Best Reading of the Day - Entry 0152 Macy's Back for More

Macy's is a company I have identified as a leader in omnichannel efforts.  Their work in mobile, in-store experience, online, loyalty, and more continues to lead retail forward.

Last week Apple announced Apple Pay and stated Macy's would be a part of the initial wave of retailers to accept this new payment mechanism.

We have more news from Macy's this week.  They are expanding their beacon usage through Shopkick and much more:

http://chainstoreage.com/article/macy%E2%80%99s-unveils-new-omnichannel-initiatives?ad=technology

Here is a snippet from that piece:

Macy’s Inc. is launching a large number of omnichannel strategies and technologies encompassing stores, online and mobile. In addition to supporting the new Apple Pay mobile payment system, the department store retailer’s new moves include piloting same-day delivery, testing new POS technology and customer service enhancements, and expanding its use of RFID to fashion categories.

Mobile Commerce Daily has a story on Macy's firing back at the Amazon Fire product photo capability:

http://www.mobilecommercedaily.com/macys-significant-omnichannel-push-includes-showroom-busting-image-search-app

Here is a snippet from that piece:

Macy’s is the latest retailer to fire back at Amazon with its own image recognition mobile application designed to simplify searching for items on its ecommerce site by submitting a photo of an item from daily life.

They remain a company to follow in the world of omnichannel retailing.

Happy Reading,

J.W. Gant

**UPDATE** Macy's, along with Sears and Nordstrom, have been named digital retail "geniuses".
http://www.retailonlineintegration.com/article/sears-a-digital-retail-genius/1

Apple Pay - Follow the Money

The introduction of Apple Pay, the mobile payment capability through NFC that will be available with the iPhone 6 and the Apple Watch, has raised one important question in the industry.  How is Apple going to make money off of this?

Clearly this move is designed to make the walled garden of Apple's ecosystem even more attractive.  However Apple will want ARR from this as well.  How else to pay for this.

Some folks are digging through the developer guide for Apple Pay and have found some clues.

http://www.digitaltransactions.net/news/story/Apple-Pay_-No-Charge-for-Merchants_-But-Transaction-Security-Fees-for-Issuers

Here is a snippet from that piece:

...“How much does it cost to accept Apple Pay?”

Here is how Apple answered its own question: “Apple does not charge users, merchants or developers to use Apple Pay for payments. Your credit and debit transactions will continue to be handled by the payment networks.”

With users—consumers—and merchants and developers out of the running, the remaining actors on the payments stage for potential revenue generation could only be card issuers and the networks.

...

But now it looks like issuers will be paying about 15 basis points, or 0.15% of an Apple Pay purchase, for what amounts to a guarantee by Apple that a tokenized and biometrically verified transaction is good, a source familiar with the payments industry tells Digital Transactions News.

Next is Walmart's and Best Buy's response to Apple Pay (no way):

http://www.mobilepaymentsinsider.com/2014/09/12/walmart-turns-down-apples-mobile-payment-system/

Here is a quick analysis of Apple Pay vs. CurrentC:

http://www.mobilecommercedaily.com/apple-pay-vs-mcx-which-has-bigger-potential-in-mobile-payments

Finally is word on how to use Apple Pay in the drive-through at McDonalds (it isn't pretty folks):

http://recode.net/2014/09/14/how-youll-buy-a-big-mac-with-your-iphone-at-a-mcdonalds-drive-through/

Happy Reading,

J.W. Gant

CTIA Super Mobility 2014 Day Three

The closing day was a bit subdued.  I felt everyone was completely gassed after two long days and whatever else might have been going on around Las Vegas in the evenings.

Nothing of interest for me in the sessions or keynote but I had a number of booths still on my list so it was back at it for me on the 11th.

Here is your blogger host outside of the exhibit floor:

Yeap.  Everyone had about had enough by this point in the afternoon on Day Three.  These workers were playing around quite a bit.

The first booth I saw breaking down was 123EWireless and I captured the moment.

A quick shout out to those who were so nice and helpful at the greeting to the VIP Club, and I was out the door to begin my journey back home early the next morning.

Great event overall.  I made a number of excellent business connections that may help my efforts going forward and saw a number of great and informative speakers and interactive sessions.

If it is mobile, and it isn't named Apple, it is here.

Back to my regularly scheduled blog next week.

J.W. Gant

CTIA Super Mobility 2014 Day Two

I'm a bit late in my writing.  I still haven't written anything for Day Two.

Here goes.

This was the biggest day of the event, and writing this after Day Three has ended I can state that absolutely.

Just an enormous amount going on.

My day started with the 9am Keynote that was a set of speakers from various industries.  AT&T led it all off with a panel.

The day continued on the exhibit floor with a ridiculous amount of activity.  Here are a couple shots from the floor.

Cool car

Miss your blackberry?  Plenty of people do and these folks have a solution for you.

I was able to sit in on a number of excellent interactive sessions and presentations including a focus on women in mobile and a great job by Adam Singer of Google's Analytics.

Here is a view outside the keynote room:

One of the better conversations I had was with Larry Irving, a 7 year Assistance Secretary of Commerce under President Bill Clinton.

Excellent day.

J.W. Gant

Industry Response to Apple Pay

Well, they certainly created a buzz with Apple Pay.

Here is a good analysis of what Apple's move will do for mobile payments:

http://www.pymnts.com/in-depth/2014/it-took-an-apple/#.VBG4qMJdXVU

Here is a snippet from that piece:

Players in the payments space for years have talked about when the right moment will come when mobile payments finally will take off. And most people said when Apple entered the game, it will, given Apple’s tendency not to jump into willy-nilly notions of what might succeed only to disappoint its loyal following of tech-savvy consumers.

But while Apple finally made the move into payments on Tuesday (Sept. 9), it still will take time for the progress to be made. But, the pace may just be quicker now, executives from Chase and Chase Paymentech noted during a podcast interview this week with MPD CEO Karen Webster.

Next is a very true statement.  Apple just gave a huge give to credit card companies.

http://finance.yahoo.com/news/apple-isnt-disrupting-credit-card-111412294.html

Here is a snippet from that piece:

The announcement of Apple's new Apple Pay service marks another big gun — the biggest, probably — entering the mobile payments space. Those expecting Apple to disrupt the tri-opoly of MasterCard, Visa and American Express will be sorely disappointed. While tech startups in the mobile payments business talk frequently about replacing the traditional banking and financial services industry, Apple probably sees that as a fight that's simply not worth having.

Here is a very good write-up in the New York Times stating Apple is solving a problem that really isn't a problem:

http://www.nytimes.com/2014/09/11/upshot/apple-pay-tries-to-solve-a-problem-that-really-isnt-a-problem.html?module=Search&mabReward=relbias%3Ar

Some retailers don't understand why NFC is the approach Apple has taken.  Why not use beacons instead?  I believe this move is more to support the market in China than the United States so this puzzlement makes sense.

http://www.mobilecommercedaily.com/lord-taylor-reexamines-nfc-following-apples-announcement

What does Apple Pay mean for retailers?

http://www.retailonlineintegration.com/article/what-apple-pay-means-retaiilers/1

Here are a few more:

Target: http://chainstoreage.com/article/target-extends-mobile-commerce-like2buy-instagram-and-apple-pay

FinExtra Article: http://www.finextra.com/news/fullstory.aspx?newsitemid=26433&topic=innovation

Mobile Payments Insider: http://www.mobilepaymentsinsider.com/2014/09/10/ditch-your-wallet-apple-unveils-nfc-mobile-payments-for-iphone-6-and-iwatch/

Happy Reading,

J.W. Gant

CTIA Super Mobility 2014 Day One

Well, the enormous news by Apple showed how big they are.  We may not see huge news like that at this year's Super Mobility Conference but it is still an amazing event.

I've captured just a bit for you.

First, what is the CTIA?

http://www.ctia.org/

The wireless mobility conference to end all conferences.  This brings together all the categories around mobile including the actual cell tower providers, cell phone repair, accessories, etc. etc. etc.  Huge.

The speakers are pretty tremendous this year and come from most of the major players, other than Apple.

Here is Twitter with CNBC at the afternoon keynote:

I'll have quite a bit more to write about later this week but for now I want to share the coolest charging station I've ever seen.

These are little, personalized, lockers for your phone to charge in.  Simply insert your phone in to an empty locker, connect the charger, close the door and enter any 4 digit code.  Walk away.  Come back later and re-enter your code to access the locker and retrieve your phone.  Brilliant.

Now if they could just improve batteries so we wouldn't need cool lockers like this!

Happy Reading,

J.W. Gant

Apple Pay

What does Apple Pay mean for mobile payments?

Quite a bit.

With Apple sitting on the sidelines the last few years there has been a headwind to any effort in this space.  The wait and see approach has been preferable to many, and the most affluent and innovative mobile consumers (largely) have been staying with Apple.

That all changed yesterday.

Clearly this will have ramifications throughout the space.  This is validation for efforts towards mobile payments.  The biggest players, including the biggest credit card companies and the largest banks, are all united on this path.  I view it as a sustaining move by the issuers and credit card companies.  They want to see things continue exactly as they are.

What about the merchants?

If you have great margins, as the luxury companies do, or speed is incredibly important for you, or you want/need your brand to be tied to a brand viewed as high-quality, this is good for you.  We've seen the companies announced and that matches perfectly.  What about the masses though?  Lower margins mean the existing payments networks are a terrible drain for you.  That is where CurrentC by MCX comes in.

I see this playing out along the lines of the wealth divide in the United States.  Apple with other luxury brands will ignite Apple Pay and NFC.  Meanwhile, CurrentC will grow amongst the largest retailers in the world.  Things should be pretty interesting the next few years.

Here are a couple articles that provide some perspective.

"New iPhones Will Get us Half Way to Mobile Payments"
http://www.businessweek.com/articles/2014-09-09/new-iphones-will-get-us-halfway-to-mobile-payments

"How Apple's iPhone 6 Can Finally Make Mobile Payments Happen"
http://www.businessweek.com/articles/2014-09-05/how-apples-iphone-6-can-finally-make-mobile-payments-happen

Happy Reading,

J.W. Gant