Quantcast
Channel: THE PAYMENTS BLOG » Near Field Communication (NFC) patents
Viewing all articles
Browse latest Browse all 2

Mobile Payments: The Build It–They will Come mentality cannot work here…

0
0

I was relieved to read Payments.com’s article, Says Merchant Buy-In Key to Success of Mobile Commerce.  Relieved because the article features Veriphone’s CEO, Douglas G. Bergeron concisely detailing what mobile payment providers need to do in order to get merchants (and consumers) to accept mobile payments at the point-of-sale.

We often think of mobile payments being a technology problem in need of a solution.  It is true that mobile phones need Near-Field-Communication (NFC) embedded in the devices and a uniform set of standards in which to operate.  Yet, when we think only in terms of technology related issues, our focus is misguided and we are missing the real question that needs addressing:  Why should merchants (and consumers) care about mobile payments at all?  What problem is mobile trying to solve for merchants?  Are merchant losing business today because they do not offer mobile payments?  Or, if the merchant’s upgrades point-of-sale process to include mobile, will it bring in more business?

Or, as is the case many times, is mobile payments a solution in need of a problem?

Mobile payments have to answer or solve a problem for the merchant and the consumer in order for it to take hold.

I loved the article on how the Girl Scouts of North East Ohio are piloting Intuit’s GoPayments mobile credit card reader to sell Girl Scout cookies door to door.  It is a perfect solution/option to enhancing sales for the buyer and the seller!

Yet, if mobile payments are going to gain traction and momentum at the national retailer level, providers of mobile payments must address the six points laid out by Douglas G. Bergeron which boil down to this:

1. Merchants have to be able to monetize the upfront and on-going expense of accepting mobiles payments (or have the providers help defray the cost) and/or share in the provider rewards.

2. Merchants have to get the consumers to care (by offering discounts or coupons).

3. Merchants have to attain wide merchant acceptance quickly.

4. Merchants have to be one of many integrated payment choices for the consumer and in every case, be secure, secure, secure.  Any breech or mistake has the ability to deflate the whole mobile process for a period of time.

So the moral of this story is, focus on solving problems for the merchant is key.

Otherwise, it is just another case of “Build It, and They Will Come,” which we know doesn’t work anywhere except in the movies.



Viewing all articles
Browse latest Browse all 2

Latest Images

Trending Articles





Latest Images