Handling takeout orders and processing payments by phone is a common pain point for many merchants. To ease this burden, CardFree and SoundHound AI have launched a platform that uses artificial intelligence to automate the ordering and payment process.
The solution has already been rolled out at Torchy’s Tacos, a Texas-based chain with over 130 restaurants across the U.S. The platform integrates SoundHound’s voice technology with CardFree’s checkout platform, including its text-to-pay technology.
By automating these processes, the solution aims to reduce workloads and mitigate fraud, with AI handling the heavy lifting. In addition, the platform allows customers to accrue and redeem loyalty points, use gift cards, and pay with digital wallets like Apple Pay or Google Pay.
Converging Trends
The CardFree and SoundHound platform represents the convergence of two key trends in the merchant experience: AI and the growing integration of embedded finance.
“A question I’m often asked is: what is the difference between integrated payments and embedded payments?” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “Buying anything is a two-step process; first, you buy something and then you pay for it.”
“Integrated payments attach the payment workflow to the purchase, so it all runs together seamlessly,” he said. “Embedded payments incorporate the payment into the purchase, reducing a two-step process to one. As you can see in this process for Torchy’s Tacos, both ordering and paying are faster and easier for the customer, and the streamlined process means better throughput for the merchant.”
Global Reach
Business of all shapes and sizes have been experimenting with AI to optimize time-consuming tasks. Some of the largest fast food chains, such as McDonald’s, Wendy’s, and Taco Bell, have already piloted AI-powered voice technology to take drive-through orders.
However, concerns about errors that could lead to reputational damage and the loss of the human touch in customer interactions have largely stymied these efforts for now.
Despite these concerns, the benefits of automated order-taking suggest that merchants will likely continue exploring AI and embedded finance solutions.
“Embedded payments are changing the way Independent Sales Organizations (ISOs) go to market with card processing services,” Apgar said. “If you’re selling embedded payments, you can’t just sell payments, you have to sell the process that the payment is embedded in. In this example, CardFree bundles their payment processing with their ordering solution and SoundHound AI brings a comprehensive ordering and payment solution to the merchant.”
