Notes of Note from John F. Ince

Archive for the ‘Mobile Payments’ Category

Mobile Payment At U.S. Starbucks Locations Crosses 10% As More Stores Get Wireless Charging | TechCrunch

Starbucks is seeing impressive adoption of mobile payments in its U.S.-based store locations, the company revealed during its quarterly earnings conference call last night (via WSJ). Mobile payments crossed the 10 percent mark in the U.S. as a percentage of in-store purchases, indicating efforts like the Starbucks mobile app, Apple’s Passbook and Square Wallet are popular among users.

The coffee franchise is pushing forward with more mobile-focused initiatives, including the installation of wireless charging mats in select locations. The Powermat-supplied wireless charging initiative follows a trial of 17 locations in Boston, and will roll-out in Silicon Valley throughout August. The standard it uses is the Power Matters Alliance variety, which unfortunately doesn’t work with phones that use the Qi standard like the Google Nexus 4. Still, a growing number of companies are joining up with PMA’s standard, and Starbucks’s continued support should help it appear in more devices.

The lesson here is that Starbucks is putting a lot of weight behind its mobile digital initiatives, and those efforts are bearing fruit. Starbucks Chief Digital Officer Adam Brotman said on the call that its “various digital initiatives have added demonstrable impact to our U.S. business in the third quarter” and promises to do even more for the company with continued investment.

via Mobile Payment At U.S. Starbucks Locations Crosses 10% As More Stores Get Wireless Charging | TechCrunch.


Mobile Payments: Why You Can’t Live Without Them – Forbes

While consumers may be happy enough with their payment options, they certainly aren’t 100% happy with the shopping experience as a whole. And mobile payments done right could transform that experience dramatically for the better.

So what exactly about the modern shopping experience needs improvement?

Fixing Coupons and Loyalty Programs: One problem with the current shopping experience is that, while merchants are generally eager to offer customers incentives in the form of loyalty programs, discounts and rewards, many of these offers are handed over at the wrong time: at the register. Instead, these benefits should be communicated early and often, with a personal touch. A good time to inform customers of a deal being offered on, say, a pint of ice cream, would be right when they walk into the grocery store on a hot July afternoon. Even better if the coupon could pop up as they stand in front of the freezer case making a decision. Location-based services embedded in mobile payment apps could put the offers that consumers actually want in their hands at just the right time.

Loyalty and rewards programs also tend to be very generic and rarely provide coupons and deals for the things that customers are actually interested in. For every CVS coupon I get for something that I actually need, I get a yard of paper coupons for things I have no interest in. Mobile payments apps with effective data collection and high-tech targeting capabilities could eliminate this problem (and as a side bonus do away with the paper trail altogether!)

Merging the Online and Offline Worlds

There is no seamless way to move from online browsing to offline shopping, even though many of us do this regularly. Barcode scanners and the like make it fairly simple to showroom items we’re interested from inside a store. And there are a few apps out there (Nordstrom’s comes to mind) that allow customers to quickly select an item for local in-store pickup. But for the most part, once you find an item that you want online, the only way to be sure that a store will carry it is to call around. That’s, frankly, a huge pain. It isn’t even close to the seamless shopping experience that most of us want.

But let’s say you want to locate and buy a particular pair of Ray-Ban sunglasses – pronto. In a perfect world, you’d be able to search a map on your phone and pins would pop up to indicate local stores where you can visit, try them on and buy them right away. Mobile payments apps, designed to connect customers with products, could do exactly this.

Personalizing Shopping

Shopping has become very impersonal. Few people have a relationship with a salesperson who knows their style and preferences and can direct them to the right items at the right prices as soon as they walk in the door. But wouldn’t that be nice? Preferable, certainly, to wandering cavernous stores, fending off pushy salespeople who don’t even bother to learn our names, much less our favorite colors and fabrics.

Online, personalization mainly takes the form of heavy-handed algorithms that are ineffectual if not downright intrusive. Even the internet’s famously creepy retargeting ads, which follow you from site to site flashing the same three pairs of shoes you just looked at on Zappos, don’t really offer anything personal. They’re just showing you what you’ve already seen in the hopes that repetition will sway you to purchase. Sure, retargeting might work now and again, but it definitely doesn’t add up to a better consumer shopping experience.

