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January 10 2013

Commerce Weekly: Isis Wallet/NFC payments struggle for a foothold

Here are a few stories that caught my attention in the commerce space this week.

NFC-enabled Cashwrap case equips iPhone with Isis

At the 2013 International CES this week, Incipio and AT&T announced the launch of Cashwrap, an NFC-enabled iPhone case that equips iPhones with the Isis Wallet, currently only available for NFC-compatible Android phones. According to a post at 9to5Mac, the case will be available in March and will cost $59.99 to $69.99.

9to5Mac shot a short video of the product from the CES show floor (the Cashwrap representative mistakenly indicates the case will support iPhone 5 — at launch, it will support iPhone 4 and 4S):

When Isis launched in October, some questioned the viability of the payment platform and whether or not it was addressing a real problem. In a report at Consumer Reports, Jeff Blyskal concluded: “Isis, like Google Wallet, still seems to require a lot of work and needless complexity for the questionable convenience of paying by cell phone.” Now, on top of the complexity and questionable convenience of NFC payment, iPhone users must not only attach an appendage to the phone, but fork over a not-so-insignificant amount of cash — all for a payment platform that’s only available in Salt Lake City and Austin, and only at select retailers.

At Telecoms.com, Elliott Holley covered a recent report by financial research firm Celent that says the issues NFC payment technology has faced thus far are only going to be compounded in 2013 and that NFC payment solutions will be overshadowed — perhaps ultimately replaced — by cloud-based wallets. Celent senior analyst and author of the report Zilvanas Bareisis told Holley that not only is using the technology still much more difficult than swiping a credit card, but in markets such as the U.S., “the infrastructure bill is huge and convincing retailers and merchants is difficult.”

Holley highlights a key insight from the Celent report:

“Part of the problem for NFC digital wallets is that while the physical POS world is dominated by cards and the mobile equivalent is to have payment credentials inside the phone and sent to the POS via NFC, the online world is dominated by cloud-based wallets such as PayPal. That makes it difficult to bridge the online-offline convergence of customers who use their mobiles while shopping to read product reviews, compare prices and order online, or pick up an item from a local store, according to Celent.”

Target goes all-in with its price match strategy

Target announced this week that it would bring its holiday strategy against Amazon to the overall retail battle — the big-box retailer will now price match online retailers year-round. According to the press release, in addition to Amazon, Target will price match its own online site, Walmart.com, Bestbuy.com and Toysrus.com.

Best Buy implemented the same strategy against Amazon during the holiday season. There’s no news yet on whether Best Buy’s policy also will be continued year-round, but on a visit to Best Buy January 5, the retailer price matched a Bluetooth wireless speaker for me, using a product search of Amazon from my iPhone. Some are calling this tactic an all-in bet that can’t be won, but in the short-term anyway, consumers sure are winning.

App aims to make products the new point of sale

Bridging the gap between print advertising and online/mobile retail is something of a holy grail in the commerce space — being able to buy a product straight from a traditional print ad, for instance. PayPal recently experimented with such an endeavor, partnering with The West Australian daily newspaper to incorporate QR codes into print ads, allowing readers to purchase items on the spot by scanning the code. But what if you could skip the added complexity layer of a QR code? That’s what German startup Shopgate is aiming to offer. The app, profiled by Will M at SocialTimes this week, allows consumers to simply scan the product in the ad and, according to the product website, buy it in two clicks. Will M describes how it works:

“Shopgate enables consumers [to] take pictures of print ads and then purchase products within them using their phone. Product tagging works without QR codes — similar to how Facebook identifies your friends in pictures and suggests them for tags. People touch the product tags, put the items into shopping carts and then purchase products via a mobile storefront.”

Will M reports that the company’s vision is to provide “everywhere commerce,” and says “Shopgate executives say ‘Products as POS’ (Point of Sale) is the future of mobile commerce.” According to his report, the app works with product companies and retailers alike, and so far has 800 merchant partners. In addition to product tagging from print ads, the app also works with QR codes and UPC codes.

The German company plans to expand to the U.S. market early this year. You can watch a demo of the app in the following video.

Tip us off

News tips and suggestions are always welcome, so please send them along.

Related:

Commerce Weekly: Isis Wallet/NFC payments struggle for a foothold

Here are a few stories that caught my attention in the commerce space this week.

NFC-enabled Cashwrap case equips iPhone with Isis

At the 2013 International CES this week, Incipio and AT&T announced the launch of Cashwrap, an NFC-enabled iPhone case that equips iPhones with the Isis Wallet, currently only available for NFC-compatible Android phones. According to a post at 9to5Mac, the case will be available in March and will cost $59.99 to $69.99.

9to5Mac shot a short video of the product from the CES show floor (the Cashwrap representative mistakenly indicates the case will support iPhone 5 — at launch, it will support iPhone 4 and 4S):

When Isis launched in October, some questioned the viability of the payment platform and whether or not it was addressing a real problem. In a report at Consumer Reports, Jeff Blyskal concluded: “Isis, like Google Wallet, still seems to require a lot of work and needless complexity for the questionable convenience of paying by cell phone.” Now, on top of the complexity and questionable convenience of NFC payment, iPhone users must not only attach an appendage to the phone, but fork over a not-so-insignificant amount of cash — all for a payment platform that’s only available in Salt Lake City and Austin, and only at select retailers.

At Telecoms.com, Elliott Holley covered a recent report by financial research firm Celent that says the issues NFC payment technology has faced thus far are only going to be compounded in 2013 and that NFC payment solutions will be overshadowed — perhaps ultimately replaced — by cloud-based wallets. Celent senior analyst and author of the report Zilvanas Bareisis told Holley that not only is using the technology still much more difficult than swiping a credit card, but in markets such as the U.S., “the infrastructure bill is huge and convincing retailers and merchants is difficult.”

