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Near Field Communication (NFC) wallets – Market Status

Hello all,

This post will be about NFC wallets and usage for payments at Point Of Sale. Let’s observe announcements made by each of the payment players.

PayPal

Image representing Scott Thompson as depicted ...

Image via CrunchBase

PayPal has announced that NFC wasn’t a focus for them first and as Scott Thompson has put it NFC should have stand for “Not For Commerce”. Playing their own strengths and be present mostly remote payments and have no presence at Point Of Sale, it makes sense for the growing giant to say so. They then came back on their own opinion saying that they would consider NFC and will keep an eye out for any development in that space. Of course for a payment player to say that they would ignore 80% of current payments doesn’t make sense and maybe PayPal has realised that they had to play where  the majority of the payments happened and with the current tools used if they wanted a real share of that huge business.

Square

Square’s model is obviously to re-create the Point Of Sale ecosystem as they are effectively trying to create Point Of Sale out of all mobile phones and other devices. So again it makes perfect sense for them to say they don’t want NFC.

Visa

Visa’s main announcement today was about a trial that they are doing in France with Credit Agricole. For doing so, they have by-past the usual partner that is Telco with having a clever piece of Hardware (phone case in that instance) to allow to introduce the chip close enough to the phone to process payments.

Visa will also launch their eCommerce and mCommerce wallet which will probably have an NFC component to it.

MasterCard

Clearly the biggest and strongest player in that field so far. MasterCard has launched a TON of beta and tests around the world (watch Ann Cairns video) – always playing with all partners when they are relevant (manufacturers, Telcos, Banks, etc)

UK with Barclays and Orange

Latin America with Telefonica

Turkey with Turkcel

MasterCard logo used on cards 1990 to present.

Image via Wikipedia

Dubai with RIM (BlackBerry) and Etisalat

US with Google, Citi and FirstData

Korea with Samsung banks and card issuers

Personally, I think the way to NFC will be to try, fail, iterate and make improvements before winning and I particularly like the approach of MasterCard right now. They play with everyone and the they play offense on a field that no one will monetise for a long time. Well played.

Sincerely,
David Pardo

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The “Offers” offering of payment companies

Hello all,

Couple reflection and a blog post I wanted to write for a long time.

All payment companies are trying to differentiate their product offering and of course a big and nice way to do this amongst consumer is through Marketing and Offers.

Now the game has intensified significantly as everyone thinks of the future potential geo-targeted, demographic , some even say tailored offers that retailers would want to push to their consumers. Some companies are going their own ways and a lot of startup companies have been created in the past couple months to try to fulfil that holy grail. Payment companies are also trying to get in the game and it’s pretty obvious that those 2 types of services will get closer together over time:

CHICAGO, IL - JUNE 02:  The Groupon logo is di...

Image by Getty Images via @daylife

Player number 1 (no special order here): Groupon and Square– Yes you weren’t expected this one but as Groupon may (or may not) do its IPO and get a LOT of cash, some rumors are that the company is in discussions with Square. In effect you could foresee that the “daily deals” that Groupon offers could transform the ecosystem with some clever geo-targeting and use of consumer data they do not have. Imagine utilising the Sales Force of Groupon (around 2000 people worldwide now) to source any kind of deal that would be highly targeted to users to be pushed through notifications and coupons given at Point of Checkout or Point of Sale through Square apps. Cool? It would be an interesting development for sure.

Visa just announced that they partnered, JointVentured and acquired a piece (?!) of Monetise. Monetise is a cool service that offers…well offers as well as an enhanced experience through their apps and APIs – they also offer, mobile services for online banking and a mobile wallet. I am not sure how the 2 latter would be used by Visa as they are building their own solutions but we ll see. Article here.

PayPal is talking a lot of offers and of course at this stage, they haven’t got that much traction as they are missing the big and powerful merchant that can have good offers

Image representing PayPal as depicted in Crunc...

Image via CrunchBase

and the fact that their traditional base of merchants is usually small and don’t have bandwidth to put together the same. That doesn’t stop them from talking about it and I d be surprised if they wouldn’t announce couple exciting developments either as new products imbedded in their Proximity payment products or through partnerships. After all they are part of eBay inc who is the biggest eCommerce site in the world, owns Milo (local based offering only in the US) and RedLaser. Again here, the appetite is here and we know for sure that they ll play in that space but we haven’t seen any product yet. As for the proximity payment announcements, is PayPal getting good at “just producing videos?”

And last but not least, American Express. Now I personally like what I am seeing there. through their wallet launched earlier this year, Serve, they now have the potentially play in many use cases, proximity based payments as well as remote based ones (announced through the new API they are launching)which is not their traditional way of doing business. But more importantly, AMEX is getting close to so many great players in the eCommerce and mCommerce and those strategic alignments will certainly pay back in time. Facebook. Video Games and Digital Goods. What’s next?

Sincerely,

David Pardo

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