This collaboration will integrate Block’s Square point-of-sale (POS) system into restaurants using Grubhub, while letting people ordering from the service pay using Cash App Pay, another Block service, according to a Tuesday (Oct. 14) news release.
“By integrating directly with Square’s point-of-sale system, we’re removing friction for restaurants so they can manage all their orders in one place, streamline kitchen workflows, and keep menus up to date with ease,” Grubhub CEO Howard Migdal said in the release. “And with the addition of Cash App Pay, we’re giving diners even more flexibility and convenience at checkout — all while helping restaurants tap into a new audience of potential customers.”
According to the release, Square’s integration with Grubhub lets restaurants manage all orders directly through their Square POS system, doing away with the need for additional tablets. It also lets restaurants do things like access instant payouts and reduce errors.
By integrating Cash App, the release added, diners will get a “seamless” checkout option as well as special offers and promotions for Cash App Pay customers.
“By uniting Square’s operational capabilities with Cash App’s flexible payment technology, we’re creating a commerce ecosystem that benefits everyone, where restaurants can focus on delivering quality while giving customers more ways to pay,” said Nick Molnar, Block’s global head of sales and marketing.
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The announcement follows last week’s rollout of several new Square products, including artificial intelligence-powered insights, voice ordering, bitcoin payments and a mobile app for small businesses.
PYMNTS wrote last month about the challenges facing the restaurant sector, and the need for digital payment solutions to solve them.
“Labor shortages, high turnover and shifting consumer habits are reshaping the restaurant industry, and payments are at the center of the transformation,” that report said.
“What was once a perk—same-day pay, instant tips and real-time supplier payments—is quickly becoming a survival tool. For operators managing lean budgets and unpredictable staffing, instant payments are no longer optional.”
The pressures here are substantial, PYMNTS wrote, citing National Restaurant Association data showing that the industry is still down more than 220,000 jobs compared to pre-pandemic employment levels. Upwards of three-quarters of operators say recruiting and retention are among their largest burdens, even as guests seek faster service and consistent quality.
“These challenges converge on one clear solution: empowering staff and stabilizing operations with instant pay,” that report said.
