Category: Mobile Payments

Low Value Payments Platform In US

Amsterdam, Netherlands-based Cardis has been piloting its technology in Europe with Raiffeisen Bank in Austria and Sberbank in Russia. They are now focused on the U.S., as this is the fastest growing mobile payments market in the world, where there’s a huge opportunity. Integration of technology with a large U.S. processor and with a major U.S. retail brand, which will be launching a mobile site and mobile app using Cardis solution.

Cardis International is planning an April launch in the U.S. for its technology, which enables merchants to accept low-value contactless or mobile payments without incurring high processing charges. Cardis is able to bring down the processing cost of low-value payments, the company said, by aggregating multiple transactions into a single payment.

The problem

Contactless card and NFC-based mobile payments are typically for low amounts, and yet still use a card processing infrastructure that was designed 40 years ago when the average credit card transaction was $100.

Traditional card processing systems require each transaction to be individually processed through the payment system, including authorization, clearing and settlement. The resulting variable costs of processing each transaction are independent of the transaction amount and too high for low-value payments, particularly in low-margin industries such as quick-service restaurants. QSR restaurants often have a 3 percent profit margin, yet, for low-value contactless payments, the processing cost could be as high as 6-7 percent of the transaction value.

Mobile and contactless cards offer consumers a convenient form factor. But they don’t solve the problem that low-value card payments are very expensive for merchants.

As an ever-increasing percentage of transactions have become cashless, card processing fees have become a significant cost. Costs that are based on the number of transactions, rather than their value. With average per person expenditures of $5 or under, feels each swipe fee much more than a business where customers spend $50 or more. But not accepting credit/debit cards for low-value transactions isn’t an option as many of customers don’t carry cash anymore.

Aggregation

Cardis’ solution is to act as an aggregator of low-value payments, sending a single batched transaction through to a processor instead of multiple low-value transactions. As there is no per transaction processing of individual low-value purchases, the cost-per-transaction is significantly reduced.

Cardis provides its technology as a software plug-in to payment service providers for contact-based and contactless card payments, mobile wallet transactions and NFC payments.

There are two models. For card payments, it will aggregate multiple purchases by an individual cardholder at a single merchant on a post-paid basis up to a specific amount, for example $20. To guarantee payment to the merchant, since the aggregated transaction is processed at a later date, it will pre-authorize an amount, for example $15, the first time the customer makes a purchase at that merchant.

Alternatively, merchants can opt for Cardis’ prepaid system. This involves the consumer setting up a prepaid account hosted by Cardis’ sponsoring bank that is topped up via ACH (automated clearing house) transfers. Using the Cardis prepaid account on a smartphone provides the digital equivalent to cash.

With its post-paid solution, merchants will save 30-50 percent per transaction compared to conventional card processing fees, while its prepaid solution saves merchants 80 percent per transaction. With the post-paid solution, it will only aggregate a customer’s purchases at a single specific merchant. But, as the prepaid solution aggregates the customer’s purchases across multiple merchants, this enables to offer a much lower processing fee to the merchant.

Cardis provides an audit trail enabling consumers to track individual transactions that are aggregated using its technology. Consumers don’t lose any of their card protection rights and guarantees by agreeing to let a merchant aggregate their payments through Cardis. They can always charge back any disputed transactions.

Cardis sees opportunities for digital content providers such as online music stores and games providers to use its aggregation technology. It can integrate solution with existing digital wallets.

Raiffeisen

In 2012, Austria’s Raiffeisen Bank launched a pilot of Cardis technology for NFC-based Visa V Pay debit card payments in partnership with Visa Europe. Raiffeisen’s MobileCard mobile payment product uses a secure element stored on an NFC-enabled MicroSD card inserted in a mobile phone. Although Cardis supports secure elements stored on SIM cards as well as on MicroSD cards and on the cloud, Raiffeisen opted for MicroSD cards, as this is an easier solution to implement.

Raiffeisen cardholders participating in the pilot use MobileCard on average three times a week, with an average transaction value of ($5.70). Merchants accepting MobileCard are seeing 40 percent to 70 percent lower merchant processing fees for an average transaction value of  ($5.43) to ($13.60).

Spindle

In October 2013, Spindle, a U.S. mobile commerce company, signed an agreement with Multi-max, a manufacturer of vending machines for mid-size and small offices throughout North America, Europe and Asia. Spindle will integrate its MeNetwork mobile commerce technology into Multi-max’s line of K-Cup vending machines for rollout across the U.S.

The MeNetwork solution will incorporate all card-based payment acceptance services, as well as mobile marketing services. Spindle’s partner Cardis will provide low-value payment processing services for purchases at K-Cup vending machines.

Posted in Credit card Processing, Credit Card Security, Digital Wallet Privacy, e-commerce & m-commerce, Electronic Payments, Gift & Loyalty Card Processing, Internet Payment Gateway, Mobile Payments, Mobile Point of Sale, Near Field Communication, Payment Card Industry PCI Security, Smartphone, smartSD Cards, Visa MasterCard American Express Tagged with: accept, ach, aggregated, aggregation, aggregator, authorization, automated clearing house, average transaction, batched, card payments, card processing infrastructure, card processing systems, card-based payment acceptance, cardholders, clearing, contactless, contactless payments, cost-per-transaction, credit card transaction, debit card payments, Digital wallets, high processing charges, low-value payments, merchant aggregate, Merchant's, microSD, mobile app, mobile commerce, mobile payment, Mobile Payments, mobile site, mobile wallet transactions, nfc-based, payment service providers, pre-authorize, prepaid, processed, Processing, processing cost, processing fees, processor, settlement, smartphone, transactions, transfers

Host card emulation specification for NFC payments

A new standard that uses Host Card Emulation (HCE) was introduced by VISA to enable financial institutions to securely host Visa accounts in the cloud. Visa’s move to support HCE includes tools and services as well as the standard. It is available now and will include support for QR codes and in-app payments in the future.

With this new service and platform that Visa is developing, it will enable clients and partners to issue Visa accounts digitally in the cloud, on secure elements in smartphones, or linked to a digital wallet. The solution will also enable the issuance of payment tokens that will replace the 16-digit payment account number and can be limited for use with a specific device, merchant or payment channel.

Layers of security will deploy by Visa to protect payment accounts in the cloud, including at the Visa network, application and hardware levels. Device fingerprinting technology, one-time use data, payment tokens and real-time transaction analysis will make up a multi-layered defense against unauthorized account access for their services.

Visa has intensified its Visa PayWave contactless payment application and is introducing a new implementation guidelines, program approval process standard and requirements for their standards.

Visa is also developing a tool, its software development kit (SDK) to support clients who wish to develop their own cloud-based payment applications or want to enhance their existing mobile banking applications with Visa PayWave functionality.

HCE is introduced to make it easier for developers to create NFC applications like mobile payments, loyalty programs, transit passes, and other custom services. Visa’s move to enable NFC payments with Android devices is welcome news and will guide the way for the payments industry.

Clients and partners around the globe are continuously looking for cost efficient, flexible and secure ways to enable mobile payments. The Android HCE feature provides with a platform to evolve the Visa PayWave standard, support the development of secure, cloud-based mobile applications, while at the same time offer greater choice.

Posted in Best Practices for Merchants, Credit card Processing, Credit Card Security, Electronic Payments, Financial Services, Merchant Services Account, Mobile Payments, Mobile Point of Sale, Near Field Communication, Smartphone Tagged with: accounts, android devices, approval, cloud, cloud-based mobile applications, contactless payment, device fingerprinting, Digital Wallet, digitally, financial institutions, HCE, host card emulation, in-app, mobile banking, nfc, payment account number, payment channel, payment tokens, payments, qr codes, real-time transaction, secure elements, securely, Smartphones, unauthorized, visa, visa network

Today’s Digital Consumer Is Mobile-Focused and Social-Savvy

Today’s consumers are defining themselves by their mobile devices, their social presences and how they interact with brands, both offline and online. The digital evolution of the average consumer is alive and kicking.

Today’s consumer is more connected than ever, with more access to and deeper engagement with content and brands. Thanks to the proliferation of digital devices and platforms. Content that was once only available to consumers via specific methods of delivery such as via print, radio and broadcast television can now be sourced and delivered to consumers through their multiple connected devices. This is driving the media revolution and blurring traditional media definitions.

What are the specific characteristics or dynamics shaping today’s consumer behavior? Digital consumers are social-savvy and more connected to their friends, family and favorite brands than ever before.
Focused On The Gadgetry

Consumers love gadgets.

One out of four Americans plan to buy a smartphone in the near future. Thirty percent intend to upgrade from a regular mobile phone to a smartphone once able. For those ages 18 to 24, 49 percent they want to upgrade to a smartphone.

