STORES Magazine - March 2009 - (Page 88)

CONSIDER THIS / ARTS UPDATE Mobile Payments Could be a Game Changer BY RICHARD MADER Mobile phones in retail will do much more than offer another method for consumers to pay for purchases; they can change the way customers shop and how retailers process payments. account information within the memory of Why has ARTS prioritized standards support their phones. for mobile transaction processing in the midst Debit cards are another option; in some of a recession when most retailers are not countries, the phone company will store the looking to make investments in technology? charge and add it to customers’ monthly Because many retail experts believe the benephone bills. fits of mobile processing are of such signifiYet another innovative option is Automated cance that investment is required now to seClearing House (ACH), an electronic network cure a place for retail in the future of mobile for financial transactions in the United States phones. governed by NACHA-The Electronic PayFrench retailer Carrefour has recently anments Association and the Federal Reserve. nounced a mobile payment trial, Kraft Foods The good news is that ACH payments cost launched menu and cooking instructions via pennies; the bad news is that the payments an iPhone application and other trials are may not clear for 24 hours or more. With the under way at AMC Theaters, 7-Eleven and documented agreement of the customer, the Best Buy. Richard Mader is executive mobile device could generate ACH transacStart with the fact that more than three billion director of ARTS. tions. people have cell phones — twice as many as have credit cards – and you immediately have 1.5 billion potential new customers whose purchases can Potential for savings be tracked for promotions. Consider the impact on sales if All of these new payment options need to be given strong you can contact a customer anywhere in the store with consideration in view of credit card interchange fees that special offers and reminders of important dates like birthtotaled $42 billion in 2007. Interchange fees add an averdays and anniversaries, then expand these services and age of approximately 3 percent to sales; in fact, when promotions with text messages. gasoline was $4 per gallon, many gas stations refused to Kraft helps customers shop, and then follows up with accept credit sales. There is great potential for savings if preparation ideas. While we are talking grocery, think of mobile payments allow retailers to reduce the amount of inthe processing savings when coupons are electronic and terchange fees they pay. automatically included in the tender. There also is great poWhat will it take to facilitate wide-scale implementation tential in allowing consumers to scan a of mobile payments? It will require bar code to find accurate and searchable global standards currently in developinformation about any product. (Of ment by many associations, investment course, the consumer could then use the by the retailing and banking industries The introduction universal ID number to search for lowest and collaboration among all involved of mobile payments price, but most retailers don’t want to parties. is the perfect time compete solely on the basis of price.) ARTS is monitoring progress in this for retailers to area and working with groups like the GSM Association to get a seat at the Other payment options consider other table for retail. You can help by volunThe introduction of mobile payments is new payment teering to assist NRF and ARTS in the perfect time for retailers to consider options preparing for mobile payments in retail. other new payment options, as well. The E-mail me at maderr@nrf.com if you easiest and most often discussed is simwould like to be involved. ply to have consumers store credit card 88 STORES / MARCH 2009 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - March 2009

STORES Magazine - March 2009 Contents Executive Editor's Page President's Page Movers and Spenders What Shoppers Think Take Your Laundry Online 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Luxury for Less Q & A CONCEPT2WATCH Checkout Management Online Entrepreneurs Sustainability POS Online Strategy Online Scheduling SaaS Online Marketing Merchandise Security PCI Compliance LPinformation Supplier Directory Exception Reporting Industry Perspective Theft Research LOEB Retail Letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar End Cap

STORES Magazine - March 2009

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.