Holley highlights a key insight from the Celent report:

“Part of the problem for NFC digital wallets is that while the physical POS world is dominated by cards and the mobile equivalent is to have payment credentials inside the phone and sent to the POS via NFC, the online world is dominated by cloud-based wallets such as PayPal. That makes it difficult to bridge the online-offline convergence of customers who use their mobiles while shopping to read product reviews, compare prices and order online, or pick up an item from a local store, according to Celent.”

Target goes all-in with its price match strategy

Target announced this week that it would bring its holiday strategy against Amazon to the overall retail battle — the big-box retailer will now price match online retailers year-round. According to the press release, in addition to Amazon, Target will price match its own online site, Walmart.com, Bestbuy.com and Toysrus.com.

Best Buy implemented the same strategy against Amazon during the holiday season. There’s no news yet on whether Best Buy’s policy also will be continued year-round, but on a visit to Best Buy January 5, the retailer price matched a Bluetooth wireless speaker for me, using a product search of Amazon from my iPhone. Some are calling this tactic an all-in bet that can’t be won, but in the short-term anyway, consumers sure are winning.

App aims to make products the new point of sale

Bridging the gap between print advertising and online/mobile retail is something of a holy grail in the commerce space — being able to buy a product straight from a traditional print ad, for instance. PayPal recently experimented with such an endeavor, partnering with The West Australian daily newspaper to incorporate QR codes into print ads, allowing readers to purchase items on the spot by scanning the code. But what if you could skip the added complexity layer of a QR code? That’s what German startup Shopgate is aiming to offer. The app, profiled by Will M at SocialTimes this week, allows consumers to simply scan the product in the ad and, according to the product website, buy it in two clicks. Will M describes how it works:

“Shopgate enables consumers [to] take pictures of print ads and then purchase products within them using their phone. Product tagging works without QR codes — similar to how Facebook identifies your friends in pictures and suggests them for tags. People touch the product tags, put the items into shopping carts and then purchase products via a mobile storefront.”

Will M reports that the company’s vision is to provide “everywhere commerce,” and says “Shopgate executives say ‘Products as POS’ (Point of Sale) is the future of mobile commerce.” According to his report, the app works with product companies and retailers alike, and so far has 800 merchant partners. In addition to product tagging from print ads, the app also works with QR codes and UPC codes.

The German company plans to expand to the U.S. market early this year. You can watch a demo of the app in the following video.

Tip us off

News tips and suggestions are always welcome, so please send them along.

Related:

January 26 2012

Commerce Weekly: Target doesn't want to be the showroom for online retailers

Here are a few things going on in the world of online commerce this week.

Target wants to fight "scan and scram"

TargetRemember all that talk before the holidays about the blissful union between brick-and-mortar retailers and mobile users? Retailers seemed to have accepted that many of their customers shop with smartphones in hand — and retailers even appeared to be embracing it. A Deloitte consultant who follows these things, Kasey Lobaugh, told Internet Retailer that retailers:

... need to invest in providing customer connectivity in the store, including in-store Wi-Fi, ... building functionality that best serves the customer at the 'point of need' and thinking about the capabilities that align with the customer's location and context, as the customer may be in the store with a smartphone in hand or in a variety of other locations and scenarios.

Indeed, Macy's, Sears, and Nordstrom boasted about their in-store free Wi-Fi. Personally, I realized this meant I no longer had to chase after the Home Depot staff whose "Ask Me" shirts always seem to be disappearing just around the far end of the aisle. I could now ask my iPhone.

But a report in The Wall Street Journal this week about Target fighting back against "showrooming" has everyone wondering if all that goodwill is gone with the swept-up tinsel and empty See's Candies boxes. The Journal reported that Target wrote a letter to suppliers asking for their help avoiding the fate of becoming physical showrooms for online retailers. They're asking vendors to make unique products that can be sold only at Target, so there's no option to find them cheaper online. "What we aren't willing to do," the Journal quoted the letter as saying, "is let online-only retailers use our brick-and-mortar stores as a showroom for their products and undercut our prices without making investments, as we do, to proudly display your brands."

The letter certainly points out the missing logic in the equation: upbeat stories about free Wi-Fi in stores all seemed to suggest that those smartphone-enabled shoppers would be checking in at the retailers' own online site for reviews and availability. Who would have guessed that these ungrateful shoppers would stoop so low as to compare prices at other sites? Is all harmony lost? Will our favorite stores try to block our signals or ask their suppliers to come up with unique brick-and-mortar-only SKUs to confuse Red Laser?

There are still some voices calling for reconciliation. Will Reese on CMO.com offers seven ways retailers can combat "scan and scram", including beefing up a store's own mobile presence and being clear to customers about the value the store provides. No one could accuse Target of failing to invest in its online and mobile stores, but I suppose one could make the argument that a little more investment in the customer service aspect of Target's staff could help turn the tide. After all, as Reese describes in his story, Apple Stores aren't afraid of customers with smartphones, possibly because they know the people working those stores — and in particular, their expertise — are one of the company's biggest retail assets.

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.

iTunes also had a monster year

The huge numbers in Apple's latest earnings report caught all the attention, but if you dig in, you'll also find some pretty impressive stats for iTunes. Apple's online content store sold about $6 billion worth of music, movies, TV shows, and apps in 2011, up 55% from $4.2 billion in 2010. Billboard reported that iTunes moved nearly $1.7 billion of content in the holiday quarter of 2011. It's interesting to compare that with Amazon's $43 billion in sales last year and then realize that Apple didn't need to ship any physical products to hit its iTunes number.


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.


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