How frequently consumers use their mobile devices in a given month? Consumers spent an average of 34 hours and 17 minutes per month using apps on their devices, an increase of 9 hours and 52 minutes from 2012.

Interestingly, the amount of time consumers spend surfing the Web fell 1 hour and 54 minutes to a total of 27 hours and 3 minutes. The amount of time used to watch videos online increased by 43 minutes, to 6 hours and 41 minutes.

Social Media & Everyday Life

Digital consumers, by and large love their social media.

Sixty-four percent said that they use social media at least once per day. For mobile however, the growth figures reported suggest a broad shift is happening, pushing more people to access social networks via mobile platforms.

Forty-seven percent of smartphone owners log onto a social network each day. Additionally, the number of people who use social-media apps on their smartphones rose by 37 percent from 2012.

Digital consumers are also diversifying their choice of social networks, opting to use LinkedIn and Pinterest in addition to so-called traditional social media platforms like Facebook and Twitter.

As digital consumers find their own mix of devices and platforms to access and engage with social media, they are building profiles and connections on multiple social networks as well.
Two Screens Is A King

Digital consumers also rely on their mobile devices as a second type of television screen.

In a survey, eighty-four percent said they use their smartphone or tablet to surf the Web or to use apps while watching television. Of those, 44 percent of tablet owners shopped while watching TV, and 24 percent used their smartphones to make purchases.

Fourteen percent of tablet owners used their device to buy a product or service as it was being advertised on TV. Just 7 percent of smartphone owners said they would do the same.

Posted in Best Practices for Merchants, Credit card Processing, Financial Services, Merchant Services Account, Mobile Payments, Small Business Improvement, Smartphone Tagged with: apps on their devices, average consumer, content, deeper engagement, digital consumers, digital devices, digital evolution, Facebook, gadgets, linkedin, media revolution, Mobile Devices, mobile platforms, offline and online, pinterest, regular mobile phone, smartphone, social media, social network, social presences, social-media apps, social-savvy, tablet, traditional media, twitter

Effective Keys for Business-to-Business Ecommerce

Business-to-business ecommerce describes Internet-enabled transactions between businesses, such as a manufacturer and a wholesaler, a wholesaler and a retailers, or a wholesaler and a business user. The B-to-B ecommerce market was expected to exceed $550 billion in the U.S. last year, offering great opportunities for distributors and manufacturers to streamline sales, boost profits, and engage with new customers.

Since the late 1990s, businesses have been using the Electronic Data Interchange (EDI) system to transfer purchase orders and similar structured information electronically, representing, if you will, a form of B-to-B ecommerce.

Separately, some B-to-B sellers have created websites on which business customers can make purchases as if they were shopping on a business-to-consumer site. This category of B-to-B ecommerce may enjoy the most growth and offer the most opportunity.

 

Important points to consider of running a B-to-B ecommerce site.

 

B-to-B Customers Are also B-to-C Customers

B-to-B sites often trail consumer sites in technology, function, capabilities, and design. Typically not good enough.

As an example, the U.S. B-to-B site for a major multinational manufacturer, which includes information for dealers in the U.S., can only be viewed on Internet Explorer, and won’t work in any other browser, including Firefox, Chrome, Opera, or Safari. And don’t even think about visiting this site on a mobile device. It just won’t work.

This is a ridiculous business decision. It forgets a fundamental fact about B-to-B ecommerce customers. They are also B-to-C ecommerce customers.

It is extremely likely that the professional shopper on an ecommerce-enabled B-to-B website has had at least some experience shopping on consumer ecommerce sites, which all have compelling product photography, good navigation, good search capabilities, and good content.

A B-to-B ecommerce site must provide the same visual and functional experience as the best B-to-C ecommerce sites.

Personalization Is Vital

B-to-B shoppers may require a greater level of personalization than B-to-C customers, since businesses may have contract prices, special payment terms, or negotiated shipping rates.

Business relationships may be very deep and complicated. It is not unusual for B-to-B ecommerce sites to require registration before showing prices or shipping rates or offering a quote. This login requirement allows the B-to-B ecommerce site to personalize almost every aspect of the transaction.

A good B-to-B ecommerce site may take a little longer to launch since the system for handling relatively complex business relationships can take some time. But once it is in place, this personalization will mean that the relationship could be longer lasting.

