Mobile Payments Update

I've been following mobile payments since I worked in the field a few years ago.  It is interesting in a few ways but mostly because I view it as a leading indicator of overall digital transformation.

Paper money will never die but we are increasingly likely to have our phones with us while having no paper money.

The reason retailers want it is for the digital relationship it enables with their customers.  After all, money isn't broken so what is the real driver of adoption?  Buy 10 coffees at Starbucks and get the 11th for free, that's what is driving adoption.

Here is an update on the state of mobile payment adoption:

https://www.clickz.com/mobile-payments-2019-beyond/222602/

Happy Reading,

J.W. Gant

Amazon Pay In Store

Move over Apple Pay?

Move over Android Pay?

Move over Samsung Pay?

Move over Walmart Pay?

Amazon is on the move.

Not so fast, I say, but this move makes sense.  This is very much like what PayPal was trying to do when it created Samsung Pay.  They have countless payment methods on file for online payment.  Why can't they get those payments used in the store?

Because they are very different worlds that's why.

Read this snippet here:

Amazon has found a new target to tackle in its continued pursuits to dominate retail: in-store mobile payments.

Amazon has been talking with brick-and-mortar retailers to convince them to adopt Amazon Pay, the e-commerce giant's online-payment option The Wall Street Journal reported. The service has so far been touted as a payment option similar to PayPal for shopping online, but the Journal reported that Amazon is looking to expand Amazon Pay capabilities.

Here is the full story:

https://www.businessinsider.com/amazon-to-challenge-apple-with-in-store-mobile-payments-report-2018-11

Happy Reading,

J.W. Gant

Update on Mobile Pay and Apple Pay

USA Today has posted a couple stories on mobile payments the last week.  This one is worth a read.

Biggest news is a couple retailers joining Apple Pay, CVS Pharmacy and 7-Eleven, and US Chase adding Apple Pay to its ATMs.

If you know payments you know that last one is hard to do.  ATMs are quite different from other needs.

Here is the full article:

https://www.usatoday.com/story/tech/talkingtech/2018/08/04/mobile-pay-had-great-week-but-apple-google-still-have-long-road-ahead/904569002/

Happy Reading,

J.W. Gant

BRotD - Entry 0260 Strategy of Apple Pay

Best Reading of the Day

Mobile payments has been something very close to my professional activities for many years now. I've competed directly against Apple and their Apple Pay product.  Where are they headed now?

Here is a snippet from the piece:

There’s a reason everyone seems to be getting into mobile payments. Thanks to increasing smartphone usage and a push for faster, simpler, more secure financial transactions, mobile payments could become a $3.4 trillion industry by 2022. In the U.S. last year, eMarketer estimated it to be a $49 billion market already.

The consumer options are sundry: There’s Apple Pay, Samsung Pay, and Google Pay; PayPal, Venmo, Square, and Square Cash; bank-backed alternatives like Zelle and Chase Pay; and in-app options through things like WhatsApp or Facebook Messenger. As consumers abandon cash, checks, and even credit cards, everyone is jumping into mobile payments—but perhaps none with the zeal of Apple.

Here is the full story:

https://slate.com/technology/2018/07/apple-pay-can-apple-beat-paypal-venmo-in-mobile-payments-war.html

What do retailers think?

From the start the response was mixed.  Some feel any place their customer is at they want to be as well.  Another, however, stated their mix of credit to debit was such that if mobile pay, primarily funded with credit cards, caused that mix to flip it would be billions of dollars a year lost.  That is big time incentive to work in the space right (they are)?

This is one space with entrenched, well funded and organized interests, and tons of money at stake.  Apple won't see the players in this space fold like the music industry did.  I see this space continuing to be hyper-competitive for the foreseeable future.

Happy Reading,

J.W. Gant

BRotD - Entry 0245 Mobile Payments Stuck?

Best Reading of the Day

Seems like I've been studying, following, and involved in mobile payments forever and haven't see the change we continue to expect.  Is that a correct assessment?  What is the current state of things?  What should we expect tomorrow.

Excellent article by the folks over at Payments Source:

http://www.paymentssource.com/news/technology/mobile-payments-09-why-is-the-tech-forever-stuck-in-beta-3024617-1.html

Here is a snippet from the piece:

Mobile technology is radically changing the way people hail taxis, book lodging, consume entertainment and find prospective dates.

