May 30th, 2014 by Elma Jane
Southwest Airlines is now accepting mobile boarding passes at 28 total U.S. airport locations, its newest convenience feature that enables fliers to pass security and board an aircraft simply by waving their mobile device.
Following a tiered rollout from last year, the paperless boarding system requires minimal user action. Passengers check in via the Southwest mobile site or branded app and choose to view their boarding pass. The image will open in a new browser and can be saved to a device’s photo gallery upon request.
Mobile apps are critical touch points in the customer journey. Native and hybrid apps are continuing to dramatically increase the ability to deploy and optimize digital strategy. If you’re customizing the experience on mobile Web only, you’re missing a huge opportunity.
Long awaited arrival
New airline initiatives are offering a level of customer service that has never before been possible, and is transforming the experience of traveling to create a new barometer on which carriers will be judged.
Southwest offers two ways to attain an e-boarding pass: have one sent directly to a mobile device though electronic mail or text message when checking in online, or use the airline’s app to check in and have the pass appear with the option to save a replica to the photo gallery. When ready for boarding, passengers present their screen at both security checkpoints and gate entrance to be scanned by staff. In addition to mobile boarding pass support, the app also now includes upcoming trip cards that display flight information such as boarding position, gate location and access to flight tools such mobile check-in from the home screen.
IT takes flight
An industry wide Airline IT Trends Survey shows that more than 90 percent of airlines are increasing their investment in mobile capabilities to ease the hassles of getting through the airport and improve the in-flight experience. American, Delta, Continental and United are the biggest adopters of e-boarding support, offering the service from at least 75 airports. Mobile boarding passes are the preferred method for frequent fliers, as business execs and the like are constantly engaged with their handhelds. Paper passes also become more likely to be lost or wrinkled.
Another advantage of the electronic offering is that some travelers may not have access to a printer, and so a mobile boarding pass relieves the frustration of waiting on line at a kiosk. Of course there are also obvious drawbacks that may hinder the proposed convenience factor, one being that a mobile device may malfunction or run out of battery, resulting in a delayed trip or even a missed flight.
Mobile passes may also present a challenge if multiple people are traveling under one reservation. U.S. Airways and Continental restrict the service to one person per reservation. Other airliners allow each group member to check in line and have a separate pass sent to appropriate phones. While certain cons defeat the purpose of going mobile for efficiency reasons, the benefits offer peace of mind as airline carriers continue to improve the technology.
The option helps deliver more personalized and relevant experiences to on-the-go consumers leveraging a unified customer profile to collect, own and act on data not only on mobile apps, but also across kiosks and other platforms. This approach to mobile apps uniquely sets marketers free in terms of customization and delivery of the experience, and has delivered great results.
Posted in Smartphone Tagged with: airline carriers, airports, American, app, boarding pass, cards, carriers, consumers, Continental, customer service, data, Delta, digital, e-boarding pass, electronic mail, hybrid apps, mobile, Mobile Apps, mobile boarding, mobile device, Mobile passes, mobile site, mobile Web, phones, platforms, Security, technology, tools, U.S. Airways and Continental
May 29th, 2014 by Elma Jane
A point-of-sale facial recognition system that uses NFC to help combat card fraud has been created during a recent company hack-a-thon, together with a group of engineers and designers from Logic PD. Hackathon was an opportunity for experts to explore the possibilities of useful solutions to today’s challenges, with the recent significant breaches in security at leading retailers, the need for this type of solution is particularly meaningful.
The solution, is a multi-modal security platform for card purchases, uses NFC authentication combined with camera imaging to protect users. When users make a mobile payment at the point of sale, the kiosk snaps a picture of the purchaser. This image can be incorporated via the cloud into the user’s digital transactional record, which was stored and distributed via SeeControl in this example, allowing users to identify who made each purchase, and easily identify those that are fraudulent even before banks and financial institutions.