Sales people Are the Primary Marketing Vehicle

While it is both possible and likely that B-to-B ecommerce sites will be able to acquire new customers simply by making products easy to order online, salespeople who contact customers are probably the B-to-B ecommerce seller’s primary and best marketing channel.

Salespeople can attract new customers or deepen relationships with existing shoppers. Sometimes, it can be enough to follow up after a B-to-B sale with a call to make certain that the transaction went as expected.

Shopping Is Part of Your Customer’s Profession

One of the most significant differences between B-to-B and B-to-C ecommerce is that shopping is part of the B-to-B ecommerce customer’s daytime job.

This means that the stakes can be higher for the B-to-B seller. If the shopper has a good experience, that shopper is likely to return and reorder repeatedly – even suggesting the seller to co-workers or other divisions. But if something goes wrong, particularly something that would cause the shopper to miss deadlines at work or appear in some way to have done a poor job, that shopper will likely blame the B-to-B seller. Depending on the unhappy shopper’s influence, the B-to-B seller might lose the entire account, including many individual buyers or divisions.

This means that order handling and transactional communications must be top notch. Some B-to-B ecommerce sellers will call customers to confirm orders or shipments when the customer has ordered a large quantity, very expensive items, or requested express shipping, since these orders may represent important transactions to the customer.

What Ecommerce Can Do for your B-to-B Business

If you sell to other businesses, ecommerce should have three potential benefits for your business.

First, it may help new customers find you. Having an easy-to-find and use ecommerce site means that new customers – customers with a need – will be able to locate your business regardless of geography or prior relationships.

Second, B-to-B ecommerce may streamline sales for existing customers. Some of your current customers will appreciate the ability to order online, 24 hours a day 7 days a week. The process may also be faster than sending emails or, even worse, faxed orders.

Finally, B-to-B ecommerce may improve margins and boost profits. It may be possible to provide customers with a better ordering experience and better customer service using ecommerce while spending less on labor and order processing. Any cost savings that B-to-B ecommerce brings may drop straight to your business’s bottom line.

Posted in Credit card Processing, e-commerce & m-commerce, Electronic Payments, Internet Payment Gateway, Mobile Payments, Mobile Point of Sale, Small Business Improvement Tagged with: account, b-to-b, b-to-c, better ordering experience, boost profits, business-to-business, business-to-consumer, business's bottom line, communication, consumer, cost savings, customer service, e-commerce, ecommerce, ecommerce sites, electronic data interchange, faxed orders, growth, improve margins, new customers, online, order handling, order processing, personalization, profits, purchase orders, salespeople, seller, sending emails, shopper, special payment terms, transaction, wholesaler

Perfect Match! Mobile and Money Remittance

Money remittance companies can achieve real benefits by embracing a mobile-first strategy. In fact, when it comes to financial institutions, I can definitely say this is a perfect match! Specially for us who are transferring money to our home country for our loved ones.

Here are some factors why.

It decentralizes transaction points, making it inherently safer for customers.

People carrying cash in and out of remittance centers are prime targets for criminals. In some countries, it’s not rare to have people mugged just outside of banks and remittance centers.

By allowing people to transact wherever they are, mobile remittance decentralizes the transaction points, making it harder for thieves to find unsuspecting prey.

It has the potential to reduce bottlenecks in branches.

Mobile remittance can reduce the number of people who would visit a remittance branch to complete transactions. It alleviates traffic inside the branch, reducing lines and wait times and making visits by other customers more hassle-free.

Makes remittances more accessible.

The reduction in costs of running a remittance operation means these companies can actually lower the costs of sending money for the end-customer. This makes remittances more accessible to the areas that most need it, such as developing nations and remote rural areas. Lower costs also make it more attractive for people to use formal remittance solutions to send over money. For the poor, every cent counts, so lower costs can make the added security only a financial institution can provide more attractive for them.

Mobile makes money transfers faster and more convenient.

While today’s contactless mobile payments solutions are still not as simple as handing over a wad of cash or swiping a card for over-the-counter payments, in the world of money remittances, mobile can actually smooth out friction points.

Through mobile, senders can send funds wherever they are. They won’t have to drive or commute to a local remittance center, they don’t have to fill out forms and they don’t have to fall in line to complete the transaction. It’s all seamless and convenient.

For the recipients, mobile remittance can save them the trouble of having to go to a remittance center, fill out a form and fall in line to receive their money. All they’ll need is a simple SMS code that they can use to withdraw funds from a nearby ATM through cardless transactions.

Money can stay within the remittance company’s network longer.

