February mobile payments 5 for 5: EMV in the spotlight (again)
EMV was one of many topics attendees discussed at the recent National Retail Federation Big Show in New York City, and Mobile Payments Today sought to answer one question: Can slower EMV checkout experiences help pave the way for contactless-only registers where consumers can tap and pay with either a card or mobile wallet and not worry about a dip or swipe?
Several payment-technology providers told me that such a concept is viable. In fact, at least one service provider is advising merchants to walk this path at the checkout line. That story from the NRF Big Show was the most-read article on Mobile Payments Today in February.
Rounding out February's most-read articles are a piece about PayPal's new commercial campaign; a contributed article about the importance of loyalty and mobile payments; Visa's drive to push mobile payments at Super Bowl 50; and an overview of the European fintech scene heading into 2016.
5. "European fintech steamrolls into 2016 as mobile payments shine" — The industry vibe has changed almost beyond recognition, particularly in the mobile payments arena.
What a difference 12 months can make. Industry conversations at 2014's Mobey Day, (Mobey Forum’s annual open conference for all mobile money stakeholders) told of an industry undergoing major disruption. Just 12 months later toward the end of 2015, the industry vibe had changed almost beyond recognition, particularly in the mobile payments arena. Consternation, hesitancy and all-out frustration had given way to optimism. Last year's disruptions have become this year's tools of liberation, enabling banks, finally, to make progress.
4. "Visa pushes mobile payments at Super Bowl 50" — The card network has outfitted the big game's venue, Levi's Stadium, with over 500 contactless-enabled point-of-sale terminals and 200 more across other Super Bowl-related venues in San Francisco and Santa Clara.
For a good portion of its almost 21-year partnership with the National Football League, Visa has focused on campaigns such as the My Football Fantasy from two years ago that got to the heart of why fans rooted for their favorite teams.
Visa in March renewed its partnership with the league for another five years and while the fan experience is still at the center of its marketing efforts, it will use the Super Bowl on Sunday to put the focus on payments.
Visa helped outfit Levi's Stadium, home of Super Bowl 50 and the San Francisco 49ers, with 535 contactless-enabled point-of-sale terminals to give fans the chance to use the mobile wallet of their choice to pay for concessions and souvenirs. Ingenico Group and FreedomPay deployed the majority of the terminals in the venue.
Visa helped to put about 200 contactless terminals across different venues related to Super Bowl 50 fan activities.
3. "Incentivizing the tipping point of mobile payment adoption" — Kelly Passey, the EVP of business and product development at Access Development, believes providers still haven't given consumers a good reason to adopt mobile payments.
It seems like all of the necessary elements of mobile payment adoption have arrived.
The issue of cloud-based vs. NFC has largely been settled with Apple Pay and Android Pay going all-in on the latter. Security, tokenization and authentication are making big leaps almost daily it seems.
Two billion people will have smartphones this year, according to eMarketer, so the technology is already in the hands of consumers.
And finally the big players in the market have emerged and are swallowing up smaller players, a sure sign of a rapidly emerging platform.
But yet, adoption and use are still sluggish. Forrester reported $52 billion in mobile payments in 2014, which isn't a number to sneeze at by any means. But they're projecting an increase of only $10 billion in 2015, followed by a rapid acceleration to $142 billion in 2019.
At some point between now and 2019, a tipping point has to occur that will open the adoption floodgates. This is presumably the mass adoption event we've all been waiting for, right?
What will it be?
2. "The problem with PayPal, 'old money' and digital payments" — Will Hernandez, editor of Mobile Payments Today, had one thing on his mind after he watched PayPal's Super Bowl 50 commercial: hipsters.
For the most part, Super Bowl 50 was a competitive snooze-fest that showcased an awkward halftime show and underwhelming TV commercials. I don’t think it was what the National Football League had in mind for the golden anniversary of its beloved Big Game.
One of the things I was most interested in during last Sunday’s festivities was how the fintech-related commercials would play out with the Super Bowl TV audience. Companies such as SoFi and PayPal officially debuted their ads during the game.
PayPal's commercial appeared in the first quarter and the people I watched the game with met the ad with a blank stare.
1. "US retailers' EMV pain opens path to contactless-only checkout lanes" — Mobile Payments Today spoke about this concept with payment technology providers at the recent National Retail Federation Big Show in New York City.
Today's in-store payment experience for U.S. consumers is similar to Forrest Gump and his box of chocolates: You never know what you're going to get.
We're four months past the EMV liability shift and consumers are unsure whether to dip or swipe their payment cards when they approach the checkout counter. EMV acceptance varies with the retailer's size (big-box leads the way), but it's clear that the transaction process itself is slower than a card swipe.
So, as the EMV transition continues in the U.S., can these slower checkout experiences help pave the way for contactless-only registers where consumers can tap and pay with either a card or mobile wallet and not worry about a dip or swipe?
Mobile Payments Today posed the question to some payment technology providers at the recent National Retail Federation Big Show in New York City. They all agreed that such an idea is viable. In fact, at least one service provider is advising merchants to walk this path at the checkout line.
Topics: Card Brands, Carriers / Operators, Contactless / NFC, Direct Carrier Billing, EMV, Handsets / Devices, HCE, In-App Payments, Loyalty Programs, Mobile Banking, Mobile/Digital Wallet, Mobile Marketing, Money Transfer / P2P, POS, Regulatory Issues, Restaurants, Retail, Security, Trends / Statistics
Will Hernandez has 14 years of experience ranging from newspapers to wire services and trade publications. Before becoming Editor of MobilePaymentsToday.com, he spent two years as the content manager for PaymentsJournal.com, a leading payments industry news aggregator and information hub published by Mercator Advisory Group. Will spent four years covering the payments industry as an associate editor for multiple publications in SourceMedia's Payments Group based in Chicago.