Venmo, the popular peer-to-peer (P2P) payment app owned by PayPal, has seen explosive growth in recent years. As of Q1 2021, Venmo boasted over 70 million active users in the United States, up from just 10 million in 2016. Transaction volume reached a staggering $51 billion in Q1 2021 alone. [1]
Venmo‘s meteoric rise can be attributed to its seamless user experience, social features, and popularity among younger consumers. A 2020 survey found that 49% of U.S. teens and 67% of Millennials use Venmo for transactions with friends and businesses. [2]
As Venmo increasingly becomes many consumers‘ default payment method, a common question arises: Can you use Venmo at major retailers and restaurant chains? For loyal McDonald‘s customers, the question is more specific: Does McDonald‘s accept Venmo?
The short answer is: No, unfortunately McDonald‘s does not take Venmo directly as of 2023. However, there are some workarounds to essentially use your Venmo balance to pay for your Big Macs and fries. In this article, I‘ll dive into the details of using Venmo at McDonald‘s and provide an expert analysis of the fast food payment landscape.
Can You Pay with Venmo at McDonald‘s?
While you can‘t open up your Venmo app and scan a QR code to pay at the McDonald‘s counter, you can use the Venmo debit card (issued by MasterCard) anywhere MasterCard is accepted, which includes McDonald‘s restaurants nationwide. The Venmo card is linked to your Venmo balance and offers a convenient way to use your Venmo funds in the real world.
You can also use Venmo to pay for McDonald‘s orders when going through third-party delivery platforms like Uber Eats, DoorDash, and Grubhub. These popular food delivery apps have integrated Venmo as a checkout option.
However, McDonald‘s does not currently support Venmo QR codes for direct in-store, drive-thru, or in-app payments. This puts them in the same boat as most other major U.S. fast food chains.
The State of Venmo Acceptance at Fast Food Chains
As of early 2023, you‘d be hard-pressed to find a major quick-service restaurant chain that takes Venmo directly. I scoured the payment policy pages and app descriptions for over 20 of the biggest national fast food brands and could not find a single one that has integrated Venmo… yet.
This includes major burger joints (McDonald‘s, Burger King, Wendy‘s), chicken chains (Chick-fil-A, KFC, Popeyes), sandwich shops (Subway, Panera Bread), pizza purveyors (Domino‘s, Pizza Hut), and Mexican-inspired eateries (Taco Bell, Chipotle).
So in that sense, McDonald‘s is not alone in holding out on Venmo. The fast food industry as a whole has been slower to adopt the payment platform compared to some other retail and service categories.
That said, Venmo has been making serious inroads with large, national merchants in recent years through its Venmo Business Profiles program. Over 2 million U.S. businesses now accept Venmo as a payment method, including major retailers like Lululemon, Foot Locker, and Forever 21, and services like Chevron gas stations and Hulu subscriptions. Transaction volume through Venmo business profiles reached $250 million in Q4 2022, up 75% year-over-year. [3]
For businesses, accepting Venmo offers several advantages:
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Tapping into a huge user base: With 70 million active users, accepting Venmo unlocks a significant chunk of consumer spending power, especially among Millennials and Gen Z.
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Reducing friction: Enabling QR code payments makes checking out quick and easy for Venmo users, which can boost conversion rates and customer satisfaction.
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Encouraging social discovery: Venmo‘s social feed, where users can see and comment on friends‘ transactions, can drive organic discovery and customer acquisition for merchants.
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Accessing valuable data: Venmo Business Profiles provide businesses with insightful analytics to better understand their customers.
The Outlook for Venmo Acceptance at McDonald‘s and Fast Food Chains
Given the clear benefits and Venmo‘s success with other major retailers, I believe it‘s only a matter of time before McDonald‘s and its fast food peers hop on board. Customer demand is certainly there, with Venmo‘s user base continuing to grow rapidly.
McDonald‘s in particular has shown a willingness to embrace new technologies and payment methods when it senses a strategic advantage. For example, McDonald‘s was one of the first major fast food chains to roll out mobile ordering and payment capabilities through its app. They also quickly jumped on board with Apple Pay and now promote it as a featured payment method.
As Millennials and Gen Z make up an ever-larger proportion of fast food spending (an estimated 45% as of 2020 [4]), catering to their payment preferences will become paramount. If Venmo‘s popularity continues to grow and more large merchants get on board, fast food giants may decide the benefits outweigh the costs.
Speaking of costs, one potential roadblock is the additional transaction fees Venmo charges merchants (2.6% + $0.10 for QR code payments). [5] Fast food chains are notorious for their razor-thin margins, so they may be hesitant to take a haircut on each transaction. However, if accepting Venmo drives enough incremental sales and customer loyalty, the math could work out in their favor.
Another key factor is the technical lift required to integrate Venmo. Many fast food chains are still running on legacy point-of-sale systems that may not easily support new payment methods. However, most major chains are investing in upgrading their payment infrastructure, which could open the door for Venmo down the line.