One of the side effects of successful mobile money campaigns is that users are also using these mobile money solutions as storage mediums for their money. They don’t withdraw the funds all in one go. Instead, they only take out what they need and withdraw funds later.

Having the ability to withdraw small sums at a time has multiple benefits. For one, carrying less cash makes it safer for the customer. For the remittance company, the money stays in its network longer.

Opens up doors for financial inclusion

This is particularly true for developing countries where a vast majority of the population are un-banked or under-banked. The costs of building and maintaining a physical presence in poor countries has made traditional financial services difficult to access for their citizens. Even in poor countries, a large number of the population has access to a mobile device, giving them an opportunity to receive financial services.

Opens up other opportunities for remittance companies

Having a mobile service can help remittance companies expand to other services. They can add bill payments into the app, for example, allowing their customers to pay for utility bills using funds sent to them through their mobile devices.

Paves the way forward to progress

Mobile use is so widespread that it is no longer wise for remittance companies to turn a blind eye to it. If they won’t embrace it, you can bet their competitors will. Whoever gains traction in the mobile channel will have a huge advantage in the market. It’s now a case of move now or be left behind.

Reduces costs for remittance companies

Mobile remittance can cut costs for remittance companies by reducing the need for physical branches and personnel to accommodate walk-in clients. Mobile can scale without incurring significant costs making a mobile investment much better in the long-term for remittance companies that want to expand their operations.

Posted in Best Practices for Merchants, Financial Services, Mobile Payments, Small Business Improvement, Smartphone Tagged with: atm, bill payments, cardless transactions, complete the transaction, contactless mobile payments, financial services, mobile channel, mobile device, mobile money, mobile remittance, mobile service, mobile-first, money remittance, network, payments, sms, swiping a card, transaction, transferring money

Non-Bank Payments More Trusted than Contactless and Mobile Card Payments In UK

Young people and Londoners are leading the way in adopting cashless payments in the U.K., The U.K.-based market research firm also found that non-bank electronic payment methods such as PayPal are trusted more than contactless and mobile card payments.

According to research, 38 percent of British people are interested in being able to make mobile payments and an enthusiastic 8 percent claim they would apply for mobile payment services straight away. Eighteen percent of U.K. Internet users say they would prefer to be able to stop using cash altogether.

Support for a cashless society is strongest in London, with 30 percent prepared to stop using cash. And it is the nation’s youth who are leading the way in new payment forms. Twenty-two percent of those aged 25 to 34 have used Barclays’ Pingit peer-to-peer mobile payment system, compared to 5 percent of those aged 45-54. About 17 percent of 25- to 34-year-olds have used the virtual currency Bitcoin at least once.

However, consumers are more concerned about the security of mobile payments than card payments. Sixty-five percent of consumers showed some concern about mobile payment security and 61 percent showed some concern about contactless cards, compared with 34 percent who were concerned about using debit cards and the 33 percent who were concerned about credit cards.

Consumers were notably less concerned about using non-bank payment services such as PayPal, which protect users’ financial data from being seen by third parties. Only 27 percent of Internet users are concerned about using non-bank payment services such as PayPal.

Posted in Credit card Processing, Credit Card Security, Digital Wallet Privacy, Electronic Payments, EMV EuroPay MasterCard Visa, Mobile Payments, Mobile Point of Sale, Near Field Communication, Smartphone Tagged with: card payments, cashless payments, cashless society, contactless, contactless cards, credit cards, debit cards, electronic payment methods, financial data, internet users, mobile card payments, mobile payment security, mobile payment services, non-bank, non-bank payment services, peer-to-peer mobile payment system, Security, Virtual Currency

Automate Business Tasks with Your Smartphone

With so much to do each day, it’s easy for a small business owner to get bogged down in details. That’s where your smartphone comes in. With the right apps, your mobile device can automate the tasks that used to be daily chores. Whether you need help keeping track of all your business documents, or organizing your calendar and contacts list, it’s time to let your smartphone do some of the heavy lifting.

Back up your business files. Your work machine contains everything you need for a productive day, including every file and document you are working on. But you can’t always be at the office.  With your smartphone and the right apps, however, you can back up and access your business files from anywhere. Dropbox, Box, Google Drive, SkyDrive and iCloud are all solid mobile apps that automate the process of syncing your business files to the cloud so you can access them from any Web-connected device, including your smartphone or tablet. Better yet, any edits you make will be synced across all your devices, so you can stay productive and organized.

