Canadian Retailer - Summer 2012 - (Page 38)
THE TOP 10 THINGS TO KNOW
The Canadian retail experience has changed significantly over the past few years. Today retailers are busy managing their e-commerce platforms, PCI, group buying, mobile applications, and now… contactless payments and mobile payments.
BY AR AN HAMILTON, Founder, Venture Grower
1. IT’S COMING SOONER THAN YOU MIGHT THINK Phone suppliers like Google (Android) and Apple (iPhone) are developing “mobile wallets” to help manage virtual versions of consumers’ payment cards, loyalty programs, gift cards, and incentives like coupons and offers. Payment companies like Visa, MasterCard, and PayPal have competing offerings. Over time, consumers will likely be able to mix and match and switch easily. Visa and MasterCard have been working on their standards for years and the telcos and banks will start loading phones with payment credentials this year. By 2014/2015, many or most of the mobile phones in market will be able to do a payment. The big question is, how quickly will consumers adopt mobile payments? If history offers us a clue – uptake will be quick! Interac is catching up but will be later than the other payment types in launching mobile. This means that the average retail payment mix could shift to include more credit and less debit until the banks launch Interac Flash for mobile payments. 2. MOBILE PAYMENTS ARE NOT REALLY ABOUT PAYING Few customers are actively looking for a different paying experience. Cards and cash work just fine for a lot of people. Where the mobile payment experience is significantly better has to do with all the ways that the purchase experience will change because of the phone. The mobile phone will be a wallet. It will also be a shopping list, map, camera, and tool to share all this with friends, family, and the world on social media like Facebook and Twitter.
etailers may be getting “payments fatigue”, owing to frustration over the increasing impact of payments on their bottom line and the complexity of the topic. It is important for retailers to remain engaged as the first battles in the war over transaction and customer data are now underway. Many payment cards have NFC (Near field Communication) chips and contactless antennae inside. This technology allows the card to be tapped or waved within 3 cm of contactless-enabled point of sale terminals (no swipe or chip inserted). Today the same tech is being put into mobile phones. The arrival of mobile payments to our points of sale opens up many new possibilities. Here are the Top 10 things you need to know:
3. MOBILE PAYMENTS ARE DATA RICH TRANSACTIONS “Mobile” payments provide both convenience and contextual relevance. The phone can make it much easier for consumers to share where (GPS location, or cell tower, or store level), when, and personal information such as who, and contact information. Today’s advanced retailers capture this information for some customers today, but tomorrow any retailer will capture this information for any transaction. Be warned however, the technology may also allow the consumer to share the information with players such as mobile wallet providers.
38 | canadian retailer | summer 2012 | www.retailcouncil.org/cdnretailer
Table of Contents for the Digital Edition of Canadian Retailer - Summer 2012
Today's Trends in Online Shopping
The Canadian eCommerce Tipping Poing
Cooking Up Change
Mobile Payments: The Top-10 Things to Know About Mobile Payments
CDN/US Price Disparity: Pricing Without Borders
Loss Prevention: Hack Attacks
Privacy Matters: Helping Retailers Navigate The Privacy Landscape
Canadian Retailer - Summer 2012