August 18th, 2014 by Elma Jane
As a small business, you may have ignored Facebook, but it turns out that by not having a presence on Facebook, you could be missing out on a huge business opportunity. The social networking site has a huge influence on what products and services people buy. More specifically, Facebook significantly influences millennial shoppers’ opinions of small businesses, including their decisions to purchase items not just online, but in-store as well. Nearly 60 percent of consumers ages 18 to 29 engage with Facebook ads at least once per week before buying an item in-store from a small business. Additionally, 62 percent believe Facebook is the most useful social media outlet for researching small businesses before visiting a store in person. That’s considerably higher than the 11 percent who feel the same about Twitter and the 12 percent who believe Pinterest is the best site for researching small businesses. Overall, 59 percent of millennial consumers visit the Facebook pages of small businesses at least once a week. To succeed both online and offline small businesses must first understand consumers’ online-to-offline shopping behaviors and invest at least a portion of their digital marketing dollars into the right technology and tools to create precisely targeted, relevant and personalized experiences.
The true value of Facebook, doesn’t lie in simply driving likes and adding new fans. It lies in using personalized content to convert digital hunters into loyal, repeat in-store buyers. The study discovered that by increasing the deals they offer on Facebook, businesses have the potential to make an immediate impact on their bottom line. Nearly 85 percent of the shoppers surveyed said local deals and offers on Facebook are important in their decision to purchase an item in-store. Forty percent of those surveyed said they think Facebook offers that can be redeemed in local stores are most likely to influence their decision to visit the website of a small business. With so many consumers constantly turning to Facebook when making purchasing decisions, business owners especially those in the restaurant, spa/beauty and education industries need to come to terms with the fact that Facebook is a highly important marketing tool that needs to be actively attended to and not just something they check in on every now and then.
Posted in Best Practices for Merchants, Small Business Improvement Tagged with: consumers, digital marketing, Facebook, marketing, marketing tool, millennial consumers, networking, pinterest, products, purchasing, services, shoppers, social media, social networking, twitter, website
August 14th, 2014 by Elma Jane
To make a strong first impression on consumers, businesses need an impactful logo. Despite the importance of a logo, businesses with just a handful of employees often struggle to design a memorable one with their limited budgets. Fifteen percent of small businesses with five employees or less have no logo at all, with 56 percent of businesses having designed their own logos without any professional help.
A standout logo and impressive Web presence are important parts of building a brand even at the very early stages of building a business. The research revealed that more than a quarter of small businesses are planning on changing their logo in the next few months, and when thinking about logo design, it’s best to keep it simple.
Small business owners should choose a design that has staying power, but it’s important to be open to small iterations over time. Brands may need to refresh their logo as the company evolves, expands, and takes on new audiences just don’t lose sight of what makes your brand recognizable whether it’s a signature color or graphical element.
Here are some tips to help small businesses refresh their logo.
Ask your audience. Social media makes it easy to communicate directly with customers. Engage customers in the process by asking for input and even allowing them to judge potential designs.
Communicate the change. To avoid confusion, the refresh should be consistent at every touch point for customers. Ensure a seamless experience by communicating the change with employees and updating marketing materials.
Keep it simple. A complete brand overhaul may alienate customers, so less is more when it comes to a refresh. Focus on one or two elements and make subtle changes.
Posted in Uncategorized Tagged with: business owners, businesses, consumers, customers, marketing, social media
August 8th, 2014 by Elma Jane
Many professionals and business owners go about networking and building business relationships the wrong way. Passing out business cards and blindly pitching things or asking for favors from people you met only once is frustrating, impersonal and ineffective. If you’re guilty of doing just that, it’s time to build a better network of business contacts. One of the biggest mistakes professionals make in business relationships is reaching out to contacts only when they need something. So, how do you build maintain better business relationships?
Check out the following:
Ask for favors the right way
When reaching out to a business connection,it’s important to make it personal. Be sure to tell them why you’re coming to them specifically. For example, a statement like, I understand that you know a lot about this topic, and I was wondering if you can help me, can work well because people like to be recognized for their expertise and knowledge and are more likely to help you if you do so.
