September 2nd, 2014 by Elma Jane
While Apple doesn’t talk about future products,latest report that the next iPhone would include mobile-payment capabilities powered by a short-distance wireless technology called near-field communication or NFC. Apple is hosting an event on September 9th, that’s widely expected to be the debut of the next iPhone or iPhones. Mobile payments, or the notion that you can pay for goods and services at the checkout with your smartphone, may finally break into the mainstream if Apple and the iPhone 6 get involved.
Apple’s embrace of mobile payments would represent a watershed moment for how people pay at drugstores, supermarkets or for cabs. The technology and capability to pay with a tap of your mobile device has been around for years, you can tap an NFC-enabled Samsung Galaxy S5 or NFC-enabled credit card at point-of-sale terminals found at many Walgreen drugstores, but awareness and usage remain low. Apple has again the opportunity to transform, disrupt and reshape an entire business sector. It is hard to overestimate what impact Apple could have if it really wants to play in the payments market.
Apple won’t be the first to enter the mobile-payments arena. Google introduced its Google Wallet service in May 2011. The wireless carriers formed their joint venture with the intent to create a platform for mobile payments. Apple tends to stay away from new technologies until it has had a chance to smooth out the kinks. It was two years behind some smartphones in offering an iPhone that could tap into the faster LTE wireless network. NFC was rumored to be included in at least the last two iPhones and could finally make its appearance in the iPhone 6. The technology will be the linchpin to enabling transactions at the checkout.
Struggles
The notion of turning smartphones into true digital wallets including the ability to pay at the register, has been hyped up for years. But so far, it’s been more promise than results. There have been many technical hurdles to making mobile devices an alternative to cash, checks, and credit cards. NFC technology has to be included in both the smartphone and the point-of-sale terminal to work, and it’s been a slow process getting NFC chips into more equipment. NFC has largely been relegated to a feature found on higher-end smartphones such as the Galaxy S5 or the Nexus 5. There’s also confusion on both sides, the merchant and the customer, on how the tech works and why tapping your smartphone on a checkout machine is any faster, better or easier than swiping a card. There’s a chicken-and-egg problem between lack of user adoption and lack of retailer adoption. It’s one reason why even powerhouses such as Google have struggled. Despite a splashy launch of its digital wallet and payment service more than three years ago, Google hasn’t won mainstream acceptance or even awareness for its mobile wallet. Google hasn’t said how many people are using Google Wallet, but a look at its page on the Google Play store lists more than 47,000 reviews giving it an average of a four-star rating.
The Puzzle
Apple has quietly built the foundation to its mobile-payment service in Passbook, an app introduced two years ago in its iOS software and released as a feature with the iPhone 4S. Passbook has so far served as a repository for airline tickets, membership cards, and credit card statements. While it started out with just a handful of compatible apps, Passbook works with apps from Delta, Starbucks, Fandango, The Home Depot, and more. But it could potentially be more powerful. Apple’s already made great inroads with Passbook, it could totally crack open the mobile payments space in the US. Apple could make up a fifth of the share of the mobile-payment transactions in a short few months after the launch. The company also has the credit or debit card information for virtually all of its customers thanks to its iTunes service, so it doesn’t have to go the extra step of asking people to sign up for a new service. That takes away one of the biggest hurdles to adoption. The last piece of the mobile-payments puzzle with the iPhone is the fingerprint recognition sensor Apple added into last year’s iPhone 5S. That sensor will almost certainly make its way to the upcoming iPhone 6. The fingerprint sensor, which Apple obtained through its acquisition of Authentic in 2012, could serve as a quick and secure way of verifying purchases, not just through online purchases, but large transactions made at big-box retailers such as Best Buy. Today, you can use the fingerprint sensor to quickly buy content from Apple’s iTunes, App and iBooks stores.
The bigger win for Apple is the services and features it could add on to a simple transaction, if it’s successful in raising the awareness of a form of payment that has been quietly lingering for years. Google had previously seen mobile payments as the optimal location for targeted advertisements and offers. It’s those services and features that ultimately matter in the end, replacing a simple credit card swipe isn’t that big of a deal.
Posted in Best Practices for Merchants, Mobile Payments, Mobile Point of Sale, Smartphone Tagged with: app, Apple, card, card swipe, cash, checkout machine, checks, chips, credit, credit card swipe, credit-card, customer, debit card, Digital wallets, fingerprint recognition, fingerprint sensor, Galaxy S5, Google Wallet, iOS, Iphone, market, merchant, mobile, mobile device, mobile payment, mobile wallet, Near Field Communication, network, Nexus 5, nfc, payment, payment service, platform, point of sale, products, sensor, services, smartphone, software, statements, swiping card, terminals, transactions, wireless technology
July 22nd, 2014 by Elma Jane
Facebook has begun testing a buy button which lets users purchase products advertised on the social network. Meanwhile, Twitter is also stepping up its commerce game, acquiring payments outfit CardSpring.
Facebook users on desktop or mobile can now click a buy call-to-action button on ads and page posts to purchase a product directly from a business, without leaving the social network. Users can pay with a card that Facebook already has on file or enter new details and save them for future use or have them forgotten. No payment details are shared with advertisers. So far, the system is only being tested with a few small and medium-sized businesses in the US.
Separately, Twitter is also looking to strengthen its commerce credentials, buying CardSpring for an undisclosed fee. CardSpring provides an API designed to make it easy for developers to link digital applications to payment cards. It is expected that CardSpring’s technology will help merchants offer discounts in tweets, with customers entering their card details so that when they make a purchase at a later date, the saving is automatically applied.
Posted in Uncategorized Tagged with: api, card, card details, CardSpring, customers, desktop, digital applications, discounts, link, Merchant's, mobile, network, payment cards, payments, product, purchase, technology, twitter
July 21st, 2014 by Elma Jane
PayPal has begun testing a new loyalty program called PayPal Select that seeks to promote use of the digital-payments network by offering more rewards for its most active members. The program launched by invitation only based on users’ history on PayPal and follows by about 18 months the cancellation PayPal’s previous loyalty program, PayPal Advantage. As PayPal looks to continue to build its volume of use on mobile devices off of eBay, driving repeat use and loyalty will be key. The challenges for the offer part will be the same as any other deal/offer program – namely the quality of the offers and inbox-offer fatigue. Like any big-screen concept that gets downscaled onto mobile, there is the challenge of how to hook people in the first couple of screens. CreditCall is not involved with PayPal Select. The payment platform is a division of San Jose, CA-based online auction giant eBay. It offers both a mobile app and an m-dot site for mobile payments.
Posted in Mobile Payments, Smartphone Tagged with: CreditCall, digital-payments network, ebay, loyalty program, m-dot site, mobile, mobile app, Mobile Devices, Mobile Payments, PayPal, PayPal Advantage, PayPal Select, rewards
July 15th, 2014 by Elma Jane
Businesses only stand to benefit by making themselves accessible via mobile devices. With a mobile website or mobile app, businesses can boost sales, retain loyal customers and expand their reach. The question is, which type of mobile presence is best for your business Or should you have both? Both mobile websites and mobile apps let customers find and access your business from devices they use the most, but a mobile website and mobile app are not the same thing. To help you decide, check out the differences between the two and how they can benefit your business.
Mobile App – is a smartphone or tablet application. Unlike a mobile website, a mobile app must be downloaded and installed, typically from an app marketplace, such as the Apple App Store or Android’s Google Play store.
Mobile Website – is designed specifically for the smaller screens and touch-screen capabilities of smartphones and tablets. It can be accessed using any mobile devices Web browser, like Safari on iOS and Chrome on Android. Users simply type in the URL or click on a link to your website, and the website automatically detects the mobile device and redirects the viewer to the mobile version of your website.
Mobile website’s benefits
The primary benefit of a mobile website is that it makes regular websites more accessible for mobile users. It can have all the same elements as the regular version of the website, such as its look and feel, pages, images and other content, but it features a mobile-friendly layout that offers improved readability and functionality when viewed on a smartphone or tablet. By having a mobile website, customers can access your website anytime, anywhere using any device, without compromising the user experience.
Mobile app’s benefits
Although a mobile app functions a lot like a mobile website, a mobile app gives businesses the advantage of having their own corner on a customer’s device, because users have to download and install the app, businesses have more control over their presence on a device than they would with a mobile website. For instance, a mobile app can be closed or inactive, but still work in the background to send geo-targeted push notifications and gather data about customer’s preferences and behaviors. Moreover, mobile apps make it easy to deploy loyalty programs and use mobile payments using a single platform. It’s also much easier to access a mobile app than a mobile website all it takes is one tap, versus having to open a Web browser then type in a URL.
Mobile website and Mobile app features
Although mobile websites and mobile apps aren’t the same thing, they generally offer the same features that can help grow your business by making it easier for customers to find and reach you.
Features include the following:
Click-to-map: Users can use their devices’ GPS to locate your business and instantly get directions, without having to manually input your address.
Mobile commerce: Take your online store mobile with e-commerce-capable mobile websites and apps, such as with Buy Now buttons and mobile carts.
One-click calling: Users can call your business simply by tapping on your phone number from your website or app.
Social sharing: This feature integrates social media apps and websites to enable users to easily share content with friends and followers.
Mobile marketing: This lets users sign up for marketing lists and loyalty programs while enabling businesses to easily launch location-based text-message marketing and email marketing campaigns.
How to build a mobile app
Just like the options available for building a mobile website, businesses can either hire an app developer to build a mobile app or take the budget-friendly DIY mobile app maker route.
How to build a mobile website
To build a mobile website, one option is to hire a mobile Web developer to create one from scratch or convert an existing website into a mobile-friendly one. A more affordable option is to build one yourself with a free DIY mobile website builder, which uses a drag-and-drop platform that doesn’t require programming or Web design skills.
Posted in Uncategorized Tagged with: Android's Google Play, Apple App, Chrome, customers, data, devices, e-commerce, email marketing, GPS, iOS, mobile, mobile app, mobile carts, Mobile Devices, mobile website, platform, programs, Safari, smartphone, tablet, URL, Web browser
July 14th, 2014 by Elma Jane
French financial services company LCL has introduced a service that securely issues payment card PIN codes to customers via SMS texting. The programme has been introduced initially for cardholders who forget their confidential code when out shopping or withdrawing cash. In a second phase, the bank intends to extend PIN issuance to coincide with the mail-out of newly-created cards.
LCL is using Gemalto’s Netsize platform, which offers direct connections to more than 160 mobile operators globally for message delivery. LCL recognizes the mobile channel as a new opportunity to support their continued drive to optimize card activation rates and be the top-of-wallet choice for payment. Enabling cardholders to get their PIN code on their mobile phone prompts them to start using their banking card as soon as they receive it.
Posted in Best Practices for Merchants, Mobile Payments, Smartphone Tagged with: bank, card, cardholders, codes, customers, mobile, mobile channel, payment, PIN, Rates, sms, wallet
June 12th, 2014 by Elma Jane
QR: The Bridge to the Modern World
Involvement devices have come a long way from the time of Clearinghouse mailings, where you would peel off a label and stick it onto another page before dropping it back in the mail.
Today, print’s best involvement device is the QR code. It works as a portal or bridge into the mobile online world where the cataloger’s brand lives and breathes in real time. Even better, it can lead the customer from the catalog page to the checkout button on their smartphone within minutes.
The printed catalog delivers rich colors and a personal, tactile experience still not attainable through any mobile device. In many ways, though, it is a vestige of a bygone era, and an expensive one at that. Catalogers know this. Even the U.S. Postal Service also knows this. That’s why the USPS is running a postage discount promotion for the second year in a row this summer to encourage the use of QR codes by direct mailers.
Let’s take a quick look at the way a few catalogers are using QR codes.
Anthropologie
Anthropologie’s marketing strategy is more about selling a lifestyle than selling products. That explains why making it easy for customers to move toward actually buying something doesn’t seem like such a big priority in their catalog. They did not include a QR code anywhere. The closest they came was one line next to the address: For store information, go to www.anthropologie.com. Their 800 number, they do take phone orders is printed only once in tiny type, so having no QR code seems to fit in with their attempts to play hard to get. Marketing critique aside, by not using a QR code on their catalog, they are missing the opportunity to draw customers into closer involvement with their brand, whether or not they intend to make an immediate sale.
Best Practices
With these few examples in mind, it’s time to look at best practices for using QR codes in catalogs, which can be a two-sided equation. There is the technical aspect and the branding/selling aspect. As far as the technical side goes, customers need to use their smartphone to scan the code successfully, and the destination on the other end must be optimized for mobile access. Sometimes the hardest part is organizing the resources required to execute the backend side of things, especially if the goal is to make an immediate sale.
The main thing to consider is that QR codes work as a bridge and that bridge is a smartphone, iPad, or some other tablet with all their usual constraints (screen size, internet connection, quality of camera, QR reader app, user proficiency, etc.). Also, don’t assume that everyone has a QR reader or even knows what a QR code is. Especially in catalogs, where customers have been seeing postal service barcodes for years, people may assume that the pixelated square thing is just something else for the USPS to lose money on. Instead, including a brief call to action to scan the QR code should do the trick.
