Tag Archives: m-commerce

Deloitte TMT Predictions 2016 event

The cover doesn't exactly scream out "interesting stuff inside"
The cover doesn’t exactly scream out “interesting stuff inside”

The latest Deloitte TMT Predictions 2016 event today was as good as previous years. The author of the report, and Deloitte partner, David Lee, is an excellent presenter (a sense of humour and perspective helps with publishing predictions).

Although the full report is available on Deloitte’s website, I wait until David’s event each year – he highlights the most interesting ones, and only then do I read the report. This year David chose to focus on 6 specific predictions for 2016:

  • Connectivity
  • Communication
  • Commerce & Mobile
  • Virtual Reality
  • Business Models
  • eSports

Continue reading Deloitte TMT Predictions 2016 event

Isn’t Uber super?

Uber - an example of how mobile apps are transforming industries that the web couldn't reach
Uber – an example of how mobile apps are transforming industries that the web couldn’t reach

I’ve started using Uber in the last few days, and it’s transformative to the taxi industry. It’s one of those concepts which makes you think “I wish I thought of that first”. But not everyone agrees, and unfortunately for them, that resistance is probably one of the success factors in any consumer digital transformation offering.

In essence, Uber is a mobile app to call a taxi. It replaces the call to the minicab/ taxi office, and provides more functionality than the old model, because as soon as you call a car, you can literally watch that car drive towards you on a map. Continue reading Isn’t Uber super?

Why the UK is still a nation of small shopkeepers, even on the web

The 10 most visited UK shopping sites ending August 24, 2013 according to Retail Week magazine who use Hitwise, is shown below. As the table indicates, the market share is stable.

10 most visited UK shopping sites week ending August 24, 2013
10 most visited UK shopping sites week ending August 24, 2013

This table only shows half a story though, because the top 10 make up just under 40% of the total shopping web sites. The following pie chart shows those top 10 as a pie chart along with the missing 60%.

Pie chart for 10 most visited UK shopping sites week ending August 24, 2013
Pie chart for 10 most visited UK shopping sites week ending August 24, 2013

Even this pie chart doesn’t show the full story though, because Hitwise should really aggregate the sites together – i.e. all the Amazon and eBay sites. Gumtree are owned by eBay so if we aggregate this with eBay, we get the following chart.

Consolidated 10 most visited UK shopping sites week ending August 24, 2013
Consolidated 10 most visited UK shopping sites week ending August 24, 2013

More than a third of shopping web site traffic in the UK goes to these two US companies, and are then followed by Argos who have less than 2% of traffic. Perhaps this goes to show the UK is still a nation of small shopkeepers.

How QR codes should work

Bus top with QR codeWhat is it with QR codes?

Has there ever been another technology that has been so misused and misunderstood?

QR codes should be the first step to seeing an advertisement in the ‘real world’ and buying it in one or two clicks. However their implementation has been completely misunderstood and that’s why they won’t be around for much longer.

How QR codes should work

Imagine this scenario. A customer is standing at a bus stop and sees a poster advert showing a piece of clothing. The customer wants to buy the item, so they point their smartphone at a QR code on the poster. The smartphone takes them to a simple screen asking for colour, size and so on, and then a payment process.

QR codes should be the technological vehicle to enable impulse purchases.

Ideally, the landing page will already know the following details about the customer:

  • Clothing size
  • Use the colour of the clothing on the poster
  • Payment details
  • Preferred delivery address

In the ideal situation, all the user needs to do is enter a security PIN number or a password, and the item will be dispatched to the customer straight away.

How QR codes do work

QR code at a bus stopI had to take my bicycle in for a service earlier this week, so I cycled there and caught a bus home. While waiting at the bus stop I saw an H&M advert for a dress, with a QR code next to it. I wondered how close the QR code would be to my ideal scenario.

I used my iPhone to look at the QR code and the results was the second worst scenario possible. The worst case scenario would have been a broken website.

What happened, was that the landing page was simply a link to Google, Bing and other Internet sites.

Playing devil’s advocate, perhaps the advertising company who owned the space for the bus stop poster may have been collecting the number of QR code clicks. However this isn’t a valid excuse because I shan’t be using their QR codes again.

If you are an e-commerce site, I recommend you take advantage of this poor implementations and advertising. Start offering single-click purchases from advert to confirmation. And let me know how you get on.

Visa Insights 2013 – day two

Visa Insights Live Day 2Here are my notes from the second (and final) day of Visa Ins. The first day’s notes can be found here.

I only went to two of the presentations because it was a half day and I was covering a the Endava stand.

Again, apologies for brevity and any grammatical or layout issues.

E-commerce comes of age

Duncan Olboy. Helps merchants.

