About
Abbrev:..oAnth.....Motto:...'Nothing to Hide'.#25c3/#CCC.:.. Den Nachgeborenen ein
gemahnendes Vorbild & zur bleibenden Erinnerung - Loc: München (Munich - Germany).
..............................................................................................................................
Intended: a caleidoscope of repostings, feeds & direct postings in EN....DE....FR..
Selected entries from oAnth are provided via scoop.it - oAnth miscellaneous .........
..............................................................................................................................
Start of active postings on this Tumblelog Diary [microblogging -- WP] on Jan 2009,
nonetheless a great number of earlier entries are indirectly implemented via RSS-feeds.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selection by entry types - starting with the latest. . . . links. . . texts. . . quotes. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . files . . . videos . . . images . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
See likewise . . . . . . . >> 02myTagManual . . . . . . >> latest compilations . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Links & feeds to my Posterous-account are protected - pls use password: oA:acc_
:: at twitter >> 02mytwi01 ... diaspora* >> oAnth ... friendfeed >> 02myffeed01 ::
..............................................................................................................................
............ ABOUT THE ACTUAL SOUP.IO STATUS - - - latest entry 2012-03-27 ...........
2012-05-08 - oAnth: during the coming days I will hardly be capable for personal online
aktivities - only RSS import will be provided, if soup.io works regulary.
Click here to check if anything new just came in.
May 03 2012
April 12 2012
Commerce Weekly: Bump taps mobile payments
Here are some of the commerce items that caught my eye this week.
Bump taps into payments
Bump relaunched its service this week as a PayPal-powered person-to-person payment service. Bump has been around for a few years, offering a clever way to share data that looks, to the casual user, as if it's transferring data locally from one device to another by bumping the two devices together. Is it using NFC? Infrared? Bluetooth? None of these, of course: Bump sends data through the cloud, locating the two sharing devices by their proximity and the reaction each device had to their bump. It seems pretty clever, as it enables virtual phone-to-phone transfers without having to wait on any assurance that the two phones share technology for syncing locally. As long as both phones can talk to the network — and would they be mobile phones if they couldn't? — Bump can process the transfer.
The capability for payments has always been part of the plan, but until now Bump has promoted itself primarily as a way to share contact and other information. Payments is a far more compelling use, though what Bump is actually doing is just sharing emails and looping PayPal into the process — just as you would if you were paying someone by going to PayPal's site from a laptop.
Still, how big can the market be for splitting the tab at dinner or sharing a tank of gas? The real upside for Bump must be in licensing its technology to other, more established payment processors, like PayPal. If you could Bump to pay at Home Depot or anywhere else where PayPal is accepted in the physical world, that would be simpler than having to key your mobile number into a keypad and faster than having to wait for a manufacturer to build NFC capabilities into your next phone.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.When will Apple enter the mobile payment race?
There's an interesting guest column by Ramzi Yakob, a strategist at digital agency TH_NK, on Wired's UK site about what mobile payments could do for Apple and (more importantly) what Apple could do for mobile payments. Yakob suggests that Apple is uniquely positioned to enter the increasingly crowded field of mobile payments — not exactly late, but not a first mover either — and reinvent it in its own image. What's interesting is that, even though Apple is now, on some days at least, the world's biggest company by market capitalization, Yakob notes that it isn't Apple's market might that gives it the power to enter and change industries:
"The position that Apple has now, not just financially but also within the hearts and minds of the modern consumer, gives it the perhaps unique ability to enter new sectors and make them 'Apple' in a way that feels completely natural to us — and by making them 'Apple', I mean, of course, beautiful, desirable, easy-to-use and hugely profitable."
The post is worth a quick read. (As an interesting aside, to point out how lax credit card security and scrutiny are, Yakob points to his brother's Tumblr where he shares pics of the ridiculous signatures he gets away with on restaurant tabs.)
Tip us off
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out DevZone on x.com, a collaboration between O'Reilly and X.commerce.
Related:
- 3 mobile payment products hint at the future
- The return of iPhone NFC rumors
- Does Apple deserve a bigger bite?
- More Commerce Weekly coverage
April 05 2012
Commerce Weekly: The do's and don'ts of geo marketing
Here's what caught my eye in the commerce space this week.
Placecast's CEO on the secret to successful targeted offers
Last August, I wrote about Placecast, which has been working to deliver coupons and offers on behalf of its retail clients to opted-in customers when they hit geofenced areas. Placecast's platform allows merchants to set up a ring around their locations (or other locations, as described below) and then trigger an SMS to customers who have opted in to receive them. Placecast works with mobile carriers to deliver large tranches of opted-in customers to its merchant clients. This week at O'Reilly's Where Conference, Placecast CEO Alistair Goodman talked about the right and wrong way to deliver ads to a geofenced audience, based on the learning curve they have climbed over the past few years.
Some of these are obvious, like the need to link data about the customers' preferences with the location — the richer the data, the more relevant the message, and the more likely it is to hit home. Goodman explained this as a sort of stack, with positioning data (mostly from GPS, but supplemented with Wi-Fi and other data) at the lowest level. Just above that, a layer on context: What type of place is the user at (mall? stadium? park?) and what's the weather like? Atop that level, demographics and psychographics — who are the users and what do users in their consumer categories tend to go for? Atop that layer, the users' preferences: What do they want to be notified about, when, and how often? And finally, at the top of the stack, the offer itself: What is it the retailer is promoting?
A second key point is the need to find relevant locations — not just the retailer's store, which is obvious, but other places where the customer is likely to be receptive to the offers. For example, you might promote dog food or pet stores at a dog park, or a promo for a sports drink around a gym, or the sponsor of a concert around an arena. Interestingly, Goodman said that while merchants often ask Placecast to geofence around a competitor's store, he advises them that isn't a particularly effective marketing strategy: "If a customer is already headed into a certain store, a message urging them to visit a different location isn't likely to be very effective. A more effective way is to promote the message from a relevant public space." (I noticed the audience received this wisdom in total silence; you could almost hear the wheels of doubt spinning.)
Finally, Goodman said customers react better to offers when they believe it comes to them through this channel with some level of exclusivity. "Customers like it when they feel they're getting an offer that others aren't getting." So the coupons or other offers can't be the same as what's posted on the window of the store.
Goodman said the platform can deliver offers through a variety of channels, but most are delivered as SMS text messages, which remain tremendously effective. And they seem to be working: Goodman said that their research finds that 49% of store visits that occurred after receiving a Placecast ShopAlert were unplanned before the alert, while another 19% served as reminders to visit the store. In these cases, you might say those texts delivered twice.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.Jumping ship at Google Wallet?
The departure of Google Wallet co-founding engineer Rob von Behren to join payments startup Square aroused suspicion that Square might be looking to incorporate NFC in its system. Dan Balaban's article in NFC Times puts von Behren's departure in the context of a swath of high profile talent exits from a project that appears to be struggling to find partners and users. Balaban quotes a mobile commerce analyst who believes von Behren's joining Square almost certainly means a move by Square to support NFC. "Else, it would be like hiring Michael Jordan to get advice on golf," the analyst said.
In the past, Square's COO Keith Rabois has questioned the value of NFC, calling it, at last September's GigaOM Mobile Conference, "a technology in search of a value proposition." But as more mobile phones ship this year with the short-range wireless technology, it seems natural that Square would want to tap into it to facilitate its "Pay with Square" (formerly Card Case) system that allows customers to pay at merchants with their Square accounts.
Meanwhile, Balaban's article raises questions about the viability of the Google Wallet project. In addition to von Behren, fellow founding engineer Jonathan Wall and product lead Marc Freed-Finnegan left to start their own mobile-commerce startup, Tappmo, in March. Andrew Zaeske, former director of engineering for Wallet, is also said to have left the project. Speculation centers around disagreements between Wallet chief Osama Bedier (who joined Google from PayPal in February 2011) and other leaders of the team over the project's direction. It can't help that the refusal last autumn of Verizon to allow Google Wallet into its phones, and Verizon, AT&T, and T-Mobile's plans to launch their own mobile wallet under the Isis brand, cast into doubt whether Wallet will ever be able to expand beyond the Sprint network.
Will carriers like Facebook's post-IPO status?
Mobile carriers run the risk of losing text revenue from Facebook, as more of the service's users access it from mobile devices and use it as their primary communication channel. That's the view of Victor Basta, managing director of London-based Magister Advisors, which advises companies on acquisitions and public offerings. Basta told Bloomberg BusinessWeek that "Facebook's IPO is about the worst thing that could happen to network operators" since the pressure to demonstrate strong earnings to investors will make it harder for Facebook to share revenue with the carriers. Facebook's "over-the-top" service rides on the mobile networks, failing to share any of the revenue from advertising delivered over it and increasingly taking away from the carriers' SMS text earnings, as users send free Facebook messages instead.
"The fundamental challenge for network operators will be finding a way of becoming part of the Facebook ecosystem rather than simply external enablers," Basta said.
Tip us off
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out DevZone on x.com, a collaboration between O'Reilly and X.commerce.
Related:
- The rise of location-triggered offers
- Square upgrades Card Case with geofences
- Google juices its Wallet
- More Commerce Weekly coverage
March 16 2012
Publishing News: Britannica isn't dead, it's digital
Here are the publishing stories that caught my eye this week.
Information doesn't need to weigh 129 pounds
The Encyclopaedia Britannica announced its final print run this week. Looking at the description of the closing print product, it's clear that its day has passed. As the New York Times reports:
"The last print version is the 32-volume 2010 edition, which weighs 129 pounds and includes new entries on global warming and the Human Genome Project." [Emphasis added.]
Some argue that Wikipedia, with its open, free, crowdsourced content, "did in" the EB. Tim Carmody over at Wired purports that Windows, not Wikipedia, caused EB's demise:
"Britannica went bankrupt in 1996, long before Wikipedia was a crowdsourced gleam in Jimmy Wales' open-access eye. In 1990, the company had $650 million in revenue. In 1996, it was being sold off in toto for $135 million. What happened in between was Encarta."
