PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Payment Context Will Matter as Much as Ubiquity

George Peabody by George Peabody
April 27, 2012
in Uncategorized
0
Alt. Data Credit Scoring, business loans

Alt. Data and Credit Scoring: Interesting Idea at the Wrong Time

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

This year’s lively Electronic TransactionAssociation Annual Meeting and Expo had just concluded and an issuefrequently raised in conversation with attendees, especially frompayments industry incumbents, was ubiquity, the property of apayment method’s widespread, if not universal, acceptance. This, ofcourse, is a characteristic shared by cash and cards today and itis a competitive barrier for most alternative payment methods. Toincrease its transaction volume, to establish near ubiquity, PayPalis working hard, and investing heavily, in broadening itsacceptance at the physical point of sale.

However, mobile-based applications have the potential to obviatethat need for ubiquity when transaction context drives the value ofthe approach. For example, Austin-based Tabbedout is a mobile appthat allows a bar and restaurant patron, after having registeredand provided a card number or PayPal account to the firm, to enteran establishment, open a tab through its app, get served, and leavethe establishment without having to wait for the check and thewaiter to return with the receipt. Because Tabbedout is integratedwith popular POS systems like MICROS and Aloha, the establishmentknows it’s been paid through its existing POS system. The patroncan rush off to the game, movie, or next party. It enables atransaction work flow that is convenient for both the consumer andthe merchant.

Tabbedout believes, and has some evidence for, the propositionthat its context-specific approach, for this well defined niche,trumps the canon of ubiquity. A major implication for industryincumbents has to do with branding. In most cases today, and in thedigital wallet world to come, the accountholder’s card account orDDA will be the true method of payment but not the transactionorigination technique that provides the lion’s share of the userinterface to the consumer. The brands of both the card network andthe issuer, in particular, will have very limited presence duringthat transaction sequence. We are already seeing this in the AmazonOne Click context. We know which card we have active within ourAmazon account. We don’t, and don’t need to, see a brand logo or anissuer name.

Given the relative ease with which such apps and niche-specificsolutions can be developed, we expect many more such offerings toemerge. Already as consumers, we are very familiar with whichpayment or loyalty card to pull out of our wallets for eachtransaction context. We will certainly know which app to use andwhen. Mercator’s own CustomerMonitor Survey Series on mobile usageshows smartphone owners are very willing to downloadmerchant-specific, context-specific apps to their handsets.

So, when ubiquity is held up as a barrier for a new approach, lookhard at the transaction context to see if there is a way to addvalue to that transaction for the merchant, the consumer, and thepayment service provider. Convenience, permission-based dataacquisition, advertising are all sources for value-add. Ifvalue-add is possible then ubiquity may not be such a big dealafter all.

Tags: Banking ChannelsCompliance and RegulationDebitMercator InsightsMerchant AcquiringMobile PaymentsPrepaidSelf Service and ConvenienceSocial Media
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023
    identity fraud

    Javelin’s Identity Fraud Study Highlights the Changing Nature of Fraud

    May 24, 2023
    SASE, security-as-a-service

    Security-as-a-Service Secures
    Distributed IT Models

    May 23, 2023
    mule. real-time

    Early Detection of Mule Activity Requires Real-Time Solutions

    May 22, 2023
    embedded finance, ecommerce

    How Retailers Can Enter the World of Embedded Finance Confidently 

    May 19, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from Brightwell: