Showing posts with label nfc. Show all posts
Showing posts with label nfc. Show all posts

Friday, November 4, 2011

Era of E-Commerce is Over

Forrester Research e-commerce forecast
John Donahoe, CEO of eBay, has said that the concept of e-commerce is dead and buried, since consumers really don’t care about where they buy, so long as they get the cheapest price. You can thank increasing use of mobile technology for that change.

Now consumers are walking into retail stores, and using their phones to identify better prices for goods they like, and will use either online or offline purchasing to get the price they want.


“Over the last 12-18 months we at eBay have changed our view on e-commerce,” he explained. “We’re now seeing a profound change in how consumers are behaving, and we’re going to see more changes in the next three years than we’re seen in the previous 20 in terms of shopping and payments." 

NFC handset forecast
"Mobile devices are blurring the lines between online and offline at a rate no one would have predicted.” eBay boss declares era of e-commerce is over

As for eBay’s strategy, Donahoe said the company is presenting itself as a retailer-agnostic platform. Price comparison applications on the site will show a broad range of suppliers, all displayed on a level playing field with the competition. eBay will simply process the sale.

Wednesday, October 5, 2011

VeriFone CEO on Mobile Payments

Douglas Bergeron, chief executive officer of VeriFone Systems, talks about the company's mobile payment technology and expansion plans.



VeriFone CEO on Mobile Payments

OfficeMax goes live with Google Wallet at 100 stores

OfficeMaxCustomers can now use near field communications mobile phones to make payments, redeem coupons and receive rewards using Google "SingleTap" terminals installed at more than one hundred of the company's stores in the United States. Office Max operates about 1,000 retail stores.

The new terminals are available in stores throughout the greater New York, Chicago, Los Angeles, San Francisco and Washington DC regions.

Friday, September 16, 2011

SK Telecom launches SIM cards that add NFC to existing phones

SK TelecomKorean mobile network operator SK Telecom has announced it will make available near field communications-enabled subscriber information modules that enable existing mobile phones to be turned into NFC devices by simply replacing the existing SIM with one of the new NFC USIMs.


The new NFC USIM will be available in October 2011 and SK Telecom will release a developer API at the same time. The new SIM is expected to cost $30 to $40.

The company plans to launch the product out in October 2011 for enterprise customers in Korea. This will be followed by roll out in overseas markets including China to accelerate the spread of mobile payment infrastructure.

Wednesday, May 4, 2011

Isis Shifts Strategy: What Happens Next?

If there is any single issue that will drive any retailer away from a retail payments system it is higher cost per transaction. Forcing a retailer to spend $200 or so per payment terminal also is a huge barrier to adoption. Blocking a merchant’s ability to use a form of payment such as a branded credit card also is a disincentive, particularly since the merchant’s own branded vehicles potentially can provide more information about the customer, and the customer’s preferences, than any third party form of payment.

It appears Isis has stumbled with retailers because its proposed payment system provides all three barriers, says Richard Crone, Crone Consulting principal and payments consultant.

And Crone agrees that, as tough as it would have been to overcome those obstacles, any other revenue model Isis now might adopt could fight Isis facing both well-funded giants such as Google, Apple, PayPal and Amazon, or any number of startups, sufficiently well funded to pose a significant challenge to “near field communications” as the communication method for any number of payment-related systems and applications.

In fact, Crone believes a number of carrier-independent approaches from well-funded start-ups not requiring NFC “could make NFC obsolete.”

“Maybe you don’t need the NFC approach,” says Crone. “There are 16 different ways the communications function can be handled.”

Starbucks, for example, represents the “most successful new payment method, ever,” Crone says. Starbucks reached one million mobile payments  processed in 30 days. “Nobody else ever has received those kind of numbers in that short a period of time.” And all Starbucks did was build on the existing prepaid Starbucks card and 2D barcodes. Starbucks has signed up more than three million of their customers for the program, and they likely include some of the best customers Starbucks has.

Customer contact  is the real advantage, he argues. When a merchant accepts payment from a standard credit or debit card, the data the merchant can capture is slim. The Starbucks approach provides a clear contrast.

When a customer registers for the Starbucks mobile payment service, the customer states their preferences and supplies contact information. As a result, Starbucks can communicate with their customers, before and after any transaction.

Starbucks also enjoys lower transaction costs, as it is prepaid system where customers load credits into their accounts ahead of time.

It might not be incorrect, in essence, to argue that, if merchants were starting today with a payment technology system, they wouldn’t even buy point of sale terminals. They’d simply leverage the technology the customers pay for, including using the customer’s communication services, and process directly from a smart phone, Crone says.

Retailers need a payment strategy, and a a mobile strategy, that provides incentives for customers to use the forms of payment that build loyalty, make customers contactable and provide lower costs. That doesn’t mean abandoning a “portfolio” approach. After all, people still will want the freedom to pay using cash, credit card, debit card, check or gift card. But among those options, retailers benefit when they can use the payment system to build loyalty, knowledge of their customer preferences and gain the ability to add marketing services on top. When possible, transaction costs might also be lower taking that approach.