I prefer to approach the situation from a more positive angle: A group of publishing executives sitting around a boardroom table finally had an "ah-ha!" moment and realized the path to future success was of a digital nature. With print put out to pasture, EB will focus on its online and digital offerings. As described in the Washington Post:
"Online versions of the encyclopedia now serve more than 100 million people around the world, the company said, and are available on mobile devices. The encyclopedia has become increasingly social as well, [Encyclopaedia Britannica Inc. president Jorge Cauz] said, because users can send comments to editors. 'A printed encyclopedia is obsolete the minute that you print it,' Cauz said. 'Whereas our online edition is updated continuously.'"
The EB offers access to its content through a subscription model online ($69.95 annually) and through its app ($1.99 monthly). Merriam-Webster also is a subsidiary of EB — I've had my own an annual subscription to the online unabridged version of that product for a couple years now.
"But, how will EB compete with Wikipedia?" you might ask. EB president Jorge Cauz addresses this point in an interview at NPR:
"We will probably never be as large as Wikipedia because we need to concentrate on fewer topics where we can allocate scholarly knowledge. You know, we have a different assortment of contributors that really know their subject areas. We obviously put editorial processes in place so that we can actually deliver on a source of content that is factually correct and created by the experts. That, actually, is a very different value proposition than Wikipedia."
So, perhaps we shouldn't mourn the end of an era or the death of a print product, but instead celebrate a publisher that is embracing the digital age.
The future of publishing has a busy schedule.Stay up to date with Tools of Change for Publishing events, publications, research and resources. Visit us at oreilly.com/toc.
Issues of fair use, from a U.S. federal court to Bizzaroland
Copyright was in the spotlight a few times this week. First up, a federal court in Nevada made a fair use ruling late last Friday. A post by the Electronic Frontier Foundation (EFF) summarizes:
"The judgment — part of the nuisance lawsuit avalanche started by copyright troll Righthaven — found that Democratic Underground did not infringe the copyright in a Las Vegas Review-Journal newspaper article when a user of the online political forum posted a five-sentence excerpt, with a link back to the newspaper's website.
"Judge Roger Hunt's judgment confirms that an online forum is not liable for its users' posts, even if it was not protected by the safe harbors of the Digital Millennium Copyright Act's notice and takedown provisions. The decision also clarifies that a common practice on the Internet — excerpting a few sentences and linking to interesting articles elsewhere — is a fair use, not an infringement of copyright."
The EFF post dives deep into the background of the case — and the copyright troll — and is well worth the read.
In other copyright news, aggregators and search engines are being called to the carpet in Germany to pay publishers for "reproducing even short snippets of articles" — the same practice the Nevada court just deemed fair use. PC World reports that proponents of the new copyright law, being written by the German ministry of justice, argue that search engines like Google make a lot of money from digital content and those revenues should be shared. Proponents also point out that such a law will "hopefully also make publishers better equipped when they need to take on sites that abuse their content, which is a problem at the moment."
Those against the law argue that publishers are shooting themselves in the foot. The PC World post reports:
"It is just a comically stupid policy, according to Joe McNamee, advocacy coordinator at European Digital Rights (EDRi). The reason publishers put their content on the Internet is so that people can access it, and punishing companies for helping people to find content is nothing short of absurd, he said via email.
"Also, if the publishers' inability to evolve in the digital environment leads to policies that allow them not to evolve, then this will ultimately be bad for them, according to McNamee."
Officials told PC World that the law could be published by April, but likely wouldn't go into effect until next year.
And in downright weird copyright news, the Belgian copyright society SABAM wants to start charging libraries fees for having volunteers read books to children. Robin Wauters at The Next Web reports:
"Twice a month, the library in Dilbeek welcomes about 10 children to introduce them to the magical world of books ... SABAM got in touch with the library to let them know that it thinks this is unacceptable, however, and that they should start coughing up cash for the audacity to read stories from copyrighted books out loud. The library rep calculates that it could cost them roughly 250 euros (which is about $328) per year to pay SABAM for the right to — again — READ BOOKS TO KIDS."
Cory Doctorow describes the situation poignantly: "The technical term for this is 'eating your seed corn' (a less technical term might be 'acting like a titanic asshole')."
PayPal comes to its senses
In a follow-up to recent PayPal news, in which PayPal attempted to establish itself as the content police, the company has decided to rescind its censorship demands. PayPal's new-new terms are described in a post at TechDirt:
"Under the new policy, only books with graphic images that fall under the US-based Miller test will be affected. Going forward, PayPal will also be taking a more targeted approach to enforcement. Instead of focusing on entire classes of fiction, it will work on a book by book basis. This specific change should allow for a better process in which the affected authors can appeal the decision to remove their works while getting the individual focus such decisions deserve."
In an email sent to authors and publishers, Mark Coker, founder and CEO of Smashwords, a company directly affected by PayPal's policy changes, sums it up:
"This is a big, bold move by PayPal. It represents a watershed decision that protects the rights of writers to write, publish and distribute legal fiction. It also protects the rights of readers to purchase and enjoy all fiction in the privacy of their own imagination. It clarifies and rationalizes the role of financial services providers and pulls them out of the business of censoring legal fiction."
Got news?
Suggestions are always welcome, so feel free to send along your news scoops and ideas.
Photo (top): UBN Encyclopaedia Britannica by Ziko, on Wikimedia Commons
Photo (bottom): Da Vinci Vitruve Luc Viatour, on Wikimedia Commons
Related:
- Britannica Opens Up with Free Subscriptions
- Public domain here, under copyright there
- Copyright Issues Ripe for Reform
- Powers of Ten Perspective on SOPA
- More Publishing Week in Review coverage
March 09 2012
Publishing News: The threat of censorship, from a non-government entity
Here are the publishing-related stories that caught my attention this week.
Censorship disguised as a business decision
The PayPal-as-content-police saga continues this week. Publishers Weekly reports that PayPal is backing off Smashwords a bit: "As it stands now, PayPal has contacted Smashwords about the possibility of relaxing the enforcement and has assured the distributor that their account will not be in immediate risk of limitation pending ongoing discussions." The post outlines the background on the situation:
"The issue began February 18, when [Smashwords founder Mark] Coker received an e-mail from PayPal notifying him that Smashwords had until February 24 to correct titles with the controversial topics or else the Smashwords account would be limited. PayPal told Coker: 'Our banking partners and credit card associations have taken a very strict stance on this subject matter. Our relationships with the banking partners are absolutely critical in order to provide the online and mobile services we do to our customers. Therefore, we have to remain in compliance with their rules, which prohibit content involving rape, bestiality or incest.'"
Several anti-censorship and privacy rights organizations, including the Association of American Publishers, the Authors Guild, and the Internet Archive, have signed a letter to PayPal in support of Smashwords. The letter concludes by noting exactly how dangerous PayPal's intended actions are:
"The Internet has become an international public commons, like an enormous town square, where ideas can be freely aired, exchanged, and criticized. That will change if private companies, which are under no legal obligation to respect free speech rights, are able to use their economic clout to dictate what people should read, write, and think."
Magellan Media founder Brian O'Leary also highlighted a bit of the bigger picture:
As the tools of creation and production have become increasingly democratized, efforts to control supply have shifted to the platforms that support this more open process. After all, it's a lot easier to shut down Smashwords than it is to get its thousands of authors to stop writing.
The PW post includes comments that claim PayPal's demands are not censorship, just a business decision (... a decision that just happens to prevent people from being able to buy or read something). You didn't like SOPA? Meet the bankers.
The future of publishing has a busy schedule.Stay up to date with Tools of Change for Publishing events, publications, research and resources. Visit us at oreilly.com/toc.
This kind of consumer demand should make you drool
Inspired by the Oatmeal cartoon detailing futile attempts at legally watching the "Game of Thrones" TV show (and several subsequent responses to it), David Sleight over at Stuntbox takes a look at the current state of piracy and makes a compelling argument to corporate America that pirate consumers are an opportunity:
"The audience is telling you, in no uncertain terms, they want your stuff. And they are telling you precisely what stuff. The people you're calling 'thieves' are telling you where you need to be. They are jumping through hoops only slightly less complicated than the ones you set out for them via official channels, displaying the sort of pent-up demand that should make you drool. This is what's commonly referred to in business circles as an opportunity."
Sleight points out that behind private, closed doors, corporate America acknowledges this but can't get seem to migrate the mindset into the boardroom. He offers several proposals to help them get a move-on. A few teasers include: "Start projects by picturing what the user wants to have in their hands and build up from that." And, "... the future is about frictionless access ..." And, "Stop thumping the table with these [bogus] stats." Sleight's piece is well worth the read.
And publishers might take a page from the TED playbook: Joshua Gans at the Harvard Business Review profiles the TED publishing platform, noting not only the openness of the TED talks themselves (the videos are freely available), but also the TED name (adhering to a few rules, anyone can hold a TEDx event). Gans concludes: "TED could have done the traditional publishing thing — put up walls and sold exclusivity. Instead, it has chosen to embrace the notion that information has the most value when it is shared widely. Perhaps traditional publishers of other forms of media should take note."
And in case you missed it, here's author Neal Gaiman on the opportunities of piracy:
What we have here is a failure to visualize
A new study from The Pew Research Center's Project for Excellence in Journalism shows that newspapers' digital efforts are falling short in making up for losses in print revenues and that "most newspapers continue to contract with alarming speed." Fear of rapid failure seems to be fueling the slow, steady decline. One newspaper executive told the study group, "There's no doubt we're going out of business right now." The report continues:
"The problem, he [the newspaper executive] explained, is the dilemma that faces many trying to innovate inside older industries. If you changed your company and did not succeed, that could hasten the end of the enterprise. 'There might be a 90% chance you'll accelerate the decline if you gamble and a 10% chance you might find the new model,' he said. 'No one is willing to take that chance'."