At the end of the day, no one has a crystal ball. But if I had to bet, I‘d wager that we will see at least some major fast food chains (perhaps including McDonald‘s) begin accepting direct Venmo payments within the next 1-3 years.
Pros and Cons of Using Venmo at Fast Food Chains
So let‘s say the day arrives when you can simply Venmo your McDonald‘s meal with a quick QR code scan. What are the potential benefits and drawbacks for consumers?
Pros
- Convenience: No need to fumble with cash or cards, just open the Venmo app and go
- Speed: QR code payments are lightning-quick, getting you your food faster
- Rewards: Venmo offers cashback rewards for certain merchant categories
- Budgeting: Transactions are automatically logged in the app for easy expense tracking
- Social: You can choose to share transactions and see/comment on friends‘ fast food purchases in the social feed
Cons
- Potential privacy concerns: Do you really want your fast food habit visible to your Venmo network?
- Possible payment failures: Scanning QR codes doesn‘t always work on the first try, especially in a crowded restaurant or drive-thru
- No building credit: Paying with Venmo directly won‘t help you build credit like using a credit card would
Ultimately, there‘s no right or wrong answer. Whether you choose to Venmo your next Big Mac (when possible) will come down to your personal preferences.
What Other Payment Methods Does McDonald‘s Accept?
Until the day Venmo becomes an option, McDonald‘s customers have plenty of other ways to pay for their meals. McDonald‘s accepts the following payment methods at all U.S. locations:
- Cash (bills and coins)
- Credit cards (Visa, Mastercard, American Express, Discover)
- Debit cards (with PIN or run as credit)
- McDonald‘s gift cards
- Apple Pay
- Google Pay
- Samsung Pay
These are accepted both in-store and in the drive-thru. McDonald‘s self-service ordering kiosks also support all of the above payment methods.
You can also pay through the McDonald‘s mobile app, which lets you order ahead and pick up your food via curbside, drive-thru, or in-store counters. The app accepts credit/debit cards, McDonald‘s gift cards, and Apple/Google/Samsung Pay. However, there is a $1.99 minimum for mobile orders.
Expert Tips for Maximizing Your McDonald‘s and Fast Food Payments
As a savvy consumer, there are several ways you can get the most bang for your buck when paying at McDonald‘s and other fast food joints. Here are some pro tips:
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Use a rewards credit card: If you‘re going to pay with plastic, opt for a credit card that earns bonus points or cashback on dining/restaurant purchases. Some top options include the American Express Gold Card (4X points at restaurants), Chase Sapphire Reserve (3X points on dining), and Capital One Savor (4% cash back on dining).
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Enroll in loyalty programs: Most fast food chains now have loyalty programs that reward you with points or freebies for every purchase. McDonald‘s MyRewards program, accessible through the app, lets you rack up points to redeem for complimentary McCafé drinks and more.
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Buy discounted gift cards: Sites like Raise and CardCash sell McDonald‘s gift cards at below face value (e.g. a $25 gift card for $23). Stock up on these discounted cards and use them to save a little extra whenever you hit up Mickey D‘s.
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Stack promos and coupons: Combine app-exclusive deals, email/SMS coupons, and limited-time specials to maximize your savings. For example, you could redeem a digital coupon for a free Quarter Pounder with Cheese when spending $1 via the app.
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Consider third-party apps: If you‘re a frequent Venmo user, paying for McDonald‘s through apps like Uber Eats and Grubhub can be a good way to burn through your balance while avoiding extra Venmo transfer fees. Just be aware that you‘ll generally pay a bit more due to delivery fees and service charges.
By being strategic about how you pay, you can savor your McDonald‘s favorites while saving money and racking up valuable rewards in the process.
The Bottom Line on Venmo at McDonald‘s and Fast Food Chains
In conclusion, while McDonald‘s and other major fast food chains don‘t currently accept Venmo directly, that may change in the not-too-distant future. With Venmo‘s explosive growth and popularity among younger consumers, the allure for fast food giants to jump on the bandwagon will only intensify.
In the meantime, you can still use your Venmo balance to chow down on McDonald‘s in a couple ways: by paying with your Venmo debit card in-store or drive-thru, or by ordering McDonald‘s through third-party delivery apps that accept Venmo as a payment method.
And of course, good old-fashioned payment methods like cash, credit/debit cards, and mobile wallets remain trusty options for satisfying your McDonald‘s cravings.
At the end of the day, the most important thing is enjoying your Big Mac, McNuggets, and fries exactly how you like ‘em. But as a payment and consumer behavior expert, I always encourage people to optimize their purchasing habits to maximize convenience and value.
Adopting Venmo as a fast food payment method is just one way to lean into the ever-evolving world of retail technology. I look forward to seeing which restaurants embrace the future of payments and how consumer behavior continues to shift. Until then, I‘ll keep brainstorming my dream McDonald‘s Venmo QR code design. 🍟📱💸
