Dear Readers,
If I were more cynical than I already am, I could be making a claim that last week was an example of 'how the mighty have fallen'. I am referring to the the news that Google Wallet has undergone an update with improvements to the interface, application stability and battery life. Yet if you were surprised by this update or are hearing it for the first time or have read next-to-nothing on this piece of news – then I rest my case. From supposed heavyweight 'driver' of the exploding mobile payment industry to barely a mention and even then to a bit of a moan (http://bit.ly/VtXumm), Google doesn't seem to be leading from the front any more. At least in column inches.
No. All the column inches were well and truly aimed at the kid at the back of the class, studying twice as hard as everyone else in the hope that he gets to graduate. I am talking about Research In Motion (RIM). No, sorry, not RIM any more - they've changed their name to BlackBerry in order to keep a unified brand. More importantly though, they have introduced two new phones with the new BlackBerry 10 system. The Q10 will remain with a physical keyboard while the Z10 will have a touch-screen keyboard. Both machines will support NFC, although, despite indications that NFC will be used, BlackBerry has refused to comment further on their plans for NFC technology enablement (http://bit.ly/Wh4DoA). Well, let's just see if they can get through the next six months first, shall we? See – a piece about Blackberry and I never once mentioned that it was 'make-or-break' for the company. …Oh.
A possible catch-all phrase for successful mobile payments implementations could be 'app and mortar'. A play on the wording from early days of the internet - 'bricks and clicks - it describes the challenge between online and physical retailers. A new report out by mobile analytics company Flurry has shown that the term 'app and mortar' is highly relevant in today's shopping environment and that the winners are physical retailers (http://bit.ly/W8fGj9). Specifically, their findings suggest that retailers make more sales if they develop apps that help their customers make buying decisions, stay loyal and make purchasing easier.
In this editorial I have railed against and moaned about those retailers who have yet to incorporate mobile and NFC technology into their marketing efforts for customer attraction and retention. This, we say with perceived wisdom, is the 'real' reason mobile payments are not exploding quicker. Others, though, have pointed to the almost dizzying array of mobile wallets and payment technologies out there today - all trying to achieve that all important dominate first position, with their hardware/software as prime focus. Retailers, we are told, will adopt these payment options later.
We are, however, starting to see companies who are developing complete payment platforms that bring the merchant into the fold right from the beginning. Be it NFC or cloud-based technology, it doesn't matter. To them, the act of inclusion of all parties makes more sense both strategically and tactically - and in some cases, financially. For instance, we wrote about SALT Technology this week, who are a provider of a cloud-based mobile payments platform. SALT Technology is developing their SALT Payment Platform™, SALT Personal Payment Profile™, and SALT Merchant Services™ that enable MNOs, financial institutions and merchants to bring branded mobile wallets to market quickly, on any device, and with any payment type (http://wp.me/p1Jrjn-1hf).
Said Brian A. Bogosian, Chairman, CEO and President of SALT Technology, Inc. “According to analysts, 36% of consumers are ready to make mobile payments their standard payment method today, but the market lacks solutions that make the process easy for them. Additionally, MNOs, financial institutions and merchants strive, at great cost, to make mobile payments a reality in their environments. Our innovative platform and integrated merchant solutions help to make mobile payments a reality for our partners, and for consumers, whether they wish to support NFC-based, peer-to-peer, or mobile browser-based payments."
The SALT Payment Platform claims to bring mobile payment alternatives such as NFC, cloud-based, or even remote QR code-based payment products to market within a fraction of the time and cost required by existing approaches. The company’s solution is reportedly being sought by leading MNOs and financial institutions in the U.S. and in Europe. The first implementations of the platform are scheduled to be in market this year.
