STORES Magazine - June 2011 - (Page LP36)

LOSS PREVENTION / MOBILE The Dash for Digital Cash Weighing the LP implications of mobile payment adoption BY M.V. GREENE A s the online world was starting to take off in the mid-1990s, Internet maven Nicholas Negroponte of the forward-thinking MIT Media Lab was proselytizing about “digital cash” and how it would someday be the standard mode of payment. LP departments are also examining how digital payment systems might affect associate training to detect fraud as well as the overall operation of stores, says Joe LaRocca, senior asset protection advisor for NRF. “The technology is changing monthly,” LaRocca says. “We are always hearing about some new device or some new program that’s out there. The first part always is having visibility into what’s coming down the pipeline in terms of the technology. Then you can make some assessments on how you might approach the risk or fraud prevention aspects.” ‘The fastest way to pay’ While in-store mobile payments are a rare occurrence in retail markets today, the robust adoption of smartphones and other devices — Forrester predicts a U.S. smartphone penetration rate Though still in its infancy, it seems that Negroponte’s vision is beginning to take root. At Starbucks retail shops, customers can point their BlackBerry or iPhone at a POS station and purchase their coffee without having to reach for their wallets. Development of such mobile payment solutions is at a fever pitch today, and impending changes are expected to create a dramatically different retail environment. “Mobile Payments Enter a Disruptive Phase,” a March report from Forrester Research, notes that while technologies still must be refined over the coming years, digital micropayment scenarios “have the potential to disrupt existing payment systems” like debit and credit cards. LP professionals are paying close attention to determine what these changes will mean for security in their store environments. For instance, how will these “touchless” or “contactless” pay systems affect protocols already in place for securing debit, credit and gift cards when there is no magnetic strip or signature to check? “The real benefit here, and the real thing that we hear back from our customers, is that it is the fastest way to pay. That is something all our consumers are happy about.” – Ryan Records, Starbucks LP36 STORES / JUNE 2011 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - June 2011

Stores - June 2011
Editor’s Page
President’s Page
Retail People
CEO Compensation
Customer Service
Business Strategy
What We’ve Learned
Loss Prevention Supplier Directory
Customer Rewards
Business Management
Social Media
Planning Solutions
Loyalty Programs
Business Intelligence
Store Operations
Divisional Update
NRF News
Point of View
Retail Industry Calendar
End Cap

STORES Magazine - June 2011