Get into a habit
Really successful salespeople train themselves to get in a habit of connecting and contacting people who don’t have an immediate need. Be a really good curator of content. Prioritize people and relationships based on your last date of contact. Social media makes the whole process much easier and quicker, so follow your contacts on Twitter and LinkedIn. A short comment can really go a long way and people appreciate it because it gives them an opportunityto engage.
Give people an out
Beyond telling a business connection what you’re asking for and why you’re specifically reaching out to them, it’s important to offer them an out, too. Giving them that out, rather than implying it, disarms people and gives them comfort. In other words, don’t be overly demanding, and give them a chance to pass the buck to someone else. Pressuring someone to respond or follow through with a favor won’t get you anywhere.
Reciprocate
One of the most frustrating things for sales people is dead silence. In other words, when you reach out to a contact and don’t get a response. This is likely because you don’t have the appropriate request at the appropriate time. Even if you don’t have the time to respond to something or deal with a request right away, make sure you find some way to reciprocate. It’s important that whether you’re a giver or a receiver in a particular instance that you remember what it’s like to be on the other side. Get back to thinking about it regularly, rather than thinking about it when you need something.
Posted in nationaltransaction.com Tagged with: cards, linkedin, networking, social media, twitter
July 24th, 2014 by Elma Jane
You may only think of Instagram as a place to edit and share snapshots of your fancy vegan lunch or your adorable new kitten, but the photo-sharing app can be highly useful when it comes to building your business’s brand. Social media not only Instagram, is an incredible platform for people to use to drive more interest to their business. When it comes to building up your following, having good content is the most important factor. While paid traffic is a useful way to gain traction and drive more interest to your pages, she said that at the end of the day, word-of-mouth is the most beneficial.If you want to have more people inviting their friends to your page, you have to have something that’s worth sharing or talking about. Since content is king on social media, businesses looking to market on Instagram in particular should make sure that their posts are relevant and eye-catching with high-quality photos and videos. Most important tip for Instagram success however, isn’t about what hash tags or filters and photo effects to use. It’s even more straightforward: Social media is just like the rest of your life relationships. People want you to be real, honest and address issues we all have on a day-to-day basis. Instagram is a fairly simple social network to use, because unlike other social networks such as Facebook, Tumblr and Twitter, where text is the focus and no form of multimedia is off-limits, you’re limited to only posting photos or videos (15 seconds or less) with captions. For this reason, maintaining an active Instagram presence may seem almost effortless. However, Insta-fame doesn’t come without issues. The biggest challenge would be trying to help everyone. Obviously, the more interest and followers you gain, the more unique problems and questions you receive. For businesses looking to grow their Instagram pages, just remember. It’s all about quality. Great content, honesty and a personable, likable brand voice are all you really need for Insta-success.
Posted in Uncategorized Tagged with: Facebook, Instagram, multimedia, platform, social media, social network, Tumblr, twitter
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 6th, 2014 by Elma Jane
In business, Your website is often the first place consumers will go to find you. Your site is your chance to make a good first impression on potential leads and bring back existing customers, it’s important to make sure your website keeps its visitors interested and engaged.
Most brands are aware of the need to create an engaging Web presence, but smaller ones typically don’t think they have the time or resources to create a website at all. A trend among smaller business is to create just a Facebook page with no website. This is a great place to start, but to gain “customer trust”, having a website is important. It shows you’re an established company. A company’s website can be its “number 1” driver of business with the right tools and strategies. Building a great website doesn’t have to be expensive or time-consuming.
Optimize your Web presence for maximum customer engagement
Make your website experience match your customer-service experience.Consumers have come to expect the same type of experience with a brand online as they would in-store, enabling features on your website that allow visitors to complete as many interactions as possible for a seamless customer-service experience. These features can include detailed descriptions of each of your products and services, easy-to-access contact and purchase information, and a way for customers to reach you quickly, such as a live-chat function or links to your social media pages.
Personalize your website in ways that make sense for your business.Enhance customers’ experience on your website by customizing it to their needs. Use personalization tactics that make sense for you. Big Data analytics and voluntary surveys can help you send customized offers based on consumers’ past shopping habits and preferred contact methods which can help with sales conversions.