Manage new contacts. Swapping business cards is a great networking strategy, but cards are easy to lose, and manually inputting all that contact information into your address book is a chore. So let your smartphone enter all that data into your address books. CamCard (available for iOS and Android) is an all-in-one business card management solution. Just point your iPhone camera at a card and snap a photo. The app’s text-recognition software will pull out the key details and update your address book automatically. It can even search for new contacts on LinkedIn to add a photo and additional personal details for each new contact.

Silence your smartphone. A buzzing or ringing smartphone can be distracting – not to mention embarrassing – during a business meeting. Silencing your phone is simple, but chances are you’ll occasionally forget. That’s why there are handy apps that monitor your smartphone calendar for meetings and appointments, then silence your phone for the duration of that event. You can even whitelist specific numbers so you won’t miss an emergency call. When the meeting is over, your smartphone’s ringer and vibration settings will be returned to their normal state. That way, you can stay focused and free from distraction when it matters most. Android users can try Silencify. For iPhone users, AutoSilent is a good option.

Sync your calendars. Both Android and iOS have built-in calendars to help you plan your week and schedule meetings. But juggling both a mobile calendar and a desktop office calendar is a pain, so why not use your smartphone to synchronize the two? If you use Microsoft Outlook as your business calendar, for example, Google Calendar offers an easy way to link them. And iPhone users can synchronize their mobile calendar with Outlook by plugging their smartphone into their computer and accessing the Calendars tab in the iTunes options menu. Automating the process of syncing your calendars means you’ll never mix up appointments. And if you share your business calendar with your employees, it ensures that everyone is always on the same page.

Sync your social media accounts. A strong presence on Facebook and Twitter can help you engage your customers and grow your business. Mobile apps can help you keep your business profiles fresh when you’re on the go, but reposting those updates on each platform individually can be a chore  especially from a tiny smartphone screen. Fortunately, there’s an easy way to automate the process of synchronizing social media posts between your business profiles. Simply visit this page to link your Facebook and Twitter accounts. After that, go ahead and use the Facebook mobile app to post updates, news or promotions to your business’s Facebook page, each post will be automatically funneled to your Twitter followers as well.

Posted in Best Practices for Merchants, Mobile Payments, Small Business Improvement, Smartphone Tagged with: all-in-one, Android, apps, automate, automate the process, automating, box, business documents, business profiles, camcard, devices, dropbox, Facebook, google drive, icloud, iOS, Iphone, linkedin, Mobile Apps, mobile device, networking, organizing, productive, skydrive, small business, smartphone, synchronize, synchronizing social media, syncing, tablet, twitter, web-connected

Global Growth, Market Consolidation Ahead For MPOS Mobile Point-of-Sale.

Mobile point-of-sale is evolving as more merchants and consumers begin to accept payment through smartphones and tablets. The end of 2013 saw a number of acquisitions and new players shape the market, and all the signs are pointing to 2014 as the year in which MPOS goes mainstream.

Indeed, 2014 should be a defining year for MPOS. Data contained  in the most recent MPOS Tracker as an indication that the major players are moving seriously to capture market share, educate merchants on the benefits of MPOS and work to make interaction with the systems simpler for consumers.

Existing companies bringing out new platform enhancement, new players popping in, partnership made it was more active, and it’s been very active in the past. This technology is going in the market, and where this industry is headed is upmarket and globalization. In order for each of these things to happen, it’s much more about the application programming interfaces and the platform that enables than the actual app itself.

A critical trend this year is global expansion outside of the U.S. This growth will help promote MPOS and push it into the mainstream as a vehicle for payment.

More adoption  happening as major retailers start to integrate MPOS into their existing systems. Over time, consumers will start to use their mobile devices to make payments more frequently.

In the past, most of the activity has been in the small and midsize business space in the U.S. A lot of the use cases were niche markets, as this technology moves up to major retailers, it will become more visible to consumers that it’s not just a niche application, but it’s a regular, day-to-date encounter for them to run into MPOS.

As for the future, the signs point to continued growth both in terms of new players appearing and in market consolidation among the smaller players. However, some will have a tougher time than others as new MPOS companies seek both market share and relevance in the wider ecosystem.

