Money2020 Expo - Key Conversations and Companies & Services to Watch

By Randy Smith,

Mobile Wallet Media

November 2, 2012

Is Bluebird the way to fly in prepaid? This monthly fee free model will do well.

The focus of the event was clear. Mobile and Digital Wallets are the future. Many great insights were shared by top executives, providing a preview of their direction and focus.

You would never have guessed this was the premier event for Money2020 Expo. The abundance, quality and diversity of keynote speakers, presenters, panels, moderators, exhibitors and attendees would, if you were an industry outsider, make you think the event had been held for years. It was impossible to capture it all and attend all panels and meetings! I'll start with companies I interviewed.

American Express

Joanna Lambert of American Express shared with me a bit of the company's vision and focus of the future:

"We want our Serve app to be used several times a day. This requires an intuitive interface focused on saving time and money. Maybe it's saving a trip to the bank or receiving a notification from your local bakery when the when rolls are hot and fresh? . . . We want to help merchants to drive incremental value and increase consumer loyalty . . . We are very open to partnering to reach our goal of being agnostic . . . With Bluebird our aim is to make loading money and transacting as fast and simple as possible . . . We are spending a lot of time asking what consumers want. We are transitioning from payments company to a service company."

I've always seen Amex as delivering extra value via services like OPEN and their concierge services. If they can continue to provide that extra value and merge it with Serve, I believe this is a winning formula. By the way, we all can take part of Amex's upcoming nationwide event, Small Business Saturday. This event on November 24th has the right focus, social strategy and charm to make for a big hit in supporting your local small business. Check it out and spread the word!

First Data

I sat down with Dominic Morea and Mark Herrington of First Data to hear first hand about their new merchant and consumer engagement platform Universal Commerce.

Dominic and Mark shared: "Universal Commerce is a framing strategy. We've realigned product around this concept. We reach over half of the terminals in the U.S. and paired with our Open API - Rapid Connect. New value-added services and offers tied to transactions can be delivered seamlessly. We have the ability to recognize a consumer and link relevant offers.  We can help publishers with precise results."

I've looked far and wide and First Data does have a solid vision about a the future of connected or Universal Commerce. It's worth taking a look at their 3-minute video below about Universal Commerce.

First Data's Vision of Universal Commerce

Read the entire article!

The Future of Money - See with 2020 Vision!

By Randy Smith,

Mobile Wallet Media

October 26, 2012

If innovation is the future, understanding innovation is what matters most.

Today, rather than just telling you what I think may be the future of money, I want to start by first taking a look at innovation itself. Plato can be attributed with originating the concept that "Necessity is the Mother of Invention." Innovators like Steve Jobs and Bill Gates helped to shape the future of much of the technology we use today. If we can better understand how they knew what products and services were necessary or in demand, then perhaps we too can forge a clear path forward into the future of commerce. In looking back, we can peer forward and know that history often repeats itself.

So we will begin by observing what they saw and how they came to the conclusions they did. What Bill and Steve had was a knowledge base solid enough to understand the core problems.

This article is published just as when Microsoft has launched a bold new Windows 8. It will make them or break them, but it is innovative. Circling back to 1975, Bill Gates, the co-founder and chairman of Microsoft, and other programmers were writing BASIC (a programming language) and computers were in their infancy. That same year Bill partnered with Paul Allen to form Microsoft. Bill developed the insight and smarts to understand the current barrier to the evolution of software and computers was an operating platform upon which other programs could run. Bill knew what was needed by IBM and all he needed to do was find or develop the software that could serve as this platform or OS. So what Bill had done to be in position to solve the problem was to understand what the main problem was, and how to fix it. He could not have done this if he did not understand the entire ecosystem and he was not networked enough to set meetings. As the story goes, Bill secured a contract with IBM to build their software platform and purchased an OS from Tim Paterson of Seattle Computer Company for $50,000. This operating software came to be known as DOS.

Continue to read the rest of the article.

Search, Social or SuperCommerce? Future Universal Commerce Gateways

By Randy Smith,

Mobile Wallet Media

October 19, 2012

How will retail sales soar in the coming years?

Search + Social + Savings + Sharing + Reviews + Products + Big Data + Proximity + Security + Fun + Video + Pics + CPG Offers + ? (TBD) + Mobile Wallet = SuperCommerce

The Mobile Wallet will be at the crossroads of ALL commerce by delivering unparalleled convenience!

Google, Facebook, Apple, PayPal, ISIS, LevelUp, MCX, Square, payment networks, banks, processors and dozens more are key players in the battle for transactional revenues and the future gateway to consumer commerce. We'll drill deep to get a core sample of the future of mobile commerce.

Continue to read the entire story.

Mobile Contactless Payment Innovations Summit - Key Quotes/Takeaways

By Randy Smith,

Mobile Wallet Media

October 16, 2012

"The one who enrolls, is the one that controls."

Richard Crone of Crone Consulting speaking about the control of 'Big Data' via Mobile Wallets.

"We must get away from the idea of wanting to control the customer. Today the way you control the customer is to provide value. We just need to confirm ID at POS. Does your new product integrate with all systems and will it scale?"

Amir Wain, CEO of I2C, Inc.

Many profound insights were shared at the 5th MCPI Summit in Chicago on October 2-3.

This event delivered expert opinion from a diverse perspective. In writing this article I could have spun up a short and simple summary with just the key takeaways. However, this event had so many relevant conversations I thought it best to just deliver the conversations as they happened, while screening out the non-essentials. Sort of like using your DVR to watch a football game or favorite TV show.

The host and moderator for many panels was Karen Webster, the CEO of Market Platform Dynamics and President of PYMNTS.com. I've always been a fan of Karen's articles and case studies!

Read the rest of the article.

Bridging The POS GAP - Disruption is Overdue!

By Randy Smith,

Mobile Wallet Media

October 10, 2012

NFC is the Tortoise and QR/2D bar codes are the Hare, but is there a Cheetah that might chase down the Hare and further stall the Tortoise?

And in the end, who will be the Lion and King of the mobile payments?

In thinking of proper analogies regarding NFC in mobile payments and wallets, an 'Arranged Marriage' is what comes to mind. It best suites the incumbent parties (networks, banks and equipment providers) and leaves the groom (NFC-Wallets) and bride (merchants) hoping it works out well.

Why does NFC suite the incumbents so well? NFC requires a reader in the terminal and is designed work in conjunction with conventional banking and prccessing methods. As Jerry Seinfeld might say "Not that there's anything wrong with this." But as the marriage has been delayed, the bride is becoming restless and questioning if the arranged marriage will be worth it. Retailers, the bride, know what they want (MCX), but remain open to other suitors that are now wooing them away from the marriage with NFC: Pay with Square, LevelUp, PayPal, Apple (? - said no to NFC) and more! With NFC, it takes the phone and terminal to engage and so the retailers are looking at other options to fuel their desire to gain mobile payment engagement.

In relating NFC to mobile payments, the core purpose of mobile payments is enhanced convenience, speed, security and decreased costs for merchants and consumers alike. The NFC and Mobile Payments marriage may end up producing these results, but it sure seems like the marriage is traveling on a rocky road and is still yet a fragmented arrangement. A single standard has yet to emerge and merchants are wary of investing in technology that is not ubiquitous or may be 'Dinosaur Tech' in 6-18 months.

Continue to read the rest of the story.

PayPal + Discover = Dynamic Duo that could also be THE Disruptive Duo!

By Randy Smith,

Mobile Wallet Media

October 5, 2012

I think we've only seen the tip of the iceberg here. Discover was once the 'New kid on the block,' as was PayPal. Now both are firmly established as the number 4 and 5 players in payments. These two companies have incredibly complimentary strengths. Discover has much room to grow and PayPal has always been the innovator and wants to expand it's presence from the online to the physical world. Their current partnership is one that is mutually beneficial. PayPal rides the rails of Discover's acceptance in the real-world stores and Discover taps into PayPal's Digital Wallet, alternative payment methods and their as 110-million+ regular users and 9-million+ merchants.

IF they can figure out how to BEST LEVERAGE each other's strengths, they could both DOUBLE their market share in as fast as 2 YEARS! Yes, I'm saying as they do on infomercials, "But wait there's more!"

Continue to read entire story.

Embracing Innovation is Answer to Tech Disruption at the WSSA Conference

By Randy Smith,
Mobile Wallet Media
September 29, 2012

The Western States Acquirers Conference had high impact statements and speakers delivered in a small package. Two of the general sessions were "Embracing Change; Staying Relevant in the Changing Payments Landscape" and "Future of Acquiring . . . Will you Wipe Out or Catch the Big One?" The wake-up call to reality is ringing and it is time to answer the call. If you can't beat the join them, might provide the answer.



It seems like the overarching message being delivered here was, don't panic, but do take action now! Attending diverse trade shows in this past year and past 15 years, I've come to hear the words 'Disruption' and 'Innovation' a lot. These two words, in 2012 have lead the pack for trendy words used in business and technology. The words address the issue of change and remaining 'relevant,' also another trendy word in our vocabulary today.

The word Disruption in Silicon Valley and the tech industry represents a method of being innovative by creatively solving problems or providing a solution that could be done in a much better, simpler, quicker or more cost-efficient way. Disruption is innovation and vice-versa. It is only when it is you that is being disrupted that it is viewed with disdain or threat. But this is business and competition and change is always the constant. To stick your head in the sand and think that things will remain the same as they have always been is strategy that will deliver your worst fears to become reality.

Innovation is offense. It is moving the ball forward and the best defense is a great offense. The SR-71 BlackBird was developed in the 1960's by Lockheed Corporation. It can fly as high an altitude as 100,000 feet with 3 times the speed of sound (3.5 Mach). It was in use by USAF for 40 years and was retired in 1998. It actually had no defensive weapons, but relied solely on it's speed, stealth and maneuverability to evade it's enemies. In all it's years of service it was never shot down. But even it was retired after 30+ years in service. Why? It was retired because the next generation of technology was ready to replace it. And now is the time that new innovation is replacing the status quo.

Continue Reading the rest of the article

Key Takeaways and Quotes from Mobile Engagement In Retail Conference

By Randy Smith,
Mobile Wallet Media
September 26, 2012

The Mobile Engagement In Retail Conference, in Denver on September 13-14, was a very well-rounded event. I gained new insights from experts in mobile retail, advertising, loyalty and payments.

Could Digital Watermarking replace QR or 2D barcodes? After seeing how Digimarc's technology works, my only question is why wouldn't it replace QR codes? It seems all that is needed is a branding and education campaign to make their tech dominant.


Digimarc's, Ed Knudsen explained how Digital Watermarks work much like a QR code scanner. Their app is called "Digimarc Discover App" and is avaibable for iphone and Android. To sum it up, the technology works by scanning digital or print images. Digimarc's code is not visiible to the human eye, but when scanned, works like a QR code. The user may be directed directly to a web page about the product or image content, page to buy the product featured or a coupon with a 1D or 2D bar code. It seems like the scanning of a Digimarc code takes just about as long as scanning a QR code. So for use with mobile phone or tablet app scanning, why are they better than QR codes?

Digimarc's Digital Watermarks are currently not better than QR codes, only because they are not understood or even perceived by consumers. When consumers see a QR or 2D bar code many if not most tech savvy cosumers recognize what they are and have used a scanner on their phone. This is not the case with DigiMarc's technology. However, QR codes are everywhere and are just plain ugly and do not work well to compliement beautifully crafted images.

So it appears that all Digimarc needs to do is ramp up their publicity and media campaign to educate consumers, retailers and advertisers about their very cool and seamless tech. They have already struck big deals with major companies. Their use on Pinterest, the 3rd largest social network in the world with 104 million users, 80% of which are woman and half moms, is quite a compelling use of their tech. Digimarc's technology is also used for ID authentication and to prevent currency counterfitting. Think of how different the world might look without ugly QR codes and with the branding and advertising possibilities with Digital Watermarking. I don't think they will replace QR codes displayed for scan at POS.

Continue to read entire story at MobileWalletMedia.com.

Moneyball-Like Innovative Disruption is Cure for Mobile Wallet Dysfunction

By Randy Smith,

Mobile Wallet Media

September 21, 2012

"When defining moments come along you either define the moment or the moment defines you." Kevin Costner, Tin Cup (movie) - Don't let source of innovation derail you.

Apple's decision to not include NFC in their iphone 5 has extended the runway for disruption via alternative technologies enabling Mobile Wallets and payments.

Every move that is made by PayPal or Apple affects the entire sphere of the mobile payments and Mobile Wallet world. The non-inclusion of NFC by Apple will be sure to alter and delay Google Wallet & ISIS.

All Things Digital just published an article by Carey Kolaja, Chief of Operations for Global Product & Experience at PayPal. This article is a relevant part of the public conversation about the Mobile or Digital Wallets. I will also propose a philosophy that must be adopted to solve problems and engage innovation in general and specifically in this space.

Continue reading article at MobileWalletMedia.com

Tour de Mobile Payments - The Mobile Wallet & Main Street

By Randy Smith,
Mobile Wallet Media
September 12, 2012

How will mobile payments mesh best with Main Street?

It seems like it's gotten as complex and confusing as can be for retailers and even the mobile payment service providers themselves. 

We'll provide a legend to map out all the pieces, as well as strategy and opinion. At Tour's end the future of mobile commerce may be a bit more clear.

A foundation was laid for this article with our feature 7-Week Series, just completed on September 10th, "The 7 S's Required for Success in Mobile Payments." If you have not read it, you've missed much.

Before we begin the tour, let's look back at the history of contemporary mobile payments and wallets that has brought us to this point.

In 2008, Mocapay debuted at ETA and showed us an early vision of what a Mobile Wallet might look like. Another company, Mobibucks, also debuted at ETA in 2008, showcasing a solution that looks exactly like PayPal's 'Mobile Phone + PIN' entry on terminal solution (I reached out to Mobibucks, but never heard back for comment about PayPal's solution).

In 2009, MFoundry built the foundation for what would power the Starbucks Card Mobile App.

In 2010, SquareUp turned our heads by turning our iphones into a credit card terminal.  Also in 2010, TabbedOut launched by integrating directly to POS systems, thus enabling 'Pay at Table' transactions from the mobile phone without requiring a mobile POS device or to wait upon the server to pay and close out a tab. In the Summer of 2010, ISIS announced it was forming a carrier network. In the Fall of 2010, my former company, MobilePayUSA, followed by debuting at TechCrunch, giving us the first vision of what a 'Universal Mobile Wallet' might look like (Yes I'm a Homer). Paydiant and Cimbal showed us the way to turn a 2D bar code into a transaction ID and way to pay by scanning with a smartphone. And, Dwolla also launched reducing fees to 25 cents a transaction for merchants. 

In January of 2011, Starbucks Card Mobile launched and by March had already provided a solid proof of concept for the Mobile Wallet. Corfire was developed and would become the platform of choice for Dunkin Donuts. Google Wallet utilized MasterCard's PayPass to launch it's Mobile Wallet in the Summer of 2011.

2012 saw Visa debut V.Me at ETA, but has yet to make a push as a Mobile Wallet. PayPal, though it debuted a Digital Wallet in the Fall of 2011 and has showed us two alternative ways to pay, but has yet to debut a Mobile Wallet in the USA. PayPal has however shown us a preview of their Mobile Wallet plans in the UK.

This past Summer, Levelup and Kuapay showed us how to sprint with flair and relevance. After a Spring announcement, MCX revealed it's identity as a Merchant Coalition Mobile Wallet. Dunkin Donuts also got into the race and is powered by Corfire. And Moneto just recently announced it's Mobile Wallet works with PayPass. 