Use social media as a communication tool.The role of social media for businesses has evolved considerably. A way to share and promote content on your website, social media can and should be used as an extension of your customer service. Your website should be the focal point for your brand’s information. If you can get beyond that, social media should be a way to reach out to clients in a cost-effective way. By using Facebook, Twitter and other sites as a line of communication between your brand and your customers, you can drive them to your website in unique ways, such as by sharing a blog post that will help answer a customer’s question.
Posted in Small Business Improvement Tagged with: big data, Big Data analytics, blog, communication tool, consumers, customer service, customers, Data analytics, Facebook, leads, live-chat, products and services, resources, sales conversions, social media, tool, tools, twitter, website
May 30th, 2014 by Elma Jane
The Challenge with Search and Identity
Search engines are working on making their results ever more personalized so that their search results will contain more content directly relevant to you, either based on location, past behavior, or from people you know or are likely to trust. Social media brings a wealth of identity and relationship data to the search engines’ algorithms. A good product can only be built where we understand who’s who and who is related to whom. Relationships are also important alongside content. To build a good product, we have to do all types of processing. But fundamentally, it’s not just about content. It’s about identity, relationships and content. Anything else trivializes a very hard product.
How Social Feeds SEO
By understanding that identity and relationships are important to search engines and therefore to SEO, we can begin to change our marketing behaviors so that we’re positioned to benefit as the tide swells.
But blasting Facebook posts out that link to your site won’t give you an ounce more link authority in the search algorithms. All reputable social networks strip the link authority from the links off to other sites by using 302 redirects or nofollow attributes. So where exactly is the value to organic search?
Indirect link earning – If no one sees your content, regardless of how amazingly awesome it may be, no one can link to it. Social media can be a powerful way to expose masses of customers to engaging content. The more people that see that content and enjoy it, the more likely it is to earn reshares that expose even more people to your messages. Increasing the number of exposures logically increases the number of people who are likely to link to the content on a blog or another site that does pass link authority back to your site.
Performance Data – Social listening data, including sentiment data and topical data, can inform keyword research for search marketing. Naturally, the benefit swings both ways. Keyword data can also inform social media strategy. These two data sources are both windows into customers’ desires, beliefs and needs. To analyze the data in silos makes zero sense.
Personalization – Social relationships also create opportunities for your content to show up in individual customers’ personalized search results. For example, If Alice uses Google+ to +1 an informative tips and tricks page on your site, and Alice is friends with Amy, the next time Amy searches for similar tips content she will likely see that Alice liked your tips and tricks page enough to share it. Your page may display in Amy’s search results purely because Alice shared it, when it wouldn’t have normally been displayed in search results. And the search result will be visually augmented with Alice’s picture and the notation that she shared it. That personalization benefits your ability to rank, your visual appeal to increase click through, and boosts trust based on the relationship between Alice and Amy. Multiply this interaction by 100, 1,000 or 10,000 and you can understand the widespread impact that personalization based on participation in the right social networks can have. For Google search results, the social network that matters most is Google+. Don’t roll your eyes, there are several very good reasons to participate in Google+. Bing has relationships with Facebook and Pinterest, and can use their APIs to adjust various elements of search results pages. The Pinterest integration primarily appears in Bing Image Search. Facebook’s data primarily displays in Bing’s Social Search and social bar to the right of the traditional web search results.
Keep in mind that building identity and relationships, while beneficial to SEO, is not a replacement for SEO. Social media is an amplifier of SEO. The fundamentals of search engine optimization still apply. If the search crawlers can’t access your site or if there’s no textual content on the site to index, there’s nothing to amplify and no signals with which to rank.
Posted in Uncategorized Tagged with: Bing, data, data sources, Facebook, google, keyword, Keyword data, pinterest, sentiment data, SEO, social media, topical data, web search
May 23rd, 2014 by Elma Jane
Before making a purchase, there are several devices that consumers may use to help them make a decision: Use a specific store’s mobile app on their smartphones. Visit the store’s website on a tablet or computer, or just pick up the phone and call customer service to ask a question. Whatever the case, omnichannel is an important buzzword for merchants.
Here are ways to ensure a seamless and secure retail experience to turn browsers into loyal buyers.