Posted in Credit Card Security, Mobile Payments, Mobile Point of Sale, Point of Sale, Smartphone Tagged with: banks, breaches, card, card fraud, card purchases, cloud, digital, facial recognition system, financial institutions, mobile payment, nfc, NFC authentication, platform, point of sale, retailers, Security, security platform
May 15th, 2014 by Elma Jane
Looking to buy a new business phone? Wait!!! A slew of hot new smartphones are set to launch in the coming months, 2014 has already seen its share of major releases. This spring, HTC unveiled the new HTC One M8, which packs a slick all-metal body and Samsung debuted the featured-packed Galaxy S5. Nokia also released the Lumia Icon, its new flagship Windows Phone. But some of the year’s biggest releases are still to come, including a new version of Apple’s iPhone and a follow-up to Samsung’s stylus-equipped Galaxy Note 3. Meanwhile, a new Android phone from startup OnePlus could make a splash.
Galaxy Note 4
Samsung is expected to launch a follow-up to the Galaxy Note 3 this fall, one of the best business phones ever made, thanks in part to the included S Pen stylus, which slides out from a slot on the phone’s chassis and turns the device into a note-taking machine. The phablet also boasts a stunning 5.7-inch display that’s big enough for real productivity tasks. Samsung hasn’t officially confirmed any details about the Note 3’s successor, but there are a few safe bets. For starters, fans can expect the line’s trademark stylus to return for the Galaxy Note 4. Its display meanwhile, should rival the Samsung’s newer Galaxy S5 in terms of brightness and picture quality. Finally, considering Samsung packed a fingerprint reader into the S5’s home button, it’s likely the company will do the same for the Note 4. A fingerprint reader can make your business phone more secure, since only you can unlock the device with a quick swipe of your finger.
iPhone 6
Apple’s iPhone 5s is a great phone, but its compact 4-inch display could be too small for some people. Reports indicate that Apple might deliver a much bigger device in the iPhone 6, which is expected to debut this fall in 4.7-inch and 5.5-inch variants. That’s a big deal for business users who depend on their smartphone to stay productive but prefer a larger display. Both models are also rumored to include a blazing-fast A8 processor, an upgrade over the speedy 64-bit A7 chip found in the iPhone 5s. The iPhone 6 is also expected to include the same fingerprint reader that debuted with the iPhone 5s. The reader is embedded in the phone’s home button, and lets you unlock the device simply by placing your finger on the button. And of course, the iPhone is the only smartphone that gives you access to Apple’s App Store, which features the biggest and arguably the best, library of business and productivity apps on any platform.
LG G3
LG is preparing to unveil a successor to its flagship phone, the LG G2 this spring. The so-called LG G3 could be one of the year’s most noteworthy business phones if it retains the G2’s superlong battery life. The phone ran for up to 11 hours in tests that involved continuous Web browsing, making it one of the longest-lasting smartphones ever made. In addition to longevity, the G2 boasts a snappy quad-core processor, a roomy 5.2-inch display and a handy multitasking feature called QSlide, which lets you run a second app in a floating window over your main app. That’s a plus for business users who need to juggle tasks such as responding to email while conducting research in a Web browser. LG hasn’t yet announced which features will get an upgrade for the LG G3, but fans won’t have to wait long to find out. The company is expected to show the device off at a special press event on May 27, though it’s not yet known when the phone will hit store shelves.
Lumia 635
Windows Phone fans saw the release of a new flagship device in the Nokia Lumia Icon this spring. Now, Nokia is following that up with the Lumia 635. A new midrange Windows Phone with a lower price point, that could make it worth a look for budget-minded business users, especially since the device runs on Windows Phone 8.1, a new version of Microsoft’s mobile operating system. One of the phone’s standout features is Cortana, a voice-activated personal digital assistant that can notify you of upcoming appointments, flight information, weather alerts and more. Also, new in Windows Phone 8.1 is the Action Center, which is similar to the notification hub found on both the Android and iOS operating systems. Just swipe down from the top of your phone’s display to view all of your alerts at a glance, and like every Windows Phone device. The Lumia 635 is fully integrated with the desktop version of Microsoft Office.
