Paytronix says geofencing drives new convenience revenue

Paytronix has published a report on online ordering in convenience stores, saying 67% of geofenced food purchases are incremental revenue.

The findings examine how convenience store operators are using mobile ordering, geofencing, electric vehicle charging and retail media to increase spending and repeat visits. The report argues that location-based prompts help stores turn short fuel stops into broader food and loyalty transactions.

Stores using comprehensive geofencing strategies recorded a 23% increase in average basket size for geofenced customers and a 31% higher visit frequency among app users who received location-based triggers, according to Paytronix. The report also puts additional revenue from food cross-sell at USD $2.30 per fuelling transaction, with an average payback period of 18 months on geofencing technology investment.

The report's central claim is that most food spending linked to geofenced prompts is new rather than shifted from other channels. That distinction matters for operators deciding whether location-based marketing changes customer behaviour or simply redirects existing demand.

Bonnie Woods, C-Store Strategist Manager at Paytronix, said the results point to a structural shift in how convenience retailers can monetise traffic.

"This isn't simply about shifting existing demand," Woods said.

"Operators who master geofencing are fundamentally reshaping convenience retail economics by converting fuel visits into food and loyalty engagement opportunities."

EV charging

The report also identifies electric vehicle charging as a commercial opportunity for convenience retailers. While a conventional fuel stop may last only three to five minutes, EV charging sessions average 20 to 45 minutes, creating a longer window for food purchases and customer interaction, according to Paytronix.

Industry data cited in the report suggests EV customers generate 340% higher in-store revenue per visit than traditional fuel customers. For operators, that expands the role of the forecourt beyond fuel sales into foodservice, digital ordering and loyalty activity.

Paytronix presents EV charging as part of a broader shift in the sector's economics. Longer dwell times give operators more opportunities to market prepared food, offer app-based promotions and collect customer data tied to repeat visits.

Mobile ordering

Paytronix says convenience store mobile journeys must be designed for speed, noting that customers often make purchase decisions within 90 seconds or less. The report recommends simple interfaces that place favourite items at the top of the screen, provide one-tap access to recent orders and reduce the steps to checkout.

Other recommendations include weather-triggered suggestions, fuel-linked transactions and automatic loyalty redemption prompts. The aim is to remove friction in an environment where customers are often buying quickly and may already be en route.

The report also says mobile ordering gives operators a larger pool of behavioural data. That information can be used for demand forecasting, stock planning and personalised offers, giving retailers more visibility into what customers buy and when they are most likely to respond.

The report links that data to a longer-term shift in customer value.

"Operators who master mobile-first ordering don't just increase convenience," Paytronix said.

"They fundamentally alter the economic relationship with customers, turning sporadic fuel purchasers into engaged, loyal and highly profitable food customers."

Retail media

Retail media is another area the report identifies as a growing source of revenue for convenience operators. Paytronix says campaigns in this channel can deliver click-through rates eight to 12 times higher than traditional digital advertising because messages reach shoppers close to the point of purchase.

The report says some operators are generating between USD $0.15 and USD $0.35 per customer visit through retail media partnerships, equal to roughly 5% to 8% in incremental revenue. At high-traffic sites, that would translate into annual advertising-related revenue of USD $50,000 to USD $150,000.

Paytronix, which is owned by Access Group, says it works with more than 1,800 restaurant and convenience store brands across 50,000 sites globally. The report places convenience retail at the intersection of digital ordering, loyalty marketing and new revenue streams tied to charging infrastructure and advertising inventory.

For operators, the figures suggest the strongest gains may come from combining those tools rather than treating them as separate projects. The standout figure remains the report's claim that 67% of geofenced food purchases represent entirely new revenue.