Posted in Best Practices for Merchants, Credit card Processing, Credit Card Reader Terminal, e-commerce & m-commerce, Electronic Payments, Internet Payment Gateway, Merchant Services Account, Mobile Payments, Mobile Point of Sale, Point of Sale, Small Business Improvement, Smartphone, Visa MasterCard American Express Tagged with: accept payment, app, application programming interfaces, integrate mpos, major retailers, make payments, Merchant's, Mobile Devices, mobile point of sale, MPOS, platform, Smartphones, tablets

Mobile Payment Solutions

A solution for mobile commerce will be needed eventually, whether you’re an ecommerce merchant or you run a brick-and-mortar shop.

There are mobile payment platforms for digital wallets, smartphone apps with card-reader attachments, and services that provide alternative billing options. Here is a list of mobile payment solutions.

Boku enables your customers to charge their purchases directly to their mobile bill using just their mobile number. No credit card information, bank accounts or registration required. The Boku payment option can be added to a website, mobile site, or app. Price: Contact Boku for pricing.

Intuit GoPayment  is a mobile credit card processing app from Intuit. It accepts all credit cards and can record cash or check payments. Intuit GoPayment transactions sync with QuickBooks and Intuit point-of-sale products. Intuit GoPayment works with iOS and Android devices and provides a free reader. Price: $12.95 per month and 1.75 percent per swipe, or 2.75 percent per swipe and 3.75 per keyed transaction.

iPayment MobilePay is a mobile payment solution from Flagship Merchant Services and ROAMpay. The service accepts all major cards and can record cash transactions. To help build your customer database, the app completes customer address fields for published landlines. The app can handle taxes, tips, and can record transactions offline. You can use the service month-to-month. The app and the reader are free. Price: $7.95 per month; Each transaction costs $0.19 plus a swipe fee maximum of 1.58 percent, or a key fee between 1.36 and 2.56 percent.

ISIS mobile commerce platform enables brick-and-mortar stores to collect payments (via an NFC terminal) from the mobile devices of their customers. Provide your customers with a simplified checkout process through the contactless transmission of payments, offers, and loyalty integrated in one simple tap. Price: Isis does not charge for payment transactions in the Isis Mobile Wallet. Payment transaction fees will not be increased by working with Isis.

LevelUp is mobile payment system that uses QR codes on smartphones to process transactions. Use LevelUp with a scanner through your POS system, or use a standalone scanner with a mobile device. You can also enter the transaction through the LevelUp Merchant App, using your smartphone’s camera to read the customer’s QR Code and entering the amount to complete the transaction. LevelUp also provides tools to utilize customer data. Price: LevelUp charges a 2 percent per transaction fee. Scanner is $50; tablet is $200.

MCX is a mobile application in development by a group of large retail merchants. Details on the solution are vague, but MCX is intended to offer a customizable platform that will be available through virtually any smartphone. MCX’s owner-members include a list of merchants in the big-box, convenience, drug, fuel, grocery, quick- and full-service dining, specialty-retail, and travel categories. Price: To be determined.

mPowa is a mobile payment app to process credit and debit card transactions, and record cash and check sales. mPowa will soon launch its PowaPIN chip and PIN reader for the EMV (“Europay, MasterCard, and Visa”) card standard. (Developed in Europe, EMV utilizes a chip embedded in a credit card, rather than a magnetic strip.) The EMV standard is likely to gain footing to combat credit card fraud. mPowa is a good solution for merchants with a global presence. Price: 2.95 percent per transactions, or .25 percent or $0.40 per transaction when used as a current processor’s point-of-sale system.

PayAnywhere is a solution to accept payments from your smartphone or tablet with a reader. It features an automatic tax calculation based on your current location, discounts and tips, inventories with product images and data, and more. Bilingual for English and Spanish users. PayAnywhere provides a free credit card reader and free app, available for iOS and Android. Price: 2.69 percent per swipe, 3.49 percent plus $0.19 per keyed transaction.

PayPal Here gives you a variety of options for accepting payments, including credit cards, PayPal, check, record cash payments, or invoice. With PayPal Here, you can itemize sales totals, calculate tax, offer discounts, accept tips, and manage payment email notifications. Available for iOS and Android. The app and reader are free. Price: 2.75 percent per swipe and 3.5 percent plus $0.15 per manually-entered transaction.

Square is a simple approach to mobile credit card processing. Square provides a free point of sale app and a free credit card reader for iPhones and iPads. Square offers a selection of tools to track sales, taxes, top-purchasing customers, and more. Square’s pricing is on the higher end, but with no monthly fee Square may be a good fit if you have infrequent mobile transactions. Price: 2.75 percent per swipe and 3.5 percent plus $0.15 per manually-entered transaction.

