Tag Archives: nfc

2011.21 | Google Wallet Could Work

May 31, 2011 by Tim Dickey 1 Comment

I’ve derided attempts at a mobile wallet for some time.  I want it as badly as anyone, but it has been an elusive dream for years.

If you look through the blog you can see my reasons for this skepticism.  It’s never been about the technology – that capability has existed for years.  It’s about the infrastructure, consumer readiness and not adding fees for the service.  I’ve been thinking about last week’s announcement around Google Wallet, and it could work – in Canada at least.  Let’s discuss just a few reasons why their model could work.

NFC acceptability at POS – While articles I have read about the US and Europe have indicated that they have not adopted NFC strongly, numerous Canadian retailers have built NFC into their infrastructure as they were forced to spend millions on getting EMV in place.  The EMV upgrade caused thousands of pinpads to be replaced, and untold hours of software changes and testing.  It only made sense to include NFC in that process to make best use of the investment.

This investment places Canada in a solid position on the number of POS sites that can accept NFC payments.  Not convinced?  Consider just a few of the major retailers that accept contactless in Canada: Tim Horton’s, McDonald’s, Loblaws, Sobeys, Cineplex and probably many more where I haven’t used my NFC cards yet. (Let me know if you’ve seen it elsewhere in the comments!)  More sites where an NFC tender can be provided means more potential purchasing locations where a Google Wallet can be used, which drives potential use, and therefore more potential adoption.

One PIN to rule them all - Canadians have become accustomed to Chip and Pin over the past few years.  The unforeseen challenge of this new and more secure system is remembering PINs for multiple cards.  I have relatively few cards, but have 3 credit cards and a debit card.  Try keeping 4 pins straight in your head for whichever card you are using.  Using the same PIN for all four?  If you get filmed entering your PIN, you could be scammed on all of your cards.

If you use an NFC credit card, most retailers don’t require a PIN for purchases under a pre-set amount – generally $50 or so – particularly for their own cards.  I like using them for that reason alone.  Not entering a PIN at every transaction is a convenience to users and can speed throughput for retailers.  At the same time, having a single PIN on the Google Wallet means that the card could not be used unless that PIN  has been entered, providing an extra layer of security for an NFC transaction.

Usability – I’ve highlighted that any new payment solution needs to be extremely simple to use.  Your most novice user needs to be able to do this in 5-10 seconds flat in front of a queue of impatient people and a bored cashier.  The Google Wallet with NFC appears to get closer to this nirvana than other solutions.  My technologically challenged mother uses NFC cards regularly and loves it.  You “Tap n Go”.  Consumers can use the current pinpad at the POS just like they have done for years.  It’s comfortable.

Contrast this interface with Square as one example.  Square is an awesome idea and it looks slick, but is my mom going to use it?  Nope.  Too foreign.  It also requires the use of a solid data connection to work every time as transactions are completed via the network.  Anyone want to be held up relying on your local wireless coverage to complete a transaction? NFC gets around that by allowing the use of NFC which just requires the mobile device to be on.

Will my mother use this solution?  Probably not right out of the gate.  But a mobile wallet needs to be this simple to get widespread traction in the marketplace.  For those of you who may deride this need saying that our Gen Y digital natives are more sophisticated, watch your average mobile user at any point of service.

Many citizens (I didn’t say all – and they aren’t the only ones!) of this segment are so busy checking texts, talking on their mobile, or zoned into their own world listening to their iPod that they are often loathe to interrupt to complete a transaction. Mobile wallet usage needs to be so simple that one can open the app while they complete other activities while distracted.

I would also argue that Gen Y, while potentially more comfortable and trusting of technology than older consumers, are still subject to the needs of a simple user interface.  They are not necessarily any better at using technology.

Increasing Mobile Usage – While Canada lags behind the US in mobile technology, we are catching up.   99% of the 18-34 set have a mobile phone.  We are up to almost 25% of mobile phones with a data plan.  A target market of 25% of the population isn’t a bad starting point, and it will only grow.  This increasing use of mobile is also driving increased comfort with downloading apps like the mobile wallet.  Android is also gaining market share – providing a potential foothold.