Crossing the Bridge
Getting customers to scan the QR code is only half the battle. Now you need to make sure they feel it was worth their while to scan. It’s all about the next steps in your customer relationship. If you have an Apple or Android app, then that’s where to send people if you know that you can convert sales successfully on mobile devices. Sending them to your Facebook fan page is an option too, but not a big win if a majority of your customers are already fans.
Special promotions, optimized for mobile access, will certainly earn your QR its keep. If your goal is to inspire a trip to one of your stores, then do what Brookstone does and send customers to a Google map with all store locations within a hundred miles. It’s also possible to send scanners to a dedicated page, again, optimized for mobile where you give them a number of options: Facebook, shop, app, etc.
Delia’s
By appealing to fashion-hungry American teens via retail stores, web, and catalog, Delia’s sold over $220 million in 2011. In the single catalog we looked at, Delia’s had a QR code on its back cover. When scanned, the code points to Delia’s Facebook page. That’s certainly one way to build involvement with the Delia’s brand, but it may not be the best. Delia’s has an Apple app with full e-commerce capabilities, so Delia’s could be missing out on the opportunity to help the customer cut to the chase and get straight to their virtual shopping bag. Still, at least they’re using the code.
King Schools
Unless you’re a pilot in training or know one fairly well, you have probably never heard of King Schools. They offer more than 90 flight training courses, plus all sorts of accessories for pilots-in-training. They have no retail stores, but that’s all the more reason to mention them here, retailers can learn a lot from King Schools about how to use QR codes in their catalogs.
In the one catalog, King used a QR code on the front cover and the back cover. Now, the iPad shows enormous potential for use in general and commercial aviation, so King is smart to use their QR codes to point customers directly toward their mobile apps and offerings. In fact, King Schools uses QR codes on the Take Courses on Your iPad landing page itself.
In most cases it seems counterintuitive to display a QR code on a website for people to scan. After all, they’re already there. It’s a smart use of codes in this case, for two reasons. First, the codes lead the customer directly to the Apple app store, so it actually makes sense to scan the codes even though the customer is already on their website. The customer is now just a few clicks away from buying and installing the app. Second, there is one QR code for their app store in general, and then there are unique codes for individual apps.
Technicalities
The content in a QR code tops out at 4,296 alphanumeric characters, but catalogers only need a fraction of that to get the customer to where they want them. However, even when the character count is down to a few dozen, size does matter, because QR codes with more data embedded in them are more complex visually. This means that even smartphones with the latest and greatest optics will have trouble reading densely populated codes. Make sure the QR code is big enough. Even the simplest codes will frustrate the scanning process if they are too small or if there isn’t enough white space around them. Maybe a QR code isn’t the most photogenic thing in the world, so it’s a good challenge for catalog art directors to incorporate it into the design without shrinking it into oblivion.
More sophisticated catalogers will want to use personalized QR codes. Today, even local printers are likely to have the means to print unique QR codes for each recipient in a mailing. This creates the ability to track scans back to the individual, a marketer’s dream when it comes to one-to-one marketing relationships.
Innovation can get you traction within the social media realm and that’s money in the bank. Whether you’re a major catalog player or using QR for something completely different, always consider getting the marketing and PR people involved to leverage any novelty aspects of the application.
The benefits pile up quickly to those catalogers who take the time to get smart about QR codes. Thick catalog books can be thinned down a bit if QR codes succeed in pulling customers from the page and onto their site or apps, cutting postal costs for the millions of mailings every year. And, even if the cataloger doesn’t go to the extreme of printing unique QR codes, the branding value of offering that connection from the old-style printed piece to the dynamic world of interactive mobile technology makes it well worth the effort.
The ink needed to print a QR code on a major retailer’s catalog might weigh only a fraction of an ounce, but when used right, it’s worth its weight in gold. Too bad the majority of catalogs seem to be squandering the opportunity by underutilizing the code or worse, not including any at all. In a world where an integrated multi-channel approach is a must-have for any retailer to survive, the stakes of leveraging every opportunity for interaction are higher than ever.
Posted in Best Practices for Merchants, Smartphone Tagged with: Android app, Anthropologie, app, Apple, bank, barcodes, Best Practices, Brookstone, clearinghouse, code, commercial aviation, Crossing the Bridge, customer relationship, data, data embedded, Delia’s, e-commerce, Facebook, google, Google map, interactive mobile technology, ipad, King Schools, marketing, mobile, mobile access, mobile device, mobile online, mobile technology, multi-channel, phone, portal, Postal Service, QR code, QR reader, retail stores, scan, scanners, smartphone, social media, tablet, USPS, virtual shopping, web, website
June 5th, 2014 by Elma Jane
The days of salespeople peddling point of sale terminals by simply pulling hardware out of a box are numbered. That model is being replaced by integrated payments from software developers who add payment capabilities to applications that run at the point of sale, in the back office or on mobile devices.
Integrated payments are becoming common in the restaurant industry, where systems are developed to combine payment acceptance with the ability to manage orders, tables and food delivery. As integrated payments become more common, companies working in the payments industry will seek ways to offer marketing analytics. You tie that type of data to the payment mechanism and you can learn more about your business and your customers.
There is a place in the ecosystem for traditional payment acceptance, but today, when a retailer shops for a point of sale terminal or other business solutions, they expect payments to be part of the integrated bundle. Many of these systems are now delivered in a software-as-a-service model or through tablets, making them cost-effective for businesses of any size.
Integrated commerce includes mobile acceptance, offers, coupons and loyalty. It enables a merchant to buy a point of sale system for the physical store, website and mobile environment at the same time. Then the merchant can send out offers and begin running a loyalty program, while accepting NFC transactions all at once. Merchants can also review transactions from all channels directly from their offices to monitor against data breaches. With those integrated services becoming more readily available for merchants, it is not surprising that the topic comes up when executives discuss their company’s goals.
Relationships with merchants through integrated payments tend to be sticky because it is an embedded solution. You tend to get better pricing because it’s not necessarily an acquiring decision but a POS software/hardware decision and acquiring is part of that package. Payments as a service will be an important global product, selling a terminal now means selling data security, warranty and service, and numerous merchant tools.
Posted in Best Practices for Merchants, Credit Card Reader Terminal, Point of Sale Tagged with: breaches, coupons and loyalty, data, data breaches, data security, global product, integrated bundle, Integrated commerce, integrated payments, integrated services, loyalty program, marketing analytics, merchant, merchant tools, mobile, Mobile Devices, NFC transactions, payment, payment mechanism, payments industry, point of sale, POS software/hardware, Security, tablets, terminal, terminals, traditional payment, warranty and service, website and mobile environment
June 3rd, 2014 by Elma Jane
Apple announced new Touch ID API better known among the masses as fingerprint ID, which will allow app developers to use fingerprint authentication for mobile payments and other applications.
This means that in addition to protecting the mobile device itself, the technology can now be used also to secure individual applications on the device against unauthorized use. Customers could potentially use prints from different fingers to control different apps. For instance, right thumbprint for access to the device, left index finger for access to the mobile bank app within the device.
The new feature for third party software developers provides a logical progression for the removal of password protection across a range of applications, including payments.
Financial services providers who offer the convenience of a mobile application for their customers can now also offer said customers an additional layer of security for the information that application holds.
Posted in Credit Card Security, Mobile Payments, Smartphone Tagged with: app, Apple, bank, device, financial services, Financial services providers, fingerprint authentication, fingerprint ID, mobile, mobile application, mobile bank app, Mobile Payments, payments, Security, software, software developers, Touch ID API
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 21st, 2014 by Elma Jane
Mobile credit card processing is way cheaper than traditional point-of-sale (POS) systems. Accepting credit cards using mobile devices is stressful, not to mention a hassle to set up and customers would never dare compromise security by saving or swiping their credit cards on a mobile device. Some of the many myths surrounding mobile payments, which allow merchants to process credit card payments using smartphones and tablets. Merchants process payments using a physical credit card reader attached to a mobile device or by scanning previously stored credit card information from a mobile app, as is the case with mobile wallets. Benefits include convenience, a streamlined POS system and access to a breadth of business opportunities based on collected consumer data. Nevertheless, mobile payments as a whole remains a hotly debated topic among retailers, customers and industry experts alike.
Although mobile payment adoption has been slow, consumers are steadily shifting their preferences as an increasing number of merchants implement mobile payment technologies (made easier and more accessible by major mobile payment players such as Square and PayPal). To stay competitive, it’s more important than ever for small businesses to stay current and understand where mobile payment technology is heading.
