Taco Bell makes major business move to answer consumer trend

Anyone who has experienced the broke college student era knows Taco Bell is the go-to spot when you only have $5 left in your bank account after a long weekend bender.

The downside of going out with friends is that most places no longer accept split checks, so people have resorted to online payment services to repay one another while keeping their accounts secure.

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However, transferring that money is an extra step many are too lazy to take. In addition, the transaction sometimes comes with a fee.

Slowly but surely, retail and food chains have started to allow these forms of payment so consumers can more conveniently make purchases.

Although a significant development, if this move had been made sooner, it would've prevented many of us from having awkward card declines at fast-food chains and a couple of skipped meals.

Taco Bell offers customers new ways to pay.

Image source: Taco Bell

Taco Bell adds more ways to purchase meals

Yum! Brands' (YUM) Taco Bell is adding two new digital payment options when customers order via its website or mobile app.

Starting today, Taco Bell customers may now use PayPal (PYPL) or Venmo as payment methods at checkout.

To encourage fans to use these new payment methods, Taco Bell is offering 20% cash back until July 31 on any order over $5, with a maximum of $10 cash back.

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Those purchasing with PayPal can download the app and save the new Taco Bell offer on the deals tab, place their order in the Taco Bell app or website, and choose PayPal when checking out. The cash back will then be reflected in the customer's PayPal account.

PayPal Debit Mastercard holders may also earn an additional 5% cash back if they select restaurants as their monthly cash back category.

This latest business move is part of Taco Bell's Relentlessly Innovative Next-Generation Growth (R.I.N.G.) plan, focusing on menu innovation and enhancing its digital sales experience.

The strategy aims to increase the fast food chain's U.S. average unit volume (AUV) from last year's $2.2 million to $3 million and expand its brand recognition internationally by tripling its current store count. The chain plans to accomplish these goals by 2030.

Adding PayPal and Venmo at checkout gives fans faster and more flexible ways to purchase their meals, prompting them to choose Taco Bell over competitors with less convenient payment options.

Taco Bell's latest move targets a younger audience

Although a recent innovation for Taco Bell, other major chain restaurants, including McDonald's (MCD) , Buffalo Wild Wings, and Panera Bread, have been accepting PayPal for a long time.

This allows the Tex-Mex fast-food chain to better compete with rival brands and adapt to trends.

PayPal is an online payment company that allows users to send and receive money and make online purchases more securely through its digital wallet, to which customers can link their bank accounts and debit or credit cards.

The company acquired Braintree in 2013, making it the owner of Venmo, one of its brands.

Venmo is also a mobile payment service. However, it has captivated younger audiences by implementing a social media aspect where users can add friends and comment on transactions.