With so many competing mobile payment technologies available, much debate surrounds which technology trumps the other. Recent research produced by Accenture for North America found that the industry’s fixation with picking a winning mobile payment technology is over-shadowing the next critical matter: a demand-side barrier with regards to persuading consumers to use mobile payments altogether.
Whilst technology is critical to mobile payments, it does not form the only key driver. Accenture found that consumers aren’t necessarily concerned with using one particular technology; they are more concerned with the added benefits that using their mobile for payments can deliver. The results suggest that merely making mobile payment infrastructure available to consumers is not enough. To attract more frequent and valuable customers, merchants should also incentivise consumers through rewards or other value-added services to encourage wider adoption.
And we’d have to agree – because regardless of which technology prevails, none of this matters if emphasis is not put onto the added value it provides the consumer. As ultimately, they are the ones who will decide on the success.
Trends over the last decade have made it clear that a strong value offering is what makes a new proposition attractive to consumers. Take for example online shopping, whilst the physical experience of shopping will never fully disappear, the success of online was not due to speed, it was the added value offering of online that made it the success it is today – such as providing a 24/7 store.
At Proxama, we believe the element of reward combined with convenience will drive adoption of mobile payments, as it’s this that will make the proposition attractive to consumers. Incorporating loyalty, coupons and reward initiatives into mobile payment technology makes a consumer’s smartphone a one-stop-shop. And isn’t that what everybody wants?
As consumers, we’re all looking for something that’s going to simplify and improve our lives in order for us to use it. So for mobile payments to really take off, it needs to be built around the same ethos.
So where does consumer adoption of mobile payments really lie? In giving the consumer what they want.
Click the image below to find out more about the Accenture research.
Mark Fuller, Graphic Designer at Proxama.
Working in a leading mobile technology company means that we get to see a multitude of new technologies develop before they roll out into the hands of the public. Therefore, we need to lead by example in terms of the user’s experience, by creating relevant ways in which the technology can enhance the user’s daily life.
The design team at Proxama fabricates ideas and technology into products that can make: shopping easier, collecting loyalty points simpler, receiving rewards more efficient and generally creates an enjoyable experience that the end user deserves.
Designing for the mobile platform provokes thought on what the digital equivalent of an everyday physical object or product should be. For example, what can a digital loyalty card do that a paper/card one can’t? What does the mobile wallet need to look like and how should it perform to reassure security and create ease of use?
Our mobile wallet, TapTransact™, looked exactly at this. We redefined what the mobile wallet could be, by approaching the project from the perspective of the person that we feel is the most important; who will give honest feedback; who will tell their friends and leave reviews on application stores; who will be using this every day of the week; the end user.
Yesterday marked the 40th anniversary of the first mobile phone call. As our core business revolves around the mobile platform, this is a significant landmark for us.
The mobile phone has come a long way. Today it has become the platform for innovation as its use has extended far beyond its original purpose. Yes, we still make phone calls with our mobile phones, but there are so many other things we need our phones for today. It goes without saying that it has become a vital part of our lives and a vital part of our business too. I don’t think anybody could have anticipated 40 years ago the mobile revolution that has since occurred. It has paved the way for new business ventures and has become the hub for connecting everything.
So what can we expect in the next 40 years? Google with their futuristic Google glasses have shown us that in the near future your smartphone can take on a different form factor; according to Google their augmented–reality glasses will replace your smartphone. Or perhaps the next big thing is the smart watch, which Apple is rumoured to be working on, that can link your smartphone and alerts to your watch. The question is, do we want to wear glasses or be seen talking to our watch? Perhaps 40 years from now this will be the norm.
Whichever form mobile might take on we believe it will become the portal to everything we do. Day to day activities such as switching on your heating, your lights and unlocking your car will be done through your mobile phone. It’s hard to imagine that in the near future we will become even more dependent on our mobile phone; but judging by the way the smartphone industry has already progressed, surely this is inevitable?
It’s easy for us at Proxama to foresee the even bigger impact the mobile platform is going to have on day to day life. For one, mobile payments will be the norm and there will be no such thing as carrying a separate wallet. Another change we have already come across is how mobile is impacting our retail experience. Mobile commerce has grown rapidly over the years and it’s safe to say that in the near future the vast majority of commerce will be mobile based. It has become the platform for innovative retailers to explore its many opportunities. In conjunction with technologies such as NFC, retailers are able to connect their physical experience to their digital world which enables them to revamp the traditional brick and mortar retail experience. Today, mobile creates brand differentiation and is therefore fast becoming a critical factor in remaining relevant.
A lot has happened over 40 years that has impacted both business and day to day life. It’s fair to say that we have come a long way since the first phone call. Even though we anticipate great things, in 40 years when we look back the difference of what we will be able to do with our mobile phones will be an even bigger leap then we have seen in the last four decades.
Could you imagine a world where the mobile was never invented? Scary thought isn’t it…
James Taylor, Head of R&D at Proxama
Recently, NFC has been featured frequently in the news. There have been favourable market developments, including the increasing availability of mobile handsets. OEM’s have been consistently rolling out NFC capabilities within their flagship handsets. These include the new Samsung Galaxy S4, BlackBerry Z10 and the HTC One X.