OnePlus One
The OnePlusOne set to launch this June, is a powerful new business phone with a unique set of features. The 5.5-inch Android device packs a huge display, a top-tier processor and a high-capacity battery. The phone also adds features you won’t find in many flagship phones, such as always-on voice commands. So instead of fiddling with menus and touch-screen controls, you can set an alarm, place an appointment in your calendar or access turn-by-turn directions by uttering a few words – even when the display is off. The OnePlus One also offers a few notable security features you won’t find in most other smartphones. For instance, the phone’s Privacy Guard setting lets you block individual apps from accessing personal information stored on your device. The OnePlus One also ships with built-in encryption for SMS text messages to ensure your private business communications remain private.
Posted in Smartphone Tagged with: Android, Android and iOS operating systems, Android device, Android phone, App Store, Apple's iPhone, Apple's iPhone 5s, chip, Cortana, desktop, device, digital, email, encryption, fingerprint reader, flagship phones, Galaxy Note 3, Galaxy Note 4, Galaxy S5, high-capacity, HTC, HTC One M8, hub, integrated, iOS, iPhone 6, LG G2, LG G3, Lumia 635, Microsoft, Microsoft Office, Microsoft's mobile operating system, mobile, Nokia, Nokia Lumia Icon, OnePlusOne, operating systems, phablet, phones, platform, Privacy Guard, processor, QSlide, S Pen stylus, Samsung, Security, slot, Smartphones, sms, stylus, swipe, top-tier processor, touch-screen controls, voice commands, web, Web browsing, windows, windows phone, Windows Phone 8.1
April 11th, 2014 by Elma Jane
Of the 17 percent of consumers who reported having had their credit card declined during a card-not-present (CNP) transactions. As many as one-third of those declines were unnecessary. The result is consumer aggravation, increased operational costs for banks and credit card companies and as much as $40 billion in lost revenue for online retailers.
TrustInsight which helps establish trusted relationships between financial institutions, merchants and online consumers conducted study. A report and infographic detailing the findings of the study found that avoidable online credit card declines lead to loss of trust for consumers, sales for merchants and increased operational costs for credit card companies and issuing banks.
Study also revealed that consumers handle credit card declines in a variety of ways all of which carried negative economic impact to at least one party in the transaction, resulting in unnecessary operating costs for banks, decreased loyalty for the credit card company and lost revenue for all. Almost half call their issuer immediately when their card is unexpectedly declined. This is a natural response. 34 percent of consumers try again another credit card, other use a different payment method and 24 percent will skip the purchase altogether or shop at a different online retailer.
No one wants to turn away business, and no one wants their business declined. The frustration and impact of wrongful declines is a real problem especially as more and more transactions occur in non-face-to-face situations.
Impact of consumer action in the face of a decline can have real and measurable effects on all parties, including credit card companies, banks and merchants manifesting itself in lost customer loyalty, lost fees and lost revenues. Creating a standard for online trust that enables credit card companies, merchants and issuing banks to better recognize trusted digital consumers and reduce the number of wrongly declined consumers avoiding unnecessary losses.
In a world where people are increasingly reliant on a variety of Internet-connected devices for everything from banking to shopping to entertainment and media, creating friction-free customer experiences and preventing online fraud are constant business challenges.
Posted in Best Practices for Merchants, Credit card Processing, Credit Card Security, Electronic Payments, Financial Services, Gift & Loyalty Card Processing, Merchant Services Account, Small Business Improvement, Visa MasterCard American Express Tagged with: banking, consumers, credit-card, decline, declined, declines, different payment method, digital, digital consumers, financial, frustrate, internet-connected devices, issuing banks, loyalty, Merchant's, online credit card declines, online fraud, online retailers, shopping, transactions, wrongful declines, wrongly declined
February 14th, 2014 by Elma Jane
News from Target, increasing the number of cards compromised to 70 million and the expansion of data loss to mailing and email addresses, phone numbers and names, affirms that we are in a security crisis.