The study investigates the decline in the industry from many angles — digital advertising to mobile to cultural obstacles. The study also asked newspaper executives to look five years down the road; the results were grim and highlighted the industry's lack of vision. Response highlights include:
- The most common scenario was that the newspaper would be printed and delivered to people's homes less frequently, perhaps as little as two to three days a week-or even just on Sunday. This has already occurred in some markets, such as Detroit.
- One foresaw a looming era of significantly downsized newsrooms. Another suggested the papers would inevitably get "thinner and weaker."
- One thought it would be possible for papers to "limp along," but that another recession could be catastrophic to the industry.
The study report points out what is "probably the strongest underlying finding of this study: The people who run the newspaper industry are unsure of where it is heading or what it will look like."
Got news?
Suggestions are always welcome, so feel free to send along your news scoops and ideas.
Photo (top): Vitruvian by Mr.Enjoy, on Flickr
Related:
- Piracy is not a pricing signal
- On pirates and piracy
- Business models to monetize publishing in the digital era
- Data journalist profiles: Who they are, what they do and why their work matters
- More Publishing Week in Review coverage
March 08 2012
Commerce Weekly: An app to end tab walkouts
Here are the commerce stories that caught my attention this week.
Tabbed Out connects check-ins with payment
For every one of us who's ever had a hard time catching the server's eye so we can make a hasty exit from the bar, here's the app you've been waiting for. Tabbed Out (available on Android and iOS) lets you check in and open a tab at restaurants and bars. When you set up the app, you link your credit card to it, so checking in delivers that info to the merchant's point-of-sale system. When you want to check out, you can do it on the app, even leaving the tip there instead of on the wet table. That's good for the merchant: There's no chance of getting walked out on, even if the patron leaves in a hurry or deletes the app.

It's also good for the patron: Not only does it allow you to flee when the urge strikes, but it might save you a trip back the next day. Every bar has a drawer full of abandoned credit cards, tabs opened by good-spirited folks early in the evening who, by the time they left, were too tipsy to remember to collect them on the way out. Do the same with Tabbed Out and the merchant can close the tab — and you don't have to return to the bar the next day to pick up your plastic.
The app offers some of the usual benefits we've grown to expect from a mobile check-in app — allow it to know your location, and it will also tell you what's nearby. Well, eventually it will. As of this week, it's only available at 450 locations in 34 states. Starting this weekend, some of those locations (the ones in Austin, Texas) will begin accepting PayPal as a payment option, too. A spokesperson for Tabbed Out says the company plans to make the PayPal option part of its standard offerings as it continues to roll out nationwide. So, this is another foothold for PayPal in the real world: Now you can use it to charge supplies at Home Depot, then pay for that brew you buy to reward yourself at the end of the day.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.Square coming to NYC taxis
Square's back in the news this week, with an upgraded cash register app (timed to coincide with the new iPad announcement) and more details on its rollout to New York City taxis.
The iPad cash register isn't exactly new: Square has been pushing it for more than a year, and Cult Of Mac did a nice little round up of nifty iPad holders back in January 2011. But the company has relaunched the app and its integration with Card Case, the buyer's app that lets you run a tab using just your name at Square-accepting retailers (if you can find one).
Bigger news may be that, as The New York Times reports, Square will begin a pilot program in 30 NYC taxi cabs, with iPads mounted where those little TVs are now. (They better bolt them in pretty good!) The big innovation here, at least for the rider, is that you can swipe your card anytime during the ride. Then just sign the screen with your finger and you can hop right out at your destination; no more waiting to sign a credit-card receipt. Cabbies get something out of it too — faster payments and a silent iPad instead of a noisy TV with looped audio.
Despite these innovations, anyone who's been excited watching Square's development has probably also felt the disappointment that goes along with not seeing it used … well, just about anywhere. Dan Frommer, the tech journalist who blogs his own news at SplatF, certainly feels that disappointment. Still, he's enough of an enthusiast to review the company's releases over the past year of its daily processing volumes. While they're still a drop in the ocean compared to more visible options, like credit cards and even PayPal, Square seems to be headed in the right direction, and on a steepening curve that has reached $11 million a day. Considering the few businesses that show up on my Card Case app right now, that's an impressive number of lattes, massages, and farm-fresh produce.
iWallet is coming
While the rest of the Apple-lovin' world focused on the details of the new retina-display 4G iPad, payment geeks were poring over the details of a patent released Tuesday describing features of a mobile wallet to be used in some future version of the iPhone. Patently Apple reported that, while we've seen a number of patents published over the past year dealing with NFC communication and transactions, this patent details credit-card transaction rules, including a note that credit card companies will send statements (or at least receipts) directly to a buyer's iTunes account. "The iWallet project just became a little more real today," PatentlyApple noted.
Tip us off
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out DevZone on x.com, a collaboration between O'Reilly and X.commerce.
Related:
March 01 2012
Commerce Weekly: Small banks lagging in mobile
Here are some of the commerce stories that caught my attention this week.
Smaller banks lagging in mobile channel
Smaller financial institutions, which depend on a higher level of customer service to compete with the giants, are falling behind in the increasingly important mobile channel, according to a report by Javelin Strategy & Research. Javelin says about 37% of customers at big banks use mobile banking, compared with only 21% at regional and community banks and only 15% at credit unions. Javelin's report suggests two reasons for this. First, community bank customers tend to be older, less well off, and less tech-savvy than customers at big banks. Second, big banks can invest more in online and mobile development and marketing, resulting in a better banking experience through those channels. (That's certainly been my experience: my attempts to switch to a smaller bank were thwarted by a virtually unusable online banking system, which drove me back into the warm and fuzzy interface of a cold financial giant.)
Some smaller financial institutions say they benefitted from the anti-big-bank sentiment of the past year, epitomized by Bank Transfer Day on Nov. 5, 2011. Redwood Credit Union in Santa Rosa, for example, says its new membership was three times the normal rate last fall. But to keep that momentum going, Javelin suggests, financial institutions like Redwood will need to funnel some of their new income into development of these channels.
The report also found that mobile usage is beginning to surpass non-mobile online usage, even if those customers tap their accounts through a mobile browser. Most customers reach banks' mobile sites through a browser on their phone. However, at the largest banks, which tend to offer a "triple play," more customers use apps and SMS text instead of the browser.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.How Netflix improves its recommendations
One of the interesting presentations at O'Reilly's Strata conference this week was about how Netflix looks at its data to present recommendations of other shows members might like. Netflix streams 30 million shows a day. It has 5 billion ratings on those shows and collects another 4 million every day. Data scientist Xavier Amatriain discussed how Netflix uses the data from those ratings and other, more implicit data (including what people watch, which listings they mouse over to read, whether or not they finish programs) to offer recommendations that members will like enough to keep their accounts active, month after month.
Netflix gained a lot of attention a few years back with a broad open innovation initiative: it offered $1 million to anyone who could improve the Netflix recommendation engine by at least 10%. Amatriain said two teams tied for the prize with plans that improved the probability that Netflix could recommend shows that members would like based on their previous activities (though, he added, the cost of integrating those new recommendation engines into Netflix' system may have exceeded their value). Even so, since 75% of shows watched on Netflix's streaming service are based on recommendations, it's more important than ever to offer something that will draw viewers' interest.

The clues from all this data allow Netflix to present an array of recommendations to its members. First, there's a row of "top ten" most likely shows. Of course, as Amatriain pointed out, these recommendations are based on viewing history and clues of the entire membership household, not just one viewer. For example, when I log on, along with the thrillers and comedies that Netflix recommends to me, there's a fair amount of "Pretty Little Liars" and other teen dramas that my daughters might like. I used to wonder if this bizarre mix confused Netflix, but Amatriain's talk has reassured me that the company understands what's going on. Then, at a finer-grained level, there are "hyper genres" that Netflix can offer based on your track record: not just Kids Shows, but Goofy Kids Shows; not just Family Movies but Feel-good Father-Daughter Movies. Slicing the offerings narrowly improves the chances of a hit, and it's no accident that the single most likely recommendation is the first one in each row.
Of course, the main complaint Netflix receives (other than its new price structure, I would imagine) is, "why don't you have the show I want to watch?" Amatriain said the company also looks at implicit data to decide what new content to license. So when you search for a show that Netflix doesn't offer for streaming, it gets noted. I guess if you really want it to show up, keep searching for it.
Opera enters the payment fray, PayPal and Home Depot go nationwide
Mobile World Congress, the humongous European conference on all things mobile, is happening this week and everyone loosely connected to mobile payments seemed to time an announcement around it. Here are some of the more interesting announcements that have come down the PR wire from Barcelona:
- Opera, whose Opera Mini browser has more than 160 million downloads, launched the Opera Payment Exchange (OPX). Opera says it wants to "democratize" the payment space by building a payment platform that works on more platforms and devices than Android and iOS smartphones. It says the OPX platform provides APIs that developers can use to integrate payment systems with the Opera Mini mobile browser.
- PayPal and Home Depot said they would roll out nationwide the payment program they have been piloting in a handful of Bay Area stores over the past six weeks. The program is a significant step for PayPal, bringing its payment system offline and into the physical retail world. Customers can buy hardware and other stuff on their PayPal account, with a PayPal card or with a mobile number and PIN — no NFC required.
- Isis, the mobile payments joint venture between AT&T, T-Mobile, and Verizon Wireless, announced more partners in its effort to build a payments ecosystem. Customers of Chase, CapitalOne, and BarclayCard will be able to load their payment information into Isis-compatible phones when they're ready. Isis secured deals with the top four credit card companies (or "payment networks" to use the parlance) last July; now it's making agreements with the banks ("issuers"). Isis is planning two pilots in 2012, in Austin and Salt Lake City, though it's not clear what phones the technology will be in by then.