The Google Factor  - Past attempts at mobile wallets in Canada have been pilots inevitably involving a mobile carrier, a credit card company, and a bank. Sometimes a credit card processor and/or a retailer got into the mix. All parties have been trying to figure out a way to split the profits for years – nobody has made it work.

Neither consumers or retailers will pay a significant fee for the privilege of carrying their phone instead of a piece of plastic. There has been no large monetary benefit to these parties to add additional cost and risk into the mix for the returns they have found or we would already have mobile wallets.  The carriers and handset manufacturers have not included NFC into the mobile handsets as they had no incentive to do so, and importantly – no universal application to leverage NFC if it were there.

Another problem is the issue of consumer acceptance.  Carrying a mobile wallet for every credit card, bank or other institution adds complexity, it doesn’t remove it.  Having a mobile wallet from some Silicon Valley start up you’ve never heard about – not going to do that either.

The difference here versus the past is that Google is looking for an edge over Apple and RIM.  They want and need to provide something the iPhone doesn’t have.  The handset manufacturers also want in on that.  NFC is a viable option they can provide.

To use that hardware, a universal mobile wallet from a trusted source is needed.  Google is a verb now – who doesn’t know Google.  The name Google Wallet doesn’t make you nervous – it makes you want to download the app.  They also provide the corporate clout needed to deal with the major banks and credit cards.

They are providing the hardware we could never get in the past, and a universal app that could allow us to use all of our credit cards in one trustworthy mobile wallet. These two elements, along with the benefits above, may just push Google Wallet into mainstream usage.

This isn’t even remotely a slam dunk.  At present this is going to be used in two test markets.  It only works with one phone.  It’s not offered in Canada yet.  There is no guarantee the credit card companies will get on board.  There will always be security issues.  EMV could force you to pull out your card anyway for a larger purchase.  If your battery is dead you have no wallet.

Many hurdles need to be overcome, but Google is moving us closer to the mobile wallet than ever.  Perhaps they could offer it on other platforms like Blackberry and Apple’s iOS.  Ideally Google’s initiative will drive other organizations to come up with their own wallets.  Paypal – perhaps.  Apple is likely to get in on this as well.  Having organizations like this behind a mobile wallet initiative can only move the ball forward.  After all, what’s left to add to our mobile gadgets?

dining & qsr, food & drug, general merchandise, retail
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2011.14 | Expanding Retail Business in Canada: Technical Considerations

April 6, 2011 by Tim Dickey 0 Comments

One of the signs I’ve seen of late of an improving retail sector is expansion.  I’ve had discussions with a few colleagues on clients expanding into Canada from other countries or expanding into other provinces.  Here is a list of the most common considerations for technology when expanding into or around Canada.

Taxes - Like many other jurisdictions in the world, Canada has tax rates and types that vary by province.  Some provinces charge separate Provincial Sales Tax (PST) and Canadian Federal Sales Tax (also known as the Goods and Sales Tax or GST).  Others charge a Harmonized Sales Tax (HST).

Electrical Power - For businesses coming from Europe or Asia, the power in Canada is 120V, 60Hz, and NEMA 5 connectors are used.  Ensure that retail POS and other solutions have the correct power supplies and power cords to connect to power in Canada.  If  UPS devices are used for power protection or backup, be certain to purchase units that operate with Canadian voltages and connectors.  The same power and connector standards are used in the US and Canada.

Price Verification – Requirements for Price Verification vary by jurisdiction in Canada.  In Quebec, having electronic price verifiers in stores is a legal requirement unless there are prices shown on every item in a store.  In the rest of Canada, the Scanner Price Accuracy Voluntary Code is a voluntary pricing code of conduct that retailers who are members of the Retail Council of Canada, Canadian Association of Chain Drug Stores, and Canadian Federation of Independent Grocers adhere with – covering off a very large percentage of Canadian retailers by sales.   I’ve noted in various online forums over the years that consumers across Canada have voiced concerns about store staff’s knowledge of the voluntary code, causing some consternation among consumers, so retailers would do well to be sure store staff are aware of the rules and act on them to ensure strong consumer relations.