So why hasn't the same kind of revolution taken hold when it comes to how people spend money?

Years of efforts by banks, payment networks, tech startups, wireless networks and retailers have failed to a produce a mobile wallet app that's broadly used and accepted. This despite near certainty among the technology and pundit class that the much-anticipated migration to mobile payments is inevitable.

There's no simple answer to why mobile payments keep failing to gain traction in the market, but a close look at what's gone wrong so far could provide clues to what — if anything — could provide a decisive breakthrough.

Happy Reading,

J.W. Gant

Mobile Wallets to Consolidate

Right now, with the failed launch of CurrentC by MCX, retailers are rushing to roll out their own mobile wallet within their store brand app.  Baskin Robbins just launched, as a part of Dunkin Brands.  Walmart has Walmart Pay in its app, etc.

Eventually a more consolidated approach will take hold.  I have no doubt of this, though I believe some retailers such as Starbucks will be able to hold on to their direct relationship with their customers.

Other experts see the same thing coming.  Here is a snippet :

Mobile wallets are slowly gaining adoption, but retailers’ offerings are currently the winners because they can be easily integrated with loyalty programs, providing an incentive to use them.

Many experts believe that mobile wallets will continue to grow, and by the end of the decade, be universally adopted. Retailers such as Dunkin’ Donuts and Starbucks are leading the charge in terms of brand-led mobile wallets and are seeing significant adoption rates while platform-led services such as Apple Pay and Android Pay mobile wallets are lacking in comparison, but will likely see more users in the coming years.

Read the whole story here:

http://www.mobilecommercedaily.com/mobile-wallets-to-see-universal-adoption-by-end-of-decade

Happy Reading,

J.W. Gant

Merchant Mobile Payments Leading the Way

This is not surprising to those of us who follow mobile.  We haven't seen game-changing success by tech companies looking to reinvent the way people pay, but we have seen success by individual merchants.

Read on:

http://www.mobilecommercedaily.com/merchants-digital-wallets-leading-the-migration-to-mobile-payments-report

Here is a snippet from the piece:

Merchants are having a bigger impact on shoppers’ payments behaviors and encouraging the transition to mobile compared to universal wallets such as Apple Pay, according to a new report from Mercator Advisory Group.

A growing number of merchants are offering their own branded mobile wallets and incentivizing the use of them through offers and loyalty, something universal wallets have not taken advantage of as much. As a result, merchants are better positioned to change customer behavior and become preferred payment options, according to the report, Merchant Mobile Wallets: Mobile Payments in Action.

Happy Reading,

J.W. Gant

Mobile Wallets at POS and Apple Pay

Business Insider has a great little article detailing some data from a new report on retailers and their mobile wallets.

Just to list a few for those who aren't keeping up, mobile wallets include but are not limited to: Apple Pay, Android Pay, Samsung Pay, PayPal, CurrentC by MCX, Walmart Pay and more.

Read on:

http://www.businessinsider.com/apple-pay-leads-samsung-pay-android-pay-google-wallet-2016-3

Here is a snippet from the piece:

Apple Pay has a comfortable lead in the mobile wallets market.

A new report from Piper Jaffray cited by Investors Business Daily reveals that retailers largely prefer Apple Pay over its major competitors Samsung Pay, Android Pay, and Google Wallet.

The report found that 44% of U.S. retailers either currently are using or have expressed interest in installing mobile wallet readers in their brick-and-mortar stores.

Happy Reading,

J.W. Gant

Wal-Mart Announces Walmart Pay for Mobile Payments

Pretty enormous news in payments, retail and mobile as Walmart announced Walmart Pay today.

Due to my previous professional involvement in MCX, a consortium of retailers including Walmart who are developing a mobile wallet solution, I am going to keep my comments to a minimum.

Here is a story on this news:

http://www.digitaltransactions.net/news/story/Despite-Observers_-Doubts_-Wal-Mart-Says-Walmart-Pay-Won_t-Weaken-Ties-to-MCX

Here is a snippet from that piece:

Starting this month, Wal-Mart will begin testing “in select stores” a service called Walmart Pay, which will be part of the Wal-Mart shopping app and will work with most Apple and Android smart phones, the company says. Customers will be able to load “major” card brands along with the Wal-Mart gift card in the wallet, which will link to point-of-sale readers via quick-response (QR) codes, according to the announcement. The full rollout to all Wal-Mart stores is expected to be complete by the middle of next year.

This sounds pretty similar to the CurrentC solution developed at MCX.  It will be very interesting to see how this develops over time.  Starbucks and Dunkin' Brands use a similar style solution while the tech companies use NFC or other hardware solutions to interact with payment terminals.

Given the very slow adoption Apple Pay is seeing, Google Wallet already went through (now Android Pay), and Samsung Pay is seeing as well it is possible these "retail first" solutions are the way this will be solved.  Just look at Starbucks.  Dunkin' Brands is seeing similar success.  Will each major retailer have to develop their own proprietary mobile payments capability?  That seems inefficient.  Will the Apple Pays of the world ever take off?  Will a "white label" style solution like CurrentC at MCX be the one?

This seems to be a very long slog.  I was involved with this for years and I see many more years ahead.  It will be fun to follow this line though.

Happy Reading,

J.W. Gant

Mobile Payments This Holiday Season

The folks over at Mobile Commerce Daily have a bit of news worth reading.  Suffice it to say Apple Pay hasn't taken off, nor have mobile wallets in general.

Read on:

http://www.mobilecommercedaily.com/credit-cards-beat-out-mobile-wallets-during-black-friday-report

Here is a snippet from the piece:

Mobile wallet platforms did not fare well during this year’s Black Friday retail frenzy, most likely due to do inconsistency with retailers and consumer use, with Apple Pay at its lowest usage rate and PayPal being used more than others, according to a report from InfoScout.

The holiday weekend is known for its chaotic shopping sprees, with many retailers seeing long lines and disorderly checkout experiences, which may have led consumers’ choice to stick with established payment methods such as credit cards. On Black Friday this year Apple Pay saw only 2.7 percent use with all eligible transactions at retail locations, and Android even lower with 2 percent of possible transactions being used.

In similar news Dunkin Brands has now incorporated Apple Pay in to its mobile wallet, much like Starbucks before it.

http://www.mobilecommercedaily.com/dunkin-donuts-cracks-open-apple-pay-as-holiday-sales-thicken

Happy Reading,

J.W. Gant

Money 20/20, Chase Bank and CurrentC

All of the money is in Vegas this week as Money 20/20 roars in to 2015.  This is the big industry trade show for all things "money".

The biggest news so far is a new mobile wallet by Chase with the retail backing of MCX and the CurrentC wallet.

Here is one article on this news:

http://www.digitaltransactions.net/news/story/Chase-Unveils-Chase-Pay_-a-Mobile-Wallet-That-Will-Work-at-Merchants-Accepting-CurrentC

Here is a snippet from that piece:

JPMorgan Chase & Co. on Monday unveiled its Chase Pay mobile wallet and said the product will begin rolling out in the middle of next year. Chase also said its new wallet will be accepted at merchants belonging to the Merchant Customer Exchange LLC, a retailer-controlled consortium that has been testing its own wallet, CurrentC, in Columbus, Ohio.

CNBC had a piece on the growing criticality of mobile wallets:

http://www.cnbc.com/2015/10/26/the-latest-in-the-battle-to-own-your-digital-wallet.html

Here is a snippet from that piece:\

The battle to own your digital wallet is on.

2016 will be a pivotal year for mobile payments, with total transaction values jumping 210 percent, according to eMarketer. Why? Mobile wallets — like Apple Pay, Android Pay, Samsung Pay and MCX — will become standard features on smartphones and more merchants will adopt point-of-sale systems that can accept mobile payments.

It makes sense then that this is a big story at Money20/20 in Las Vegas.

Here is one more article on this:

http://www.pymnts.com/news/2015/chase-pay-mobile-wallet-launches-with-mcx-as-a-partner/

Happy Reading,

J.W. Gant

**UPDATE** Great little analysis came out today about the recent CurrentC news:
http://www.digitaltransactions.net/news/story/How-MCX_s-Deals-with-Chase-Pay-And-BIM-Networks-Help-Fill-a-Tender-Gap-in-CurrentC

Here is a snippet from that piece:

With two strokes of the pen, Merchant Customer Exchange LLC has addressed one glaring weakness in its mobile wallet. By announcing a deal this week with JPMorgan Chase & Co.’s brand-new Chase Pay mobile-payments service and two weeks ago with a little-known New York City-based app provider called BIM Networks Inc., MCX brought open-loop and store-branded automated clearing house payments to its fledgling CurrentC service.

Next up is the press release of the keynote by the CEO of MCX:

http://www.businesswire.com/news/home/20151029006424/en/2015-Money2020-Keynote-Address-MCX-CEO-Brian

Happy Halloween!

EU Transaction Costs vs. USA

Great little read about mobile payments.

http://www.paymentssource.com/news/paythink/apple-samsung-and-android-will-not-like-european-fee-revenue-3022374-1.html

Here is a snippet from the piece:

The real issue will be whether Apple and its tech giant competitors have the patience and inclination to play the long game, particularly in the EU. These tech players will see their share of transaction value from the banks significantly reduced in Europe, compared to the US, due to the huge discrepancy in interchange fees across the two continents. This December in the U.K. and the rest of the EU, new laws are set to reduce the interchange fee to 0.3% for credit and 0.2% for debit transactions. This will equate to 300-500% less than the revenue that issuing banks in the US are able to share with partners like Apple.

Will Apple and its competitors be willing to put the time and effort required into seeing their solutions take off in this market, when the commercial opportunity is reduced? Only time will tell.

Happy Reading,

J.W. Gant

Heartland Wants Open-Platform Mobile Wallets

Heartland is developing a mobile wallet that is open platform.

http://www.paymentssource.com/news/retail-acquiring/open-platform-mobile-wallet-the-only-answer-heartland-carr-3022237-1.html

Here is a snippet from the piece:

Heartland is working on a mobile wallet model that would emphasize an open platform available to all merchant apps, loyalty programs and cross-merchant rewards programs...

Happy Reading,

J.W. Gant

BRotD - Entry 0225 Analysis of Samsung Pay

Best Reading of the Day

Harvard Business Review has a brief analysis of Samsung Pay, the new mobile payment capability for Samsung devices, that is worth a quick read.

https://hbr.org/2015/07/samsung-pays-older-technology-could-be-an-advantage

Here is a snippet from the piece:

The stakes are high in the mobile wallet market, projected to be over $140 billion by 2019. Most recently, Samsung has announced that it will roll out a payment system called Samsung Pay later this year and has already begun beta-testing it in Korea. Its foray into this industry comes on the heels of product entries by Google and Apple. But Samsung’s new mobile wallet strategy may be a sign that they are finally becoming a true leader and shedding their image as a fast follower. The irony is that they are embracing an older payment technology to pave the way for new growth, new visibility, and new strategic wiggle room.

Happy Reading,

J.W. Gant

BRotD - Entry 0219 Apple Pay Not Catching On

Best Reading of the Day

Apple Pay

I've been reading quite a bit in the mobile payments space over the last few months.  Some stories are balanced, some are not.  This one is excellent.

http://business.financialpost.com/fp-tech-desk/it-looks-like-apple-pay-is-failing-to-catch-on-with-a-lot-of-retailers?__lsa=5687-4454

Here is a snippet from the story:

In a January earnings call with investors, Apple Inc Chief Executive Tim Cook made a confident prediction: “2015 will be the year of Apple Pay,” he said.

Since then, the company has aggressively courted retailers – and claimed significant success. “We’ve spoken to all of the top 100 merchants in the U.S., and about half will accept Apple Pay this year, with many more the following year,” a company spokesperson recently told Reuters.

But interviews with analysts, merchants and others suggest that Apple’s forecast may be too optimistic and that many retailers remain skeptical about the payment system.

The story does a good job talking about this space in general as well as discussing Apple Pay.  Well worth the read.

What I've been telling people is Apple Pay is really two things: (1) in-app purchases and (2) in-store purchases at point of sale.  Apple Pay is doing very well in-app, but hasn't seen good adoption in-store.  This does, however, allow the good folks at Apple to merely state something to the effect of 'Apple Pay is doing very well'.

Happy Reading,

J.W. Gant

Android Pay by Google Revealed

Big news in mobile and payments worlds as Google rolled out a new iteration of its mobile payments mechanism.  Google Wallet had not taken off so this is a new effort, a new brand, a new approach to payments in Android devices.

Here is one story on the reveal:

http://www.nbcnews.com/tech/tech-news/google-pay-n366091

Here is a snippet from that piece:

Google fans scoffed when Apple unveiled its mobile payment service Apple Pay to great fanfare last fall, pointing out that Google Wallet has offered similar technology since 2011. But Google Wallet never really took off -- and now Google is largely replacing that service with the new "Android Pay."

Google unveiled the new service Thursday morning at its annual I/O developers' conference in San Francisco. Like Apple Pay -- and Google Wallet -- Android Pay works by using a near-field communication, or NFC, chip. Link a major credit card to Android Pay, wave the phone near a merchant's special NFC reader at a store checkout and confirm the purchase.

Re/Code has an excellent piece on the overall Android announcement that is a very good read.

http://recode.net/2015/05/28/google-launches-android-m-and-android-pay/

Here is a snippet from that piece:

Android Pay, Google’s competitor to Apple’s mobile payment offering, is here. As is a revamped version of Google Wallet: The product, which has struggled to catch on since its 2011 debut, is converting to a peer-to-peer payment service, facing off against Facebook’s Messenger and apps like Venmo.

Pichai briefly teased Android Pay in March. Basically, it’s an app and application layer with three basic functions. First, like Apple Pay, it allows users to buy at NFC terminals. Second, users can make purchases within apps with a single tap; Google is integrating loyalty offers into this feature, courtesy of its recent acquisition of the technology from Softcard, the carrier-backed mobile wallet.

Happy Reading,

J.W. Gant

In-Store Mobile Payments

Pretty good article over on Mobile Commerce Daily regarding mobile payments in the store:

http://www.mobilecommercedaily.com/road-to-in-store-mobile-payments-is-bumpy-for-apple-pay-mcx

Here is a snippet from that piece:

Bringing contactless mobile payments to bricks-and-mortar stores continues to be a challenging process plagued with technology difficulties, inexperienced store associates and an evolving landscape.

Enabling in-store mobile payments at scale is viewed as a key goal but one that has proven to be elusive over the past few years for a variety of reasons. The latest setbacks include reports of Apple Pay not working at Home Depot stores, Best Buy switching allegiance from MCX to Apple Pay as well as the departure of MCX CEO Dekkers Davidson.

Happy Reading,

J.W. Gant

CurrentC by MCX to go Public mid-2015, plus Microsoft and PayPal News

News everywhere in the mobile payments space about CurrentC's plans though all of the stories seem to point back to MacWorld.  Here is one story:

http://www.mobilepaymentsinsider.com/2015/04/07/currentc-prepares-to-go-public-with-mid-2015-launch/

Here is a snippet from that piece:

Mobile payments service CurrentC will officially launch in the US over the next few months, adding further competition to the crowded mobile payments market.

Here is the MacWorld piece that appeared to break the story:

http://www.macworld.com/article/2906592/apple-pay-rival-currentc-coming-in-mid2015.html

Here is a snippet from that piece:

A small -scale trial began last year and CurrentC is currently being tested in several undisclosed markets around the U.S. However, its use is restricted to employees of member retailers, which include Walmart, 7-Eleven, Dunkin Donuts, Sears, Best Buy, Exxon Mobil and Gap.

Merchant Content Exchange (MCX), the operator of the service, plans to make it available to the public in mid 2015, but in a single market at first.

More news in the payments space has also come out from both Microsoft and PayPal.

Microsoft is working on some kind of 'Microsoft Pay':

http://arstechnica.com/business/2015/04/microsoft-payments-may-join-apple-android-samsung-in-pay-platforms/

UPDATE: Another story works to add to this report:
http://www.mobilepaymentsinsider.com/2015/04/10/microsoft-makes-another-mobile-payments-move/

PayPal is going to release a new wallet that will utilize NFC technology:

http://www.digitaltransactions.net/news/story/PayPal-Will-Include-NFC-Capability-in-the-Coming-Version-of-Its-Mobile-Wallet

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

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.