And they are not alone in their general thinking. Merchant Warehouse are also looking at mobile payment and retailer specific mobile loyalty apps. In their view, technologies such as mobile, NFC, QR codes and EMV are driving commerce forward, often faster than merchants can keep up. Therefore the recent announcement of The Genius Customer Engagement Platform™ available for the U.S. market (http://wp.me/p1Jrjn-1j3). Genius is a software platform that lets merchants accept any kind of payment, discount or loyalty program within a single transaction. The goal is that merchants can increase their revenue with loyalty-building incentives and offers that attract new customers and retain current ones. After a limited trial phase, Genius is now available to any merchant in the U.S. market. The premise, say Merchant Warehouse, is simple: merchants can download any mobile commerce or loyalty partner app available within the Genius platform, such as LevelUp or Isis. As merchants grow and their mobile commerce opportunities expand, they can easily add apps to their Genius platform from the growing collection of third party integrations. I see this as another type of 'App' that will engage shoppers within physical retail outlets and bring forward 'real' sales.
And finally, we also reported that Sequent have released their Sequent Wallet Management Platform, available immediately for phones with secure element technology running Android 4.0 and up (http://wp.me/p1Jrjn-1j8). The Sequent Wallet Management Platform makes it possible for any authorised mobile app to use any card stored in the phone’s secure element, turning the app into a wallet. It also allows any card to be used in many authorised wallets, unlocking new value for both MNOs and card issuers. The Sequent Wallet Management Platform tracks which wallets are authorised to use each credential in the secure element, while protecting the secure element from use by unauthorised apps.
This type of approach appears to go down well with industry analysts. Nick Holland, Principal Analyst at Yankee Group, says “The question of wallet ownership has been a significant challenge to acceptance of mobile payments. Consumers want to be able to choose which wallets, and how many wallets, they want on their phones."
I think the thread that is running through this week's editorial is that it is becoming harder and harder to go to work on your mobile wallet in isolation and certainly next to impossible if you do not involve the merchants and their requirement for loyalty or in-store apps right at the beginning. Just as consumers want an all-encompassing choice when purchasing, they also want the same feeling when dipping into their wallets. Perhaps it's the platform and partners that matter more than the technology and the issuer?
If this past week is the shape of things to come, 2013 could be all about partnerships and interdependence rather than a specific connectivity technology.
Regards,
Steve Atkins
Contactless Intelligence
This week on C-ITV
SALT Technology's mobile payment platform http://wp.me/p1Jrjn-1hp
Identive expands Tagtrail with enhanced feature set http://wp.me/p1Jrjn-1hl
SALT Technology secures $2M funding for mobile payments platform http://wp.me/p1Jrjn-1hf
Infineon's Coil on Module package helps secure contactless payments http://wp.me/p1Jrjn-1hV
MIFARE gets an image video from NXP http://wp.me/p1Jrjn-1hQ
Confidex wins ITSO smart ticketing contract for Glasgow subway http://wp.me/p1Jrjn-1gL
NXP, exceet Card Group to provide contactless smart card solution for Scotland’s local councils http://wp.me/p1Jrjn-1i0
Opera and Neomobile to bring one-click mobile payments to Opera Mini http://wp.me/s1Jrjn-4999
Secure NFC from Infineon http://wp.me/p1Jrjn-1ii
Wirecard supports Telefónica’s mobile payments http://wp.me/p1Jrjn-1is
Juniper says 10 Billion mobile coupons to be redeemed in 2013 http://wp.me/p1Jrjn-1io
Vancouver's Green City Plan to use NXP's MIFARE DESFire http://wp.me/pQLgk-PO
China predicted to lead the field in Contactless Payments http://wp.me/pQLgk-PG