  • Ecommerce is 24% of Visa’s business
  • Ecommerce is growing twice as fast as face to face


  • The rate of adoption of new technologies being adopted is quickening
  • 4G will accelerate user migration from face to face quicker
  • Customers want cloud services – it simplifies things for users and feels more natural
  • Digital goods are 24% of Visa transactions
  • Apple claim iPhone users use Siri once a week
  • There was a demonstration of the ease of a mobile payment on stage (BH: but it is any easier than using a card?)
  • 40% of users want their card details shielded from anyone across the internet. That is the core foundation of v.me
  • 25% want a quick checkout
  • PayPal was launched in 2009.  It’s the only wallet at scale
  • Merchants also want a quick checkout/wallet process to reduce abandonment
  • The live demo of v.me was based on receiving an email from a retailer
  • The wallet includes delivery information
  • The user interface auto detects the bank from the start of the user entering the card number
  • 3 live trials underway, 16 banks signed on to v.me
  • Phase 2 trials are planned
  • visa’s challenge is the demand for these new layers of the ecosystem keeps growing

Shane Happach, Chief Commercial Officer, e-commerce, Worldpay

Worldpay has £300bn turnover, 120 countries, 400,000 merchants, 200 payment types

Shane spoke about ‘selling’ v.me to retailers. 80pc of v.me responds to retailer challenges

  • Needs a differentiating experience for retailers
  • v.me needs to demonstrate benefits / incremental sales for retailers

Why has Worldpay committed to V.me?

  • “Low impact technically to implement”
  • Cost effective
  • Multichannel… Shane said in 5 years’ time, no one will mention multichannel, or even omni-channel

Discussion panel

Eric Rebour, E. Leclerc supermarkets

  • Customers have changed. Going to the supermarket isn’t fun or sociable anymore, people want to shop from home.
  • The move from supermarkets to the web was a security learning experience. Increasing credit card security meant a [20%!!!] drop in customer conversion.
  • Customers asked to use PayPal. However PayPal was cost prohibitive for supermarkets (the product margins aren’t high enough to support PayPal).
  • Leclerc chose V.me because the transaction fees are far lower
  • Very customer focussed (quite usual for supermarkets). Customers want to find something easily, quickly, and secure.
  • 25% of Leclerc food orders are done on a mobile phone. Average basket size on a mobile is 42 items, so it’s not a short experience. It’s probably during a commute.

Duncan Olby

  • The payment process needs to be quick and easy. Making users think about the process any more than the physical equivalent will increase form abandonment. (BH: Through the event there was lots of discussion around the invisible, seamless experience).

Benjamin Ensor, Forrester

  • Quick and easy: that’s why people want to use a mobile device for bank maintenance, because the login process is far easier than the web equivalent of long username and password.

Closing Plenary

Peter Ayliffe, Steve Perry and Sir Stuart Rose

  • Reminder of over 20% of visa transactions are ecommerce
  • Smartphone grows at 30% year on yar
  • One bank at the conference said their mobile app is used on average 26 times per month.

Peter gave some experiences of his own family:

  • His 81 year old father who buys art supplies from Amazon
  • His son’s girlfriend does their grocery shopping online
  • His younger son moved home and his first priority when he moved to a new house was to get the TV working and streaming content from his phone to the TV
  • His oldest son uses a NikeID chip and Spotify on his mobile. The previous day he’d received a cheque through the post from a friend.
  • Peter said his family isn’t unique (which is why the audience can relate to these scenarios). It’s not even unique in the UK, its right across Europe.

His comments on how Visa has delivered NFC:

  • Visa process over 10m transactions a month in Poland
  • London buses have adopted NFC cards, and bearing in mind there is already an Oyster contactless card in use, there have been 1m payments on buses, 90% of which are on Visa
  • The average person checks their mobile device every 6.5 mins, including checking the time
  • £1.7m downloads of the RBS app with visa payments, in the first 10 days
  • V.me is unique. It shields the card holder for the customer and moves the liability shift from the retailer. And it will be branded as the bank.

The Financial Services moving toward a Financial Information Services company:

  • Financial Services companies need to focus on the information that they have. Financial Services currently move money around the system. Soon they will be moving information around.
  • The information industry already has 50% of the revenue of the Financial Services industry.

Google can’t see the end sale take place. Visa can. This is Visa’s Unique Selling Point over Google, and pretty much any other company.

Visa Insights 2013 – day one

Visa Insights 2013I’m have been very fortunate to have been invited to Visa’s Insight Live  2013 event. Insight Live is all about the trends in the payments industry, and attendees include the banks (Visa’s members), retailers and mobile network operators.

It’s difficult to do the event any justice in a single post, so this post here covers the first day. Also, because Endava has a stand at the exhibition, I was limited to the number of talks I could attend, so I tried to pick three of them, wisely.

In order to improve timeliness, here are the key points based on my quick typing during the sessions – please forgive any grammatical and formatting errors.