Will Apple's Passbook, teamed with the iphone5 (with NFC) and iO6 soon become a Mobile Wallet? 

Continue reading rest of article at MobileWalletMedia.com.

NFC and 2D Lead the Way to Scale Mobile Wallets, but is there a Black Swan?

By Randy Smith, Mobile Wallet Media
Monday, September 10, 2012



Scalability - Week 7 of 7-Week Series

The less barriers to adoption and the more universal or "Future-Proofed" solutions are, the greater the chance of adoption by all tiers and types of stores. The biggest winners will be the solutions that are ubiquitous as cards are now.

Retail commerce has never been at such an exciting time as now, nor has is been at such a technological crossroads. In the late 90's it was e-commerce, loyalty and gift cards that retailers and service providers were busy implementing. Now a mirror-image of the 90's is being re-enacted with the goal of enabling mobile to replace plastic and paper cards & coupons. With literally next to zero infrastructure in place to date, the solutions that can move fastest, in their move to mobile, will win the most market share. View rest of article at MobileWalletMedia.com.

The Cause Commerce Mobile Revolution Has Begun! Yet Another Mega Trend!

By Randy Smith, Mobile Wallet Media
Tuesday, September 4th, 2012

Week 6 of 7-Week Series

Sharing is Caring!

It has been said that "People don't care what you know unless they know how much you care." Today, this is perhaps more true than ever, in life, as well as in retail and business in general.

Cause marketing in retail has been around for sometime, but a new revolutionary model is soon to alter ALL retail commerce. Last week we saw LevelUp introduce a preview of 'Causes Engaged to Mobile Commerce.' This engagement will last 6-12 months and then the marriage will commence and cement the relationship between Causes and Commerce. Causes will be bound to Commerce for GOOD!

In the near future, it will be required that retailers show they care by donating a percent of every transaction to charity. LevelUp's sneak preview is a window to the future.


For those already participating in supporting local and worldwide causes, I know I'm preaching to the choir, but hang with me and perhaps you may add to your vision and expand your commitment to community and causes and thus be rewarded with even more abundant sales.

LevelUp announced last week they will be offering consumers the option to donate a portion of the merchant funded reward to charity. Tying causes to commerce has long proven to be a very effective way to enhance Word of Mouth marketing and increase customer loyalty.

Macy's has long been a champion of Cause Commerce through it's 'Shop for a Cause' sales and fundraising events. These events work as follows:

1) The shopper buys a $5 'Savings Pass' from a partner charity.
2) Shopper uses single-day Savings Pass to save 10-25% off merchandise at Macy's.
3) Win-Win-Win > Shoppers save, merchants sell and charities receive donations.

This is the future formula for success in retail. Like Starbucks Card Mobile to Pay With Square, so is 'Macy's Shop for a Cause' to is LevelUp's Cause Commerce offering to the future of mobile commerce.

Another winning example and leader in GIVING BACK is Target. They have a wide array of giving programs to support education, social services, crisis relief, our veterans and more. A recent article by MediaPost.com states "Target says its "Give With Target" generated the highest level of engagement of any social media campaign in the retailer’s history, and as a result finished two weeks ahead of schedule. The school fundraising initiative generated more than 3 million votes through its Facebook app in less than four weeks, reaching its goal of $2.5 million in donations."

Since 1999, Escrip has partnered with grocery stores and local retailers to raise funds for school programs. This program works by users simply registering their credit or debit cards with Escrip, and selecting a school program to support.

The topic of this week of 'Cause Commerce' is something my heart has long been very near and dear to. You can even say a big part of the reason I decided 20+ years ago to go into business was for the very purpose of making a ton of money, to in turn give back to help the hurting, homeless and hungry. Since then I have realized that giving is a matter of the heart and not the size of one's wallet. Thus, one can start giving no matter their level of wealth. However, those with larger wallets or specifically those that control the flow of commerce, have the opportunity to not only bless the bottom line of their company or store, but also make a difference in this world.