Tip us off
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out DevZone on x.com, a collaboration between O'Reilly and X.commerce.
Bank photo: Old Bank in Sunbury Village by Maxwell Hamilton, on Flickr
Related:
- How the cloud helps Netflix
- Who will deliver swipe-and-pay first?
- PayPal expands Home Depot trial
- More Commerce Weekly coverage
February 23 2012
February 10 2012
Commerce Weekly: Facebook finds a mobile commerce partner
Here are a few items that caught my eye this week.
How will Facebook cash in on mobile?
With Facebook's public filings ahead of its imminent IPO, we know now that advertising accounted for 83% of its revenue of $3.71 billion in 2011. But we also know that almost none of its revenue came from mobile users — which is a bit of a problem since mobile users are an increasingly large part of Facebook's user base. Facebook members have embraced mobile apps on smartphones and tablets, and Facebook has encouraged their use by developing and releasing apps that deliver a UI experience that is, in some ways, superior to the traditional browser-based interface.
Now, Facebook has to figure out how to make mobile pay. A deal signed this week with mobile payments firm Bango aims to help. Bango provides mobile payment services and direct billing to carriers (like Boku and BilltoMobile), so that the cost of buying things on your mobile shows up on your mobile bill. That seems like a convenient way to buy, and such services have sometimes touted themselves for nobly serving "the unbanked" — even if many of those unbanked are largely American teenagers who use the services to buy virtual goods in games. The drawback is that mobile carriers have been lukewarm to the systems because they worry about customers seeing huge mobile phone bills and complaining or switching, even if what they're seeing is made up of virtual poker chips and Smurfberries. Direct billing services have helped the carriers get over these anxiety by giving them a cut of the revenues much greater than most payment providers get, often as high as 33%.
There's no word yet on how Bango and Facebook will manage payment or what percentage of those payments will go to the telecoms. But we can imagine what goods will be sold: Facebook Credits, as Facebook last year began insisting that mobile game providers sell their virtual goods using only Facebook credits. But I would expect Facebook's position on Credits to evolve as mobile commerce grows on the site. It's one thing to force users to buy Credits so they can be dispensed within social games; it seems unnecessary when consumers are buying a wider range of digital (or physical goods) throughout their Facebook experiences, and a restriction that could limit the potential. As long as the mobile carrier is taking a cut, why couldn't Facebook take a cut as well, without having to force Facebook's virtual currency into the equation?
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.Google Wallet's glitches
Google Wallet is stumbling through some embarrassing growing pains as it comes under the scrutiny of white-hat hackers who are finding and publicizing security flaws. Engineers at Zvelo developed a Google Wallet Cracker app that appears to be able to break Google Wallet's encryption in seconds. Google is working to find a solution for the glitch, which exposes users' Google Wallet PIN numbers on rooted Android phones. Kate Knibbs at Mobiledia writes that the breach "validates Verizon's decision to block Google Wallet on the Galaxy Nexus," due in part to its concerns about security on the Android platform.
Meanwhile, over at TheSmartPhoneChamp.com, there's a video that highlights another security flaw in the phone. Since the Google prepaid account option within Wallet is tied to the device, not a separate Google account, someone who finds the device can open the Wallet app, clear the data, and then re-launch the app. Although the "new owner" will need to enter a PIN, the old prepaid Google account is still tied to that smartphone. I'm not certain how big a hole this is because I have no idea how much people store on their prepaid accounts — though I would hazard a guess it's not more than $300. All right, so nobody wants to lose $300, but it's not like being upside down on your mortgage.
Add to these issues the growing awareness that malware and crapware are a problem on the mobile side. To fight the malware problem, Google developed Bouncer, a program that scans for malware and spyware on Android apps. To keep out known troublesome apps, the service performs a malware and spyware scan on all submitted material. It also uses behavioral analysis to determine if a given app is trying to do something suspicious. Google doesn't stop there; it also performs fraud and abuse detection to ban and remove malware writers posing as legitimate developers. Google says it's already deployed the service and has seen a 40% drop in "potentially malicious downloads" thanks to it.
What would you buy with a QR code?
PayPal has launched a pilot with "shopping walls" in subway stations in Singapore, where you can purchase stuff by snapping a pic of the QR code while using a PayPal app on a smartphone (see a shopping wall in action here). It looks like a swell way to get some of your Valentine's Day shopping done while you're waiting for the Circle Line. Another nifty experiment would be ordering dinner from a shopping wall while waiting for your train in one station, so that it would be ready for you when you exit another. Snap the QR codes of the meals you want and checkout with PayPal. The system could even be smart enough to know when you'll pick it up, based on the station you ordered from. And there's no question of the food going to waste: The restaurant has your money and your mobile number.
That's my idea — and I freely admit that it's just because I'm late for dinner. Let me know if you've seen anyone selling meals or other interesting items via QR codes.
Got news?
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out DevZone on x.com, a collaboration between O'Reilly and X.commerce.
Related:
- Tapping our hunger for Facebook Credits
- Square upgrades Card Case with geofences
- Google juices its Wallet
- More Commerce Weekly coverage
February 02 2012
Commerce Weekly: The return of iPhone NFC rumors
Here are some things that caught my eye in the news this week.
When will Apple mainstream mobile payments?
Now that everyone's iPhone 4S has a few dings on it and we've all grown bored flirting with Siri, our curiosity naturally turns to iPhone 5 and what gifts it will bequeath on mankind. Rumors of NFC (near-field communication, which lets phones pay with wireless technology), are at the forefront again, just as they were before the 4S arrived. As far back as August 2010, when Apple hired NFC expert Benjamin Vigier as its product manager for mobile commerce, expectations have been high that the next iPhone would include wireless payment. That was two versions ago; we must be getting close.
Seth Weintraub wrote this week on 9to5mac that a developer he met at MacWorld was building NFC into the next version of his app because Apple's iOS engineers are "heavy into NFC." Over on Fast Company, Austin Carr looked for clues in his conversation with Ed McLaughlin, who leads emerging payments at MasterCard. When Carr pressed McLaughlin for details on which handset makers were developing phones that work with MasterCard's contactless payment system, he didn't mention Apple by name but said he "didn't know of any handset maker out there who wasn't working to make their phones PayPass ready."
Why do we read these tea leaves? There are a few other NFC phones out there already, pushing the far end of the envelope. But Apple is much more significant, as Carr points out, thanks to its:
"... magical ability to transform whole industries. No one paid for music digitally before Apple unveiled iTunes; virtually no one listened to MP3 players, or carried smartphones, or played with tablets before Apple entered the markets."
Even more so than with previous trends, an enormous captive audience awaits the moment when Apple will introduce it to mobile payments. Scot Wingo notes, in a very good summary of the state of mobile commerce on Seeking Alpha, that Apple has "something like 250 million credit cards on file" in the iTunes store. Although only a fraction of those will buy the iPhone 5 in its first months out, they are sure to be customers who are already comfortable buying things through Apple's interface.
I think the biggest and best surprise will be more than just the date when iPhones ship with NFC, but rather how Apple presents a mobile wallet interface. When you think of how iTunes presented a better way to buy digital music, and when you compare the customer experience in Apple's retail stores with what you find almost anywhere else, you have to acknowledge Apple's genius in what we might call the transaction interface. Its programming efforts up front seem as likely to mainstream mobile commerce as any programming that it does behind the scenes to make those transactions occur.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.
What PayPal is learning at the point of sale
PayPal's point-of-sale (POS) trial with 51 Home Depot stores is rolling out to Office Depot stores, too — cautiously, according to this Reuters story, which quotes an Office Depot executive saying "there are still some rough spots in that experience." The executive didn't say whether those rough spots had to do with the technology, the way customers are using it, or just the basic unfamiliarity with it. Regardless, the novelty presents something of an opportunity for PayPal, says Anuj Nayar, PayPal's chief spokesperson. "Retailers are not technologists by nature," Nayar told me in a conversation last week. "They have to work and sell in this multi-channel environment, where increasingly the differentiator is based on technology." But keeping up with the evolving technology shouldn't be the retailer's job, Nayar says. PayPal, of course, wants to provide a commercial ecosystem — as Nayar calls it, "a one-stop tech partner for retail."
PayPal had those capabilities on display at the National Retail Federation show last month, showing the various ways it is enabling payment at the point of sale. PayPal aspires to go beyond the concept of a mobile wallet in a phone; it wants to offer a "wallet in the cloud" that lets consumers make purchases with just their mobile number and a PIN — no card or phone needed. No doubt, the trials at Home Depot will shed light on just how comfortable consumers are with this idea. So far, Nayar says, it's too early in the trial to share any of those learnings.
Nayar did share a finding from PayPal's conversations with consumers and retailers about how they want to use mobile commerce: You need to get beyond not only the friction that keeps people from using technology, but also guard against any social stigma that could arise. "For example, when I go to get coffee in the morning, if I get there and see there is a 20-minute wait, I can't wait for that. That retailer has lost a customer because of a friction point. So how do you reduce that friction? Maybe it's giving people the ability to order the coffee over their mobile before they get there? ... But we tested that, and you know what we found? People don't like to jump the line. They didn't like the idea of coming in and looking to everyone in line like they were getting to skip the line. So, maybe you need a separate line and register, a PayPal Express line or something."
In other words, we want convenience, but not at the expense of looking like we're getting special treatment. No doubt, PayPal will learn more in the coming trials, which are ramping up quickly: The company wants to be at 2,000 points of sale by the end of March.
Square hits the hustings
Square picked up a fresh round of publicity this week when word broke that staffers from both the Obama and Romney campaigns were using its plug-in dongle card reader to collect political donations for their candidates.
Obama campaign spokesperson Katie Hogan told Nick Bilton of The New York Times that the dongles were being shipped out to campaign workers across the country. The Obama campaign also hopes to create a donation app that works in conjunction with Square dongles so that any supporter can collect contributions with or without the support of the local campaign organization. All donations would obviously go to the campaign — minus the 2.75% transaction fee that Square keeps from every transaction.