Card data is from a brand and business perspective, the new radioactive material. Add personally identifiable information (PII) to the list of toxic isotopes.
The depressing vulnerabilities these breaches reveal are a result of skilled hackers, the Internet’s lack of inherent security, inadequate protections through misapplied tools or their outright absence. Security is very very hard when it comes to playing defense.
There is a set of new technologies that could, in a combination produce a defense in depth that we have not enjoyed for some time.
Looking at the Age of Context (ACTs)
Age of Context released, a book based on the hundreds of interviews conducted with tech start-up and established company leaders. A wide-ranging survey. They examine what happens when our location and to whom we are connected are combined with the histories of where and when we shop. Result is a very clear picture of our needs, wants and even what we may do next.
Combining the smartphone and the cloud, five Age of Context technologies ACTs, will change how we live, interact, market, sell and navigate through our daily and transactional lives. The five technologies are:
1. Big Data. Ocean of data generated from mobile streams and our online activity, can be examined to develop rich behavioral data sets. This data enables merchants to mold individually targeted marketing messages or to let financial institutions improve risk management at an individual level.
2. Geolocation. Nearly every cell phone is equipped with GPS. Mobile network operators and an array of service providers can now take that data to predict travel patterns, improve advertising efficiency and more.
3. Mobile Devices and Communications. These are aggregation points for cloud-based services, sending to the cloud torrents of very specific data.
4. Sensors. Smartphones, wearables (think Fitbits, smart watches and Google Glass) and other devices are armed with accelerometers, cameras, fingerprint readers and other sensors. Sensors enable highly granular contextual placement. A merchant could know not only which building we are at and the checkout line we are standing in but even which stack of jeans we are perusing.
5. Social. Social networks map the relationships between people and the groups they belong to, becoming powerful predictors of behavior, affiliations, likes, dislikes and even health. Their role in risk assessment is already growing.
The many combinations and intersections of these technologies are raising expectations and concerns over what is to come. Everyone has a stake in the outcome: consumers, retailers, major CPG brands, watchdog organizations, regulators, politicians and the likes of Google, Apple, Microsoft, Amazon, eBay / PayPal and the entire payments industry.
We are at the beginning of the process. We should have misgivings about this and as an industry, individuals and as a society, we need to do better with respect to privacy and certainly with respect to relevance.
Provided we can manage privacy permissions we grant and the occasionally creepy sense that someone knows way too much about us, the intersections of these tools should provide more relevant information and services to us than what we have today. Anyone who has sighed at the sight of yet another web ad for a product long since purchased or completely inappropriate to you understands that personalized commerce has a long way to go. That’s part of what the Age of Context technologies promise to provide.
ACTs in Security
ACTs role in commerce is one albeit essential application. They have the potential to power security services as well, specially authentication and identity-based approaches. We can combine data from two or more of these technologies to generate more accurate and timely risk assessments.
It doesn’t take the use of all five to make improvements. One firm have demonstrated that the correlation of just two data points is useful, it demonstrated that if you can show that a POS transaction took place in the same state as the cardholder’s location then you can improve risk assessment substantially. (based off of triangulated cell phone tower data).
Powerful questions of each technology that ACTs let us ask:
Data – What have I done in the past? Is there a pattern? How does that fit with what I’m doing now?
Geolocation – What building am I in? Is it where the transaction should be? Which direction am I going in or am I running away?
Mobile – Where does device typically operate? How’s the device configured? Is the current profile consistent with the past?
Sensors – Where am I standing? What am I looking at? Is this my typical walking gait? What is my heart rate and temperature?
Social – Am I a real person? Who am I connected to? What is their reputation?