It still is, and has long been, my hope to build out a model of Cause Commerce that I believe will not only surpass all others, but may also work well enough to end poverty worldwide, or at least make a huge dent in it. I'm not joking here (see how this is possible below), but I also realize that if the hearts of those that can make big change happen, do not change, then this is not a true possibility. 

How much funds would be generated if an average of just 2% of 50% of US retail transactions were donated to support local and worldwide causes?

> 4.2 Trillion/Yr Avg. in US Retail sales X 50% X 2% = 42 Billion/Yr*
*YCHARTS.COM 

After a long career of working towards building out a 'Universal Gift and Rewards Card Network", which began in 1996, I'm excited now, more than ever, about the prospects for Cause Commerce. I added Cause Commerce to my load of research back in the late 90's. Once introduced to the transactional equation, I've always envisioned that Cause Commerce was an absolutely necessary ingredient.

I am going to say something again here that I said just last week about Mobile Daily Deals. Cause Commerce, set up in exactly the way it should, and will eventually be delivered, will alter ALL retail commerce as we know it today. It will be yet another Mega Tend! That's right, here's one more plate to spin and get just right, or you risk losing loyal customers. On the other hand if you get it just right, you will enhance loyalty and your cause program will spread like wildfire. New customers will be delivered and attached to your brand with an emotional bond that can be stronger than a rewards based program and has been proven that it will work to compliment it. There is much more to say here, but I will save most of it for my upcoming article in November: Greed is NOT GOOD! Cause Commerce IS!

Of course, I could share the complete concept and vision here openly and unselfishly, but unfortunately I will need to allow you to do the math as to why I cannot do so at this time. Of course this could all change if your company is one of the large tech or payment companies I've spoken of here before. It's up to you to BE THE CHANGE THE WORLD NEEDS AND WANTS TO SEE HAPPEN.

Retailers and mobile wallet providers that embrace Cause Commerce, not only will see their customers be more loyal, but more importantly, water wells will be dug, the hungry will be fed, clothed, sheltered, treated for disease, educated, trained with job skills and have hope. You know, all the things we all take for granted and even feel we are entitled to.

If you do fully embrace Cause Commerce your shareholders will be very happy, as your revenues and profits will very likely surpass expectations quarter after quarter. However, if you don't completely embrace this model I'm speaking of, it will cost you market share, as consumers will question if you really care about sharing your abundance with others.

All things being, equal in a marketplace where the new standard requires sharing of abundance, makes not doing so a losing proposition as customers will take their business where Cause Commerce is embraced. A retailer or mobile wallet not fully engaging this model will surely pay the price of sales lost to their direct competitors.

This concept may also soon be challenging Wall St. PROFITS, as the chief and main concern of publicly traded companies. When the mountain is crested in this movement, profit expectations met without sharing with Causes and more abundant sharing with employees, will result in decreased store sales. This of course extends to local and regional retailers as well. This is a byproduct of Social Media embracing commerce to form Social Commerce. I know this is an idealistic perspective of the things, but I believe this is the final destination of Causes and Commerce; that is if greed is removed and called to accountability. Social networks provide the forum and foundation for transparency that is long overdue.

Thus the foundation is laid and a vision of sharing, over greed, is given, and the future is up to you. The magic of it all is that I believe it may be tough to give too much, as if you do, you may find the perfect 5.0 'Magnetic Viral Social Storm' will hit your stores.

I understand what I write here is not-standard protocol, nor politically correct (right now) and that most of what I envision may not come to be.  Will your company or store be recognized as a leader in Cause Commerce? Will it be the one to spark the 'Mobile Cause Commerce Revolution?'


About Mobile Wallet Media
Mobile Wallet Media is a news media, analyst, marketing and consulting firm focused on the future of mobile: payments, marketing, loyalty commerce, security, prepaid, virtual currency, daily deals and the convergence of them all with social and local. The Chief Editor, Randy Smith, was the primary founder, inventor and former CEO of MobilePayUSA, a TechCrunch Disrupt Award Winner.