The following post focuses on the In-Store m-Transaction component of the broader m-Pay & m-Commerce solutions within emerged markets (particularly U.S)… examples of which include Apple Pay, Google Pay, LoopPay, et al.
The dreaded ‘F-word’…
…Fragmentation is a familiar ‘problem’ whenever a new trend is initiated from within the technology sector
– Contributed by an excess of Start-ups and Established players wishing to develop ’The Ultimate Solution’ within this emerging trend
– Fragmentation, as we know is not only detrimental to mass consumer adoption but also other critical value chain players such as solution developers (app, content, service), Infrastructure providers and Distributors
– As such, fragmentation has traditionally been dealt through either setting Common Standards, General Industry consolidation or Natural mass market affinity towards a ‘socially popular / viable’ solution
– Or in some rare cases coexist in what seems like a delicate truce
Being smartphone-first technology; m-Transaction solutions too fall victim to fragmentation
However, this may not necessarily be ‘problematic’. The true rival to m-Transaction segment is the archaic yet significant Cash, Cheques & (physical) Magnetic Stripe Card reliant commerce segment that would necessitate an overhaul at some point
The ‘Sum of all m-Transactions’ is in fact an ally in achieving my goal… retiring the humble leather wallet (L-wallet) to the souvenir shelf
Making Fragmentation your Friend
In-store m-Transaction itself is not a new concept (at least in the U.S.), having been around in one form or the other over last few years.
– Google Wallet; which entered service sometime in 2011
– Starbucks has its popular ‘Barcode’ App based payment solution
– LoopPay (acquired by Samsung), lauded for it’s compatibility with existing MST POS terminals
– CurrentC; the yet to be launched product of Walmart-led consortium Merchant Customer Exchange (MCX)
– PayPal Wallet; available to use at various store locally and nationally
– Square Wallet / Order; now defunct
– AT&T, Verizon & T-Mobile’s now defunct Softcard (acquired by Google)
Finally, Apple Pay; which is arguably the most widely revered & used m-Transaction service on the market today… Apple Pay
But where many see fragmentation in this increasingly complex segment, I see an Opportunity… leveraging every available compatible m-Transaction under the sun is helping me achieve my above stated goal
An ideal m-Transaction solution usually has an intuitive workflow, growing merchant acceptance, strong backing from financial institutions and robust security…. the last of which could be addressed through a combination of Tokenization, Biometrics & Encryption
For any one m-Transaction solution to achieve cash-like ubiquity is a distant dream… but in the interim, diverse m-Transaction solutions are surely aiding in retiring that humble L-wallet
m-Challenges
Whilst the above examples make transitioning to m-Transaction appear effortless; abandoning the (physical) plastic card immediately is equally unfeasible
– As you may have already figured, the examples laid out above; though true; are quite narrow in their scope
– Truth is I have merely adapted my lifestyle where possible to those very specific businesses within a close proximity of my residence / office / daily commute route
Plastic comes back into the picture once I exit ‘the comfort zone’… for example –
– City banned UBER? -> Regular cab -> Back to Plastic
– Alternate Supermarket -> Back to Plastic
– Feel like Chipotle for lunch? -> Back to Plastic
– Restaurant not listed on OpenTable? -> Back to Plastic
– Annual Car Service -> Back to Plastic
– Vehicle Transfer State Tax -> Back to Plastic… No…Cheque only? What?? What is even a cheque??
And the list continues… in fact for every retailer that accepts some form of m-Transaction today, there are exponentially many more who don’t
Retailer reluctance, costs pertaining to POS upgrade and proprietary solutions tend to hinder rapid consumer adoption & confidence. Traveling outside the U.S further inhibits the use of the mentioned m-Transaction
‘m-Light’ at the end of the tunnel
We may see major strides that may aid in m-Transaction mass adoption such as –
– Samsung & Google’s imminent Wallet platforms that should hopefully see an increased uptake amongst the Android faithful
– Continued support for m-Transaction solutions from Large to Small businesses
– Standardization of security protocols such as tokenization across all m-Transaction solutions
– Joint Industry push to educate consumers on the benefits of m-Transaction
– Merging benefits of m-Transaction and omni-channel retailing to further drive the overall m-Commerce adoption
– Omni-channel + m-Pay e.g. – Whilst Target doesn’t accept Apple Pay in-store as yet -> ‘Apple Pay’ for specific items in-App and pick-up from the nearest neighborhood store
Here’s to a world without Cash or (Physical) credit cards!