Ensure Channels Work Together
Even in historically single-channel retail sectors such as grocery, more than half of customers now use two or more channels before completing a purchase, shown in a recent study. Retailers must therefore offer both traditional and digital channels. However, before investing in the latest mobile-optimized website feature or app, retailers should learn how existing online and physical channels can together enhance the customer experience. What customers value most is not the number of channels offered, but how these channels support each other.
A merchant’s website might encourage visitors to take advantage of a special event in-store, while sales assistants on the floor can use Wi-Fi enabled tablets to access additional product information.
Help Customers Find What They Want
With Internet access ubiquitous, cost-conscious customers are just a click away from being able to compare prices and find special offers. Many take out their smartphone or tablet in stores to compare prices, a trend called Showrooming.
Online retailers can take advantage of this trend by encouraging shoppers to compare prices in-store using a mobile app. In-store retailers, on the other hand, could provide greater value through targeted offers, price match guarantees, expert advice, convenient delivery choices and personalized customer care.
Optimize The Checkout Experience
Businesses must be sure to have a quick, streamlined checkout process once they have converted an online browser into a customer or else they risk facing shopping cart abandonment. This can be done in a few steps:
1. Assess how the checkout experience can be customized for its customers. Keep the mandatory information required from new or first-time online or mobile shoppers to a minimum and shorten the process for returning customers by securely storing their payment details and other personal information.
2. Develop a dedicated mobile app or other innovative functions that can increase long-term satisfaction and loyalty.
3. Test different payment methods to find those that are most convenient for customers. These payment options may include paying with reward points, using a digital wallet or providing a digital offer or coupon at checkout. There is a balance to be found between having additional payment methods to meet customer expectations and choosing methods appropriate to a merchant’s business model.
4. Establish a one-click online checkout process. Chase for example, is currently developing a Chase Wallet and Quick Checkout solution. The Chase Wallet will allow customers to store and access their Chase cards and ultimately, any branded card for a quick checkout. It will also update Chase-branded cards when a customer replaces an existing card and use tokenization to securely process payments with select merchants.
Merchants also face the challenge of ensuring that the online and in-store checkout experience is secure, while at the same time eliminating as many false positives as possible. False positives are a hindrance to any business as they may reduce sales, increase chargebacks and frustrate customers. A quick-checkout solution may help reduce false positives because customer information is automatically populated rather than manually keyed into the checkout page.
Acquirers should also work with online retailers to provide a conditional approval code for a transaction. This code allows the fulfillment process to move forward while authentication is taking place. The additional time for a thorough authentication also helps reduce the number of false positives.
Use Data to Build Loyalty
Customers will likely return to a retailer if product marketing reflects their past purchases or interests. Therefore, taking advantage of data including a customer’s purchasing history, loyalty, behavior or social media interests may help retailers to better understand their customers as well as personalize their shopping experience.
According to a study released in March 2013, Chase Paymentech found that 32 percent of merchants use their payment data to help craft their multi-channel sales strategy and 42 percent use it to improve the online customer experience. In addition, further analysis of payment methods, chargeback rates, fraud rates and authorization rates may improve the customer shopping experience and drive overall profitability.
Posted in Best Practices for Merchants Tagged with: approval code, authentication, branded card, chargebacks, Chase, Chase Wallet, checkout process, computer, customer service, data, digital channels, digital offer, Digital Wallet, In-store retailers, internet access, Merchant's, merchant’s website, mobile app, mobile-optimized website, omnichannel, online retailers, payment, payment data, phone, physical channels, Quick Checkout solution, reward points, shopping cart, Showrooming, single-channel retail, Smartphones, social media, tablet, tokenization, transaction, website, Wi-Fi
May 16th, 2014 by Elma Jane
As much as you’d like to hope that no one will ever be unhappy with your product or service, you’re almost guaranteed to encounter at least a few customers who are less than fully satisfied. Where there are customers, there are complaints.
As consumers increasingly air their grievances about brands on social media, the focus has turned to the way those brands respond to customer complaints, especially in a public forum. Knowing what to do in this situation makes all the difference when it comes to re-earning a customer’s business and what he or she tells others about your company.
Great service is about getting your customers to trust you and count on a consistent experience, but that doesn’t mean you’re always going to be perfect. In a crisis, you can elevate your stature with how well you handle the situation. A negative experience can be the best time to show your value.
