STORES - October 2010 - (Page 30)

MOBILE IN RETAIL / PAYMENTS For insight into how retailers can establish their own mobile payment network and bypass NFC, see the NRFtech session recap on page S6. Enabling the Mobile Wallet U.S. has potential to jump to the forefront of NFC-enabled payments BY LAURI GIESEN ith consumers increasingly using their smartphones for services like banking and bill payment, it is clear they want even more applications for their sophisticated mobile devices. The potential is strong for acceptance of the ability to pay for goods and services by simply tapping their phones near an in-store POS terminal. W Trial tests of near field communication (NFC) mobile payment programs by retailers and credit card-issuing banks have shown that customers like the ease that comes with having credit and debit card payment capabilities embedded in their phones. Furthermore, retailers have started to catch on to the advantages of NFC, which provides a quick, easy way to move customers through the line while providing all the benefits of credit card payment. NFC-capable POS terminals are already installed at 200,000 30 STORES / OCTOBER 2010 merchant locations, and a number of trials and pilots of the technology over the past five years have shown that it works and that customers and retailers generally like it, but there have been no large-scale rollouts. “For years, NFC has been touted as one of the most promising mobile technologies,” says Red Gillen, senior analyst for consulting firm Celent. “Unfortunately a number of business-model issues have prevented widespread adoption.” Of the various obstacles to broad NFC adoption, one of the biggest has been getting the mobile phone carriers on board. The major carriers “did not want to spend money developing these new applications until they could see a stronger revenue stream for them,” says Mohammad Khan, president of ViVOtech, a developer of mobile payment technology. And when phone carriers did participate in NFC tests, it was in limited numbers. That meant that banks could allow only those customers who received their mobile service from participating carriers to take part in the program. There have been some major changes in recent months that indicate that 2011 could be a breakout year for NFC. One of those developments is the introduction of add-on accessories and software that allow consumers to upgrade their Blackberry, HTC, iPhone, Nokia and Samsung devices to serve as mobile wallets. Once they have done so, customers of participating banks can access their credit card and checking accounts through their phones, and pay for purchases as well. “Retailers are looking at One of the benefits of how they can allow their using these accessories is customers to do more that consumers can add with their phones. Some the capability without the retailers are looking at back-end software that assistance of the phone allows couponing and carriers. That means other services.” banks that offer this serv– Mohammad Khan, ViVOtech ice to their customers do WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES - October 2010

STORES - October 2010
Editor’s Page
President’s Page
Retail People
Customer Experience
Game Changer
Power Players
NRFtech Recap
Concept 2 Watch
Customized Shopping
Consumer Behavior
Software & Analytics
Crowd Control
Payment Fraud
ARTS Update
Point of View
NRF News
Retail Industry Calendar
End Cap

STORES - October 2010