BRotD - Entry 0205 Traditional Loyalty Impacted by Digital Era

Best Reading of the Day (BRotD)

It has been my hypothesis that the modern digital world provides opportunities to disrupt the traditional loyalty method, the plastic card loyalty we all seem to use at our local supermarket.  Starbucks is essentially doing it now, and Dunkin' Donuts has followed.  Wal-Mart is putting in place a de facto loyalty without a loyalty through technology.  Publix supermarkets has a strong loyalty program without a card.

Looks like the data is beginning to support my hypothesis, rather than disprove it.

http://www.chainstoreage.com/article/capgemini-report-finds-loyalty-programs-lacking-digital-age

Here is a snippet from that piece:

U.S. companies spend $2 billion on loyalty programs, but the investment isn’t yielding the type of increased engagement which drove implementation of the programs, according to a new report from Capgemini Consulting. For example, the firm found that the average U.S. household is a member of 21 loyalty programs, but only actively uses 44% of them.

The study, “Fixing the Cracks: Reinventing Loyalty Programs for the Digital Age,” finds loyalty program participants dissatisfaction tends to be voiced and amplified via social media. Looking only at the retail industry, 93% of the sentiment expressed on social media was negative, according to Capgemini.

The entire report can be downloaded from Capgemini:

https://www.capgemini-consulting.com/reinventing-loyalty-programs

With the growing personalization capabilities we are seeing develop it may soon be the case that the traditional plastic loyalty card disappears, while the retailer is able to gather more data than ever behind the scenes.

Happy Reading,

J.W. Gant

How to Become Batman for Only $620M

Every once in a while it is important to just have a bit of fun.

Right?

Ever wanted to be Batman, or Superman, or Iron Man, or Wonder Woman, or ... you name the superhero?  Why not.  Well now you can.

http://www.cnet.com/news/you-too-can-become-batman/

Here is a snippet from that piece:

Being the Dark Knight takes a lot more than just suffering through a tragic childhood and a creepy, gravelly voice.

In Break's new tongue-in-cheek video "How to Become Batman," we find out, step-by-step, how to become a beloved superhero without any superpowers whatsoever.

First off, you'll need a lot of dough to be the kind of superhero Gotham deserves. The cost for Bruce Wayne's house, cool car, loyal butler and all his amazing gadgets total approximately $682 million (that's a cool £460 million or AU$875 million).

If you don't have that kind of cash lying around, you can still "embody the spirit of Batman by becoming a real-life superhero," according to the video.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0204 Accenture on Omnichannel and In-Store

Your best reading of the day is captured in two reports from Accenture highlighted in a number of trade websites today.

The real surprise, and why this is the best reading of the day, is the results on the poor in-store experience.  All of that work on mobile and digital must now, it seems, focus on delivering a superior in-store experience.

Here is one write-up on the reports:

http://multichannelmerchant.com/must-reads/just-how-seamless-is-the-omnichannel-experience-25032015/

Here is a snippet from that piece:

In order to win consumer loyalty and achieve growth across all channels, retailers must enhance their mobile commerce offerings and improve the in-store shopping experience, according to results of a survey of 750 U.S. consumers – and a separate analysis of how U.S. retailers operate across multiple sales channels - by Accenture.

Two studies indicate a number of gaps between consumer expectations related to product offerings and pricing and the ability of retailers to deliver what customers want, as they shop across a growing number of channels.

If you want more from the Accenture reports look here:

https://newsroom.accenture.com/news/us-retailers-struggling-to-meet-consumer-expectations-around-mobile-and-in-store-experience-accenture-study-finds.htm

...and here:
http://www.accenture.com/Microsites/retail-research/Documents/pdf/Accenture-Seamless-Retail-Infographic-2015.pdf

...and here:
http://newsroom.accenture.com/article_display.cfm?article_id=6373

...and here:
http://techtrends.accenture.com/us-en/it-technology-trends-2015.html

Happy Reading,

J.W. Gant

Target Uses Instagram to Assist Participation

Great little article over on Mobile Commerce Daily:

http://www.mobilecommercedaily.com/target-drives-mobile-commerce-sales-with-flashy-pictures-on-instagram

Here is a snippet from that piece:

Discount retailer Target is driving product sales through colorful images on Twitter and Instagram with a high engagement rate.