Great service has to come from the top. Lower level employees aren’t going to be inspired and motivated unless they see their leader providing exceptional service.
No matter which person on your team is responsible for handling customer relations, it’s imperative that you embody excellent service as the head of the company as well.
If faced with negative customer experience follow these steps to resolve the issue and regain customer’s trust.
Acknowledging the problem – Customer is always right classic customer service cliché. While it may in fact, turn out to be a misunderstanding, the worst thing you can do is dismiss a customer who tells you he or she had a problem with your business.
Apologizing for it – Once you’ve acknowledged the customer’s issue, apologize for it and ask what you can do to help. Gather the facts about the situation and determine a course of action from there.
Taking action – Saying you’re going to fix a problem is one thing, actually doing it is another. Make sure you honor your commitment to take care of the customer’s complaint. If you can’t correct the problem, offer a coupon or voucher as a way to ask the customer for another chance.
Follow up – When you’ve done what you promised to do, follow up with the customer to make sure that your solution was satisfactory.
Posted in Best Practices for Merchants, nationaltransaction.com Tagged with: brands, consumers, coupon, customer relations, customers, forum, product, public forum, service, social media, value, voucher
May 9th, 2014 by Elma Jane
Facebook is apparently ready to become a person-to-person (P2P) money transfer network. The clear decision to launch a money transfer service in the region can be seen as a test bed for Facebook’s larger ambitions of becoming a payments hub for its 1 billion user base. Facebook was only weeks away from gaining regulatory approval in Ireland for its remittance platform FT quoted unnamed sources. Facebook’s P2P platform will be geared to facilitating migrant remittances, with the goal of expanding its payment presence in emerging markets such as India. Facebook makes the bulk of its revenue from advertising, but 10 percent of its profits reportedly come from in-game payments for online and mobile games, such as Zynga’s popular FarmVille.
From WhatsApp to what’s next
Facebook’s February 2014 acquisition of mobile messaging service WhatsApp for $19 billion clarified the social network’s strategy. The WhatsApp acquisition and the expected P2P network launch as part of the first phase of Facebook’s deeper immersion into payments.
Tech giants face up to payments
When comparing the payment strategies of tech giants Google Inc., Apple Inc. and Facebook, the latter two competitors as having bigger potential upsides than Google. Facebook and Apple (via iTunes) already have established financial relationships with millions of users who have attached funding mechanisms – debit and credit cards – to their social media accounts. As primarily a search engine, Google is playing catch up to persuade its users to set up Google Wallet accounts.
In May 2013, Google launched its own P2P network by integrating Google Wallet with Gmail accounts, so that wallet users can facilitate money transfers via email. More recently, reports have surfaced indicating Google plans to extend Google Wallet to its wearable technology solution Google Glass. But the success of such ventures rests on users’ confidence with Google as a financial service provider.
Facebook as having a brighter financial services future than Apple. Apple’s reach is limited to consumers who have iPhones and iPads, whereas Facebook is not tied to any branded mobile devices, it is a very ubiquitous offering. It could apply to anybody with any type of phone or tablet.
Eventually, tech companies like Facebook will need to partner with payment businesses in order to expand into the merchant-centric brick-and-mortar world. The mobile POS solution provider, a business unit of global POS terminal manufacturer Ingenico SA, would be an ideal partner for Facebook. If they extend what they do from P2P payments to more of a wallet purchasing capability for their users, then the next step could very easily be an extension of that into servicing the merchant side.
Posted in Financial Services, Mobile Payments, Smartphone Tagged with: Apple Inc.Facebook, consumers, credit cards, debit, device, financial service, financial service provider, Gmail accounts, Google Glass, Google Inc., Google Wallet accounts, ingenico, iPads, iPhones, iTunes, merchant-centric brick-and-mortar, migrant remittances, mobile, Mobile Devices, mobile games, mobile messaging service, mobile pos, mobile POS solution, mobile POS solution provider, money transfer, money transfer network, money transfer service, network, online, p2p, P2P network, P2P payments, P2P platform, payment businesses, payments, payments hub, phone, POS terminal, remittance, remittance platform, search engine, service provider, social media, social media accounts, social networks, tablet, wearable technology