Weighable Items -  Weigh scales in grocery need to be certified as legal for trade by Measurements Canada under the Weights and Measures Act via an Authorized Service Provider.   Note that Canada uses the metric system, and the scales must be calibrated in kilograms.  A remote post display is required for use in Canada, even if the weight is displayed on a user screen like those on a Self-Checkout.

Language - Canada is officially a bilingual country, but is increasingly multi-lingual given many years of strong immigration- particularly in the city centres.  Retailers should expect to provide customer facing systems in both French and English, particularly in Quebec, and should have a good understanding of French in Canada.  This means that all consumer facing solutions, such as kiosks, selfcheckout systems, customer facing displays and receipts require multi-language capability.  Under Bill 101 it may also be necessary to provide back end solutions used by staff in store in French.  Some retailers also use French versions of Windows and other operating environments.  Note that not all POS versions of Windows 7 embedded provide for Multi-Language capability so Windows 7 Ultimate or Windows 7 Pro may be required for a French Windows 7 Image.   Recent years have seen increases of requests for other languages on kiosks, ATM’s, and self-checkouts across Canada in my experience – primarily for Asian languages.  Retailers serving urban populations with technology that has the capability to serve multiple languages may find themselves with a competitive advantage.

Electronic Payments - All pinpads to be used in Canada must be certified by Interac, Canada’s electronic payments Association.  All pinpads to be used in Canada should be EMV certified and capable.  As in the US, PCI compliance is also required.  Some of the most common pinpads used in Canada by Tier One retailers in Canada include the Ingenico i3070, Verifone Vx810, and Verifone SC5000, though there are many others in use.  Many Canadian retailers have also enabled NFC payment acceptance on their pinpads over the past few years as part of the effort to move to EMV and PCI compliance.  Canada has a high rate of electronic payment penetration, with many tier one retailers I’ve spoken with indicating that as much as 70-80% of tenders are either debit or credit.  Use of cheques in Canada is very limited.  Less than 1% of tenders are cheques for most retailers I’ve spoken with, and it is 0 for many.

Cash Management - Primary currency in use in Canada is the Canadian Dollar.  The most common denominiations are the $20, $10, and $5 note.  $50 and $100 notes are also available, but used less often, and some smaller retailers refuse to accept them for fear of forgery.   Coinage includes $2 (toonie), $1 (loonie), 25 cent, 10 cent, 5 cent and 1 cent.  50 cent coins exist but are in limited use.  There are various forgery safeguards on Canadian currency to protect against forgery, and Canadian notes are changing to a polymer base in 2011/2012.  Canadian retailers often use a 4 Note , 8 coin slot cash insert for cash drawers, versus the 5 note, 5 coin slot cash insert used in the US.  The use of differing coins and notes also means that cash handling solutions like self-checkouts, cash recycling , and fraud detection systems will differ to accommodate the different notes and coins.  The lack of $1 bills means far less bill usage on cash handling systems than the US.

On a more localized level:

Sales Recording Module for Restaurants - Quebec - Revenu Quebec has implemented requirements for retailers to record all sales transactions through the use of a Sales Recording Module installed between the POS and the printer.

Reusable Bags and Plastic Bag Fees – In the City of Toronto, there is a bylaw which requires a charge of 5 cents for plastic bags and others have followed suit.  Many Canadian retailers have adopted a charge across the country to drive down usage of plastic bags.  Whether as a result of this charge or not, there is a significant use of reusable bags by Canadian shoppers.  For the bag fees, retailers need to be able to add the fee and to both assisted and selfcheckout solutions – a relatively simple matter.  For reusable bags, self-checkout systems need to be enabled, and staff need to be trained to assist customers in understanding the process of using their own bags with self-checkout.

This is by no means an exahaustive list and is provided based on my experiences to date.  It is intended for informational purposes only and ideally is helpful in providing a view to the types of technical hurdles that may exist for those who plan to expand into or across Canada.  If there is any facet of technology that I have overlooked in consumer facing stores, or if I have made an incorrect statement please leave a comment, and I will be glad to adjust the article.

dining & qsr, food & drug, general merchandise, retail
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2010.47 | Retail Mobile is Exploding

November 24, 2010 by Tim Dickey 0 Comments

Not that it’s a surprise to anyone, but the movement to mobile for retail is really picking up as of late. While many retailers are experimenting with their own apps, those that don’t take part are likely to get dragged into the mobile world whether they want to do so or not.

