Posts tagged mobile payment
Last week, the Annual Grocery Shopping Habits Study, revealed that consumers are more ready than ever to embrace mobile grocery shopping. The study also indicated how frequently consumers
visit grocery stores, with more than 85% visiting once per week and 42% visiting more than twice per week; leaving Grocery stores probably one of the most frequently visited proximity retail locations that I can think of.
But, while consumers are going grocery shopping often, at the same time only 13% actually feel loyal to a specific grocery brand. Considering the frequency of store visits, the readiness for adopting new mobile services and the lack of brand loyalty, I can’t think of a more relevant scenario for mobile shopping intervention.
With a mobile wallet grocery retailers could actually build more loyal customers by bringing together services like ordering, payments, loyalty and couponing, to make their store the preferred shopping location, all the time.
What’s more is that, the increasing competition from the likes of mobile commerce giants like Amazon, with its new mobile grocery ordering service, could eventually become a big threat to grocery retailers. Those who do not converge could risk being left behind and losing market share.
How Mobile Shopping fits into the Customer Journey
In the typical “grocery shop”, there are essential items that we need, items we prefer to choose ourselves (like fruits and vegetables) and then there are also times we just need a couple things and want to be in and out as fast as humanly possible.
Catering to these complex customer journey’s, the Mobile Wallet we developed for Carrefour City, enables shoppers to pre order and pay for essential items, but also add additional products to the basket in-store. When the customer arrives at the store, orders can be picked up at a designated check out. Because nobody likes waiting in long lines, users of the service get to skip the line, no matter if they add additional items or head right to the check-out to pick up their order. This whole process cuts down ordering and waiting time by about 60-70% and also increases the average ordering amount by almost double.
But, this only scratches the surface of how mobile can improve grocery shopping. Take for example couponing. With 76% of grocery shoppers adding additional items to their intended grocery shopping list, couponing could be better used to influence real time purchasing decisions. A customer is walking down the cereal aisle, and receives a discount on a cereal brand, they weren’t going to buy cereal during this visit but eventually will, so that discount in-store at the right time can really inspire purchasing. What’s more is that customers really want to receive those coupons.
Today’s grocery retailers need to know, that by delivering mobile services, there is little to no risk in losing customers; things can only get better. Nowadays, with 52% of consumers already visiting a grocery retailer’s site or mobile app, they are already used to mobile shopping all the time. Enabling the option to order and pay while browsing that content is only going to make things easier. Customers can still shop in the traditional way and those who prefer to shop by mobile phone will now have access to mobile services with more benefits and increased savings.
Read more on the Annual Grocery Shopping Habits Study
Learn more about the AIRTAG Mobile Wallet for retailers, AIRSHOP
“Consumers will happily make NFC mobile payments if the opportunity arises.” (NFC Payments Report, 2012)
The NFC Payments Report 2012, gives some interesting perspective insight leading up to the predictions for mobile payments in 2012. After interviews and surveys with more than 3,000 consumers and 500+ industry experts and executives, conclusively 2012 should be the “tipping point” for NFC mobile payments. However, the anticipated growth can only become a reality with a fair amount of pull-together from all players in the equation because a few essential pieces are still missing.
According to the report; 2/3 of consumers interviewed from both the US and UK, would not hesitate to make an NFC payment, if the service was readily available. Getting additional consumers on board; according to the experts, is constitutive of all parties (including retailers) relaying information strongly emphasizing the wider benefits of mobile payments.
At this point the industry experts are already convinced. Executives believe that mobile payments will be a strong source of revenue and that mobile payments will be able to deliver more effective up and cross selling.
According to the report, the seemingly most difficult aspect of mobile payment adoption is the convincing of retailers. Building customer enthusiasm is more a standard marketing procedure whereas retailers want to see tangible benefits and results e.g. investment return.
Although retailer “partnerships are still not cemented,” they are absolutely necessary for wider success. This may well be dependent on four factors;
- Cost of the required POS technology
- Visible Investment return
- The cost of participating in the “wallet”
- Intermediary charges
In proximity shops where paying as quickly as possible with an NFC device would be most visibly convenient; newspaper stands, fast-food restaurants, grocery stores and coffee shops; independent retailers will likely be more hesitant to adopt a service that may lower profit margins. A detail that still needs to be given considerable thought is the intermediary fees in those situations.
Although early 2012, has already seen a lot of traction from leading retail brands in their uptake of mobile payment strategy as well as the implementation of NFC capable cash software; further adoption by large scale retailers and retail chains experts argue, is still an important factor that will continue to push the whole industry forward.
Read more about the NFC Payment Report 2012
We may only be in the early stages of NFC payment technology, but the market will continue to see rapid growth. The worldwide penetration of NFC payment availability was at 8% in 2011 but is expected to grow to 53% in 2017. According to Berg Insight; a firm specializing in premier business intelligence for the telecom industry, NFC enabled point of sale terminals will grow from 3.9m to 43.4m, by 2017; with the US seeing the highest density.
The large 2011 market growth is attributed to the nationwide roll out of previous NFC pilot projects.
“The rapid growth was driven by a transition in the NFC-payments ecosystem from performing trials to accelerating the rollout of NFC-ready payment infrastructure, in preparation for the arrival of NFC-based mobile payment services,” say the forecasters at Berg.
The capabilities of NFC enabled POS terminals affect not only the whole payment ecosystem but also other important business aspects such as customer service and marketing, some of the reasons NFC is such an attractive market.