Sequent releases mobile wallet management platform for Android http://wp.me/p1Jrjn-1j8
Merchant Warehouse has a Genius Engagement Platform http://wp.me/p1Jrjn-1j3
Payments & m-Commerce
India: Now, pay using Android phone card reader http://bit.ly/1232kc1
Eximbank, MasterCard installs contactless payments in Vietnam http://bit.ly/1232fVS
French m-commerce market grows 150% to EUR 1 bln in 2012 http://bit.ly/1232v7c
Mobile Payments, Apps, & QR Codes Lead Consumer Trends http://yhoo.it/1232CzG
Mobile Payments: Much Hyped But Not Ready for Prime Time http://bit.ly/1232Bvv
“App and Mortar” Is One Way to Describe the Trend in Mobile Commerce http://dthin.gs/1232wIs
T-Mobile Poland mobile payment system users hits 5,500 http://bit.ly/1232yzP
VIBE Mobile Wallet Launches in St. Louis http://bit.ly/WkayIM
LevelUp, PayPal and Square Take Early Lead in Mobile Wallet Marathon http://on.mktw.net/WLHUys
Google Wallet updated with new layout, performance enhancements http://bit.ly/WLIdtl
Starbucks still feeling a buzz from mobile payments http://bit.ly/WLItIM
Credit Unions May Gain Mobile Payments Edge with Shared Tech Platform http://bit.ly/WLIs7w
T-Mobile Poland: 5,500 Registered Users for NFC after Two Months http://bit.ly/WLIpsy
Non-Banks Take Early Lead in Mobile Wallet Race http://bit.ly/WLIyMu
Google underwhelms with new Wallet release http://bit.ly/VtXumm
Germany: Checkitmobil, mr.commerce team for mobile payments http://bit.ly/YDuiKR
Commentary: Mobile payments in 2013, the future is cashless http://bit.ly/Wh4Acu
Czech Telco and Bank Launch NFC Payments Service with PayPass http://bit.ly/Wh4zoQ
AsiaPay and PayEco prep voice mobile payment service http://bit.ly/Wh3P3f
Google Expected to Win Mobile Wallet Wars, Study Finds http://bit.ly/Wh3BZM
South Korea: PayOn Service Completes Your Purchase with a Single Tap http://bit.ly/Wh4K3D
Mobile Payments Heat Up in Canada http://bit.ly/WCgnBM
Verizon finds it's hip to be Square, starts selling card readers http://bit.ly/WCglK7
Are We About To See The Rise Of Proximity Payments? http://bit.ly/WCgey6
TIM Brasil starts NFC mobile payment trial with Itau http://bit.ly/WCgdub
NFC technology absent in new US Cellular mobile payments launch http://bit.ly/WCgoFW
In the UK, Will Mobile Payments Go Mainstream? http://bit.ly/WCgtt4
PayGo™ Announces Featured Provider Agreement With Aclara for Mobile Payment Solutions http://mwne.ws/WChGk3
NFC & Mobile
Number of NFC-enabled smartphones in Australia to skyrocket 467% http://bit.ly/WCgu07
BlackBerry Maker Unveils First BlackBerry 10 Devices with NFC Technology http://bit.ly/Wh4DoA
What IT needs to know about near-field communications http://bit.ly/WLI6hm
HTC unveils NFC remote control for Butterfly smartphone http://bit.ly/WLHXu5
MTS launches staff location app with NFC http://bit.ly/WLIxrS
NFC: How wireless charging can drive nfc growth http://bit.ly/YDumdp
Transportation, Ticketing, Access, Security & Loyalty
SkyCash mobile parking payments launches in Torun http://bit.ly/Wh4IZI
Charles hops on the tube with an Oyster card http://itv.co/Wh4EZQ
TfL denies double-charging bus passengers for contactless fares http://bit.ly/WLIbBt
UAE: Central Bank and Emirates ID discuss activation of smart card applications http://bit.ly/YDucCU
Cubic develops sensor-based crowd management system for large scale events http://bit.ly/YDuNV1
Other News & Opinion Articles
Why I Had To Get Rid of My Contactless Credit Card http://zd.net/11eRuQi
FIS Advances Leadership Position in Mobile Financial Services through Acquisition of mFoundry http://bit.ly/WCgsFt
Intuit’s New Payments Directions In NFC, Passbook And Facebook
Revealed In 20+ New Products http://tcrn.ch/Vn84Gu
Ingenico to acquire onine payment services provider http://bit.ly/YDvZb8
Hungary: EU invests in modern AFC http://bit.ly/YDvH40
AmaTech: Contactless technology for cards and documents http://bit.ly/1232qR7
TORO opens R&D centre in Spain http://bit.ly/YDuzNI
NXP CEO: ‘We Know We’re Going to Have More Competition’ http://bit.ly/WCg8GY
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