Tag Archives: Toys R Us

“Apple Pay Accepted Here” alerts needed to drive adoption

Little Screen Shot 2015-03-12 at 11.21.46 AMLeague baseball season recently started which meant a trip to Sports Authority to purchase the relevant equipment. Fortunately, most of the items for t-ball are in the under $20 each category which makes the financial commitment more bearable. Like most dads, the start of Little League season brings back many fond baseball memories including a controversial meeting of a reigning Miss California. When I say “controversial” I mean it raised a few eyebrows as to why she attended, whom she knew on the team and the outfit she was wearing. It turns out she was dating our team’s assistant coach and used her fashion sense to keep his attention off the game played on the field. Dads enjoyed the game that much more. Moms were furious. Funny the things one remembers from more youthful days.

I was excited about the recent trip to Sports Authority for an entirely selfish reason. I was super stoked for a chance to FINALLY use Apple Pay! When I purchased my iPhone 6 Plus, the first thing I did was load on my bank’s ATM and credit cards. Why? Because I’m a FinTech guy…and this sort of thing gets me just as excited as a chance to meet Miss California. However, my Apple Pay excitement quickly slid down into a “now what?” I really struggled to find a place to use Apple Pay within my network of retailers that I frequent. Based on a recent BI Intelligence survey, just 8% of large US retailers currently accept Apple Pay. Keep in mind this stat focuses on LARGE US RETAILERS. I don’t shop a lot at large US retailers. I’m a keep it local type of guy…or at least keep it regional type of guy. When I did visit an Apple Pay enabled business like Toys R Us the opportunity to pay with my phone slipped by for I was not reminded that my chance arrived.

When it came time to bay for the baseball pants, socks and belt I whipped out my iPhone (that scene from “Blazing Saddles” comes to mind)

with great excitement and said, “OK, I want to use Apple Pay. How do I make this work?” My question should raise grave concerns from Apple and the retailer. However, what happened next should FREAK APPLE OUT. “Uhhhh,” began the clerk. “I don’t know…let me talk to my manager.” I stopped the clerk, saving him a trip to find the manager. I scanned my phone over the payment terminal, used my touch ID and the payment was made. “Oh, great…you figured it out,” the clerk said. So wrong.

This frustration is shared with many iPhone loving friends and FinTech colleagues. Clearly Apple Pay merchant adoption needs to increase and consumers need to be reminded to us it. Hopefully this is all changing with greater merchant adoption and the launch (FINALLY!) of the Apple Watch. The same BI Intelligence survey revealed that 56% of retailers say they will accept Apple Pay by 2018. But doing the quick math, this means that 44% still will not…and we all know these merchants will be the locally owned business.

Eric DunstanSo where does Apple Watch fit in driving Apple Pay adoption? Well for starters, the payment process gets much easier for the watch will be tethered to the iPhone loaded with the relevant cards. Users double click a button on the phone, place the watch near the payment terminal and payment is made. Skin sensor technology verifies the watch is on the verified user’s wrist to prevent unauthorized use. The watch really helps make Apply Pay easy to use. Ease of use means greater user adoption.

Informing users that Apple Pay is accepted is the remaining adoption hurdle to be solved. Frankly, I’m a little surprised this hurdle has not been addressed. It seems easy to solve. Functionally needs to be implemented to push alerts to Apple Watch users when they are near a payment terminal that accepts Apple Pay. Given how integrated watches are to routine interaction and reference, these alerts will be easily seen. Better yet, leveraging the iBeacon technology, merchants can send Apple Pay alerts to customers as soon as they walk in the door and before any purchases are made. Ease of payment may be enough of a factor to push the customer to a purchase decision. I am envisioning personal finance expert, Alexa von Tobel at Learn Vest cringing right now!!!

I’m excited that we are moving closer to not having to carry a bulky wallet anymore. The Apple Watch and alerts to use Apple Pay will train and shape the right habit to eventually push me to leave a wallet at home. Now, if I can only get my drivers license, loyalty cards AND annual passes on my phone I will be wallet-less!


Apple Pay is great but I will still need to carry my wallet

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I have to admit that I was GLUED to my computer screen this morning during the Apple announcement. It still blows my mind that technology and bandwidth can’t deliver a smooth online feed to a live event. What was up with the live translation feeds being clearly audible to online viewers? ANNOYING! Fortunately the live stream technical team saw the multiple tweets and fixed the problem.   Unfortunately my viewing experience was very choppy and I got word of the announcement in real time more from Twitter.

As predicted, Apple entered BIG into payments with Apple Pay and into wearables too with Apple Watch too.  Apple’s recent announcements around partnerships with Visa, Amex, MasterCard etc were clear leading indicators of the entry into payments. I am very excited about Apple’s payment system and how it will help drive mass consumer adoption of a true mobile wallet. Yean! However, we are a ways away from Apple driving mass adoption of their wallet.

Screen Shot 2014-09-09 at 4.14.30 PMApple Pay will be available on the iPhone 6 and Apple Watch devices for it requires technology included only in this hardware. Yes, the iPhone 6 and Apple Watch will set sales records and proliferation will be fast across the globe. However, Apple Pay will not be available on legacy devices that will slow down the adoption rate. Additionally, Apple Pay will be limited to major retailers including Whole Foods, Macy’s and Toys R Us. Yes, over 200,000 stores will be accepting contactless payments through Apple Pay. I’m sure Apple is busy negotiating partnerships with several other major retailers as well and the footprint will grow even more.

Apple Pay will not be available to stores outside of this Apple negotiated big box retailer network. Consumers will not be able to truly leave their wallet at home. Apple’s partnership with IBM, though, will help Apple Pay expand its footprint to more business….but it will take time. As I mentioned in a previous post, the IBM partnership provides Apple access to many banks and financial institutions. These FIs have business banking customers and frequently provide merchants with POS payment systems. Now that the iPhone 6 includes the NFC chip, Apple will be hot to engage IBM on pushing the distribution of NFC enabled payment terminals to their banking customers. Only until NFC enabled payment terminals are more widely distributed will Apple gain ownership of the mobile wallet.

Clearly Apple has the hardware, technology and strategic partnerships to create the closed loop necessary to build a ubiquitous payment system. It’s a matter of time before this happens. However, NFC technology and devices are not Apple technology and can be easily licensed by competitors. Yes, Apple has leap fogged into the lead on building a mobile wallet, but the competition did see this coming. Apple must continue adding nationwide retailers to their network to enable consumers to use Apple Pay. The first mover advantage will be key and the network affects will take hold. If a competitor is to provide another offering for consumers and merchants, they better act FAST. Samsung and Loopt I’m sure are having lunch right now.

On a side note, I am amazed by the level of talent Apple employs for their advertising and marketing efforts; JT, Jimmie Fallon and U2. A list talent meets A + list company. I’m sure Apple pays a large portion of the marketing budget for these names. Or maybe it’s vice versa! Let this be a reminder of the high margins Apple receives on every product they sell. Impressive.

 

 

 

 


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