“Mobile wallet services will create an unprecedented opportunity for retailers to interact with consumers in real-time while their purchasing decisions are being formed, for instance by delivering personalized offers in real-time while consumers are inside the shop”, says Lars Kurkinen, telecom analyst at Berg Insight.
The Berg Insight report concluded 2 major details:
- The emergence of mobile wallet services will be the most significant development in the payment industry in the preceding years.
- The value-added services such as coupons, loyalty cards and good planning will be integrated into the daily POS terminal to allow a seamless experience for consumers.
Read the Berg Insight Report Summary
Read the full article on NFC WORLD
A recent quarterly survey conducted by the eDigital Research organization in March 2012 surveyed 2,078 UK residents, both Smartphone and non-Smartphone owners, on their general knowledge and NFC technology usage.
The survey had a number of stimulating findings indicating that mainly there are still a high percentage of people who are not aware of what NFC technology is and those who may have heard of it may not be entirely sure how to use it.
The results specify that mainly it is the responsibility of those within the technology industry and retailers to work together to improve the general public’s knowledge of; what exactly NFC payments are, how they work, security features and the overall benefits; as ease and convenience were seen as the primary benefits while an astounding 32% of people surveyed did not see any benefits at all.
The good news is that those who do have an NFC enabled Smartphone and have tried the technology are likely to use it again. The survey found that “89% of those who had made a mobile contactless payment say they are likely to use the technology again in the near future,” (eDigital Research) demonstrating that the benefits of NFC payments are visible and will keep users coming back.
From a customer’s perspective as to what can be done to improve the situation three key recommendations were made:
- More information: 10.34% of consumers feel that more information is needed to help increase awareness.
- Better/Tighter security: 22.8% of respondents do not feel confident enough that there is enough security surrounding Contactless Mobile Payments.
- More pay points: 8.75% of respondents felt that the lack of available places where they could use Contactless Mobile Payments was holding back the technology. To improve, retailers and technology providers need to look at integrating more pay points around stores, as well as branching out to all locations.
What really is crucial in these findings is that the lack of knowledge consumers have about NFC payments in general most likely greatly impacts the number of people who are unsure whether NFC payments are secure or not. “This time around it’s up to retailers and technology providers to push for this next revolution of the market. People need to work together to increase consumer awareness, and in turn, settle fears and tackle key issues, such as security.” (Derek Eccleston, head of research at eDigitalResearch)
Read more about the results of the survey from eDigital research
This service is up and running at the St. Lazarre Carrefour City location in Paris, the first of several stores to be equipped with the ‘Mon Panier’ retail NFC solution, in the next few weeks.
‘Mon Panier’ offers ample convenience’s for Carrefour City’s customers, who can now place an order and pay for purchases from the convenience of a Smartphone.
All you need to do is:
- Place the order from your Smartphone
- Within two hours the Carrefour City staff will have prepared the order
- Upon store arrival, just go to the ‘Mon Panier’ kiosk to identify yourself by either tapping your NFC mobile device to the kiosk screen with a built in NFC reader, or by placing the phone beneath the QR code reader on the bottom right of the kiosk
In addition, the ‘Mon Panier’ service, has no minimum purchase amount and no delivery or pick-up fees! It is a 100% free service!
Read more about the Carrefour City ‘Mon Panier’ shopping service.
“On May, 7 2012 Mastercard announced PayPass Wallet Services, a new global offering for banks, merchants and partners that will make it faster and easier for their customers to make purchases in stores or online by allowing them to securely pay with a simple click of the mouse, touch of the tablet screen or tap of the smartphone,” according to Mastercard’s press release.
The wallet is said to be launched in the third quarter in the United States, United Kingdom, Canada and Australia first, before the PayPass technology is extended elsewhere around the ‘globe’.
The differentiating characteristics of Mastercard’s PayPass from Visa’s V.me wallet is that it enables banks and merchants to customize their own digital wallets, so that Mastercard’s branding is not the primary focus of attention.
Additionally, Mastercard’s contactless and online payments will be launched under one brand whereas Visa is going to offer two brands, V.me wallet and Visa payWave.
Because over spending is a concern for PayPass users, Mastercard’s wallet will offer a variety of pro-consumer services including; account look-up before purchases, spending control and alerts and delivery of targeted offers coupons and loyalty programs.
Read the full press release about the features and benefits of the Mastercard PayPass
Read more about the difference between Visa V.me and the Mastercard PayPass
Bouygues Telecom, Orange, SFR et Atos Origin, via Atos Worldline, leader européen dans les transactions électroniques et les paiements sécurisés, unissent leurs expertises télécom et monétique pour lancer Buyster, une solution innovante de paiement à distance, simple, rapide et sécurisée sur Internet fixe et mobile qui sera disponible en France mi 2011. More >
C’est en tout cas la supposition du site américain Engagdet.com, site bien connu des technophiles. En effet, le site annonce l’arrivée du français Benjamin Vigier, spécialiste du NFC, au sein de la firme de Cupertino.
Sa source ? Le profil LinkedIn de cet expert du paiement mobile…
Ce débauchage suscite donc un émoi particulier chez tous les passionnés et professionnels du NFC… Apple serait-il vraiment sur le point de faire un nouveau pas dans le monde du sans-contact ?
Affaire à suivre !
Source : Engadget
NFC Times (www.nfctimes.com), details the NFC launch in Nice France:
Organizers of France’s “precommercial” launch of Near Field Communication services in Nice have made it official, kicking off what they say is the first project of its kind in Europe and a “rehearsal” for a national rollout of NFC next year in France. More >