This has created an increase in demand from our clients, in terms of creating innovative product solutions. As Head of R&D, my main focus is to ensure that we consistently lead the mobile marketing and payments sectors. As a company that works with emerging technologies, research and development is key to everything we do.
The term itself “Research and Development” can have very different meanings depending on which industry you are positioned in. For academics, it can mean experimentation and a very theoretical approach to problem solving. For others, it’s about product development and building products. For a lot of software based start-ups R&D is business as usual: cutting code. For Proxama, R&D encompasses all of this.
We’ve worked with NFC technology since the first prototype phones with Nokia. Since then a lot has changed. The role of R&D is to break down barriers and Proxama is consistently successful in doing this. One of our key milestones is the incorporation of ARM’s TrustZone Security technology, which can be found in most handsets worldwide. We were at the forefront of the development of this and are now in a position of being a launch partner of the Trustonic joint venture.
This illustrates how Proxama ensures a proactive, opposed to a reactive, approach to market changes. From our research at the beginning, we realised that consumers were not comfortable with the idea of paying for transactions simply with their handsets. Hence, we worked with ARM in developing secure elements which are built into all of our products.
Of course not everything R&D works on is a success, but every venture good or bad helps us to improve. We’re able to look at technology and analyse it for its business possibilities, identifying potential whilst rejecting incompatible ideas or products before we invest.
The R&D department looks at new technology to see how it can benefit our core business and our long term roadmap. My mission is to transfer the knowledge and experience (IP!) from the R&D department into the products and roadmap that is being developed. By having engineers at the ready, a very close working relationship between the R&D department and the product managers and by continuing to work hard and invest time and effort, we’re looking towards an exciting future.
The wait is over. Yesterday Samsung launched its highly anticipated Galaxy S4 smartphone. The handset follows on from the highly successful S3 which was launched last year and sold an impressive 40 million units worldwide. The S3 has become the flagship model that proved Samsung a true pioneer in smartphone technology. So what does the S4 bring to the table?
In short, an amazing array of innovative features. The new device was released in true rock and roll fashion at the Radio City Musical Hall (New York), on the same stage where legendary Rolling Stones performed, and just like the Rolling Stones, the release of the S4 was a highly anticipated show. However, the question on everyone’s lips is: Has it really rocked the smartphone world?
Smaller in size than the S3 and slightly thinner, the S4 will suit Samsung fans as it’s similar in style to its predecessors. Unfortunately this also means that the overall look and feel of the device is still a bit too much on the plastic side. Besides the usual smaller, faster, thinner features that have now become standard on a follow up model, what really interests us is not so much the physical look (yes it needs to feel and look great!), however even more important are the internal capabilities of a newly released smartphone.
So how well has Samsung done in terms of new technology? Well once again, they’ve ticked the NFC box, much to our liking, of course!
Besides NFC, the S4 has some pretty impressive features that demonstrate futuristic technology. For example, the eye-motion sensitive control enables you to influence the device without using your hands! Who knew that using your fingers would become outdated? (Anything that helps rid the world of smeared smartphone screens is a brilliant life add-on!)
OK perhaps the eye movement technology is not realistically an everyday feature. It may be a bit too futuristic? But then again Google Glasses has shown us that this may be where we’re headed. Technology is all about pushing boundaries, we at Proxama certainly know a thing or two about that!
Something perhaps more applicable to day-to-day life is the S4’s dual camera record which lets you simultaneously capture a picture from the rear and front of the camera. Now every time you create a picture you can include yourself in it! It seems that impressive camera features are an on-going theme for Samsung and we applaud them for that.
Overall I’m not sure if Samsung has really rocked out enough, but they are continuing to push boundaries and that’s something that we like to see at Proxama.
The question is, is the S4 good enough to dominate the smartphone market? Or are we to expect even bigger things from rival Apple rumoured iPhone 5s and iPhone 6? Any competition is good competition if it brings about refreshing change…. and a little bit more NFC.
Here’s an interesting overview of the mobile payments space created by FirstPartner. If you’re interested in the various industry sectors involved within mobile payment strategies, then this diagram will give you valuable insight.
Consumer adoption of remote mobile commerce is growing and mobile schemes are being deployed in several markets.
Proxama has been identified as one of the key players in providing mobile wallet solutions that enable the adoption of mobile payments in the real world.
Did you know that there are 163 mobile money services deployed? Or that the annual value of processed transactions claimed by mobile POS has already reached $10bn?
Click the image below to download the Market Map of the 2013 Mobile Payments & Banking ecosystem.
We’ve just got back from Barcelona, where we’ve had an incredible time at Mobile World Congress! It was fantastic to see such an investment in NFC this year, with all the leading handset manufacturers and MNO’s displaying a variety of NFC smartphones.
Throughout the event, there were large NFC walls which you could tap with your NFC-enabled smartphone to receive different information on the event – which was pretty handy!
We’d also like to say a big thank you to Sony and GSMA for the free Sony Xperia T’s – they’re great! The additional 15 euros programmed into the phone ready for spending wasn’t bad either.
