2013.37 | coin | macy’s beacon

gold-coinCoin – The premise of the Coin card is that instead of carrying a wallet full of credit cards, users can leverage a single electronic card for to use all of their credit cards from a single device.  Users add their cards to the app by leveraging a mag swipe reader with their mobile to scan in their cards. The mobile passes the details to the Coin card via bluetooth.  Switching from one credit card to another in Coin is as simple as pressing a toggle button that toggles through all the card numbers stored on Coin.  The card can be used via MSR with any current card reader, so no changes required at retailers.

The concept of the Coin card makes sense from a transitional technology perspective, and all the details of the solution are not yet revealed, but there are a few concerns with this solution:

  • Acceptance – Retailers and their staff may have some qualms about scanning a relatively unknown black electronic device across their pinpads.  Education will be needed for store staff to be confident that this is a valid technology to use for payment.  If this is not achieved, everyone that spent $100 will be out of luck when they go to pay with their single card.
  • Fraud – What stops a Coin user from stealing cards and putting a number of them onto the Coin card to complete fraudulent transactions?   Hopefully there are some measures to verify that the person scanning the card is the rightful owner of the card.
  • Dishonest Store Staff – If one can easily flip through all my cards with the touch of a button, there better be a PIN lock on it to do that, otherwise you just gave a cashier in a restaurant ALL of your cards.  Hit the button and swipe to capture all of the numbers.  If they’re not dishonest, they may accidentally select the wrong card by selecting a button.
  • User Validation – How do stores validate that the user is who they say they are?  Is there a signature on the back of Coin?  Does it show the card number and expiry date on the screen?  Is a Drivers license needed for verification every time?
  • EMV – Consumers in many parts of the world outside of the US no longer use MSR cards, and we can expect the same in the US over coming months and years.  I see no chip option available but perhaps that is a future consideration.
  • Contactless – I like using the contactless feature of my cards to make my purchases quick and simple. No indication that coin has NFC capability

Payments are difficult and complicated and require buy-in from many parties to make them work.  The concept of Coin is very slick, and the hardware is incredibly impressive.  The challenge will be in the implementation, and if they can get over the risk factors, and gain an enthusiastic user base, perhaps Coin can lighten wallets everywhere.

macys-ibeaconiBeacon – Macy’s is starting a trial using iBeacon with Shopkick to notify users about offers they may be interested in when they enter the store.  More important than the actual technology is how this gets implemented.

If beacons are used in any way like email marketing is today, they will make virtually no difference.  I am spammed with email EVERY DAY with multiple messages for items that I don’t find interesting (hey apparel sellers – I don’t need ladies wear).  If we are spammed in real life on our mobile devices – increasingly an extension of our very selves – EVERYONE will opt out of this and turn it off.

For beacons to work, there needs to be something in it for the retailer and for the consumer.  If there are offers, they must be very very relevant, they must be valuable to the consumer, and they must be right the first time there is an offer.

I look forward to seeing how it works, but I’m not enthusiastic. This has been tried with SMS and other technologies, and from my perspective, the magic in this experience isn’t contacting people in a timely way, it’s having the right communication.  From my perspective, leveraging this platform for some sort of relevant messaging or entertainment to make a unique customer experience is probably a better use of the technology, though I understand the need to directly attach an ROI to such an enterprise.

Advertisements

2013.05 | Facebook Card | Sport Chek Lab | Traffic

facebook-card-balance-mobileFacebook Gift Card – Facebook recently announced a Facebook branded giftcard that can be used in the real world.  If you wish to gift someone at a Jamba Juice, Sephora, Target, or Olive Garden, one only has to select that recipient from your list of Facebook friends, identify them as a gift recipient and pay -much as you would do for any other gift card.  The gift recipient is mailed an actual physical Facebook branded card to use in stores like Target.  What makes this card unique and worthy of interest is the fact that the card can be reloaded with balances from multiple retailers.   Thinking about it this way, Facebook are providing another centralized payment mechanism.  That is, while in a card form now, Facebook is beginning  to act as a centralized clearing house for payments.  The Facebook card could be used as a future payment platform for online purchases, or via a mobile app like Starbucks does, or as a card as it is now.  Based on the card images it appears to be provided by some sort of partnership with Discover.  Looks like there is another potential partnership vying for space in the world’s already crowded wallet – mobile or otherwise. via psfk