That doesn’t mean NFC won’t find applications, or that Isis cannot ensure itself some role in the mobile payments business. NFC requires a secure element that carriers want embedded in the subscriber information module. Carriers control the SIM, so they would still be gatekeepers when NFC is used.

“So even if they open up to card associations, they control the loading of credentials,” says Crone. But various players in the ecosystem will contest the location of that loadable data, arguing that it should not be in the SIM, but elsewhere in the device. Device manufacturers, for example, would prefer that approach, as it makes their devices more valuable.

With Isis apparently withdrawing from an effort to compete directly with Visa and MasterCard, it will obviously have to find some other role. But competitors who do not necessarily want to be limited by using NFC, the SIM or getting the carrier’s permission now will have new incentives to push their rival systems in the marketplace.

In a way, Isis had been casting a bit of a shadow over rival approaches. Now, it appears we are headed for a period of wider experimentation, with many participants looking at ways to create payment systems providing higher marketing value, advertising or promotion platforms or customer niches, such as mobile merchants, smaller merchants or merchants primarily seeking loyalty program advantages.

Nor is it entirely clear that the “best” strategy is the “most ubiquitous, most widely used” approach. Large retailers might well conclude that they are best served by their own branded programs, using forms of payment limited to their own establishments and venues. They still will accept all the other popular forms of payment, so they give up nothing to gain the advantages of approaches such as that taken by Starbucks, which is to create a program usable only at Starbucks.

With the shade apparently removed, lots of smaller plants will get sunlight.

Friday, April 15, 2011

North America Will Have Half of all NFC Phones in Service in 2014

At least one in five smart phones globally will have near field communications functionality by 2014, Juniper Research estimates.

Worldwide, Juniper Research forecasts almost 300 million NFC capable smart phones by 2014. Juniper’s analysis shows that this growth will be driven in the short term by mobile network operators launching services in 20 early adopting countries before the end of 2012.

Juniper Research forecasts that NFC-based mobile payments and retail marketing capability via coupons and smart posters will become common amongst smart phone users in Western Europe, North America and other developed regions.

North America will account for half of all NFC smart phones in 2014, followed by Western Europe.

Wednesday, February 9, 2011

Japanese and Korean Telcos Announce NFC Roaming

Japan’s biggest mobile operator, NTT DoCoMo, has agreed with Korea’s second-largest telco, KT Corp., to develop cross-border payment, ticketing and other services using standard NFC.

In the announcement, DoCoMo said that these are NFC services that the two telcos will 'launch in their respective markets of Japan and South Korea from around the end of 2012.

Data from the U.S. market is scanty, as few consumers yet have had a chance to use NFC or other mobile payment applications and services.

Researchers at the Yankee Group note that 2010 was the first year tests were run. Click on image for a larger view.

Saturday, February 5, 2011

Starbucks Mobile Payment System Didn't Use NFC for a Reason

Technology decisions ought to be dictated by business requirements, and so should the timing of technology investments. Generally speaking, if a business can wait for the "next generation" of technology, it often should do so. If it cannot wait, and has an immediate business need, it should buy the existing solutions, especially if there is an upgrade path.

The Starbucks mobile-payment app, now available for iPhones, the iPod Touch and several BlackBerry models, is based on the coffee chain’s popular prepaid Starbucks Card, and is an example of that sort of process. You might wonder why Starbucks would deploy a 2D bar code solution now, when it could wait 18 months to two years and possibly use a new system based on one or more near field communications platforms.

The answer is that Starbucks did not think it could afford to wait. Nor, in one respect, is the Starbucks mobile payment system primarily about "payment." It is about loyalty, especially the Starbucks card.

Customers use the private-label card for one in five transactions at Starbucks coffee shops and last year loaded $1.5 billion in their card accounts, up more than 20 percent from 2009, said the company. Since the mobile payment app is linked to the Starbucks card, and since the Starbucks card itself if more about loyalty than "payment" as such, Starbucks is betting that the chance to extend its loyalty program to the mobile handset is worth doing right away.

Not unimportant is the fact that 2D bar codes can be used by a wide range of handsets, while near field communications is only now starting to be introduced. In a scale business, the advantage of large installed base is obvious. So is the fact that the terminal upgrades at roughly 8,000 locations are modest.

With the app, after the customer scans the 2-D bar code at the point of sale, Starbucks deducts the amount of the purchase from his Starbucks Card account over the network.

The physical implementation might not be the most elegant imaginable (one has to have a physical Starbucks card first, and you have to obtain one physically, at a store), but that was not apparently the most-important consideration. Speed to market, low cost and ubiquity seem to have been the overriding considerations.

Sunday, December 19, 2010

Visa Talks About Mobile Payments

"Tokens" are the New "FLOPS," "MIPS" or "Gbps"

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