Knowing just a fraction of the answers to these questions places the customer’s transaction origination, the profiles of the devices used to initiate that transaction and the merchant location into a precise context. The result should improve payment security.
More payments security firms are making use of data signals from non-payment sources, going beyond the traditional approach of assessing risk based primarily on payment data. One firm have added social data to improve fraud detection for ecommerce payment risk scoring. Another firm, calling its approach Social Biometrics, evaluates the authenticity of social profiles across multiple social networks including Facebook, Google+, LinkedIn, Twitter and email with the goal of identifying bogus profiles. These tools are of course attractive to ecommerce merchants and others employing social sign on to simplify site registration. That ability to ferret out bogus accounts supports payment fraud detection as well.
This triangulation of information is what creates notion of context. Apply it to security. If you can add the cardholder’s current location based on mobile GPS to the access device’s digital fingerprint to the payment card, to the time of the day when she typically shops, then the risk becomes negligible. Such precise contextual information could pave the way for the retirement of the distinction between card present and card-not-present transactions to generate a card-holder-present status to guide risk decision-making.
Sales First, Then Security
The use of ACT generated and derived signals will be based on the anticipated return for the investment. Merchants and financial institutions are more willing to pay to increase sales than pay for potential cost savings from security services. As a result, the ACTs will impact commerce decision making first-who to display an ad to, who to provide an incentive to.
New Combinations
Behind the scene, the impact of the ACTs on security will be fascinating and important to watch. From a privacy perspective, the use of the ACTs in security should prove less controversial because their application in security serves the individual, merchant and the community.
Determining the optimal mix of these tools will take time. How different are the risks for QR-code initiated transactions vs. a contactless NFC transaction? What’s the right set of tools to apply in that case? What sensor-generated data will prove useful? Is geolocation sufficient? Will we find social relationships to be strong predictor of payment risk or are these more relevant for lending? And what level of data sharing will the user allow-a question that grows in importance as data generation and consumption is shared more broadly and across organizational boundaries. It will be important for providers of security tools to identify the minimum data for the maximum result.
I expect the ACT’s to generate both a proliferation of tools to choose from and a period of intense competition. The ability to smoothly integrate these disparate tools sets will be a competitive differentiator because the difficulty of deployment for many merchants is as important as cost. Similar APIs would be a start.
Getting More from What We Already Have
The relying parties in a transaction – consumers, merchants, banks, suppliers – have acquired their own tools to manage those relationships. Multi-factor authentication is one tool kit. Banks, of course issue payment credentials that represent an account and proxy for the card holder herself at the point of sale or online. Financial institutions at account opening perform know your customer work to assure identity and lower risk.
Those siloed efforts are now entering an era where the federated exchange of this user and transactional data is becoming practical. Firms are building tools and the economic models to leverage these novel combinations of established attributes and ACT generated data.
The ACTs are already impacting the evolution of the payments security market. Payment security incumbents, choose just two from the social side, find themselves in an innovation rich period. Done well, society’s security posture could strengthen.
Posted in Best Practices for Merchants, Credit card Processing, Credit Card Security, e-commerce & m-commerce, Electronic Payments, Internet Payment Gateway, Payment Card Industry PCI Security, Point of Sale, Smartphone, Visa MasterCard American Express Tagged with: big data, breaches, card data, cardholders, checkout lines, commerce, data loss, data sets, digital, ecommerce, geolocation, GPS, inherent security, Merchant's, Mobile Devices, mobile network, online activity, personally identifiable information, pii, POS, Security, security crisis, sensors, smartphone, social networks, transaction, transactional, travel patterns, vulnerabilities
January 13th, 2014 by Elma Jane
Australia & New Zealand Banking Group plans to use voice biometrics for authorizing large-value transfers to external bank accounts via its mobile banking service.
The Australian newspaper said ANZ is still piloting the voice biometrics feature, which would enable its mobile banking customers to make payments of more than A$1,000 ($910 U.S.)… The current limit for external transfers to clients of other banks using its smartphone app. Customers would authorize a higher-value payment by speaking into their smartphones, and ANZ’s IT system would compare their voices to digital voiceprints stored on its server.
The voice biometrics system will likely be launched within the next 12 to 18 months, Phil Chronican, the chief executive of ANZ’s Australia operation, said during a Sydney press conference last week.
Chronican added that ANZ also plans to use voice biometrics for authenticating transactions initiated at its call centers.
ANZ will launch the revamped mobile apps that it has been developing as part of the “Banking on Australia” initiative in the first quarter of 2014.
ANZ’s three-year old GoMoney mobile banking app and its more recent FastPay small business mobile payments service will both be re-released with new navigation and personalization options, iTNews said.
Posted in Credit card Processing, Credit Card Security, Mobile Payments, Smartphone Tagged with: authenticating, authorize, authorizing, biometrics, digital, mobile banking, Mobile Payments, mobile transactions, payments, personalization, smartphone app, transactions
December 30th, 2013 by Elma Jane
Google
With New Debit Card, Google Admits Digital Isn’t Everything
The maker of all things digital is introducing a debit card for accessing Google Wallet accounts. Google is getting physical.
A debit card alone is not a platform, or at least not a new one. In this case, it’s the payments version of comfort food: an everyday, easy-to-use technology to drive greater adoption of the less familiar Wallet platform.
This isn’t a new concept for a digital wallet. PayPal itself has a debit card. The significance for Google is more in its apparent acknowledgment that its business needs to play in the physical world. Earlier this week, the company ramped up its Google Shopping Express service with a partnership with Costco, further expanding its presence in the buying and selling of physical goods. Its self-driving cars are another way the company is reaching beyond digital, though never losing sight of the digital-derived lesson that the real business opportunity is in platforms, not just products.
The MasterCard-branded card is swipe-able at stores, and it can be used to withdraw cash at ATMs, Google said. The company pitched its new plastic in a blog post today as a way to pay for things offline without waiting for the money in your Google Wallet to transfer to a bank account.
This should sound familiar to users of PayPal or any other digital wallet, where the lag time between receiving money and being able to spend it makes such services marginal in the brick-and-mortar world, where most consumer dollars get spent.
That it took Google this long to make such a card available shows just how hard it is for the company to re-imagine itself as expanding beyond digital. For years, Google has supported NFC tap-to-pay technology that lets users of the few phones with such chips use their handsets to pay by Wallet at the few merchants with point-of-sale systems that support NFC. With the release of a debit card, Google seems to be acknowledging that battle is lost for now. In a world Google is trying to remake in its digital-first image, plastic still prevails.
Posted in Digital Wallet Privacy, Mobile Payments, Mobile Point of Sale, Near Field Communication, Point of Sale, Smartphone Tagged with: brick and mortar, costco, debit card, digital, handsets, MasterCard, nfc, payments, PayPal, phones, plastic, platform, point of sale, Tap to Pay, wallet
December 20th, 2013 by Elma Jane
Third-party Cookies vs. Consumer Privacy
Some interesting tools that consumers and businesses should be aware of. As consumers, we will likely see more opportunities to opt out of online activities that collect data about our behaviors. We could also see more tools that allow consumers to provide more accurate information.
The Drive to Personalize
Most every ecommerce merchant uses data to personalize shoppers’ experiences. Some common personalization tactics are:
Present upsell and cross-sell offers.
Online merchants use first-party information from their own databases and cookies to track shopping behaviors. They also purchase third-party databases that help predict behavior and products that will appeal to a specific target shopper. Similar methods have been used with offline direct marketing for years. Online tools like third-party cookies…i.e. cookies left by a domain other than the one a user is visiting…and deep data mining have made the practice easier.