The Romney campaign's digital director Zac Moffatt said the Republicans would also begin using Square as soon as this week, but he cautioned they want to make sure that using Square doesn't break any rules. "The challenge on this sort of thing is never with the technology, it's with the compliance. We're making sure everything we're doing follows fund-raising rules and is compliant with the FEC."
Although DC is generally slow to embrace new technologies, I have a hunch that tech that makes it easier for candidates to collect money will find a swift and warm welcome.
Got news?
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out DevZone on x.com, a collaboration between O'Reilly and X.commerce.
Related:
- Near field communication: What it is and how it works
- Google juices its Wallet
- Should Square lose the square?
- PayPal expands Home Depot trial
- More Commerce Weekly coverage
January 19 2012
Commerce Weekly: Slow in-app purchasers are worth the wait
Here are a few of the commerce-related items that caught my eye this week.
Report: Don't rush in-app purchases
It's no surprise that app developers are betting on in-app purchases to generate revenue in the year ahead. Last summer, Flurry Analytics was already reporting that in-app purchases accounted for 65% of revenue in Apple's App Store and last week IHS Screen Digest said it expects to see the same trend across all platforms by 2015.
Now, developers want to know which users are most likely to make those purchases and who among them are most valuable. Localytics has dug a bit deeper to try to identify successful patterns in the freemium formula, and its findings are interesting and maybe slightly counterintuitive. Long-term engagement is more valuable over time, and it looks like those who engage too quickly are also less likely to stick around. In other words, it's better to let the hook sink in a bit. Localytics found that users who purchased quickly were less likely to stick with the app: of users who made a purchase on their first use of the app, only 16% go on to engage with the app 10 or more times — significantly lower than the 26% average. On average, users had the app at least 12 days before making a purchase, and 44% of all users who made an in-app purchase did so after interacting with the app at least 10 times.
When I think about mobile games, 12 days feels about right. Remember your second day on "Cut the Rope"? Still playing? It's fascinating to compare this to the durability of more complex games: "World of Warcraft" holds players for years, and some of us are known to every so often dust off games that are years older. (I'm looking at you, "Call of Duty II.")
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.Bankers show interest in Bitcoin
Bitcoin is becoming increasingly mainstream — at least awareness of it, if not actual use. In addition to last fall's New Yorker profile that attempted to identify the real identity of Bitcoin creator Satoshi Nakamoto, a recent episode of the CBS drama "The Good Wife" focused on a court case in which the U.S. government was suing to get one of the attorneys to give up the identity of Bitcoin's (fictitious) creator.
Bankers being who they are, all this attention has led them to wonder (as they do with all things), "How can we profit from this?" A recent article in American Banker attempts to help them through their thinking. After explaining that the digital currency "was conceived as a rebellion against the banking system," it then goes on to say "it may also present business opportunities for banks that can get comfortable with the risks." The article does a nice job of laying out the pros (offering exchange services, accepting deposits) and cons (limited growth of the currency by design, slow uptake so far among merchants and consumers).
PayPal expands Home Depot trial
PayPal is expanding its point-of-sale trial at Home Depot. Just a few weeks after announcing a trial at five stores near PayPal's home base in Silicon Valley, the experiment will scale out to 51 Home Depot stores: one in Atlanta, six in Omaha, and 44 in the San Francisco Bay Area. All are expected to be online by March.
Customers can tap their PayPal accounts for all their DIY needs in a couple ways: swipe a PayPal card (available online) or, if you don't have one, you can get a pin to accompany your mobile number and use that to draw funds from whatever source your PayPal account is linked to.
Anuj Nayar, PayPal's chief spokesperson, told American Banker that PayPal needed to ramp up quickly to build momentum — and to meet the company's predicted $7 billion in mobile transactions this year. Early in 2011, PayPal predicted it would move $1.5 billion through its mobile channels. It didn't have any trouble beating that number, eventually overseeing nearly $4 billion in transactions by the end of 2011.
Got news?
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out DevZone on x.com, a collaboration between O'Reilly and X.commerce.
Related:
- The economics of in-app purchases
- Tracking down Bitcoin's developer
- PayPal's mobile volume exceeds its own expectations
- More Commerce Weekly coverage
January 12 2012
Commerce Weekly: Report criticizes "feeble" mobile strategies of posh retailers
Here are a few of the items that caught my eye this week.
Report says 44% of prestigious retailers have "feeble" mobile strategies
Few high-end retailers are moving as quickly as they should on mobile commerce, according to a new report from research firm L2. In its first survey of premium brands' mobile strategies, L2 looked at the mobile and tablet platforms of 100 prestigious retailers — names like Dolce & Gabbana, Clinique and Cartier. In spite of their high margins, L2 found that most were taking a wait-and-see approach to mobile commerce, even though U.S. m-commerce sales are expected to grow from $6 billion in 2011 to $31 billion by 2016, according to Forrester.
In its report (and accompanying video, below) L2 scolds the laggards, reporting that:
- 30% of brands haven't developed a mobile app
- 33% don't have a mobile-optimized site
- 16% have no mobile strategy at all
L2 placed 44 of the 100 brands it surveyed in the "feeble" category. At the other end of the spectrum, only four companies seemed to be doing enough right to earn a place in L2's "genius" category. Sephora topped the list, thanks to solid mobile and tablet apps, and successful cross-promotion of its mobile offerings across the rest of its digital platform. Nordstrom, Macy's and Net-a-Porter rounded out the top four.
It may look like a dismal showing, but as Lauren Indvik pointed out at Mashable, it may be enough to lead the rest of the retail competition. Indvik cited figures from Jesse Haines, group marketing manager for Google Mobile Ads, who told Mashable that a survey of major advertisers in early 2011 found only 21% had launched a mobile site at the time.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.Sprint triples your chances to use Google Wallet
If you're like me, you've begun to see point-of-sale devices promoting the capability to pay with Google Wallet around town — for example at Whole Foods, Radio Shack, and CVS. Google has a nifty little map app that shows you where in your zip code you can wave your NFC-enabled Sprint Nexus S 4G phone to pay for — oh, you don't have a Nexus S 4G phone? Yeah, that's the problem: I've yet to see anyone actually making a purchase in the wild.
Sprint said this week it will do what it can to help by introducing two more phones that support Google Wallet: Samsung's Galaxy Nexus and LG's Viper. That brings the total number of phones that support Google Wallet to three. Both of the new phones store the payment applications on a secure embedded chip. Buyers will need to use either Google's Prepaid Card or a Citi Mastercard. The secure chips can also store coupons, points and offers.
Google will need all the help it can get from Sprint to spread the base of Wallet users, at least until the other carriers, all of whom are founding members of Isis, decide to let Wallet onto their phones. Verizon's decision in early December not to allow Google Wallet on its Android phones has cast a shadow of doubt on the whole business.
Meanwhile, all the players in the mobile payment system continue to run trials and tests to see where the soft points are. Visa said this week that it has certified six mobile devices to handle NFC payments using its PayWave system, a point-of-sale device that can process Visa payments wirelessly from a mobile device or a PayWave fob or card. On ZDNet, Zack Whittaker reported that in the U.K., Visa is hoping to roll the technology out as far as it can in time for this summer's Olympic games.
PayPal's mobile volume exceeds its own expectations
The volume of mobile payments is rising faster than expected, as shown by PayPal's announcement that it processed nearly $4 billion worth of mobile payments in 2011. That's up from $750 million in 2010 and $141 million in 2009. David Marcus, vice president of PayPal Mobile, made the announcement at the Consumer Electronics Show in Las Vegas. A year ago, Marcus told VentureBeat, the company predicted it would process $1.5 billion in 2011, a figure it later revised upward to $2 billion. Marcus credited, among other things, Starbucks customers using PayPal to top off their cards and the rise of iPad-based e-commerce.
Next stop: moving offline to point-of-sale devices. PayPal announced a trial using PayPal at the register in Home Depot stores, with no NFC required. For now, it's a limited test with a handful of PayPal employees who can use a PayPal card or just enter their mobile numbers in a point-of-sale terminal to pay for their DIY supplies. PayPal expects to roll it out to a wider audience later this year.
Got news?
News tips and suggestions are always welcome, so please send them along.
Related:
- You can't get away with a bad mobile experience anymore
- Google pairs payment with coupons in one tap
- PayPal enters the single sign-on space
- More Commerce Weekly coverage
January 06 2012
Commerce Weekly: Yahoo's new CEO has data focus
As the payments world roused itself from its holiday hiatus, here are some of the items that caught my eye.
Former PayPal chief brings data focus to Yahoo CEO position
Scott Thompson's move from leading eBay's PayPal division to becoming CEO of Yahoo received ample coverage in this light news week. The most interesting aspect to me was this former chief technology officer's focus on the importance of data to Yahoo's success. While past CEOs have focused on advertising, the company's role in the media landscape and alliances with U.S. and Chinese companies, Thompson showed his tech-centered origins in an interview with Ad Age:
At PayPal, we were able to create an unbelievably compelling business because we used data to understand risk and fraud better than anyone on earth. And that was the secret sauce. We had more data than anyone else, better tools and models, and super smart people who were challenged by the problem. It doesn't seem glamorous, but that was the reason.
Fast Company emphasized Thompson's background as PayPal's CTO and made clear to its lay-business audience that when he's talking about data, he's not just talking about a better dashboard to understand advertising opportunities. He's talking about the "big data" opportunity, tapping into large datasets produced by the transactions and interactions of Yahoo's 700 million members around the world.
From E.B. Boyd's Fast Company post:
Every day, those 700 million souls log in to the Yahoo universe and start making their way around its sites, moving from story to story to story to story — effectively giving Yahoo a media mogul's dream: the largest petri dish in the world to understand what sorts of content appeal to which sorts of people and what sorts of things will make them likely to consume more and more.