skitchSport Chek Retail Lab – Looks like I’ll have to get on down to North Toronto to check out the latest in technology to get us to buy athletic equipment.  It seems that Sport Chek have put together lots of tech in a store deemed the Sport Chek Retail Lab to try it out.  I love the passion for the technology, and will definitely head over to visit.  While it sounds like it’s more of a lab scenario and therefore subject to different rules than a more traditional store, my only caution on projects like this is whether or not there is a need for all of the technology.

Things I would watch for in visiting this store:

  • is the technology really selling more merchandise than if we just put the items on a shelf in an attractive, engaging manner that is a part of the brand experience?
  • is the technology providing a truly unique customer experience?
  • is the technology assisting customers in a way that is not possible without it?
  • is the technology part of an overarching targeted customer experience, or are these just toys?
  • does the technology usage fit the retailers brand and customer demographic?

I love technology for its own sake, but not everyone does.  My experience dictates that if these technologies are to find their way into more than just a flagship or a demo store, they have to bring benefits to the retailer and the consumer.  It certainly appears that no option has been overlooked at this site!  Check out all of the tech!  I look forward to visiting and seeing the place myself!  via Artisan Complete

books_set2-1Book Recommendation: I just finished reading: Traffic: Why We Drive the Way We Do (And What It Says About Us) by Tom Vanderbilt.

I enjoyed this book a great deal.  A few thoughts on why you might as well:

  • It will make you re-think your driving habits.  If you are like me, you’ve taken driving for granted and don’t think about it much.  You will think about it after you read the book.
  • There is so much around us that we don’t notice because we see it so much!
  • It helps to reset your perception of open mindedness.  I found the discussion of some renegade traffic planners in Europe removing street signs altogether and completely re-thinking roads and intersections to be an incredible example of how you can think completely outside of your assumptions.
  • Some fascinating ideas that are covered in the book: the rise of eating in the car – discussions of drive thrus – how we change our personality when we drive and why – how seeing eyes (real or artificial) can change your behaviour – a discussion of the psychology of queueing and how it holds true in traffic and in other areas – how we never get feedback on driving – how traffic design may not seem to be in your best interest but it is for the greater good – there is a ‘starbucks effect’ for traffic – that looking for the best parking spot at the mall is a waste of time – cars are parked 95% of the time – free parking has a high cost – comparing traffic to queuing at Disney – how rules affect behaviour like Pizza Hut in China
  • While he doesn’t cover Google’s self driving cars and their impact (the book was published in 2008), he did write about them for Wired this year.

I was surprised to see that it had so much information of relevance for my work.  I found myself in that first year university scenario where I was highlighting more of the book than not.  If you work in retail or retail technology, I guarantee there is something in this book for you! via 99 percent invisible

2011.35 | MasterCard Mobile Paypass: Not Mobile Payment

BMO Mastercard announced yesterday that they are offering the BMO Mastercard Mobile Paypass –  a mobile payment solution using NFC and specifically the Mastercard Paypass solution.

I find it perplexing, though not particularly surprising that Mobile Paypass  is receiving a relatively loud fanfare in the press here in Canada – 27 articles as of the writing of this post on Sep 13.  The headline “First Big Bank to Launch Mobile Payment” is somewhat misleading.   The solution that BMO are offering is not remotely new, and it is not what I would consider a true mobile payment solution.

This solution is a sticker with an NFC tag that can be used to pay at NFC payment terminals at the POS in the same way that MasterCard Paypass Cards are currently used.  Customers tap the Paypass Tag on the back of the mobile device on the payment terminal and the card details are passed to the terminal for payment.