Opening Plenary – Peter Ayliffe, President and CEO Visa Europe

Peter Ayliffe gave the opening plenary. The video introduction was nothing short of outstanding, across three separate screens. Visa should put the video on YouTube in HD for full effect.

Here are some of the highlights of Peter’s speech.

  • By 2020 50% of visa cardholders will be using a mobile device for visa payment
  • The future of payments is about change, change, change
  • Visa has double digit growth in revenue
  • Fraud is at the lowest rate ever
  • The Visa digital wallet (V.me) now available, as in the technology is in place
  • Back to change… “we need to embrace the change”… banks, retailers and mobile operators
  • There is pressure from the regulators to change the business model
  • The barriers for new entrants are so low, which enables many new competitors
  • The big Internet companies such as Google, Facebook, etc. are spending huge amounts of money in this area

Peter went on to describe the music industry, which itself has undergone huge change in the Internet revolution.

  • The record labels used to control the whole industry enjoying massive margins
  • Now there are over 70 major providers – Spotify, iTunes with the latter now the biggest music retailer – bigger than Walmart
  • It was Napster that came along and changed the model
  • Digital revenues are growing much bigger than physical
  • Last year was the first year since 1999 that revenues for the labels grew
  • The total revenue (the pie) has grown though – new opportunities from live events, merchandising, etc.
  • That perfect storm is hitting financial services today
  • The model is changing, Financial Services organisations are now in the information business
  • Organisations should embrace the change, build a new eco system, and transition to a new model.

Peter said its vital all the organisations present don’t stand still, they need to keep innovating.

Why would a bank choose Visa? It’s low cost and European centric (remember that Peter is the CEO of Visa Europe, a separate company to Visa Inc. in the USA).

  • 20% of Visa’s revenue is going onto the new eco-system.
  • Visa is the enabler, the bank is the wallet brand
  • Visa sees huge amount of information very quickly, but using the information is difficult, Visa is the most informational fortunate sector with data because of its visibility internationally and across retailers.
  • Everyone in the ecosystem needs to help the retailers with more sales, help the retailers
  • They needs to help track, analyse and improve. And help with marketing.
  • Don’t ask the retailers to spend more money on advertising or promotions. Help them with revenue.

Peter finished by saying that this is the most exciting time to work in payments. “Change is exciting”. Great opportunities lay ahead.

“Seize the opportunity”.

Steve Perry, Executive Vice President, Relationship Management, Sales and Commercial Development

Steve started off describing why there weren’t just banks at the event, there were major retailers and Mobile Network Operators (MNOs) too.

  • Visa can link the MNO with retailers
  • In 1990 there was $60bn of revenue passed through Visa cards. Now it’s $60bn that every 10 days
  • Visa is aiming for €1 in €5 in 2015 from the current €1 in €6.75
  • In the UK its £1 in £3 are on Visa cards
  • The USP of Visa is its scale, strength and sophistication
  • For scale, it currently handles 1,500 transactions per second

There are two key challenges for Visa:

1. Innovate the business model. Work out how other sectors create value and price.

Look at the digital economy. For Google, 90% of their revenue comes from Pay Per Cick advertising. There can be no sale, yet there is still a charge to advertisers. In terms of charges, when buying a car – it costs around £25 for a single click, for a consumer to show interest (i.e. the consumer might not buy one).

Visa wants to provide targeted marketing offers. It needs to be no win no fee. No sale, no fee. Visa will create a marketplace for sales opportunities.

2. Convergence. The Internet is too complicated for users.

Many devices connect to the internet. We have credentials in different places. There are many different passwords, all with different criteria (uppercase, numbers, symbols, lengths). The user experience is too complicated. It takes 21 clicks on Steve’s digital banking app to find a balance. Visa will Follow the itunes cloud concept for the new ecosystem.

The mantra is SOLID:

  • Security
  • Open (for other products)
  • Leading (market leading)
  • Issuer branding (targeted marketing activities branded as the member bank)
  • Dependable (the Visa brand promise)

Tech Trends – Adam Banks, CTO Visa Europe

David Rowan the editor of Wired magazine and Adam Banks, the CTO of Visa Europe, had a conversation on the stage about the key trends Visa see in the marketplace. These trends are published in a report due for release next Tuesday (and I will be able to review it then).

For the moment, here are the key points that I tweeted during the session:

David raised how there are now virtual currencies (such as BitCoin) as new challengers:

It was interesting how Adam Banks, the CTO of Visa Europe, saw how consumer devices are so key to the future – everything from the Raspberry Pi upwards:

On consumerisation of technology, do we need cards, or even card readers?