The retailer’s social media accounts are full of aesthetically pleasing pictures featuring products it sells with a focus on color, especially on Instagram. The Target products are photographed in a unique way with bright hued backgrounds or text and shared on applications with links to shop items.

“At Target, we’re always looking for fun ways to engage with guests and deliver great design, newness and innovation, [and] that’s true in stores, online and in social media,” said Eddie Baeb, spokesman for Target...

Happy Reading,

J.W. Gant

MasterCard Chief Says Not to Believe the Apple Pay Hype

Want to know what the major payments networks really think of Apple Pay?  We have some idea now thanks to the global chief of MasterCard.

http://www.smh.com.au/business/banking-and-finance/dont-believe-the-hype-on-apple-pay-says-mastercard-global-chief-20150325-1m302w.html

Here is a snippet from the piece:

MasterCard's global chief, Ajay Banga, has not yet seen a good reason for people to ditch their credit cards for mobile devices.

"If you add value, people will do it. But if all you are doing is saying 'instead of reaching in your pocket and taking out your card, well, now you are going to take out your phone and wave it' – I don't know what you are solving," he said, pointing out habits and cultural norms change much slower than technology.

Instead of being disrupted, the incumbent payment network, along with fellow global giants Visa and American Express, has so far remained integral to the numerous tech players' push into payments – including Apple, Samsung and Google's Android – and they are assisting its growth.

Want any substantive change in payments?  It doesn't appear to be happening here.

Happy Reading,

J.W. Gant

Facebook News from Facebook f8 2015

Quite a lot of news coming out from and about Facebook today.

First, the number of Facebook users just surpassed the number of Chinese in the world.  Facebook is now the largest country/body of people/whatever it is in the world.  Wow.

Alongside that success is a growing segment within the stand-alone Facebook Messenger app that just hit 600 million users.  The news today is a SDK release that enables Messenger as its own stand-alone platform for other development work.  Here is a piece on that:

http://thenextweb.com/facebook/2015/03/25/facebook-opens-messenger-api/

Here is a snippet from that piece:

Today at Facebook’s F8 Developer Conference, the company announced that it will make Messenger’s API available to third party developers.

Facebook has been quietly working with select partners to offer an array of available Messenger-integrated apps at launch. Now, instead of manually selecting to share content, then choosing Messenger from the list of apps, a one-button approach should streamline the process.

“We’ve been building Messenger as a way to express yourselves in more than just text,” Mark Zuckerberg said during the opening keynote.

Most of the launch partners for Messenger Platform are focused on content creation, GIFs and emoji (naturally).

For one of the many other stories today check out the main page at TNW:

http://thenextweb.com/

Happy Reading,

J.W. Gant

Heinz and Kraft to Merge

They'll have 8 brands with $1B in sales annually when all is said and done.

Is that correct?

Wow.  Big foods just became bigger.

http://www.bloomberg.com/news/articles/2015-03-25/3g-capital-berkshire-to-buy-kraft-foods-merge-it-with-heinz

Here is a snippet from that piece:

Kraft Foods Group Inc. will merge with H.J. Heinz Co. in a deal orchestrated by 3G Capital and Warren Buffett’s Berkshire Hathaway Inc., creating the third-largest food and beverage company in North America.

Kraft shareholders will receive 49 percent of the stock in the combined entity, plus a special cash dividend of $16.50 a share, the companies said in a statement Wednesday. Berkshire and 3G will invest $10 billion in the new business, which will be known as Kraft Heinz Co. It will have dual headquarters in Pittsburgh and the Chicago area, with current Heinz Chief Executive Officer Bernardo Hees staying at the helm.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0204 Review Your Digital Marketing

The folks over on TheNextWeb have a great little read on reviewing your digital marketing efforts.

http://thenextweb.com/insider/2015/03/25/5-steps-to-audit-your-digital-marketing-strategy-for-2015/

Here is a snippet from that piece:

Creating a marketing plan without performing a proper digital marketing audit can cause you to invest in unnecessary initiatives and to overlook gaps in your current strategy. Many marketers forgo performing an in-depth audit because it can be an intimidating and time-consuming process.

Being so closely involved with your marketing on a daily basis often makes it hard to have an objective idea of where you stand. This article will attempt to outline a plan to help you objectively examine your online presence across multiple platforms and help you optimize your efforts using the latest tactics and best practices.

Happy Reading,

J.W. Gant

Trade Journal Bias

This topic came up in a surprising way over on MorningNewsBeat but I can't let it go as it is an important topic.

The story is about soft drinks trying to change their image but one line the author wrote really stands out to me and matches my own experiences.  I'll include his brief write-up in its entirety but please visit the blog (daily) for the rest of the story.

The bad news about soft drink consumption is one thing ... but I get more irritated when companies try to spin stories about their products being healthy in a way that is deceptive. In the Daily News story, one writer, who did a piece in which a less-than-healthy food was positioned as a healthy alternative, was quoted as saying that she did not remember whether she'd been compensated for writing the piece.

Let me tell you something. As a writer of almost four decades experience, I can tell you that I remember the stories for which I got paid, and those that I wrote for free. That's one of the reasons that I'm very careful to label sponsored content on MNB - I won't get behind something I don't believe in, but I also won't pretend something is editorial when it is not. That's not fair to you, and it is not fair to the sponsor - I believe that transparency in such things gives us all more credibility, especially when I'm willing to turn down advertisers if I think their message is inconsistent with MNB's broader goals and themes.

By the way, trade journals routinely tell advertisers that if they buy an ad they'll write a positive piece about them, or they allow consultants to pay to write stories that promote their own businesses and/or clients while making it look like editorial. That's just one of the reasons I got out of that business.

Here is part of that last section again:

... trade journals routinely tell advertisers that if they buy an ad they'll write a positive piece about them, or they allow consultants to pay to write stories that promote their own businesses and/or clients while making it look like editorial.

All too often we've seen this exact bias.  Just pick the topic.  Payments?  Look at the major journals and you may find some of the symptoms of this style of writing in one or more of the journals.  Pick the topic and this is what is happening out there all too frequently.  I've seen it first hand and it is very disturbing.

Where is the news we can trust?

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0203 User Supported A/B Testing

I love just about any article on helping product people make better products.  A/B Testing, the practice of using statistically significant results to help choose between 2 or more design options, is right in the wheelhouse to provide that kind of assistance.

Here is a good little article on the subject:

https://econsultancy.com/blog/66243-five-ways-user-insight-improves-a-b-testing/

Here is a snippet from that piece:

In this article we examine how User Insight (gathered through online usability testing) is improving A/B Testing programmes by drawing on real-world implementations with five best practice recommendations:

1. Use customer-struggle insight to prioritise test plans.
2. Develop root-cause hypotheses.
3. Improve variant quality.
4. Tackle tough problems.
5. Get a view on competitors.

Happy Reading,

J.W. Gant

Roche Bros. Supermarkets in the News

Two stories popped up about Roche Bros., the Wellesley, MA based supermarket company that is also opening smaller concept stories that marry the restaurant and supermarket concepts.

First is a visual design award:

http://supermarketnews.com/store-design-construction/roches-brothers-marketplace-wins-visual-award

Here is a snippet from that piece:

Roche Bros. Supermarkets said Thursday its neighborhood-focused Brothers Marketplace format has won the 2014 International Visual Identity Award in the retail category for its concept, store design and decor.

The two Brothers Marketplace stores — an 11,000-square-foot unit in Weston, Mass., that opened in May and a 9,000-square-foot store that opened in Medfield, Mass., in July — were inspired by European-style food markets, with an emphasis on unique offerings in prepared foods, baked goods, seasonal and exotic produce, meats, cheeses and packaged foods from local producers, the company said.

Next is news on their digital eCommerce efforts for recipes:

http://www.progressivegrocer.com/departments/technology/roche-bros-launches-online-tool-shop-recipe-ingredients

Here is a snippet from that piece:

Roche Bros. is launching a convenient way to shop for the ingredients of any recipe online. Customers in the Greater Boston area can add the ingredients from any recipe to the grocer’s online shopping cart with one click on a special bookmark.

...

The partnering vendor, Foodily, said its Popcart tool helps consumers shop for food because nearly nine in 10 home cooks (86 percent) find recipes online.

I know a few of the folks at Roche and they are quality, smart people with a passion for what they do.  Good luck in these efforts!

Happy Reading,

J.G. Gant

Potato Chip Cookbook on Pinterest

Lay's is taking social media quite seriously.  How about an entire cookbook on Pinterest, the first of its kind, to gain some followers?

Here is the story:

http://www.mediapost.com/publications/article/245905/lays-wavy-creating-first-pinterest-based-cookbook.html

Here is a snippet from the piece:

Lay’s Wavy, the ridged-cut potato chip brand from PepsiCo’s Frito-Lay division, has partnered with the DIY/e-commerce site Brit + Co to create what is being billed as the first Pinterest cookbook.

The cookbook, which will ultimately contain 40 recipes, is being put together in two phases, with the first 20 available for download in mid-May, and the others in the fall.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 202 New York Times Mobile

If you have heard the term 'Mobile First' and are living in the 21st Century in the United States of America you'll completely understand what the New York Times is doing.  They're pulling from ALL areas in to mobile.  Taking from all else and adding to their digital mobile presence.

Smart move?  Probably but they're still trying to figure out the business model that delivers the dollars.

Here is the story on AdAge (be sure to sign up for an account to get full access on a tiered basis):

http://adage.com/article/media/york-times-shifts-resources-mobile/297664/

Here is a snippet from that piece:

Ad Age: Are you shifting more resources from inside the company?

Mr. Levy: Yes, the whole company is shifting resources toward mobile at every part of the company.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0201 Technology for QSR and McDonald's

Great little article over on Fast Code Design about how McDonald's is approaching technology, the future, and its impact on quick service restaurants:

http://www.fastcodesign.com/3043717/sxsw/apps-video-games-and-wearables-a-vision-for-the-future-of-mcdonalds

Here is a snippet from that piece:

Soon, you could walk into a McDonald’s, sit down, maybe play a video game for a few minutes, then have your food brought to you.

At least that's the vision of Atif Rafiq, the first chief digital officer at McDonald’s, for how the company’s stores could evolve by 2020. We caught up with Rafiq at South by Southwest—which McDonald’s has attended for the first time amid a two-year streak of disappointing sales—and he described how the company plans to leverage kiosks, smartphones, and wearable to change the way people order and eat at McDonald’s restaurants around the world. In the U.S., all experiences would work through an app in development that knows your identity and tracks your order history.

"We see the experience being made so much better through technology," Rafiq says. "It’s an environment where it’s really built around you as opposed to operations of a restaurant.

Happy Reading,

J.W. Gant

Facebook Beacons

It appears I never created a blog entry for this one though it is very important news from early February that I've referenced in my professional life frequently since.

Facebook is testing beacons in New York City.  The BLE beacons/ibeacons will interact with your Facebook mobile app around important landmarks and other spots.  Here is a story on this from February 2:

http://www.mobilemarketer.com/cms/news/software-technology/19676.html

Here is a snippet from that piece:

Facebook’s plan to begin testing a beacon-supported service to deliver information about shops and landmarks to nearby users in New York could change the way marketers connect digital and physical realms on the social networking site.

Facebook announced it would begin testing Place Tips in coming weeks after installing the low-cost, low-energy transmitters at eight Manhattan shops. Up to now, beacons have mainly been used to send promotions and ads to people in and near stores.

A bit more...

Facebook’s move could lead to a new form of interactive marketing. One scenario would be campaigns that connect and promote Facebook business pages as soon as a consumer enters a business's vicinity, interacts with a product or leaves instant reviews, feedback or redeemable offers.

“Adding hyperlocal data to the targeting mix for Facebook mobile ads, makes this the solution to beat in the publishing environment,” said Matt Ramerman, president and co-founder of Vehicle.

The privacy implications are quite interesting.  I can imagine walking around historic areas of New York City with an Apple Watch on and feeling a tap on the wrist with a little prompt on the screen asking me if I want more information.  I can also imagine businesses pounding me with unwanted offers and a host of other possibilities that aren't attractive to me.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0200 Dick's Sporting Goods Mobile

Great article over on Mobile Commerce Daily is your best read of the day.  I'll be travelling tonight and tomorrow so may have some catching up to do later in the week.

Here is the article:

http://www.mobilecommercedaily.com/dicks-sporting-goods-rules-mcommerce-via-geo-fenced-ads-in-aisle-mobile

Here is a snippet from that piece:

Dick’s Sporting Goods saw its ecommerce sales grow to nearly 15 percent of total sales in 2014’s fourth quarter as a result of the retailer’s decision to equip its sales associates with mobile devices for easy ordering in any aisle, enable geo-fencing capabilities for sending weekly ads and launch a stronger in-app loyalty platform.

Dick’s, which is the United States’ largest omnichannel sporting apparel and gear retailer, has been focusing on integrating mobile strategy more into its in-store, online and offline shopping experiences. It has found that its consumers spend approximately three times more on omnichannel platforms than bricks-and-mortar customers.

“Enhancing our mobile capabilities is a significant part of our omnichannel strategy both for consumers and Dick’s associates,” said Rafeh Masood, vice president of customer innovation technology at Dick’s Sporting Goods, Coraopolis, PA.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0199 Social Media Impact on Brands

Great little article over on AdAge that ties in to the 'Participation Age' concepts I've been espousing on here.  Well worth reading:

http://adage.com/article/digitalnext/tv-s-influence-consumer-behavior-decreases/297501/

Here is a snippet from that piece:

TV's influence on consumer behavior is shrinking

• In 2014, the dominance of TV's influence shrunk significantly over the prior year. In fact, at times during the year, TV and social media were on par.
• There appears to be some seasonality to TV ads vs. social media: Warmer-weather months correlated with a rise in social media selection, and the fall TV season with greater TV ad influence.
• Internet advertising sees a very gradual increase, but far less volatility than TV or social media.

How about a moment of Apple Watch news as well?  Pricing is out all the way down to the level of bands and other accessories though details on the 'Edition' version are still scarce.  Just go to Apple.com to get those details.  What I find interesting is how little interest I am seeing from people I work with and know.  Noone has figured out why they need this or should want it.  Apple may not be able to make that case before launch.  Instead the people who buy them, and the app makers who develop apps for them, will have to make that case.  This first year could emulate the iPhone in that regard.  Sales of the 3G version in its first quarter of sales topped that of the first 5 quarters of sales of the original iPhone.  Interesting.

Happy Reading,

J.W. Gant

7-Eleven Beverage Loyalty

This is pretty cool overall and is a major new approach to beverage loyalty.  Not too long ago Dunkin' Brands recognized that people have a "usual" beverage order and it isn't always in line with the rewards offered through the DD Perks program (pretty cool if you are a frequent customer, get the app).  So they changed and now allow you to get any size beverage as your reward.

7-Eleven has taken it a step further and lets you get any beverage, and any size, as your reward for loyalty.  That's real value for the customer.

Here is an article on the subject:

http://www.mobilecommercedaily.com/7-eleven-stirs-up-beverage-purchases-with-new-in-app-loyalty-platform

Here is a snippet from that piece:

The 7Rewards program enables customers to mix-and-match their drinks. Users can purchase a coffee, Slurpee and Big Gulp all in the same week and have each purchase count.

Customers can also buy six drinks at the same time and receive all six stars. Refills, as well as any size beverage, also count for 7Rewards.

The free beverage may be any size.

Happy Reading,

J.W. Gant

Apple Watch - Keynote

The keynote is happening and Tim Cook is onstage right now in San Francisco.  What will be announced today, and what about this little watch thing?

Here is one little story I like that identifies one key, must have, for the Apple Watch.  He has far more experience with wearables than I do so I'll take his opinion with thanks.

http://www.zdnet.com/article/apple-watch-the-one-thing-it-must-get-right-to-be-the-best/

Here is a snippet from that piece:

On the surface, it seems useful for notifications on the smartwatch to show incoming text messages and email. The phone stays in the pocket or bag, and the watch becomes the primary notification system.

The problem is, after only a few weeks the usefulness of the smartwatch turns to annoyance. That's due to the inability to accurately reply to those notifications coming in on the watch. The lack of a keyboard of any kind on the watch means there are only two ways to deal with messages that come in.

Be sure to read the rest of the article to find out what those two methods are.

Here is the running track of the keynote:

Apple TV

The CEO of HBO was on the stage briefly to announce 'HBO Now' at $14.99/month available to stream HBO on any Apple device.  Presumably that means a TV connected with Apple TV, a Mac, iPad, iPhone, etc.  Somehow I doubt you'll be streaming it on to an Apple Watch though.

It appears this will be exclusive to Apple initially.  maybe because of all of the problems we've been hearing about as HBO tries to stand up its digital delivery service?  Love the folks at Re/code:
http://recode.net/2015/03/09/hbo-on-the-web-is-coming-in-april-exclusively-on-apple-tv/

Apple Pay

They finally pointed out the importance of vending machines to Apple Pay.  The emphasis was on Coca-Cola vending machines.  Not much else to talk about.

Healthkit

It seems to me they are queuing up the Apple Watch as a health monitor device by placing so much emphasis here at this stage in the keynote.  We'll see.

Mac

New MacBook that is thinner, lighter, etc.  Main emphasis was on the keyboard.  This may be a differentiating move vs. the Microsoft Surface Pro 3 that has gained considerable traction but doesn't have a 'full' keyboard.

Apple Watch

Tim Cook is wearing a conspicuously long, dark sweater, all the way up to his hands.  Is this covering up a new watch?  Yeap.  About 10 minutes in he pulls back the sleave.  It is described as a timepiece and a health & fitness device, with apps.  More to come.  Will there be a "wow" moment, or are we just waiting on pricing and timing details?

Mockup of a 'Topco' app on Apple Watch

I found one moment to be quite humorous as Cook said "It’s not just with you, it’s on you."  If you've seen the movie 'Anchorman' you'll get the reference that made me laugh.

Siri comes up if you press the bezel.  The pre-planned interaction worked perfectly but I hardly ever get good results from Siri.

Looks like a lot of work has been done on apps so far, but who really knows?  Uber is up and running.  I admit I'm really looking forward to Passbook on the Watch as I use it all the time for digital boarding passes.  "We're super excited to see what developers are going to do with this great new platform."

Battery is finally address with '18 hours' and 'all day' as the milestone achievements.  Maybe just good enough?

Watch Collections
Three collections, as we well know by this point, 'Sport', 'Watch' and 'Edition' in order of price.
Sport will be $349 for the 38mm and $399 for the 42mm
Watch will be $549-1049 for the 38mm and $599-1099 for the 42mm depending on your selection of the band.
Edition will be starting at $10,000.  No other word on pricing.

Pre-orders will begin April 10 and the retail stores will have them in stock for selection on that date.  Will be available on April 24.

All Done

I'll get on board with one of these.  Time for a new watch and time to enter the wearables arena.  Likely the 'Watch' version in some form as I'm not too sporty.

What didn't we hear about?  The rumored iPad Pro is said to be delayed, though not officially confirmed.  Nothing on Beats music as some thought.  Now, will we see another of these events every year at this time?  Maybe.  Apple loves to get the spotlight and is locking in a cadence of products and product updates to all of its millions of customers.

Happy Reading,

J.W. Gant

CORRECTION:  A previous version of this incorrectly listed the HBO product as 'HBO Go'.

Restaurants Surpass Supermarkets

Wow, this is really pretty amazing news in many ways.  For the first time since records have been kept, starting in 1992, the U.S. is spending more at restaurants than at supermarkets.

Wow.

Here is a good story on the subject:

https://www.yahoo.com/food/in-first-americans-spent-more-in-restaurants-than-112803758886.html

Here is a snippet on that piece:

More than two decades ago, Americans spent $162 in groceries for every $100 they spent in restaurants. But this past January, they spent nearly equal amounts of money in both places: $50.475 billion in restaurants and bars, and $50.466 billion in grocery stores.

I'm wondering what the folks at Target and Walmart are thinking.  As they continue to move aggressively towards the traditional supermarket shopper, that shopper is increasingly moving towards restaurants.  Will we see full-blown restaurants inside of Walmart and Target in the coming years?

Happy Reading,

J.W. Gant

Apple Pay Fraud

wA wave of stories is hitting about Apple Pay fraud, and some moves to mitigate it.  Very interesting.  The Wall Street Journal headline says low tech fraudsters are having success.

Here is one write-up:

http://www.theguardian.com/technology/2015/mar/02/apple-pay-mobile-payment-system-scammers

Here is a snippet from that piece:

Criminals in the US are using the new Apple Pay mobile payment system to buy high-value goods – often from Apple Stores – with stolen identities and credit card details.

Banks have been caught by surprise by the level of fraud, and the Guardian understands that some are scrambling to ensure that better verification and checking systems are put in place to prevent the problem running out of control, with around two million Americans already using the system.

The crooks have not broken the secure encryption around Apple Pay’s fingerprint-activated wireless payment mechanism. Instead, they are setting up new iPhones with stolen personal information, and then calling banks to “provision” the victim’s card on the phone to use it to buy goods.

Here is the WSJ though you'll need a login to see the story:

http://www.wsj.com/articles/apple-pay-stung-bylow-techfraudsters-1425603036?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird

One of the first articles I read on this was here at The Verge:

http://www.theverge.com/2015/3/4/8149663/apple-pay-credit-card-fraud-banks

Apple maybe moved a bit too quickly with Apple Pay.  Cashiers don't know what it is, consumers aren't using it (except in apps) and fraudsters are hitting it hard.

Happy Reading,

J.W. Gant

Wal-Mart Tells Investors the Future is Mobile Payments

When the CFO of Wal-Mart talks people listen and he is talking about mobile payments, Apple Pay, and CurrentC.

Here is a short write-up from Market Watch:

http://www.marketwatch.com/story/wal-mart-believes-mobile-payments-are-the-future-for-its-shoppers-2015-03-04

Here is a piece from the Wall Street Journey though you need a subscription to read the entire story:

http://www.wsj.com/articles/wal-mart-expects-customers-to-adopt-mobile-payments-currentc

Here is a snippet from the WSJ piece:

Wal-Mart Stores Inc. believes mobile payments—such as Apple Pay—are the future for its shoppers who now primarily use cash and debit cards.

“I think that’s where the future is going to be going for our customer,” Charles Holley, chief financial officer of the world’s largest retailer, told an investor conference Wednesday. “It’s just not clear where exactly it’s shifting.”

I think he is correct for the broader market as well as for Wal-Mart. The 'unbanked' are extremely reliant on smart phones for everything, increasingly, and Wal-Mart's shopper demographics tend towards the masses.

Similarly, though there are clear distinctions from the above, I just spent 4 days and 3 nights in the Dominican Republic and that is very much a 'mobile first' country.  Maybe the person cannot afford or does not have access to a desktop computer or laptop, or a tablet, but they have a low-end Android smart phone at a minimum, likely connected to the 'Orange' network. Mobile banking, mobile payments, mobile everything makes sense in that environment.  Forget all of the 'traditional' western infrastructure. Get a smart phone and have it all.

Happy Reading,

J.W. Gant

MasterCard Enables In-Store Payments In-App

MasterCard is working with restaurants now to get their MasterPass in to the retailer's app so customers can pay for their meals in the store's app.

http://www.mobilecommercedaily.com/wagamama-lets-restaurant-patrons-pay-for-meals-via-mobile-app

Here is a snippet from that piece:

Wagamama, a British pan-Asian casual restaurant chain, is teaming up with MasterCard to let customers use a mobile application to pay for meals, adding speed and convenience to the dining experience.

The Qkr! app with MasterPass will let customers who are in a hurry pay as soon as they wish. The app, now available to use in 112 wagamama restaurants in the United Kingdom, points to the mobile mind shift’s role in raising consumer expectations for the service industry.

Everyone wants to have their digital payments solutions, in-app, in the store some way some how. This effort does not include any kind of loyalty offering so far so it falls far short of what Starbucks has accomplished to date.

Happy Reading,

J.W. Gant

Target Changes Direction Towards Digital

On top of other news this year from Macy's we see Target announcing a bit of a re-structuring towards digital.

https://www.internetretailer.com/2015/03/04/target-will-cut-jobs-invest-more-digital-and-mobile-comme

Here is a snippet from that piece:

The discount retailer reports a 69% increase in mobile conversion and a 44% year-over-year jump in mobile traffic.

Target Corp. is going to invest more than $1 billion to improve its technology in an effort to restructure and build on digital sales gains. The company’s changes include cutting thousands of jobs over the next two years.

Happy Reading,

J.W. Gant

Mobile Payments News - Samsung Pay and PayPal with Paydiant

What a news day for mobile payments and I'm out of the country on business.

The folks over at Re/Code have it all.  Here is news of the new Samsung Galaxy and 'Samsung Pay'.

http://recode.net/2015/03/01/first-look-samsung-galaxy-s-6-galaxy-s-6-edge-finally-gets-a-premium-design/

Here is a snippet from that piece:

Last month, Samsung acquired a U.S.-based startup called LoopPay to launch a new mobile payments solution to compete with the likes of Apple Pay. The Galaxy S6 and Galaxy S6 Edge will be the first devices to incorporate that technology, though the feature won’t be available right at launch.

Called Samsung Pay, the technology is based on something called Magnetic Secure Transmission.

Here is news of PayPal's acquisition of Paydiant, the technology company behind MCX's CurrentC:

http://recode.net/2015/03/02/paypal-to-pay-280-million-for-paydiant-the-startup-behind-walmarts-apple-pay-competitor/

Here is a snippet from that piece:

PayPal isn’t giving up on payments in brick-and-mortar stores.

The eBay payment unit plans to acquire Paydiant, a payments startup that licenses a technology platform used by big retail chains to create their own branded mobile wallet apps. Multiple sources said PayPal will pay around $280 million for the Wellesley, Mass.-based startup. PayPal declined to comment on the price.

Founded in 2010, Paydiant’s white-label platform is used by Subway and other retailers and banks to add payment, loyalty and digital-coupon capabilities to their own apps. Its customer list also includes MCX, a consortium of big-box retailers led by Walmart that says it will launch its own mobile wallet app, CurrentC, later this year.

Happy Reading,

J.W. Gant

PS  Adding for the news on Google's new API level (software interface) payments kit dubbed 'Android Pay.
http://thenextweb.com/google/2015/03/02/google-is-working-on-an-api-level-payments-service-called-android-pay-but-it-wont-compete-with-wallet/

Here is a snippet from that piece:

“We’re working on something called Android Pay. It’s an API layer in Android, so that all the mechanics of payments can be done in a standardized and consistent way,” Pichai said.

He added that because Google is attempting to integrate a payments system at the OS level, it won’t actually compete with things like Samsung’s newly-announced Pay service or its own Google Wallet.