Of course, this is hardly news to Yahoo's data engineers or the big data community, but it will be interesting to see what effect a data-savvy CEO will have on Yahoo's prospects.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.Flurry: More than one billion apps downloaded in 2011's final week
While most retailers focus on the crucial weeks leading up to the holidays, the week between Christmas and New Year's Day — when customers are off work playing with their newly received devices — is more important for app developers. In fact, Flurry reports that this particular week was the largest ever for iOS and Android device activations and app downloads.
Flurry estimates that more than 20 million iOS and Android devices were activated, and 1.2 billion applications were downloaded on the two platforms. Christmas day itself was the biggest day ever for downloads: Flurry estimates that 242 million apps were downloaded while happy recipients explored their new toys.
Flurry also predicted that Apple's App Store will have delivered more than 10 billion apps in 2011 — more than twice the number downloaded in 2008, 2009 and 2010 combined.
EBay's mobile VP goes shopping with Robert Scoble
Just before the holiday, we reported on the "Watch with eBay" feature in eBay's iPad app, which offers viewers a sort of real-time catalog, proffering goods related to the program they're viewing on TV. Robert Scoble has an interesting follow-up interview with Steve Yankovich, eBay's vice president of mobile. Yankovich dropped by Scoble's home office with the app to show him how it works, and he revealed a new feature that identifies fabric patterns in clothing and taps related clothing items in eBay's inventories.
Posters on Scoble's related Google+ thread were more fascinated (or irritated) by Yankovich's comments that even though Android devices are dominating the market, the iOS platform is still more important from a commerce perspective.
Got news?
News tips and suggestions are always welcome, so please send them along.
Related:
- What is data science?
- Mobile metrics: Like the web, but a lot harder
- EBay's TV tie-in
- More Commerce Weekly coverage
December 01 2011
Commerce Weekly: Cyber Monday lives up to hype
Here's what caught my attention in the commerce space this week.
US online shoppers spent $1.25 billion on Cyber Monday
We knew we were going to spend a lot of money over the four days from Black Friday through Cyber Monday; all the TV commercials, digital ads, and forecasters told us so. But no one knew just how much until it was over — and no one saw how much of the spending was going to happen online. After it was over, when the purchase buttons had been clicked and the UPS trucks were rolling, Cyber Monday (Nov. 28) turned out to be the heaviest U.S. online spending day in history, according to ComScore. Shoppers spent $1.25 billion online, 22% more than on Cyber Monday 2010, the only other billion-dollar-plus day in online spending history. This year's Cyber Monday splurge capped a month of intensifying sales: more than $15 billion spent online since the beginning of the month.
If online sales growth was healthy, the growth in mobile sales was practically supernatural. PayPal Mobile reported a 552% increase in global mobile payment volume on Cyber Monday 2011 compared to the same day a year earlier. Of course, percentages are bound to look big when the baseline starts out low, and mobile payments have come a long way in the past 12 months. Claudia Lombana, PayPal shopping specialist, wrote on the company's blog that mobile sales volumes were 17% above those on Black Friday and volume was heaviest between 2pm and 3pm PST — suggesting that, on the East Coast at least, shoppers waited until the workday was (mostly) done.
So, does all this activity mean that consumer confidence has returned and we're about to buy our way out of the economic doldrums? Not exactly, writes Sheyna Steiner on Bankrate.com. Bankrate's November Financial Security Index reports that 42% of Americans say they plan to spend less this holiday season while only 10% expect to spend more. Black Friday and Cyber Monday mania may be less about kicking off an orgy of spending than they are about seeking the best bargains to stretch limited funds.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.A chat with a Groupon Now merchant
Groupon saw a big boost over the Black Friday-Cyber Monday weekend, too, reporting a 500% increase over last year for those four days. It's a little hard to keep track of whether Groupon is hot or not. Its Nov. 4 IPO blew past critics, raking in $700 million to become the biggest initial public offer since Google's in 2004. But within a few weeks, it saw its share price drop from its $26.10 opening-day closing price to $15.24 earlier this week. A boost in holiday sales could improve its standing, but many analysts are still saying the shares should be priced lower.
Whether Groupon's share price rises or falls, investors would do well to focus not on on its over-hyped daily deals, but on Groupon Now, the company's real-time discount service that lets merchants control when and how to offer deals. To find out more about it, I spoke with Dennis Cavanaugh the owner of 5 & Diner in Mesa, Ariz. Cavanaugh, who started out with a daily deal earlier this year, says he likes the flexibility of Groupon Now better. For example, he was able to increase one coupon offer of $10 for $20 worth of food up to $12 for the same offer and noted that there was no drop-off in uptake — so, he kept it there. "I can pause it, unpause it, change the hours of redemption, all the do-it-yourself things," he says, "and I don't have to call someone in Chicago. It's all in real time. There's no lead-time required on the decisions."
Cavanaugh says that Groupon Now customers are also more likely to spend over the coupon amount than customers who bring in coupons clipped from a newspaper — $6 to $8 more on average. He suspects it has something to do with the fact that they're affluent enough to afford a smartphone. And he notices that the Groupon Now offers bring in customers from further afield than the 3- to 5-mile radius that most of his customers come from.
Cavanaugh says he probably wouldn't make another daily deal offer: "I like Groupon Now better. Groupon gave us a huge surge in its booking period, but you can't control any aspect of it once it's out there. It was my first try, and I didn't know if the coupon was priced right. I know a lot more now. I think [Groupon Now] is a better tool for me to draw people in."
RIM pursues a mobile wallet
Research in Motion announced two more Blackberry devices that support near field communication (NFC) and RIM's small mobile-wallet trial with Telefónica, the Spanish telecom.
The Blackberry Bold 9790 and Curve 9380 join a few existing models that support NFC wireless communication, the leading contender for tap-and-pay wireless technology in mobiles. The RIM trial isn't at the scale of what Isis is planning in the coming year, let alone the real-world capabilities of Google Wallet on Sprint's Nexus S phones. At Telefónica's headquarters in Madrid, 350 employees will get Blackberries that let them make purchases and gain access to the company's buildings.
It's not exactly tap-and-pay on the Metro, but it's a start — one that RIM is hoping will slow its sliding market share to Android and Apple.
Got news?
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out DevZone on x.com, a collaboration between O'Reilly and X.commerce.
Related:
- Bring your mobile to Black Friday
- At last, Groupon's investor show hits the road
- Google juices its Wallet
- More Commerce Weekly coverage
November 10 2011
Commerce Weekly: Chasing down abandoned shopping carts
Here's what caught my attention in the commerce space this week.
Inviting customers back to their carts
Only three out of every 10 online shopping carts actually make it to checkout, according to email marketing vendor Listrak. That's 70% of carts lying abandoned in the virtual corridors of ecommerce. Listrak wants to improve those numbers. It's one of several vendors offering "shopping cart abandonment solutions" — essentially, programs to follow up with shoppers who've left the store and ask them, "Haven't you forgotten something?"
Retailers would love to close more of those sales: Listrak estimates $18 billion lost in sales to U.S. retailers every year. A Forrester study last May found that 89% of consumers had abandoned a shopping cart at least once. Forrester's authors attributed that high rate to growing user sophistication: as shoppers become more experienced online, they are more likely to comparison shop even as they move toward checkout. Other industry observers offer a simpler explanation: shoppers are shocked at high shipping costs. A 2006 study by Goecart blamed comparison shopping, high shipping costs, and plain old running out of time as the leading causes of abandonment.
Listrak sampled Internet Retailer's Top 1000 online retailers, loading up carts and then abandoning them ("Hey you kids! Knock it off!") to see who would follow up. Only 14.6% sent a follow-up email, and fewer still sent a second or third email which, Listrak's CEO Ross Kramer told Internet Retailer, is where about half of the revenue comes from. Among Listrak's suggestions to retailers: get the shopper's email address first.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.Intuit cuts payment rate for AT&T subscribers
Intuit announced a partnership with AT&T for its GoPayment mobile payment solution, which competes with Square. Like Square, Intuit offers a free card-swiping attachment that plugs into the audio jack of an iPhone, iPad, Android or Blackberry device, allowing anyone to collect credit card payments. Intuit's basic rate of 2.7% slightly undercuts Square's 2.75%, but AT&T customers will pay even less (1.7%).
Intuit originally charged customers $175 for the swiper dongle, but last January, in a bid to compete with Square, it began offering the dongle for free. Still, Intuit has struggled to gain the visibility that Square founder Jack Dorsey and COO Keith Rabois and high-profile investors like Richard Branson have brought to Square. This week's deal with AT&T is a reminder that Intuit is serious about GoPayment, which may actually offer more to merchants since it integrates with QuickBooks, its bookkeeping package that also targets small businesses.
PayPal embraces NFC (just a little)
PayPal has made something of a point of not jumping on the NFC bandwagon, emphasizing the technology-agnostic nature of its mobile payments platform. Demonstrations at PayPal's recent Innovate conference emphasized payment options like PayPal's Empty Hand system, which lets you buy things with only your mobile number and a PIN.
Still, NFC seems an inevitable part of the payments picture in the years ahead, and this week, PayPal delivered the peer-to-peer NFC payment technology that it promised last July. Shimone Samuel, Product Experience Manager for PayPal Mobile Applications, wrote on the PayPal blog that the technology for NFC P2P is included in version 3.0 of PayPal's Android app. No need for it in the iOS app yet, obviously, since the most recent iPhone upgrade disappointingly didn't include support for NFC.
As we noted back in July, in practice, the transfer of funds through PayPal's NFC system isn't substantially different from what was already possible using Bump, which sends the transfer through servers in the cloud rather than wirelessly between the mobiles. But the NFC system will let PayPal developers acquire experience with NFC wireless transfers, which should serve them well as NFC-enabled point-of-sale terminals begin to show up next year and beyond.
Got news?