Retarget shoppers who have visited a store but did not make a purchase; Segment and personalize merchandising offers in your online store. Target emails at selected consumers who are more likely to buy a certain product;
When used properly with ad networks and ecommerce personalization and recommendation engines, third-party databases increase conversion rates and average order values. They also increase customer loyalty by providing a better customer experience.
Data Collection
Most of the data is now collected with third-party cookies or other means that consumers have opted into, even if they did not necessarily think of it that way. Every time you agree to a license agreement, for example, it’s likely that you are agreeing to share your data in aggregate and anonymously with third parties. Most companies put that in their agreements to protect themselves in the future, regardless of whether they collect the data now.
If third-party cookies are eventually eliminated, there will likely be some type of replacement system that will provide similar functionality. In fact, there’s already a scarier method of tracking consumer behaviors…using digital fingerprinting techniques that profile your computer.
This technique is virtually impossible to block as other devices can see things like your operating system, browser type, your fonts, screen size and depth, time zone, cookie settings, browser plugins, and http header information. The good news is that the use of fingerprinting is relatively small. But, some observers believe this will be a future alternative to third-party cookies.
Tools for Consumers
Axciom, one of the larger data providers, is now offering a tool at AboutTheData.com that allows consumers to see information that Axciom has collected about them and actually correct it if they choose. The bad news is that you have to provide Axciom with even more information than it already has to view the information it has on file. However, you can also choose to opt out of its databases.
You will need to create a login and answer a series of questions to verify your identity. Once that is done, you can review your data, which is broken into several categories.
You may be surprised by the amount of information Axciom maintains. Realize that this is just one of many databases that have information about you that is used in online and offline applications.
Posted in Digital Wallet Privacy, e-commerce & m-commerce, Electronic Payments Tagged with: anonymously, average, browser, cookies, customer, data, data mining, databases, digital, domain, ecommerce, fingerprinting, identity, license agreement, loyalty, offline, online, operating system, opted, order, privacy, purchase, Rates, shoppers, values
October 22nd, 2013 by Elma Jane
American Express cardmembers can now use their accumulated loyalty points to pay for taxi fares in New York City through a partnership with VeriFone.
The programme will roll out on VeriFone’s in-taxi devices that process more than 200,000 payments a day in more than 7000 cabs throughout NYC.
Leslie Berland, senior vice president, digital partnerships and development at American Express, says: “With this announcement, we’re leveraging our unique technology to bring it to life at the most critical commerce touchpoint – the physical point of sale.”
The integration is currently limited to New York taxis, but it doesn’t take a great stretch of the imagination to see it expanded to include other VeriFone point-of-sale systems.
At the end of the ride, AmEx members who have chosen to pay by card will be given the option to use points for their ride fare, including tip and tolls.
Posted in Credit card Processing, Electronic Payments, Gift & Loyalty Card Processing, Visa MasterCard American Express Tagged with: American Express, amex, card, cardholders, cardmembers, commerce, devices, digital, fares, integration, loyalty, new york, nyc, partnership, payments, point of sale, points, reward, systems, taxi, tip, tolls, touchpoint, verifone
October 18th, 2013 by Elma Jane
All Alerts, All The Time
Will mobile payment apps hail the arrival of mobile interruptions that never let up? Consumers worry that adopting a mobile wallet app will open them up to a barrage of alerts, sounding the alarm every time the local supermarket has toilet paper for half-off. The services can even track your purchases, opening the floodgates for targeted ads. Frequent alerts could be a deal breaker.
Battery Woes
As smartphones gets bigger, badder and more powerful, battery technology is struggling to keep up. That’s a problem if you want to make a call — but it could be an emergency if your smartphone is your wallet, too. Users are already scrambling to find a charging outlet by lunchtime. Soon, failure to recharge might mean you lack the funds to buy lunch in the first place. Meanwhile, credit cards never need a battery boost, and paper money has worked faithfully since well before the invention of the light bulb.
Do I Have The Right Phone?