Mobile could offer a powerful solution to this problem. Imagine if, when you browsed for items on your phone, it suggested similar items and indicated which stores near you carry them. Using sophisticated big data algorithms, smart shopping apps could learn everything from your favorite color to your exact measurements (bypassing the annoying problem of vanity sizing) and even capture your style and preferences with enough accuracy to actively suggest new pieces to add to your wardrobe at the beginning of the shopping season. These are just a few (clothes-focused) examples of how mobile tech could make our shopping experiences significantly more convenient — and fun.

Businesses Want the Same Things as Consumers

The strange thing is that merchants want all three of the things mentioned above — a more effective loyalty program, a successfully merged online/offline experience, and a personalized shopping experience. They know that all of these things will bring them new customers and keep existing ones coming back.

via Mobile Payments: Why You Can’t Live Without Them – Forbes.

Mobile to outpace other payment methods in next 5 years |

Online shopping may be where the attention is focused, but the brick-and-mortar retail store is still where 93 percent of total U.S. retail dollar volume goes. This, according to a new study from researchers at Javelin Strategy and Research.The new study also said that mobile payments will soon begin affecting the point-of-sale retail market in profound ways.”The retail POS market is evolving at a remarkable rate with the increased popularity of the e-commerce and mobile payments markets,” said Aleia Van Dyke, industry analyst at Javelin Strategy and Research. “Today’s consumers are demanding more digitized payment options to enhance their in-store shopping experience. The advanced features of non-traditional payment options like mobile and prepaid cards have encouraged adoption with today’s tech-savvy shoppers.”According to the new Javelin study, mobile payments will reach $5.4 billion by 2018. Admittedly, thats a tiny portion of retail POS purchases, which Javelin estimates will reach $4.2 trillion in 2018.

via Report: mobile to outpace other payment methods in next 5 years |

Mobile payments will become mainstream in next four years – AIB Merchant Services – Digital Life – Digital Life | – Ireland’s Technology News Service

“Consumers, retailers and technology developers will see mobile payments becoming mainstream within the next four years,” said AIBMS general manager Nigel Motyer, opening the event, which was attended by 150 people, including merchants. “Consumers will insist on mobile loyalty rewards and coupons, making their mobile shopping decisions based on this.”

Jon Rutter, director of product management for mobile solutions at US payment processing company First Data Corporation, advised merchants not to be complacent when it comes to adopting new technology. “Consumers have an increasing amount of power and will take business elsewhere if dissatisfied,” he warned.

“You have to get ahead of that curve, get in touch with your consumer base. Over 80pc of the world population have a mobile device. One-third of all Facebook usage and one-half of all Twitter use is mobile,” he added, explaining that consumers want a seamless experience. With First Data being an AIBMS partner, Rutter unsurprisingly recommended that merchants develop partnerships to leverage others’ expertise in m-commerce in order to keep up with consumer demands.

via Mobile payments will become mainstream in next four years – AIB Merchant Services – Digital Life – Digital Life | – Ireland’s Technology News Service.

No Card Needed: PayPal Here Is Powered By Mobile Payment Startup | TechCrunch

PayPal today unveiled its new global payment platform for small and medium-sized businesses, PayPal Here. It brings the veteran payments solution into local stores with a new mobile app-card reader solution to rival Square. Rolling out to merchants today, it features a triangular card-reader, or dongle, that merchants can use to swipe cards of all varieties to start accepting mobile payments on-the-go — but all users need is their phones, via a startup named startup, which unveiled its own consumer-facing app back in January, allows merchants to make the payment process as frictionless as possible. Available for both iPhone and Android, it provides mobile app developers a way to let consumers make purchases simply by holding the credit card up to the phone’s camera. As the company announced today on its blog, its new partnership with PayPal allows merchants to accept credit cards without readers or extra hardware: “Merchants can immediately begin accepting credit cards with nothing but a phone … We’re excited to be working with PayPal and we hope that this partnership will improve mobile commerce for both consumers and merchants.”

via No Card Needed: PayPal Here Is Powered By Mobile Payment Startup | TechCrunch.

eBay and PayPal discover huge rise in mobile payments over holiday period | TabTimes

eBay and PayPal discover that mobile payments rose six-fold across select websites on Thanksgiving, Black Friday and Cyber Monday.

