Payments - Wearable Payments Becoming Standard

I have an Apple Watch and have been using it to make payments for years now.  Starbucks, Dunkin, or using Apple Pay at various retailers who accept it through NFC.

Very cool and I always seem to get a reaction from the people around me too.

Well, this is slowly building up and becoming more common.

Here is a snippet from the piece:

It seems like only yesterday the industry first began mulling in-store, in-app and online payments via mobile devices. Now wearables, including smart watches, fitness trackers and other tags, introduce a whole new wrinkle in the space.

The concept of a wearable as a payment system is not new; Wearables enabled with payment capabilities in closed-loop scenarios, like Disney World's Magic Band or similar wearables associated with cruise ships or music festivals, accounted for 82% of wearable-device payments back in 2015. Visa also had a high-profile rollout of NFC payment-enabled bracelets during the 2016 Summer Olympics last year.

Here is the full story:

http://www.retaildive.com/news/study-wearable-payments-on-the-way-to-mainstream/447879/

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

Dunkin Brands App Update

I'm not sure how big this news really is.  You be the judge based on the following snippet:

Dunkin’ Donuts caffeinated its mobile strategy with an updated application featuring enticing imagery and a touch-friendly interface, a loyalty promotion giving away 125 points and an app pilot for Baskin-Robbins, heating up competition with Starbucks.

Huh? The app has a "tough-friendly interface"?!!?

Anyway, news in the QSR space is worth looking at if you follow what is happening in digital and technology news.  I'm a believer in what both Starbucks and Dunkin Brands are doing.  Get the updated app.  Play around.  Figure out for yourself if it is newsworthy.

Here is the full article:

http://www.mobilecommercedaily.com/dunkin-donuts-elevates-qsr-competition-with-updated-app-loyalty-promotion

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

Dunkin Brands Goes with Cardfree

On the newswire today.

http://www.businesswire.com/news/home/20151209005346/en/Dunkin%E2%80%99-Donuts-Selects-CARDFREE-Mobile-Platform-Generation

Here is a portion of the announcement:

CARDFREE, the leading mobile commerce provider to large merchants, announced that it is the mobile application platform provider enabling Dunkin’ Donuts’ new On-the-Go Ordering app that is currently being tested in Portland, Maine. The company was selected by Dunkin’ Donuts to provide the mobile ordering application solution to make it easier and more convenient for members of the brand’s DD Perks® Rewards Program to place an order from their mobile phone.

Cardfree clearly wants to be a major player in this space but their spin as "the leading ... provider to large merchants" is quite a bit heavy when you look at their current list of customers:

http://www.cardfree.com/partners.html

Sure Taco Bell, Sonic, and Rally's are bit but they vastly overstate their case.

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

Dunkin Donuts Mobile - Is it Awesome?

Yes it is.

Read the full story here:

http://www.mobilecommercedaily.com/dunkin-donuts-overflows-competition-with-mobile-gift-and-coupon-blitz

Here is a snippet from the piece:

Dunkin’ Donuts is dispersing mobile gift cards to winners of its latest social media sweepstakes and is offering a coupon to application users ahead of back-to-school season, proving it has the wherewithal to dethrone Starbucks as a food and beverage leader in mobile.

The fast feeder sought to ramp up sales of its new Tailgater Breakfast Sandwich by rolling out a social media sweepstakes encapsulating fans’ enjoyment of eating breakfast at any time of day.

...

Those guys are all in for mobile and it shows and it is paying off in a big way for them.  Awesome!

Happy Reading,

J.W. Gant

BRotD - Entry 0221 Discussion with CMO of Dunkin' on Mobile Loyalty

Best Reading of the Day

Great discussion over on AdAge.com with the Chief Marketing Officer at Dunkin' brands, right around the corner from me in Canton, MA, on their risky decision to go to a mobile loyalty model.  If you haven't been following that decision has paid off in a big way for them.

http://adage.com/article/datadriven-marketing/dunkin-s-john-costello-knew-time-mobile/298997/

Here is a snippet from the piece:

It's not often that a company with locations on street corners throughout much of the U.S. takes a big risk by changing the status quo when the status quo ain't broke. But that's exactly what Dunkin' Donuts did when it shelved its web- and paper-based loyalty program like so many day-old crullers.

"We decided to go all-in on a mobile-based loyalty program," said the company's Chief Global Customer and Marketing Officer John Costello.

The result was a re-launched version of the DD Perks Rewards program...

..."Mobile is devouring the world," said Mr. Costello...

Happy Reading,

J.W. Gant

Mobile App Use, QSR Loyalty Apps, and Modern Marketing

Looks like New England survived the Blizzard of '15, but don't tell the folks in Marshfield, MA that.  Looks pretty ugly there.

Here area  few stories that caught my eye today.

First is a new study on mobile app use vs. mere mobile websites:

http://www.retaildive.com/news/consumer-use-of-mobile-apps-smaller-than-retailers-believe-study/356593/

That article points to the full analysis here on IAB:

http://www.iab.net/media/file/IAB_Apps_and_Mobile_Web_Final.pdf

Next are two news stories on Quick Service Restaurants moving increasingly towards mobile loyalty.  WaWa is following in the footsteps of Starbucks and now Dunkin' Brands:

http://www.pymnts.com/news/2015/convenience-store-chain-wawa-launches-its-own-mobile-payments/#.VMkD1NJ4r2t

News from Dunkin' states they are all-in with mobile loyalty after a year of tremendous success with their DD Perks program:

http://www.mobilecommercedaily.com/mobile-helps-dunkin-donuts-crack-the-formula-on-loyalty

Finally is a great little read on modern marketing thoughts and approaches:

http://www.thedrum.com/opinion/2015/01/27/push-pull-participation-and-purchase-are-you-using-four-ps-mobile-bridging

Happy Reading,

J.W. Gant

Apple Pay vs. CurrentC

The news the last week or so has been pretty heavy on Apple Pay vs. CurrentC.  The media loves a good fight but why can't they live together?  Maybe not in the short term, but over a long enough timeline won't we see a number of ways to pay with your mobile device?  Don't we already have many ways to pay with our mobile device between LevelUp, PayPal, Starbucks, Dunkin Donuts, Apple Pay, Google Wallet, and CurrentC?

Some are already declaring winners and losers.  Who are they and what are they saying?

Here is Time.com with winners and losers:

http://time.com/3532199/apple-pay-winners-losers/

Here is a snippet from that piece:

But there’s another reason credit card companies are enthusiastic about Apple Pay: the alternative, CurrentC, could be pretty scary.CurrentC is a payment system mega retailers like Walmart and Best Buy are working on that could cut out credit card companies altogether. While Apple Pay leaves the traditional credit card system intact by simply moving it to your phone, analysts speculate that the CurrentC program will link payments through a network connected directly to your savings account. Voila: no middleman.

“If a technology comes along that’s focused on getting you to not use Visa, then that’s a competitor to us,” says Dill. The threat of CurrentC makes Apple Pay look more like a rickety lifeboat for the credit card companies than the super-fast motorboat Apple has promised.

Here is Karen Webster declaring CurrentC dead before it has even fully launched:

http://www.pymnts.com/news/2014/current-c-and-the-big-merchant-mess/#.VFpQADTF_9Y

Here is a snippet from that piece:

So, how does CurrentC to get out of this mess?

Well, I don’t think they do.

I believe that this is the beginning of a huge reboot at CurrentC and quite possibly its complete unraveling.

Karen comes across as at least a little naive in that piece.  Really, the merchants should yield all control of their interactions with the consumer?  Sounds like a recipe to go out of business to me.

At least one person is picking Google Wallet to win over Apple Pay, yes Google:

http://www.pymnts.com/in-depth/2014/peter-thiel-picks-google-over-apple-pay/#.VFo4MzTF_9Z

That isn't unreasonable thinking.  We've already seen payments via Google Wallet bump following the NFC news of Apple Pay.

The big-box retailer Target is in the news as an early supporter of CurrentC, running transactions now in Minnesota according to this piece:

http://www.startribune.com/business/281395391.html

Why are some merchants saying "No" to Apple Pay?  Here is a story on that:

http://blogs.wsj.com/totalreturn/2014/11/04/why-some-merchants-say-no-to-apple-pay/

Here is a snippet from that piece:

Industry observers say the reluctance of some merchants to embrace Apple Pay all comes down to one thing: fees. And consumers are likely to remain caught in the midst of this tug-of-war between credit-card networks and merchants for some time.

Here is a piece on Re/Code that quotes the CEO of MCX a bit:

http://recode.net/2014/11/04/what-are-the-anti-apple-pay-merchants-afraid-of/

Burger King is going with PayPal for their mobile payment option:

http://www.mobilecommercedaily.com/burger-king-chooses-paypal-in-a-refutation-of-apple-pay

Want to understand a bit of the deal Apple Pay made?

http://www.pymnts.com/news/2014/inside-the-apple-pay-issuer-contracts/#.VFohWjTF_9Y

What about Starbucks?  Isn't this the most successful mobile payments mechanism in history, as opposed to Tim Cook's statement about Apple Pay?  Yes it is.

http://www.nbcnews.com/tech/gadgets/forget-apple-pay-master-mobile-payments-may-be-starbucks-n240091

Does this look like space likely to see some consolidation in the coming year or two?  Maybe.  However, it also looks like a space where more than one winner is going to come out on top.  Which ones will those be?

Happy Reading,

J.W. Gant

**UPDATE**  Just a bit more as this one lays out the story of the relationship Apple has forced on the banks and the issuers:
http://digitaltransactions.net/news/story/Issuers_-Apple-Pay-Pact-Assigns-Remarkable-Authority-to-Card-Networks-As-Well-As-Apple

**UPDATE #2** The CEO of MCX, Dekkers Davidson, is at Money2020 and had some comments:
http://www.digitaltransactions.net/news/story/MCX-Chief-Davidson-Strikes-Defiant-Tone-While-Touting-Benefits-of-CurrentC_s-Wallet

Here is a snippet from that piece:

...Davidson attributed much of the negative publicity about CurrentC to the efforts by the 80 merchants that control MCX to “challenge” a payments business that has largely left merchants on the sidelines. “Some have mocked us or laughed at us, some are attacking us,” he said. “That’s to be expected when you challenge the status quo.” Later in his remarks, he returned to this theme, saying, “If you’re going to change the status quo, you’ve got to challenge the status quo.”

The little engine that could?

Apple Pay Has Launched

October 20 was the word on the street.

Apple Pay will launch October 20.

Okay.

October 20 rolled around and I started fiddling with my very new iPhone 6 to see if I could figure this out.  Passbook?  Nope.  Update?  None available.  I was on 8.0.2 and Apple told me there were no updates available.  Okay what?  October 20 right?

Time to Google.

Eventually I found news that Apple Pay would come with the 8.1 iOS update due to hit October 20.  As I was travelling I had to wait a bit before I could perform the update.  Here is what other people were saying in the meantime:

Apple Pay Works, But It Can’t Speed up Lines of Non-Users
http://www.digitaltransactions.net/news/story/Apple-Pay-Works_-But-It-Can_t-Speed-up-Lines-of-Non-Users

WHY BANKS LOVE APPLE PAY

http://www.pymnts.com/news/2014/why-banks-love-apple-pay/#.VEe9RyLF_9Y

That headline shouldn't be encouraging to merchants.  

Moving on, here is the New York Times and others:

Apple Pay: Seamless in Stores, but Quirky Online

http://www.nytimes.com/2014/10/22/technology/personaltech/shopping-with-apple-pay-seamless-in-stores-but-quirky-online.html?_r=0

Some Banks See Apple Pay as a Threat

http://www.paymentssource.com/news/emerging-payments/some-banks-see-apple-pay-as-a-threat-3019482-1.html

So, wait, what?  Banks love Apple Pay.  Banks Hate Apple Pay.  Huh?

Google may have to make a move:

Google plans to ride Apple Pay popularity to cash in with Google Wallet

http://www.mobilepaymentsinsider.com/2014/10/22/google-plans-to-ride-apple-pay-popularity-to-cash-in-with-google-wallet/

So how did it go with me?

Tuesday night I went through my usual careful backup routine with my iPhone before updating to iOS 8.1.  There within Passbook was a '+' sign and simple instructions to add a card to Apple Pay.  My Capital One card is now available for use with Apple Pay and ... I have nowhere I shop to use it.  Walgreens?  Nope.  Whole Foods?  Sometimes maybe.  Panera?  I eat at my desk every day.  I may shop at Macy's over the holidays.  

What about my bank debit card?  Tried to add my Santander card and Apple Pay told me this issuer does not currently support Apple Pay.  500 banks on-board with Apple Pay and I can't add my debit card.  

Maybe some day I'll try Apple Pay.  Meanwhile on my trip I stopped at Starbucks two or three times and paid with my Starbucks app earning a gold star each time.  I'll swing in to Dunkin Donuts shortly to try out those Pumpkin Donuts again this year. Probably buy some for the office.  Yeap, I'll pay with my Dunkin App so I get the DD Perks.

How about you?

Happy Reading,

J.W. Gant

**UPDATE**  Two quick updates.  First is this excellent piece from Re/Code:
http://recode.net/2014/10/24/apple-pay-review-the-recode-bi-coastal-team-test/

Next is news of Rite Aid first allowing, then turning off Apple Pay:
http://www.digitaltransactions.net/news/story/Would-Be-Apple-Pay-Users-Disappointed-When-Rite-Aid-Apparently-Turns-Off-NFC

**UPDATE #2**  I missed this excellent article on Time and feel it is worth checking out:
http://time.com/3532199/apple-pay-winners-losers/