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How would you like to pay for that?
That seemingly simple question has retailers grappling for answers. As digital technologies advance and consumers become more comfortable with mobile devices, the possibilities are growing.
Koichi Tagawa, chairman of the Near Field Communication Forum, a nonprofit industry group that advances the use of digital payment forms, said recently the use of “e-money” — namely cards and mobile wallets — is now so widespread in Japan that the Bank of Japan hasn’t printed any new coin in at least a year. Tagawa, who spoke at the National Retail Federation Convention in New York last month, observed the U.S. is lagging behind parts of Asia and Europe in the adoption of digital payments systems.
The Starbucks mobile payment app that turns a phone into a payment device continues to be among the most successful programs of its kind in the U.S. Meanwhile, mobile payment apps designed for use across numerous retail outlets, such as Google Wallet and products from Square, ISIS and PayPal, are trying to get traction.
NFC Forum’s Tagawa said it makes sense to keep paying tools on a mobile phone rather than carrying around a bulky wallet filled with store cards and credit cards.
Locally, it’s a trend first trumpeted by PNC Bank midway through 2011.
PayPal’s Beacon
There is the futuristic Beacon from PayPal that recognizes registered Beacon users when they enter a store. Without even opening the app on the phone they get an approval code for a purchase. Once the items are scanned, a verbal approval is all that is needed to complete the sale. A receipt is emailed.
“Beacon makes it so easy, consumers don’t have to do anything,” explained Don Kingsborough, vice president of retail and prepaid products at PayPal. “When it comes to mobile payments, the industry needs to get out of the way and make it invisible for consumers.”
Following the example of Apple stores, many retailers are introducing mobile devices in stores so shoppers can be checked out anywhere, not just at the traditional register area. Macy’s and Best Buy are among them.
Mobile cash registers
Honeywell is among a host of vendors coming up with mobile tools that can turn smartphones and tablets into cash registers — like the popular Square — but additionally provide services such as inventory status and product details. At the NRF show, Honeywell debuted the Captuvo SL62 designed for the Apple iPad mini.
Captuvo SL62 is designed for the Apple iPad mini with similar tools for iPod Touch and iPhone 5. It enables small businesses to accept credit card payments and allows big retailers to free their associates to spend more time on the selling floor.
For those not ready to pay with their phones, prepaid cards are also entering the scene as a cash alternative. Walgreens has just introduced the Balance Financial card in partnership with Mastercard. It is an advanced version of its Balance Rewards loyalty card. Dunkin’ Donuts, too, has just introduced a loyalty program in the form of a prepaid card called DDPerks.
“We are learning more than we ever knew,” declared Dan Morrell, assistant treasurer for Walgreens. Balance Financial will particularly benefit lower-end shoppers who don’t have bank accounts, because the cards will be able to make funds transfers and receive direct deposits. But users will also accrue more store benefits than traditional card users, Morrell explained.
With new concerns of data breeches, Morrell said Walgreens “is spending a lot of time and the right investment dollars” on security. Walgreens is also testing the ISIS mobile wallet in five markets.
Then of course, there is bitcoin, the digital currency introduced in 2009 that has gained a modest but growing following.
“There is infrastructure at play. This is connected commerce, and everyone is seeking a solution,” said PayPal’s Kingsborough. “This is a revolution at the very beginning,” he declared, “and the tide is not going to turn.”
From www.poconorecord.com