I’m reading The Intention Economy, and it’s revolutionised my thoughts of CRM and data. I’ll cover this separately. For the moment, the way Adam was positioning the value of Big Data, it is partly aligned to pro-consumer:

Technology has become so complex. I’ve covered this a few times, from the point of view of IT departments – multiple browsers, devices, etc. but it’s also confusing for users. Visa’s view is to make payments automatic, such as the London congestion charge, or Oyster top up (I just question whether this is any different to direct debit):

Some thought provoking comments about fraud:

The first day of the conference has been really interesting. I’ll cover tomorrow’s sessions as soon as I can. One thing is for sure – the payments industries recognises it’s in a rapidly changing market, and wants to change. How quickly it is able to do so, remains to be seen.

The ubiquitous mobile shopping experience

I was out and about this weekend when Mrs H called me to ask me to buy something for her. She said she’d already asked our brother-in-law to buy it, but the shop he was in at the time was out of stock.

I was near a large Tesco supermarket so I drove there and went inside. Unfortunately they had sold out as well. I had visions of driving around endlessly, so while I was in Tesco I looked up the product on Argos’s website.

There was one remaining from a branch five minutes away. I clicked the reserve & buy button and received a confirmation text message that as long as I went to the Argos shop in the next 48 hours, the product was mine.

My afternoon was saved.

And it seems my use case is not uncommon. This is [the excellent] Erik Qualman’s latest video Mobilenomics.

Research online, purchase offline – the stats

This is a great whitepaper from Google which describes some consumer research about users who investigate products online, and then purchase offline.

We’ve all been through the Google search, competitive search, price match, then walked into a shop – this report shows how this process is actually more valuable for retailers, because users who do this usually end up spending more.

3 components for perfect m-commerce


Every day I receive a link to a news article describing how powerful mobile shopping, or m-commerce has become. 98% of mobile commerce revenue is from iPads and there were $240 billion of mobile payments in 2011 – rising to $1trillion in 2015, Amazon have sold $1bn of products in the last 12 months, and eBay sold $5bn of products last year.

However, I think we’re about to see a step change in these revenues, because most m-commerce offerings are simply migrating their web offering to a mobile equivalent – either through app or a web browser. The statistics above are still mightily impressive, however there’s a lot more room to grow.

Amazon’s one click ordering makes it easy to buy a product, and eBay’s feedback rating is a brilliant piece of loyalty marketing – once you’ve won an item via Buy It Now or through an auction, the feedback rating psychologically compels consumers to go through with the purchase without any of eBay’s manual overhead.

Both of these systems are great for impulse buying, but are separated from marketing.

The next version of m-commerce will marry brand marketing and impulse buying. Consider these two scenarios:

  1. A consumer sees a poster advert in a train station promoting a new film. The consumer will soon be able to connect their smartphone to the poster – whether through the camera, wireless or another communication channel, and order tickets to the film at their preferred cinema.
  2. A consumer sees a poster advert of a perfume. They connect their smart phone to the poster, enter a quick and fast security check, and that perfume is then ordered and delivered to the consumer.

These scenarios require a number of barriers to be broken down before the purchase process can be made quickly and easily. Consumers won’t have the time or inclination to enter 4 pieces of information from their credit card for each purpose – it needs to be simplified. A current example of this is PayPal’s mobile app which has been simplified recently to remove long passwords and replace them with a 4 digit PIN number.

In order for this new world to occur, three things need to happen:

  1. The technology needs to be in place. As pointed out, with PayPal and existing smartphones, I think this is already in place.
  2. Marketing agencies need to help design the buying process. The agencies will need to help the commerce store with the actual purchase rather than a brand awareness exercise – and this will be difficult to achieve. It will be a huge educational process and mindset change for marketing and design agencies.
    I don’t think this can be achieved with QR codes because they are still clunky; require their own app and a decent Internet connection. Most consumers still don’t understand what a QR code is. QR codes also fragment the buying process, sending consumers off to websites rather than enabling a one-click, under 20 second buying process.
  3. The single fulfilment store.  One key player that has the infrastructure to do this is Apple. Imagine if they rebranded the App Store as simply ‘The Store’. A consumer sees the perfume poster above, links their iPhone to the poster, and orders through ‘The Store’. Apple already has the payment information and owner’s address – in the App Store. They also have the cash to setup the distribution infrastructure.
    Other contenders to be able to do this are Amazon and possibly Google. Or we could see a new player/ brand emerge, who won’t need to worry about the legacy of ‘old’ e-commerce systems and behaviours. Tesco have tried a system in Korea, however I think it was more of a marketing stunt or a proof of concept. And when I mention legacy systems, the future of m-commerce described above will be single, impulsive purchases, probably linked to brands, unlike the Tesco video which is a small step forward from shopping online.

Once these three component are in place, consumers will consider this as standard shopping behaviour. The holy grail of marketing will have been achieved – Marketing will have become directly linked to the purchase.

Photo courtesy of Eric on Flickr.