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out PayPal DevZone on X.commerce, a collaboration between O'Reilly and PayPal.
Related:
- Should Square lose the square?
- PayPal demos tap-to-pay
- PayPal enters the single sign-on space
- More Commerce Weekly coverage
October 20 2011
Commerce Weekly: Google juices its Wallet
Here's what caught my eye in the commerce space this week.
Google pairs payment with coupons in one tap
Google expanded its Wallet this week. At some retailers — American Eagle Outfitters, The Container Store, Foot Locker, Guess, Jamba Juice, Macy's, OfficeMax and Toys“R”Us — the lucky few Sprint customers who have Google Wallet can pay for purchases, redeem coupons and earn rewards points with just one tap.
Google showed off a video (below) of its employees at these stores, demonstrating Google Wallet to lots of very excited people. Of course, as is clear on the video, Google is paying for their purchases as part of the demo, so that may have something to do with the enthusiasm.
Google also announced a deal with the New Jersey Transit Agency to enable Google Wallet purchases through some busses, vending machines and ticket booths. Stephanie Tilenius, Google's vice president of commerce, said "Transit has been a common element of every major successful NFC effort globally and is a critical component of Google Wallet's success." Isis, which is likely to become one of Google Wallet's main competitors when it begins showing up on phones sometime next year, feels the same way. Last spring Isis announced that one of its first trials will be with Salt Lake City's Utah Transit Authority.
Announcements like this may come and go like streetcars, but the real shift will come when more NFC-capable phones are available on more carriers. Currently, only Sprint subscribers holding Nexus S 4G phones can tap and pay with Google Wallet. HTC, LG, Motorola Mobility, RIM, Samsung Mobile and Sony Ericsson announced en masse last month that they would introduce NFC-enabled mobile devices that implement Isis's NFC and technology standards, presumably sometime in 2012. But it will still take time before secure NFC phones are mainstream. Even so, Juniper Research is bullish on the uptake curve, predicting that NFC mobile contactless payments will reach nearly $50 billion globally by 2014.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.PayPal powers eBay's results
EBay reported strong growth this week through its commerce channels. Fueled by PayPal and mobile payments, Q3 revenue was 32% greater than last year ($2.97 billion compared to $2.25 billion in 2010). In a conference call with analysts, CEO John Donahoe said the company expects PayPal's payment volume to exceed $3.5 billion in 2011, five times greater than it was in 2010. At last week's Innovate conference in San Francisco, the company showed off plans to bring PayPal to the physical point of sale. Donahoe said the company will begin rolling those payment systems, which don't rely on NFC but rather pay through the cloud or with direct-billing technology, as soon as the fourth quarter.
Also this week, Donahoe discussed eBay, PayPal and the future of payment at Web 2.0 Summit. Video from his Q&A session is below:
Got news?
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out PayPal DevZone on X.commerce, a collaboration between O'Reilly and PayPal.
Related:
- Who will own your mobile wallet?
- PayPal wants to "one click" across the web
- EBay's ecommerce platform
- More Commerce Weekly coverage
October 14 2011
Commerce Weekly: PayPal wants to "one click" across the web
Here's what caught my eye in the commerce space this week.
PayPal enters the single sign-on space
At its Innovate developer conference in San Francisco this week, eBay announced PayPal Access, a single sign-on technology that functions like OpenID, Facebook Connect, and other proxy identity mechanisms. But it comes with a twist: PayPal Access enables transactions.
As with other single sign-ons, PayPal holds the master record of the user's identity information, sharing only enough with the third-party sites to guarantee identity. If Facebook Connect makes it easier to share your web activity on your Facebook feed, the main benefits of PayPal Access appear to be simplicity (you don't have to re-enter credit card or even PayPal information at each site) and security (as with PayPal, you're not sharing any payment information with the merchant).
The ambition behind PayPal Access is sweeping: eBay wants to deliver a web-wide experience comparable to Amazon's one-click shopping. PayPal Access attempts to do this by integrating with browser functionality so that customers can see they're already signed on. A PayPal purchase can be made without leaving the site.
There are obviously huge challenges here for eBay. First among those is bringing a critical mass of merchants into the tent so that PayPal's 97 million active users can rely on Access as an acceptable payment choice. Second will be the inevitable spoofing that goes on under PayPal's name. How many emails from a "PayPal" source do you get in an average month? How many are really from PayPal? I would expect that never-ending struggle to continue at the browser level.
At the Innovate Conference, PayPal showed off some other neat stuff, too, including a Shopping Showcase that revealed how the company will use some of the technologies it's been acquiring this year. For example, using Where's technology, PayPal wants people to check into stores before they arrive, not after. This lets merchants show discounts or special offers. If it's a frequent destination — your regular coffee shop or grocery store, for example — the wallet will show the merchant your previous purchases or shopping list so they can offer discounts on those or related items.
Zong's direct-billing technology, which eBay bought this summer, will enable a service called Empty Hand. Don't have your wallet or your phone? Key in your mobile number and a pin on the retailer's point-of-sale console and you can access your PayPal account to complete the purchase.
PayPal is also planning to offer new financing options. Currently, you can link multiple payment sources to your PayPal account (for example, checking account, Visa card, and AmEx) or you can use PayPal's BillMeLater service. Soon, you'll be able to change your mind after the fact. Wish you'd put that dinner on your miles card? Log on the next morning and switch the source. You can even decide to change from a full purchase to a payment plan, freeing up more cash to ... buy more things with PayPal.
As noted above, one of the challenges PayPal/eBay faces is bringing more retailers into its system. Toward that end, PayPal is taking its Shopping Showcase on the road to show what's possible. Next stop: a pop-up store in TriBeCa that aims to stimulate interest among trendsetters and the retailers they buy from.
X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.Tracking down Bitcoin's developer
This week's New Yorker magazine features a report by Joshua Davis on Bitcoin, the virtual currency launched in January 2009 by the pseudonymous developer Satoshi Nakamoto.
Bitcoin's program has distributed more than 7 million bitcoins through a lottery process. Value rises and falls with perceived demand, reaching a high around $29 last June, though it's down below $5 now.
For the New Yorker piece, Davis visited a Bitcoin mining operation tucked into a warehouse in Kentucky and a Howard Johnson's motel near Disneyland that accepts Bitcoin for payment. The hotel manager was excited to meet Davis because he was "... the first customer who's ever paid with Bitcoin."
The article traces Davis' attempts to uncover Nakamoto's real identity. Internet security expert Dan Kaminsky outlined some of the skills Nakamoto must have: "He's a world-class programmer, with a deep understanding of the C++ programming language ... He understands economics, cryptography, and peer-to-peer networking." Davis also noted that Nakamoto has impeccable English skills and tends to write in UK style rather than American style when in a hurry.
Davis narrowed the field of likely suspects and eventually settled on Michael Clear, a post-graduate student at Trinity College Dublin, who — at least in the New Yorker report — offered a non-denial denial.
After the story broke, Clear issued a much more unequivocal denial: "Although I am flattered that [the New Yorker] had reason to think I could be Satoshi, I am certainly the wrong person," he said. Whether he is or isn't, he has good reason to dispel the notion. As Davis noted, the U.S. government has a record of prosecuting people who create alternative currencies.
Got news?
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out PayPal DevZone on X.commerce, a collaboration between O'Reilly and PayPal.
Related:
October 06 2011
Commerce Weekly: How Steve Jobs changed the way we buy
We're changing the name of this blog from ePayments Week to Commerce Weekly to better reflect the wider scope of our coverage — not just payment, but communication and transaction technologies along the entire commercial value chain.
With that in mind, here's what caught my eye this week.
Steve Jobs' commercial legacy
It's difficult to write about anything else today, with the entire tech and creative universe mourning the loss of an uncompromising genius. Much has already been published about the ways that Steve Jobs changed how we work and interact with computers. Less has been written about how he changed the way we shop and buy. Here are three thoughts on that.
The iPod and the iTunes store. As Jobs said before introducing the iPhone in 2007, the iPod "didn't just change the way we listen to music. It changed the entire music industry." Its pairing with the iTunes store actually went further, creating the first simple, sustainable platform for purchasing and downloading all kinds of digital media, including TV shows, movies, books, college lectures, and more. As of June 2011, iTunes had 225 million accounts, and through them more than 15 billion songs have been sold, making it the world's number one music store. Apple extended the model to software with the App Store, which has distributed more than 14 billion apps in three years.
The iPhone and in-app purchases. Although there were smart phones before the introduction of the iPhone in January 2007, finding and installing new applications for them wasn't easy. The iPhone changed that, making it simple to download and install new apps and opening the landscape for mobile app developers. By doing so, it broadened the opportunity for consumers to make purchases inside mobile apps. In-app purchases have helped make the freemium model (free to install, paid for with subsequent purchases inside the application) the dominant one for mobile apps, on iOS and other mobile platforms.

The Apple Store at 59th Street and Fifth Avenue, New York City. Via Fletcher6, Wikimedia Commons.
The Apple Store. Apple opened its first physical retail stores in 2001, just as other computer makers were closing theirs. But Apple's innovations — cutting-edge architectural design, the Genius Bar, iPhone and iPad checkout — made their stores a destination for Apple fans and the curious alike. Ten years on, Apple has 357 stores across the world.
Even all this was a small part of Jobs' legacy. I'd like to think the best part of what he gave us — even better than all the cool toys — was a shining, successful example of what's possible when you don't compromise your vision. He demonstrated to two generations of creative geeks what's possible when you commit yourself to making a thing work the way it really should. That's a rare feat in a world where too many things don't.
X.commerce Innovate Developer Conference — Technology is changing the way people shop and driving the on- and off-line commerce market to $8T by 2013. Enter the new X.commerce, an end-to-end commerce platform backed by eBay, PayPal, and Magento, and enhanced by a rich ecosystem of developers and partners. Be there for the X.commerce Innovate Developer Conference on Oct 12 - 13, 2011 in San Francisco.eBay CEO: We won't compete with our customers
Ahead of eBay's Innovate conference, Robert Scoble talked with eBay's chief executive John Donahoe about the changes underway in retail, mobile, and social commerce. Donahoe predicted that rapidly evolving technology will drive "more changes in the way consumers pay and shop in the next three years than we've seen in the last 15 to 20."