By Neeraj Bhatia – Product Management Executive at Qualcomm
Recently, Visa and MasterCard announced their EMV debit solutions, with the latter supporting contactless payments. This is a huge step towards making EMV a reality in the U.S. market, and with its adoption, contactless infrastructure growth is expected to follow. Hopefully we will be able to use our phones to tap and pay at our favorite retail store using NFC across the nation soon. In fact, traditional payments at point of sale terminals are expected to evolve into something much bigger. With significant innovation both before and after the transaction, mobile, contactless and commerce are converging into a much broader and richer commerce life cycle.
Players like ISIS, Google, Living Social and Groupon want to work with retailers to provide targeted offers to influence purchase decisions, and brands desperately want to engage with consumers to increase conversion in retail stores. To find out what really draws test shoppers’ attention, companies like Procter & Gamble Co., Unilever PLC and Kimberly-Clark Corp. are combining three-dimensional computer simulations of product designs and store layouts with eye-tracking technology. That is helping them roll out new products faster and come up with designs and shelf layouts that boost sales.
If a customer taps on a NFC tag on a product or shelf, the retailer can take this engagement to a totally different level. Many brick and mortar stores complain of the showrooming effect, where the customer visits the store to learn about the product, but the actual purchase is made through a competitor’s website. NFC offers a unique opportunity to tie offline shopping with the online world. Retailers can ensure when the consumer taps on the product on a shelf in their store, they are directed to additional online collateral on their own website. This would reduce friction in the purchase while increasing loyalty and conversion.
If you are thinking barcodes, don’t. Per Kraft’s recent study, the overall engagement level of an NFC tap was 12 times higher than a barcode snap. Consumers’ engagement time increased from five to ten seconds at the shelf to 48 seconds when NFC was involved.
What happens after the consumer has paid for the product? The shopping cart data, transaction history and preferences hold a wealth of insights for retailers. Analyzing raw data from the payment transaction will allow retailers to build better customer profiles, improved loyalty programs and offer a deeper value to the end consumer. NFC will play a big role in enabling retailers to attract new customers in new ways, while meeting the expectations of existing customers through fast offer redemption with privacy protection.
Loyalty Card – Visitors can access a digital loyalty card on an NFC-enabled phone at the booth. With each tap, a stamp is added until all six spaces are filled and the visitor is prompted with a redeem message. After redeeming, the next tap will launch a new loyalty card.
The Snapdragon Movie – A movie poster with imagery from the Snapdragon ad Qualcomm showed at CES is on display. Visitors can tap an NFC-enabled phone against the poster to receive a voucher and a link to watch the trailer (the Snapdragon ad). They can then claim the ticket with another tap.
Tap to Tweet – With a just tap of an NFC-enabled phone to the tag, visitors are presented with a preloaded tweet. After entering their Twitter username and password, they can publish it.
We’re exhibiting at the GSMA Mobile World Congress in Barcelona next week, from the 25th-28th February.
Come and find us in Hall 7, stand 7H103.
Our CEO and founder Neil Garner will be speaking twice at the event.
On Monday 25th find him in Hall 8.1, Room 8.3 speaking between 15:45-18:00, with the title “NFC: Making the world around us Tappable”.
Neil will also be speaking about “NFC: Transforming consumer shopping” on Wednesday 27th in the GSMA Seminar Theatre, Hall CC1.1 between 13:00-15:30.
We’re also showcasing our Proxama product solutions at these stands:
Don’t forget, if you’re interested in arranging meetings in advance, please contact us at email@example.com.
Yesterday, we joined developers in Slough to view a live stream of the launch of BB10 in Vancouver, featuring their two new smartphones: the Q10 and Z10.
BlackBerry’s CEO, Head of Marketing, Head of Developer Relations and even Alicia Keys(!), together conducted an insightful keynote speech outlining the advancements and changes to BlackBerry. For example, they’re now known simply as BlackBerry, leaving the RIM name in the past. They’ve even changed to BBRY on the stock market.
As you’re probably already aware, BB10 is on sale in the UK as of today, whereas most other countries have to wait until the end of February/March. For some reason or other, we got it first (even ahead of BB’s homeland, Canada!).
So first thing’s first, the new features:
We love BlackBerry’s new Work/Play “Balance” feature allowing users to swap between modes, completely changing the apps displayed. These two modes are firewalled, so for example, applications in the Play can’t use data from applications in the Work – you can’t even copy and paste across the domains, which means companies are going to love it!
From what we’ve seen so far of the new BB Hub, it’s looking pretty awesome. You can easily merge your emails, calendar, social media, etc. as appropriate – handy!
Next up is that keyboard everyone’s been hearing so much about – BlackBerry even described it as “the best typing experience ever. Period.” Pre-emptive typing looks cool, but definitely seems like something that takes a bit of getting used to.
Although the BB10 marketplace looks relatively sparse compared to the likes of the App Store and Google Play, BlackBerry have assured us that popular apps like Skype – and even Angry Birds – will definitely be available.
All in all, we can’t wait to finally get our hands on an official BB10 smartphone (psst… we’ve already had a play around with some prototypes).