PayPal shopping specialist Claudia Lombana revealed PayPal’s news in a company blog, in which she stated that there were six-fold mobile payment increases for smartphones and tablets for both Black Friday and Cyber Monday.

Lombana said that between 1pm and 2pm PST was the busiest mobile shopping hour on Black Friday, and added that the global mobile payment volume on the day itself was up by 148% compared to an average Friday.

PayPal, a division of e-commerce giant eBay, saw a four-fold (371%) increase in the number of customers shopping through mobile on Black Friday, when compared to last year and shoppers in New York, Houston, Miami, Los Angeles and Chicago made the most mobile purchases.

It was a similar story with Cyber Monday, with mobile sales having increased by 514% year-on-year by just 11am PST. As of this time, PayPal had seen a 6% increase in global mobile payment volume, compared to the same time period on Black Friday.

eBay’s PayPal payment service also enjoyed a strong surge in mobile payments, with the service’s global mobile payment volume rising by 511% YoY on Thanksgiving.

eBay reported a 350% increase in the number of customers shopping through PayPal mobile and, like PayPal, found New York to be in first position for number of purchased items and dollar volume. The other top cities included Los Angeles, Chicago, Casa Grande (Arizona), Houston and Miami.

The e-commerce company said shoppers in the US purchased nearly two and a half times as many items via eBay Mobile this Black Friday compared to 2010, and revealed that its iPad 2 sale ($50 off a white 16GB model) resulted in around four sales every minute. The most searched items on were iPod Touch, iPad and iPhone 4S.

via eBay and PayPal discover huge rise in mobile payments over holiday period | TabTimes.

American Express Seeks Acquisitions to Expand E-Commerce, Mobile Payments – Bloomberg

American Express Co. AXP is looking at large international acquisitions that will help it benefit from booming demand for mobile payments and online commerce in emerging markets, said Executive Vice President David Messenger.The New York-based company, the biggest credit-card issuer by purchases, is considering deals in developing regions such as China, and investments in or purchases of smaller Silicon Valley startups with valuable technology, Messenger said in an interview this week. Last year, American Express agreed to acquire Loyalty Partner, a marketing firm with customers mainly in Germany, Poland and India, for $660 million.“You shouldn’t assume that’s the largest acquisition we can do,” said Messenger, who was hired last year to run a new online and mobile business unit at American Express. “We are very active, and acquisitions are a key component of our strategy.”American Express wants to gain a bigger foothold in the growing market for Internet commerce and payments over wireless devices, seeking to challenge rivals such as Visa Inc. V and Google Inc. GOOG, which have announced their own mobile-transaction services. Payments made with mobile phones alone will reach $670 billion globally by 2015, up from $240 billion this year, according to consultant Juniper Research.In developing countries such as India and China, a growing number of consumers are acquiring credit cards and smartphones. China will surpass the U.S. as the world’s largest credit-card market by 2020, MasterCard Inc. MA said last year.Mobile TransactionsAmerican Express executives expect new payment methods, such as transactions made on mobile phones, to leapfrog traditional plastic cards in those countries, Daniel Schulman, group president of enterprise growth, said in August at a company meeting.Acquisition targets may be similar to Loyalty Partner, David Robertson, publisher of industry newsletter the Nilson Report, said in an interview.“That loyalty marketing company is indicative of what AmEx sees as a model,” said Robertson, who is based in Carpinteria, California. “There will be indigenous companies in emerging markets AmEx may see as desirable.”Robertson said the company may seek to generate revenue from special offers and marketing programs, in addition to payments.American Express is interested in making “targeted” acquisitions of companies “with unique assets that complement our businesses and capabilities,” Chief Executive Officer Kenneth Chenault said in August.

via American Express Seeks Acquisitions to Expand E-Commerce, Mobile Payments – Bloomberg.