by Limor Schafman
Today TelecomHub, a Washington DC area organization, hosted "Redefining eCommerce: The Future of Mobile Payments." Moderated by Hook Mobile's Terry Hsiao the panelists Brian Colligan of SeQRPay, Darren Feeley of GeoPay, Eric Ludwig of Rosetta Stone, and Paul Morten of Capital One, plunged the depths of how mobile payment is turning the corner of innovation.
The panel emphasized four key elements to success as the mobile payment marketplace - exploding with startups - continues to push new solutions:
1. Simplicity - Why is Square so successful? A number of reasons: One look at it (or one view of it in action) and you know what it does. Simple clear product design. Evolutionary rather than revolutionary in that it still uses credit cards but bridges that important gap that still exists between cards and the mobile phone which still experiences POS issues. Easy for consumers in that a single swipe and one time entry of personal data then brings up that data for all future transactions so no more entries are needed. For retailers/sellers - a single, low flat fee per transaction. That's it!
2. Ubiqity - there was much talk of NFC (Near Field Communications) v. QR (quick response) codes v. having mobile payment interfaces be HTML5 based. And these may not be all the choices. The issue - the lack of a seamless interface between the user and the POS system that allows for one click purchase so that anybody with any device can buy. Even with ISIS - the NFC consortiam between Verizon, ATT and T-Mobile, the majority of phones do not have NFC embedded, and this is still causing headaches - or leaving room for opportunity in product development.
3. Trust - Big data scraping and privacy issues sometimes stop the public from fully embracing a new mobile product. Take Google Wallet as an example. While meant to make life easier for consumers, few trust giving over their "wallet" for someone else to carry. A leap too far at this point in time. Consumer trust perceptions shift so it remains to be seen what will be acceptable down the lline.
4. Think Differently - when looking at securing payments, Korea is looking at mobile process flow from the other direction to find innovation. Rather than asking banks to certify a buyer's account, they are asking retailers to verify their identity. This reversal of flow allows for buyers financial information to always stay with the buyer. A creative solution to identity theft - a $50B per year problem.
Excellent points for company engaging in product design, it is exciting to hear about all the new innovations and thought leadership focused today on mobile payments.
Do you have a new product you're working on in this space? Tell us about it. What do you think are key factors for success in the mobile payment space? Where does the next innovation lie?