Paypal is piloting a mobile payment scheme through their PayPal Local program in partnership with Bling Nation. Under this program, NFC stickers are mailed out to those who enrol and those NFC tags are connected to Paypal accounts, effectively allowing users to link their payments to their mobile device instead of their wallet.  While the program is only a trial it’s an interesting potential workaround to the usual debit and credit electronic payment infrastructure.  To simplify the process, Bling Nation users activate through a Facebook App.  Interesting choice.

Self Scanning apps like ShopSavvy and RedLaser are upping the ante with new functionality and Amazon’s own app is scanning now too to allow customers to price match in stores.

Sounds like consumers want mobile websites too.  The trick is figuring out what that means.

dining & qsr, food & drug, general merchandise, retail
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2010.42 | Scanning Barcodes From a Mobile Screen

October 14, 2010 by Tim Dickey 2 Comments

Misconceptions abound about scanning the screens of mobile devices.

There are a number of different ways of passing data from a mobile device to another platform in a store environment – 2D barcodes, Microsoft Tag, NFC, Bluetooth, and via Apps – the possiblities are quite broad and are dependent on the application.

Applications in a store environment most often involve passing loyalty or coupon information from a mobile device to a point of sale (POS).  The method that arises most in conversation is that which would seem most intuitive to the general population.  Can one scan a barcode from the screen of a mobile phone with a scanner at the point of sale?

The answer: it depends.  Consider the following examples:

Example 1: A customer approaches a Point of Sale in a store with an Apple iPhone.  The customer has scanned an image of their loyalty card into their phone complete with a traditional linear barcode from the back of the physical loyalty card.  The cashier has a Handheld Scanner at the POS and attempts to scan the customer’s screen to enter their loyalty information into the system…  It won’t work.   A traditional handheld or even bioptic scanner will not reliably capture a barcode from the screen of a regular mobile device’s screen.   I have personally attempted it many times, in many retail situations with various scanners and mobile devices and screens in stores and in lab environments.  The screen is too reflective or does not pick up the contrast in the bars and spaces, no matter how large or bright the image may be.  (It may give a positive scan once in a while, but not consistently.) I’ve heard that some iPhone apps get around that by showing the images in certain ways, but I’ve never seen it work live or via any online searching.


Example 2: A customer approaches the boarding gate at an airline terminal with a Blackberry Torch.  The customer has downloaded an electronic boarding pass to their phone complete with a 2d barcode.  The boarding agent has a Handheld Scanner with a 2d Imager built into it.  The customer holds out their device, and the agent scans it with the imager.  It will work.   In this instance, though the situation appears exactly the same as the first example, the big difference is the the use of the 2d Imager and 2d barcode.  A 2d Imager is essentially a camera – better suited to identifying the 2d barcode on the mobile device.

 

The implication of the formulas above is that the great majority of technology in place at current points of sale will not read barcodes from a mobile device.  Most retailers wishing to take advantage of barcode reading from mobile devices will need to invest in new scanning devices.

dining & qsr, food & drug, general merchandise, retail
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2010.33 | Drive Thru Technology

August 16, 2010 by Tim Dickey 0 Comments

Given North America’s car based culture drive thru is a crucial and often the largest part of any QSR business. Adding the logistical challenges of the outdoors and queued vehicles to the already challenging job of taking orders, fulfilling orders and accepting payment is no trivial matter.  There are many areas where new technology is being leveraged – sometimes in unexpected ways – to deal with this challenging pursuit for QSR operators.

Digital Menu Boards - With costs for hardware decreasing, incredible consumer acceptance of digital screens everywhere, and the capability to update screens and signage in any way at any time remotely and consistently, moving to digital menu boards is a logical step for QSR operators, assuming they can establish an ROI.  There are some excellent points both for and against using this technology, but assuming a reasonable ROI, expect these to slowly take over.

