially distanced transactions
- Stronger security and reduced fraud
- Opportunities for personalization and loyalty programs
- Seamless ordering across channels (in-person, mobile, web)
Industry giants like McDonald‘s are investing heavily in technology to meet changing customer expectations. In the last few years, the chain has rolled out mobile ordering and payments, artificial intelligence-powered drive-thrus, and even voice assistants. It‘s also experimenting with new store formats like to-go only locations that prioritize digital orders.
As younger consumers gain more spending power, restaurants will need to adapt even faster to keep up with demand for convenience and digital experiences. Already, over 74% of Millennials say they‘d rather order through a smartphone or kiosk than interact with a cashier. And as super-apps like WeChat and AliPay blur the lines between messaging, commerce and payments, customers will expect that same level of integration from the brands they patronize.
So while a direct PayPal partnership may not be in the cards for McDonald‘s yet, it‘s a safe bet that more flexible payment options are on the horizon. The key for restaurants will be to balance the needs of tech-savvy customers with the realities of managing costs and logistics at massive scale.
Key Takeaways
- McDonald‘s does not currently accept PayPal directly in-store, online, or in its mobile app
- However, customers can still use PayPal funds at McDonald‘s indirectly by:
- Linking their PayPal account to Google Pay
- Using a PayPal Cash Card, prepaid Mastercard, or credit card
- Many other fast food chains like Burger King and Subway do take PayPal
- Restaurants may be hesitant to accept PayPal due to fees, fraud concerns, or existing partnerships
- Mobile payments and digital wallets are the future of fast food, with major brands investing heavily in tech
- While a direct PayPal partnership may not be a priority yet, McDonald‘s will likely continue to expand its digital payment options to meet evolving customer expectations
The bottom line? While you may not be able to tap "Pay with PayPal" at the McDonald‘s register just yet, you still have plenty of options for satisfying your fast food cravings with the help of your trusty PayPal account. Whether you‘re dining in, driving through, ordering ahead, or getting your McNuggets delivered, a little creativity can go a long way. And as payment technologies continue to evolve, who knows – your PayPal balance could be funding your French fry habit sooner than you think.