The MasterCard Mobile Paypass can adhere to the back of a mobile device, but it can be just as easily stuck to your iPod, your leather wallet or your keychain if you so wish.  Effectively one can also do the same thing today with a BMO MasterCard plastic card.  It fits in the cover on the back of an iPhone, and nothing stops anyone from doing that and leveraging a ‘mobile payment solution’.

If MasterCard Mobile Paypass is considered a mobile payment solution, Esso Canada SpeedPass and Shell Canada’s EasyPay should be as well.  These solutions are wireless key fobs connected to an account with a credit card number that effectively do the same thing, and have been on the market and available for consumers for many years. While not ‘offered’ by a big bank and only usable at a specific retailer, they have certainly been in the mainstream for many years.

All of the hype around mobile payments should be around a true mobile wallet versus using a sticker or a key chain to make credit card payments instead of a physical credit card.  While these are wonderful stepping stones that I use and will continue to use, the exciting part is getting to that true mobile wallet.

The following are my criteria for a true mobile payment solution:

1. Integrated Communication to Payment Terminal – The NFC or whatever communication technology that communicates with the mobile payment device is physically ‘built in’ to the mobile device.   As far as I am concerned, a true mobile wallet is not physically separate from the mobile device.  That module could be part of a SIM card perhaps, but it should be integrated to the phone electronically in some way.  NFC is preferred, as it does not require cellular or wi-fi data accessibility for payments to be processed.

2. Mobile Wallet Application Software on the Mobile Device – A mobile wallet requires a mobile application that can leverage the NFC or other communication technology as though it were a peripheral.  It should be possible to see multiple cards from various banks and card issuers and their details at the very least.  A more sophisticated version should also include loyalty cards, gift cards, transaction details, coupons and offers, tickets and even receipts for all purchases made with the card.  While the solution could be browser based, it should have an offline function at the very least for times of no data connectivity.

3. Ability to pay with Multiple Cards – The wallet should support multiple payment cards that can be chosen on the screen with the same NFC interface to the payment terminal.  Could be any credit card (Visa, Mastercard, Amex, etc) or any debit cards from any bank. Should also be able to work with retailer offered gift cards.

4. Card Additions, Removals and Changes – The wallet should have the capability to have cards added or removed in the wallet by the user or bank or card issuer.  The cards would use the same NFC interface on the mobile device to connect to the payment device.  The wallet should have a the capability to be ‘deactivated’ remotely by the user or card issuer.

5. User to User Funds Transfers – Ideally, it would be possible to pass funds from one user to another by tapping the phones together, based on the account of choice by the user.  This could be a release 2.0 feature.

This sort of solution is very different from attaching a tag to a mobile device and calling it mobile payment.  The keys to getting a solution of this kind in place have been covered many times in this blog, but the fundamentals in Canada are a widely available and popular NFC enabled mobile device, and an application backed by a company large enough and trustworthy enough that consumers will be comfortable enough to put their credit card numbers in their hands.  Both are challenges.  I won’t even mention encryption, security, EMV, or PCI.  That it must work within those parameters is a given.

Google Wallet is closer to this reality than anyone else, though there are always rumours of Apple, RIM and Paypal as well.  When the mobile wallet I describe above is offered, we will have arrived.  Until that point, beware the inflammatory mobile payment headline.

Update 9/15/11 – I understand from another article that e-mail receipts are also available with this option.  That is a slight change, but considering it is mainly for purchases under $50, the value of receipts for double-double at Tim’s.  Still, it is a step forward to e-receipts and less paper that I am definitely in line with.

Another consideration is that if a purchase does happen to be over $50, I’m not sure what the process will be.  With my current BMO Paypass card, there is a chip on it, so I insert the card into the pinpad and enter my PIN for more than $50.  I don’t think there can be a chip on this card, so we might be back to signatures.  I expect that they will have to put a signature space on the card so clerks can check it.  Now one has to pass the clerk the mobile device so that they can check the signature (don’t like that), and get a paper receipt which negates the benefit.  I don’t think retailers will love gathering receipt slips again now that EMV is in place.  It’s a good stepping stone, and I’ll be very interested to see how it works out!  I’ll get one if I can.

%d bloggers like this: