Handset variety remains a big issue, one that isn’t going to go away fast.
Some interesting stats in the article about the ongoing trail in Spain the includes Telefonica and Visa.
London to lead way in NFC mobile payments
Spanish NFC trial shows elements are coming together, partners claim
the 2012 Olympics would push the introduction of the technology into the London market, making it the first mass market deployment outside of Japan and Korea.
Telefonica is currently trialling an NFC mobile payments scheme in the resort town of Sitges, just south of Barcelona. The trial is a joint effort between Telefonica, Visa and La Caixa.
80% of those who signed up have used the service at least once. 52% of users use the phone at least once a week. The remaining 48% use it only every 15 days or less. On average users made seven purchases in the first three months of the trial, across three different retailers.
The average value of a purchase has been â‚¬31
Payments over â‚¬20 require the user to enter a PIN
ary Carol Harris, Head of Mobile Payment Business Develeopment, Visa Europe, said that handset availability is still â€œone of the bigges
Mary Carol Harris, Head of Mobile Payment Business Develeopment, Visa Europe, said that handset availability is still â€œone of the biggest nuts to crackâ€
The fundmental proposition is threefold:
1. Reduced fee’s could be a motivating factor to drive retailers toward mobile payments.
2. An overhaul of the aging payment communication network is overdue.
3. Carriers should band together to challenge incumbents
my take: $1 trillion is a really big number to achieve in 4 years for a lot of reasons, not the least of which are the slow pace of consumer adoption for new lifestyle technology, and point of sale upgrades. Its more likely that mobile payments via e-commerce sites will continue to set the pace in mobile commerce. And the begs the question, will “card not present” fee’s rise on the fears or realities of mobile payment being less secure?
US mobile payments could reach $1 trillion by 2015: exec
Mobile payments will approach $1 trillion by 2015 in the United States if retailers receive lower payment-processing fees based on a more efficient system, according to projections by International Telecom Strategiesâ€™ The Luciano Group.
Mobile Commerce Dailyâ€™s Dan Butcher interviewed David Schropfer, partner at International Telecom Strategiesâ€™ The Luciano Group, Red Bank, NJ, and author of â€œThe Smartphone Wallet â€“ Understanding the Disruption Ahead.â€ Here is what he had to say:
Who are the primary combatants in the impending mobile payments war, and what factors are bringing the conflict to a head?
Generally, the two sides are in the payment system as we know it todayâ€”Visa, MasterCard, First Data, Fiserv, etceteraâ€”and all of the other companies that are either using or contemplating using an alternative to the payment systemâ€”PayPal, Isis, EnStream and others.
What are some of the key conclusions and takeaways from the book?
The payment system as we know it today was designed in the 1960s and â€˜70s. Technology has improved, but the architecture is the same.
Mobile payments have the potential to create a more efficient and less expensive payment system.
A less expensive payment system could mean much lower fees to merchants, and lower retail costs to consumers.
Consumers need to know that mobile payments and mobile loyalty programs will offer them a chance to regain their privacy.
For retailers, mobile payments may represent a chance to cut their credit card fees in half. The same is true for loyalty and reward programs.
The reduction of these fees is not because mobile payment companies want to survive on thinner margins.
Instead, these fee reductions will be based on a more efficient infrastructure and architecture.
Credit card schemes and processors, however, need to take a serious look at the smartphone, GSM technology, UICC, Trusted Service Management and other technologies to decide if greater processing efficiencies can be realized.
Starbucks expands mobile payments to all sites
ow you can pay for that latte with cash, credit card or mobile phone.
Now you can pay for that latte with cash, credit card or mobile phone.
Starbucks (SBUX) , which tested mobile payments in select stores and Target outlets in the past year, expanded the program nationally to all its 6,800 company-owned stores starting Wednesday.
“Starbucks is using an interim technology that’s available today,” Bezard says. But he thinks the future of mobile payments will be based on a technology called near-field communications (NFC), which embeds a payment chip inside the phone.
Starbucks began testing mobile payments in 2009. To expand nationally, it had to retrofit older scanners with new ones that could accept the bar code from the apps. “We’re going to see big adoption,” Brewer says. He wouldn’t say how much the changeover cost the company.
Google’s Search for a Digital Wallet
For an NFC payments service to work, Google needs to convince not just smartphone users but also merchants, who have to install NFC readers to process mobile payments.
- Google Ready To Rule NFC-Based Mobile Payments? (tech.slashdot.org)
- Android Wades Into Apple’s Patent Minefield to Capture Wireless Credit Card Payments (fastcompany.com)
2011 will bring us a lot of tech talk about NFC and other mobile payments but few transactions – and certainly no wallet replacements.
The mobile payments sector – especially for in-store proximity point of sale (POS) use case – as a number of really big items to address. They range from what do you when a phone is dead, a POS is not working or a clerk has no idea how to process the transaction, to the challenges of provisioning credit/debit credentials on handsets,what does the payment model (aka interchange?) look like and what happens when you loose your phone.
tell me what you think.
Mobile Payments Inheriting the Problems of Contactless
Dead phone batteries. Wrong merchant terminals. Terminals turned off. Terminals unrepaired. No terminals at all.
In hyping mobile payments, many proponents focus on the way point of sale transactions could change, frequently describing people who leave home without their wallets but never without their phones. But that oft-cited cliche is not likely to become reality anytime soon.
When the payments networks several years ago began pushing contactless cards, which let a consumer pay for a transaction by tapping the card against a payment terminal instead of swiping it through, “there was a lack of consistency in terms of telling people what the cards can do,” he said.
Breaking or losing a phone would be handled similarly to losing a plastic card, Bernard said, requiring the consumer to contact a wireless carrier for a replacement and to remotely wipe the lost handset if necessary. Depending on the business model, a consumer may also need to contact the bank that issued his payment card account.
Dave Wentker, the head of mobile products at Visa Inc., said some handset manufacturers may enable contactless capabilities when a handset is not charged, though they can also take the opposite approach and require the phone to be switched on before payments are allowed.
“I think it’s a viable short-term strategy to get key merchants to accept the NFC or contactless payment device, but there needs to be two sides,” Bernard said. “You can seed the market with terminals but then you need a proliferation of the NFC handsets and stickers … so it feeds off of each other.”
“We can’t talk to a tier-one retailer today without talking about contactless and NFC,” Hypercom’s Rossiter said.
My call: 2011 is the big year of NFC tech talk, but material levels of proximity payments will remain elusive until at least 2015 in North America.
In one corner, we may well have Google w/ Samsung and in the other corner, Microsoft w/ Nokia sparing for share in mobile proximity payments using NFC technology. Apple, RIM somewhere in the middle.
Nokia has the most experience of the handsets makers to use NFC, followed closely by Samsung. Samsung made did a nice job putting NFC in the new Nexus S while trading away MicroSD extra memory.
Note: The forecast here seems low. Chip makers have already come out and said they are building against a 50mil handset inventory in 2011 – based on orders.
Google and Nokia to spur on mobile phone payments in 2011
major growth in mobile phone payments in 2011
thanks to increasing support for near field communications (NFC) technology from
key players such as Nokia and Google.
The analyst firm predicts that mobile handset shipments will rise to 220.1
million units by 2014, of which 13 per cent will feature NFC software capable of
supporting mobile transactions.