You’re ready to make a mobile payment — but is your smartphone? Only the most popular new Android and Windows smartphones have NFC support to enable tap-to-pay services, and Apple has decided to forgo NFC altogether with its iPhone handsets. Users of budget smartphones are likewise out of luck. And though smartphones may seem ubiquitous, only a little more than half of U.S. adults have one.
Is It Secure?
Mobile payments open up a whole new frontier for fraudsters — or so cautious consumers worry. In fact, tap-to-pay technology is as secure as swiping a plastic bank card, and cloud services like PayPal Here support two-factor authentication for extra reassurance. Still, consumers worry their personal information could be intercepted during a transaction, and not everyone is convinced that Google can provide the same level of protection as their bank. But hope remains. The survey found about half of the most security-conscious respondents were much more likely to be interested in mobile payment options if they could be promised 100 percent fraud protection.
Limits, Limits, Limits
Even with a glut of mobile payment options, most lack at least one critical feature. Google’s Wallet app lets you stow your payment information in your phone to buy items in brick-and-mortar shops, but its touch-to-pay functionality is limited to Android devices on Sprint and other smaller carriers. Last year, Apple introduced Passbook, a mobile wallet app that lets users store gift card credits, loyalty card information and more on their iPhones — but only a handful of participating businesses support the app. The mobile payment model isn’t just fragmented — it’s fundamentally limited by countless companies competing for an ever-smaller piece of the pie.
Mobile What?
A recent CMB Consumer Pulse survey showed about half of smartphone users have never even heard of mobile payments. And of the 50 percent who have, a meager 8 percent said they’re familiar with the technology. Banks, credit card companies and others hoping to cash in on consumer interest will have to invest in better messaging first.
What Are The Perks?
Credit cards come with alluring perks — signing bonuses, cash back and travel accommodations, to name a few. But mobile payment systems have serious benefits. They can utilize GPS technology to direct you to deals, keep tabs on your bank account to alert you when you’re near your spending limit, and store unlimited receipts straight to the cloud. Businesses profit from mobile wallets, too, which often charge lower fees than credit card companies and encourage return trips by storing digital copies of loyalty cards.
What’s In It For Me?
To convince consumers to abandon trusted payment options for something new, companies must strike an undeniable value proposition. In the late ‘90s, electronic retail giants like Amazon compelled consumers to enter their 16-digit credit card numbers into online portals, opening up a whole new world of convenience with online shopping. But today’s consumers aren’t convinced that mobile wallets are any more convenient than their physical counterparts. Credit and debit cards already offer a speedy, reliable way to pay on the go. And since they’re accepted virtually everywhere, customers can fork over a card without worry or confusion. Convincing people that new technology is worth their time and effort might ultimately be the toughest nut to crack for mobile payment purveyors.
Where’s The Support?
Even the most enthusiastic adopters are out of luck if their favorite shops lack the infrastructure to process mobile payments. Big-box retailers sprang up in the infancy of computer technology, so joining the mobile payment revolution could necessitate updates to check out hardware and software. Mobile payments could be a boon to businesses, but installing the upgrades could be expensive and disruptive — especially when consumer interest remains low.
Which to Pick?
Even curious consumers are confounded by the array of mobile payment options available. Google, Visa, MasterCard and even mobile carriers like Sprint and Verizon are among the heavy hitters on the mobile payment scene, each offering a discrete service with different apps — and different rules. Some rely on Near Field Communication (NFC) technology that lets users simply tap their smartphone against a special reader to pay, while others offer up scannable QR codes. Mobile payments may never take off until one company rises above the rest with a single killer service.
Forget about cash or credit. In 2013, consumers can simply swipe or scan their smartphones at the checkout to pay. A huge array of mobile payment services have sprung up in recent years, urging customers to abandon their plastic credit cards for the “mobile wallet” revolution, but so far, adoption of mobile payment technology has been dismal.
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