Scoble has posted the interview on YouTube (it's also embedded below). Among the highlights:
- Donahoe positioned eBay's commerce ecosystem as a merchant-friendly alternative to Amazon: "We provide all the tools to help third-party developers create businesses for merchants, and we will never compete with [merchants]."
- There are 500,000 developers working with Magento (the open-source ecommerce platform that eBay purchased earlier this year) and, according to Forrester, that work has generated more than $1 billion in revenue for them.
- Mobile is a big opportunity because "people don't want to enter a credit card number into a mobile device. It's cumbersome," and they don't believe it's secure.
- Katie Mitic, who leads Facebook's platform and marketing efforts, is joining eBay's board. Donahoe positioned this as a significant gesture as eBay tries to work with Facebook to figure out the social shopping connection.
- eBay is increasingly global: of the $60 billion in volume last year on eBay, 55% came from the U.S. and 45% happened outside the U.S. What's more, 20% of eBay's transactions cross borders. "So, $5 billion worth of goods was exported out of the U.S. on eBay."
- eBay will remain platform- and operating-system agnostic. "We've lost the hubris of thinking we're going to decide for them. Our consumers will tell us where we need to go."
There were a few notable gaps where Donahoe was honest about not having the answers.
- On China: Although some Chinese sellers use eBay and PayPal for transactions with customers outside of the country, foreign companies can't tap the enormous market in transactions within the country. He expects PayPal to partner with a Chinese bank or other financial service in the next few years.
- On social commerce: While eBay is beginning to see elements of social entering the shopping experience, there's still no clarity on what the social shopping experience means. Is it Facebook coming to eBay, or eBay merchandise selling through Facebook (or both)?
Got news?
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the commerce space, check out PayPal X DevZone, a collaboration between O'Reilly and PayPal.
iPod Photo via Wikimedia Commons.
Related:
September 22 2011
ePayments Week: Google Wallet debuts
Here's what caught my attention in the payments space this week.
The mobile wallet is here
Google Wallet officially launched this week with payment partners Citi and MasterCard on board and three other credit card networks (Visa, Discover and American Express) waiting in the wings. Version 1.0 is pretty much what Google said it would be when it announced the service last May. Google is launching it first on Sprint's network, and for now you need to have Samsung's Nexus 4G — though there are several other NFC-compatible devices in use today and more coming soon. You also have to find a MasterCard PayPass terminal — typically found in taxis, fast-food restaurants and convenience stores — to tap and pay. (If you're looking for the technical specs on how that works, MasterCard's site has a handy interactive that shows how tapping the phone emits a beep from the terminal.)
Payment with the phone is only part of the value proposition; Google knows that won't be enough to convince consumers to use it. The integration of payment with rewards, loyalty programs, and coupons is just as important — as this spoof video of the "first Google Wallet customer," lifted from the "Seinfeld" archives, makes clear. It's a small start, with only a narrow slice of the smartphone user base able to tap into it. But who can doubt the promise of one of the Google engineers starring in the intro video when he says, "We're constantly working to improve the wallet."
It's worth noting that PayPal president Scott Thompson demoed their point-of-sale solution last week, emphasizing that PayPal isn't waiting for NFC and is instead considering multiple payment options, including bar codes (like Starbucks) and PIN confirmations (as with direct billing). Earlier this summer, Ogilvy & Mather's Mobile Shopper survey found that far more consumers trusted PayPal to handle their mobile payments than Google (34.3% versus 19.5%). If Google's challenge will be to earn consumer trust, PayPal's will be to remain visible as Google and its high-profile partners push their solution.
Mobile payments deemed "very unimportant" by some consumers
If Sprint fails to report a wave of new customers who suddenly must have the Nexus 4G, it will come as no surprise to the folks at Lightspeed Research who reported this week that mobile payments are "very unimportant" to more than half of all smartphone users. Only 15% said that mobile payments were somewhat or very important. An article in American Banker quotes Jim Smith, president of Blue Dun consultancy, saying that consumers are basically satisfied with their current mobile payment solution, the credit card: "The killer application in mobile payments hasn't happened yet," Smith said. (Presumably, he hasn't seen Google's "Seinfeld" parody.)
Lightspeed also reported that mobile app usage differs widely among customers of different credit cards and banks. Among the interesting differences:
- Smartphone penetration is highest among American Express and HSBC customers — both at 37%.
- Discover is the only issuer with more than 50% of its customers still using "basic mobile phones." In line with this, they have the lowest penetration of smartphone users at 28%.
- 37% of Wells Fargo credit card customers said they have downloaded the Wells Fargo mobile app — the highest penetration among the card issuers analyzed.
Android Open, being held October 9-11 in San Francisco, is a big-tent meeting ground for app and game developers, carriers, chip manufacturers, content creators, OEMs, researchers, entrepreneurs, VCs, and business leaders.Who's that Android user?
Tech blog Mobile17 published a nice infographic on Android users, drawing on data from Nielsen, AdMob, Hunch.com, and others. One of their sources was a similar graphic from Mostly Blog published back in August, contrasting Android and iOS users. Among the more interesting findings in Mobile17's graphic:
- Android owners talk on their phones about 15% of the time. They're on apps more than 56% of the time, not including email and messaging (19%) and web browsing (9%).
- Android users are more likely than iOS users to be guys, more likely to be conservative, and more likely to be pessimists. They also are 80% more likely to have only a high school diploma (that is, no college degree) than iOS users.
- That Samsung Nexus 4G you need to use Google's Wallet? It's not in the top ten most popular Android phones.
Of course, we can't infer simple conclusions about demographics and preferences for Google's operating system versus Apple's without also taking into consideration that Android mobiles are offered (by multiple handset vendors) at lower price points than the iPhone — so, income may be driving that preference more than other factors.
Got news?
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the payment development space, check out PayPal X DevZone, a collaboration between O'Reilly and PayPal.
Related:
July 21 2011
ePayments Week: Is "0000" your passcode?
Here's what caught my attention in the payment space this week.
Most common iPhone passcodes
One of the obstacles to mobile commerce is the sense that it's not secure, but there's a dead-simple action that can make things a little tougher for the bad guys: consumers can choose original passcodes. App developer Daniel Amitay took a look 204,508 iPhone passcodes and found that the 10 most common ("1234," "0000," etc.) accounted for 15% of all passcodes. Amitay also found a whole lot of codes based on year dates from 1980 to the present. Number 3 on Amitay's list — the code "2580" — stumped me until I looked at a keypad and saw it's a vertical line down the middle. Likewise, I needed to look again to see what "5683" spelled out: LOVE (or LOUD, but I'm guessing love).
MFoundry CEO Drew Sievers cited Amitay's results in his blog this week, and he also added a few things banks should do to educate their customers — like telling users to never respond to a request for a password via SMS text.
Android Open, being held October 9-11 in San Francisco, is a big-tent meeting ground for app and game developers, carriers, chip manufacturers, content creators, OEMs, researchers, entrepreneurs, VCs, and business leaders.Google In-App Payments
This week, Google made its In-App Payments system available for developers to deploy on any web app. In-app payments rolled out at the Google I/O developer conference in May, but it was initially limited to apps distributed through the Chrome store. Now it works anywhere on the web. It's similar to PayPay for Digital Goods in that it aspires to offer a seamless purchasing experience for users engaged in games or content. And it's similar to Apple's in-app payments for games and subscriptions, except that Google takes a 5% cut compared to Apple's 30%. (PayPal's cut is a close second at 5% plus a nickel.)
Mobile payments mainstream in 4 years? How about 2
It finally happened to me this week: the moment where mobile payments crossed the line from an intriguing novelty (at Starbucks, usually) to a serious questioning of why we're still waiting for this. I found myself out running errands with my phone, but no wallet. Without thinking too hard about it, I had left the house carrying the item that was more essential to me (the phone). Back home, a folded piece of leather stuffed with plastic and paper sat on my dresser. As I groped for a credit card that wasn't there, it seemed odd that with all of the things I can do with my smartphone — conduct business, keep up with friends, research topics, read news or books, watch any movie I could think of, play games, edit videos — I still can't pay for a gallon of gas.
That's changing, of course, and rapidly. Auditing firm KPMG released survey results this week reporting that 83% of 1,000 executives surveyed expect mobile payments to be mainstream within four years, and about half of them think it could be as soon as two years. I'll be surprised if it takes that long.
Isis takes credit cards
Isis, the telecom-backed consortium to put NFC payment technology and standards into mobile phones, said Tuesday it has signed agreements with Visa, MasterCard, and American Express to let buyers and sellers use those credit cards in Isis' future system. (Isis launched last November with the No. 4 credit card company Discover as a partner.) Original consortium members AT&T Mobility, T-Mobile, and Verizon Wireless guaranteed near ubiquitous backing among U.S. carriers, but the credit card provider angle seemed a little thin with only Discover enlisted in the effort before this week. These new agreements with virtually the entire credit card industry would seem to be a major vote of confidence in the consortium's ability to drive a standard for NFC payment that handset makers can get behind.
That leaves the major mobile OS operators out own their own — where they presumably want to be. Back in May, Isis invited Apple and Google to join their consortium, but so far both appear to be content with their solo efforts.
Got news?
News tips and suggestions are always welcome, so please send them along.
If you're interested in learning more about the payment development space, check out PayPal X DevZone, a collaboration between O'Reilly and PayPal.
Related:
Maybe Soup is currently being updated? I'll try again automatically in a few seconds...

Competition in the mobile payment space is heating up, as Square's payment pace closes in on PayPal's, according to 