Ordering Kiosks -  It’s not surprising that the leap would be made from digital menu boards to an actual kiosk that one can order from in line.  A few organizations have built some promising solutions and are piloting.  I’m a self service user and proponent, but I’m torn on the question of kiosks in drive thru environments given the potential complexity of the operation.  My experience with self service is that it generally takes longer to use a kiosk like this to order than just saying what you want.  Mileage may vary depending on your business, but consider the time to speak the order ”One large double double, please!“ to at least 3-4 screen touches to just buy one coffee.  The touchscreen will be much slower.  Now consider a family carload and their constantly shifting of orders and special requests (Where’s the button for extra ketchup?)  Add that to hundreds of cars streaming through a drive thru, and you’ve got significant reductions in throughput, and a potential traffic problem as cars back out into the parking lot or onto the street.  QSR operators would need to carefully understand the impacts of their menu and their customer base to implement a solution of this sort. 

A potentially more efficient solution would be an integrated solution to a mobile device that would allow customers to pick all of their menu items on their phone.  With all menu items entered, the order can be saved on the phone, and displayed as a 2d barcode.  When the customer arrives at the kiosk in their car, they scan the 2d barcode at a reader on the kiosk, and the entire order is displayed on the screen for customer verification.  This means 2 button pushes, as well as the avoidance of a scratchy speaker discussion that the kiosk was meant to provide in the first place.  It also means the capability of upsell on the screen which could merely slow down the ordering process in the self serve kiosk instance. 

Payments -  Contactless via NFC was supposed to be the wave of the future (forgive the pun), but my experience has been that even if the drive thru is equipped with NFC readers, the cashiers act puzzled when you wish to use them.  Much as people claim to want to use it, NFC has not been embraced, and there are no indications of changes to consumer behaviour.  It’s more likely that new cars with their increasing array of technological wonders will work this out for us as outlined in QSR Magazine.  It would make sense to enable one’s car to leverage payments based on pushing a button for a drive through scenario, and as the article says, the cars may even direct us to our favourite restaurants.  Perhaps the payments will be made via Facebook, with more and more businesses selling directly within Facebook, Facebook credits and mobile ubiquity coming together to simplify the process.

No matter what technology is leveraged, it will be key to consider simplicity, speed, and integration in any solution.  Any technology or process change has to be dead simple so that the process is as easy as today or easier, or it will not be embraced.  Changes have to ensure speed is not sacrificed for technology’s sake.  The bar is high, and customers are used to fast service.  Slow it down, and they will move to a competitor.  Integration will become increasingly important given all the different ways in which consumers can interact with a business.  It is important to bring all of these interfaces together to gain the full understanding of a customer for a business, and to allow them to interact with the business in the way they choose.

dining & qsr, food & drug, retail, social networking
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2010.08 | Change at the Till

February 22, 2010 by Tim Dickey 0 Comments

While change is constant, it seems things are really picking up at the point of sale.  Here’s where it’s happening:

Coupons:  There has been a great deal of excitement and change around electronic coupons over the past year.  The combination of a tough economic climate and cheap technology has driven many to look for a better way.  Various couponing platforms are now available online or on mobile devices.  Retailers, suppliers, and third parties are all part of the trend which is now growing faster than the traditional paper format.   The challenge is to rein this in to the consumer’s benefit and to align it with a retailer’s strategy.  The best bet is for retailers to embrace social media to track usage as much as possible, and ensure that their target markets are best served.

Payments: With all of the changes to payments in Canada over the past few years – PCI, NFC, and Chip and Pin along with the entry of other players to challenge Interac with Visa Debit, Maestro and even Enstream – it’s easy to overlook changes in other parts of the world that are even more groundbreaking.   A colleague sent me an article over the weekend (thanks Douglas!) that discusses how mobile payments are surpassing credit cards in Africa.   It seems that much in the way that they skipped over landline telephony with mobile phones they’ve skipped from cash over plastic to mobile.  Payments still aren’t making their way to mobile yet in Canada, but Enstream is claiming NFC phones are coming to Canada, and perhaps Square can get things rolling in this area as well. 

Mobile:  The most important challenge facing retailers is how to connect the mobile experience with the store experience.  This article covers the opportunity well.

Still to come is the killer app that manages to bring the offers, the electronic world as well as the bricks and morter experience completely together - a way of linking how consumers wish to interact with the retailer to get the most out of those interactions for the retailer by making it seamless to the consumer.  There are applications to make this happen, but I’ve not yet seen any consumer facing organization that has established an ongoing conversation with consumers that makes the channel of interaction invisible.  [For full disclosure, I work as part of a team to sell a solution with this capability at NCR.]  Given the increasing interest in electronic offers, it is a perfect time to implement.  The technical issues are surmountable.  The greater issue is being the first retailer with the will end effort to fit these technologies to their business.

dining & qsr, food & drug, general merchandise, retail
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2010.02 | Scan those Coupons!

January 8, 2010 by Tim Dickey 0 Comments

Given the Great Recession, one hears a great deal about coupons to encourage shoppers to buy.  Coupons have been around for quite some time, but are still surprisingly low tech in Canada.  While grocer specific coupons and offers are scanned, manufacturer driven coupons are generally accepted as part of a manual process in Canada.   This is an area ripe for automation to the benefit of retailer and consumer alike for the following reasons:

  • Cost Savings - Given that 84% of households in Canada used coupons in 2008 one would expect significant manual effort in gathering the coupons, validating the manufacturer, and tracking down the reimbursements.  With the constant attempt to reduce cost and employee effort, this represents real potential savings to a retailer.  If this effort is not completed, the retailer is providing customers discounts for certain brands out of their own pockets.
  • Throughput - While clerks still need to check expiry dates and validate the product purchased (why isn’t that automated via a central database?) scanning removes the need for at least 5-6 keystrokes per coupon – saving valuable minutes to the checkout process.  More people get through the checkout faster, and fewer people are embarassed by pulling out their coupons or frustrated by those who do so in front of them in the queue.
  • Customer Convenience - Self service solutions like kiosks or self-checkout are rendered less beneficial if coupons require manual entry.  Keying in coupon amounts represents an operation too complex for self service, (not to mention a fraud risk) reducing the amount of customers that will use it.  For those that attempt it without knowing coupons are manual, the transaction will be slowed by attendant intervention and will discourage the use of self service.  This all adds up to customer frustration which can reduce sales.
  • Fraud Reduction – While it is not possible to completely eliminate fraud, the increasing use of GS1 Databar codes may help, and if the codes don’t work on the scanner, it is easier for a clerk to refuse the coupon – minimizing potential losses.
  • Redemption Tracking – Knowing one’s customers becomes increasingly important in competitive times.  Understanding coupon redemption will enhance market basket analysis.  Enabling vendors to get an accurate, timely view of how consumers respond to an offer is extremely valuable, and can also allow for quicker response to coupon problems as data will be available to understand behaviour electronically.

While marketers, vendors and retailers are certainly on top of providing coupons via electronic means – email, web, mobile – there are few to date that are leveraging around electronic coupons: via 2d barcodes, NFC, or redemeed automatically at the checkout via a loyalty card.  While the individual values are small, coupons are important to a value conscious shopper, and the collective impact of coupon automation could be significant, so breaking the code is key.

food & drug, retail
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2009.20 | What Mobile Wallet?

May 5, 2009 by Tim Dickey 1 Comment

I’ve been looking at using NFC solutions for some time now, and the recent announcement that Subway is going to install a Visa PayWave contactless solution reminded me of that fact. It’s solid technology, it works well, and I personally use it a couple of times per week where I can with my MasterCard Paypass credit card.

In Canada, we have infrastructure in place with most large retailers owning or deploying contactless infrastructure in some fashion – Subway, Second Cup, Rabba, McDonald’s, Canadian Tire, Petro Canada, Tim Horton’s, Cineplex, Loblaw and more moving to contactless support every day. I love it and think it’s a tremendous solution on cards.

We’ve also had a couple of trials in Canada on using NFC as a mobile wallet, with the credit card companies, the mobile carriers the and payment terminal companies all explaining the benefits, but what’s happening to take it to the next level?

Two big things hold back NFC as the mobile wallet (in Canada at least):

1. Acceptance - For 20 years and more, Canadians have been used to three options. Cash – no problem. Debit – swipe card, use pin. Credit – swipe card, sign receipt. Now we’ve added Chip and Pin to credit and debit. That’s confusing to the uninitiated. We also have contactless NFC cards and now dual interface NFC and Chip and Pin on the same card. There is word of Visa Debit competing with Interac.

Now, customers aren’t sure if they swipe, dip, tap, sign or don’t sign, or if there is a charge to use a service. Most of them will default to what they know. They are being asked to think about too much. In this case, it seems that competition is actually a bit of a problem.

2. Device Availability- I spoke to someone from a bank today that works with new solutions and when I asked about contactless, she said she was getting a ’4 year old phone’ to use for a contactless trial. She uses a Blackberry and I use an iPhone. We represent a large proportion of the market for a mobile wallet in early days, and we can’t get a mobile wallet for our phones. Without NFC or some other secure way to pass information, the mobile wallet is just a mockup, and the fact is that you just can’t get an NFC phone in Canada. I’ve witnessed 1 mobile transaction in Canada and I was with my very knowledgeable Vivotech contact when we did it.

Why can’t we get NFC enabled mobile devices? Unless there is something in it for the mobile carriers, why would they give us a new feature like NFC mobile wallets on our phones? They can’t make more profit from it, and I think that is the greater concern with the trials than the functionality. The system works – it just doesn’t make money for the carriers. Impact: the mobile device makers won’t put something on the phone that carriers don’t want (like: tethering, Slingbox Player, VOIP, programming long distance card numbers etc.) so consumers don’t get them without delay and strategizing by the carriers.

There has also been a problem with hitting on a standard for NFC on mobile. Nokia is done with making their own NFC phones, and they are releasing a SIM card based NFC phone. But when will that happen, and who can really drive it? It may take a third party application to drive mobile NFC, but without a large presence to lend such an enterprise the necessary consumer confidence, this will prove a challenge.

Until payments are simplified and there is a universal (or at least accepted) NFC standard or a viable alternative method of getting data from phones to consumer facing touchpoints like POS/ATM/Kiosks, I don’t see mobile wallets going anywhere.

It’s a wonderful opportunity for anyone that can crack the code.

dining & qsr, food & drug, general merchandise, retail
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2009.17 | Convenience | DVD Landscape | Mobile POS

April 14, 2009 by Tim Dickey 0 Comments

Taking the Store to Customers – Convenience has ever been important to consumer facing businesses, and there are many new and different ways that these organizations are trying to make their products and services more convenient for consumers to obtain.

The primary inconvenience of purchasing food from a mobile vendor is the difficulty of knowing where they are. Kogi Korean BBQ, a taco truck in LA, lets their customers keep track of their location via Twitter – taking uncertainty out of the mix.

Starbucks is looking to place coffee vending machines across North America that leverage electronic payment – including contactless – avoiding the necessity for having coins or small bills at the ready.

Coinstar is already doing very well with Redbox DVD rental machines. They add additional convenience by providing a reloadable credit card solution – a gap filler for those who wish to rent and don’t have a credit card. This should sound familiar, as this solution is available on an NCR platform used by Readycredit. These would be well placed next to NCR SelfServ Entertainment units.

The Changing DVD Landscape – The DVD rental industry is becoming increasingly complicated, with ever changing players, formats and scenarios. While the cheap DVD rental is a boon for the consumer, there are complications, as it represents a paradigm change for studios and consumers alike. Whatever the issues, expect them to be resolved, and this business to continue its growth for the next few years at the very least.

Mobile POS – I’ve already expressed my admiration for the handheld POS units used in Apple Stores. Now it looks like they might be taking the expected step of moving from their current Windows Based platform to an iPhone based solution with the soon to be released iPhone 3.0 software which allows improved connectivity and interoperability for hardware add-ons. This is key, as swiping a card is much faster than typing in a number, and EMV will require dip card readers in many countries.

While this platform doesn’t suit every environment, look for mobile based payment systems to act as the small business POS of the future. You can already download some from the iPhone app store today.

general merchandise, retail
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