If you’re considering adopting mobile payments or are simply curious about the technology, here are mobile payment myths that you may have heard, but are completely untrue.
All rates are conveniently the same. Thanks to the marketing of big players like Square and PayPal – which are not actually credit card processors, but aggregators rates can vary widely and significantly. For instance, consider that the average debit rate is 1.35 percent. Square’s is 2.75 percent and PayPal Here’s is 2.7 percent, so customers will have to pay an additional 1.41 percent and 1.35 percent, respectively, using these two services. Some cards also get charged well over 4 percent, such as foreign rewards cards. These companies profit & mobile customers lose. Always read the fine print.
Credit card information is stored on my mobile device after a transaction. Good mobile developers do not store any critical information on the device. That information should only be transferred through an encrypted, secure handshake between the application and the processor. No information should be stored or left hanging around following the transaction.
I already have a POS system – the hassle isn’t worth it. Mobile payments offer more flexibility to reach the customer than ever before. No longer are sales people tied to a cash register and counters to finish the sale. That flexibility can mean the difference between revenue and a lost sale. Mobile payments also have the latest technology to track sales, log revenue, fight chargebacks, and analyze performance quickly and easily.
If we build it, they will come. Many wallet providers believe that if you simply build a new mobile payment method into the phones, consumers will adopt it as their new wallet. This includes proponents of NFC technology, QR codes, Bluetooth and other technologies, but given very few merchants have the POS systems to accept these new types of technologies, consumers have not adopted. Currently, only 6.6 percent of merchants can accept NFC, and even less for QR codes or BLE technology, hence the extremely slow adoption rate. Simply put, the new solutions are NOT convenient, and do not replace consumers’ existing wallets, not even close.
It raises the risk of fraud. Fraud’s always a concern. However, since data isn’t stored on the device for Square and others, the data is stored on their servers, the risk is lessened. For example, there’s no need for you to fear one of your employees walking out with your tablet and downloading all of your customers’ info from the tablet. There’s also no heightened fraud risk for data loss if a tablet or mobile device is ever sold.
Mobile processing apps are error-free. Data corruption glitches do happen on wireless mobile devices. A merchant using mobile credit card processing apps needs to be more diligent to review their mobile processing transactions. Mobile technology is fantastic when it works.
Mobile wallets are about to happen. They aren’t about to happen, especially in developed markets like the U.S. It took 60 years to put in the banking infrastructure we have today and it will take years for mobile wallets to achieve critical mass here.
Setup is difficult and complicated. Setting up usually just involves downloading the vendor’s app and following the necessary steps to get the hardware and software up and running. The beauty of modern payment solutions is that like most mobile apps, they are built to be user-friendly and intuitive so merchants would have little trouble setting them up. Most mobile payment providers offer customer support as well, so you can always give them a call in the unlikely event that you have trouble setting up the system.
The biggest business opportunity in the mobile payments space is in developed markets. While most investments and activity in the Mobile Point of Sale space take place today in developed markets (North America and Western Europe), the largest opportunity is actually in emerging markets where most merchants are informal and by definition can’t get a merchant account to accept card payments. Credit and debit card penetration is higher in developed markets, but informal merchants account for the majority of payments volume in emerging markets and all those transactions are conducted in cash today.
Wireless devices are unreliable. Reliability is very often brought up as I think many businesses are wary of fully wireless setups. I think this is partly justified, but very easily mitigated, for example with a separate Wi-Fi network solely for point of sale and payments. With the right device, network equipment, software and card processor, reliability shouldn’t be an issue.
Posted in Best Practices for Merchants, Mobile Payments, Mobile Point of Sale, Smartphone Tagged with: (POS) systems, aggregators rates, apps, BLE technology, bluetooth, card, card processor, card reader, cash, cash register, chargebacks, consumer data, credit, credit card payments, credit card processing, credit card processors, credit card reader, credit-card, customer support, data, data loss, debit card, debit rate, device, fraud, fraud risk, hardware, industry experts, merchant account, Merchant's, mobile, mobile app, mobile credit card processing, Mobile Devices, Mobile Payments, mobile point of sale, Mobile processing apps, mobile processing transactions, mobile technology, mobile wallets, network, network equipment, nfc, nfc technology, payment solutions, payment technology, PayPal, phones, point of sale, qr codes, retailers, rewards cards, Security, Smartphones, software, Square, tablet, tablets, vendor's app, wallet providers, Wi-Fi network, wireless mobile, wireless mobile devices