 

 

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Ecommerce vs. Commerce: What’s the Difference?

When someone asks what business you are in, how do you typically respond?

For many online sellers, the answer is likely I sell (name of the product), I’m an ecommerce merchant or I’m an online retailer.

Make the focus of your business your customers and its value proposition, not the fact that you sell online. It’s time to simply answer the question of what business you are in with a response that is more or less, “I am a (distributor, retailer, reseller) of (name your products) for (name your market).”

Back then, most business owners who sold products online described themselves as “ecommerce businesses” or “online retailers,” to differentiate from brick-and-mortar or catalog retailers. Most operated their own pure-play online stores. Some sold products on eBay. Amazon’s marketplace was mostly comprised of larger retailers. There’s an evolution in how e-commerce owners describe themselves.

Today, you will still hear many online sellers describe themselves as “ecommerce businesses” or “online retailers.” But, in 2014, those terms don’t really apply. Whatever you sell, you are delivering a set of products to meet the needs of a specific market. “Ecommerce” or “online retailing” is simply a technology and a sales channel.

There is now no difference between “ecommerce” and “commerce.” It’s time to get rid of the “e” in ecommerce. Most businesses participate in ecommerce in some fashion. You engage your customers in many different channels — your own e-commerce site, brick-and-mortar, online marketplaces. Regardless, you and virtually every other B-to-C or B-to-B company are selling goods to customers across those channels.

Why Worry about Labels?

Today, commerce is multichannel and highly competitive. It’s done online, on the phone, face-to-face, and on desktop, mobile, and tablet devices. Make sure your business has an omnichannel strategy, so your shoppers can find you. Make sure the information about your company and products is consistent regardless of the channel. Focus on whom your prospective customers are, what they want to buy, and how much they are willing to pay.

Business owners should think strategically. Part of strategic thinking is focusing on the bigger picture, such as having the right products and ensuring that your buyers can find them.

 Omnichannel Focus

Think about omnichannel commerce every day. Get your brand and products in front of your target customers regardless of where they are shopping. Below are some things to consider to facilitate an omnichannel strategy.

Chat and phone. If you don’t offer online chat or take phone orders, consider doing so.

Marketplaces. If you aren’t selling your products in marketplaces outside of your own online store, consider doing so.

Mobile. If you don’t have a mobile strategy, you need one.

Payment options. If you only take credit cards for payments on your website, add alternative payments like PayPal, Google Wallet, or Amazon Payments.

Social media. If you don’t have a social media presence, your market share is likely declining.

Customer Focus

Twenty-five years ago, if you asked a brick-and-mortar retailer or a catalog vendor what business she was in, she would likely respond as, say, “jewelry retailer,” “men’s clothing store,” “a department store,” or “hardware store.” She knew her target customer niche, how to reach them, and what products they wanted to buy. Those businesses that did the best job of (a) matching products to the consumer, (b) offering low prices, and (c) utilizing the right distribution likely won most of the business.

It’s time to get back to that focus. It’s more challenging than it used to be because the purchase cycles are far more complex than in 2002. There is no longer a straight path from identifying the need to research to purchase. Consumers typically identify a need and purchase intent, research products, research prices, research products further, conduct social media research, and then purchase a product and demand instant gratification and free shipping.

To be successful in 2014, commerce – not just ecommerce – requires the following.

Emphasize your value proposition. Regardless of how a shopper finds you, be sure he can quickly find out that you are a leading retailer of products in your market. Being clear on what your business is will also help establish trust with your shoppers.

Execute the 4 Ps of sales and marketing – “product,” “price,” “promotion,” and “place.”

First, make sure you know your target customers and what problems they are trying to solve or the need that you fulfill with your products. Know their demographics, their buying cycles, price tolerance, and where they research and shop.

Know your competitors.

Posted in Credit card Processing, Digital Wallet Privacy, e-commerce & m-commerce, Electronic Payments, Internet Payment Gateway, Mail Order Telephone Order, Mobile Payments, Small Business Improvement, Smartphone Tagged with: alternative payments, Amazon, brick and mortar, catalog retailers, catalog vendor, commerce, credit cards for payments, e-commerce site, ebay, ecommerce, ecommerce merchant, mobile and tablet devices, omnichannel, omnichannel commerce, online retailer, online sellers, online stores, phone orders, sales channel, sell online