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.

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.

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.

Daily Deals Manifest Destiny - Can One Live On Deals Alone?

By Randy Smith, Mobile Wallet Media
Thursday, August 30th, 2012

Daily Deals are indeed not dead, but must evolve and transform if they are to survive the mass adoption of the Mobile Wallet. Daily Deals as we know them will continue to exist, but they will need to reduce fees and discounts drastically to reach their 'Manifest Destiny.'


So just a couple weeks back I wrote about how Daily Deals are perhaps too dysfunctional to survive. I wrote the article in response to the slew of bad earnings and news reports about Daily Deals companies. This is the first article in our 'SuperCommerce Series.' Tighten your belt it's going to be a wild ride!

Daily Deal companies will need to change their revenue, distribution and redemption model to survive the coming 'Mobile Wallet Revolution.' In my previous article on Daily Deals, I spoke much about Daily Deals limiting their market with high fees and discounts. I'll add a bit to that here and now.

If Daily Deal merchant fees are reduced drastically and allow merchants to set lessor discounts or rewards, more like LevelUp, they will have a chance to provide deal vouchers for just about anything. That's right, I said anything! So yes, it will be possible for "One to Live On Daily Deals Alone!"

Well, perhaps not anything, as we know money can't buy many things.

I see this as a new "Mega Trend," one that will completely transform not just mobile commerce, but all retail commerce! This trend itself could be every bit as disruptive as mobile, the web and the mobile wallet itself. The implications of this transformation will alter all retail marketing and advertising! If you think hard about this, you will realize the spending and purchase decisions of consumers will be altered once Daily Deals are in the Mobile Wallet. With the consumer armed to carry as many deals as they want, this will prompt the consumer to buy more deals as they are easier to manage than the current, 'Clunky.' and non-seamless, redemption methods. Therefore, if the purchase cycle is moved forward to "Lock-in customers and future sales," then marketing and advertising will need to redraw their lines around this.

So is what I'm saying here that Daily Deals will become like a new virtual currency? Yes! If this new breed of Daily Deals is convenient enough and enough brand name retailers adopt this model, consumers should scoop them up like crazy. So rather than a high-discount and costly coupon or voucher to drive consumers to the store, a deal with a lessor discount, say a $110 voucher for $100 in cash. LevelUP has already shown us a glimpse of this type of offer. Convenience is traded for larger discount. Consumers will take a "Good Deal," and so may merchants, if it is easy to obtain and redeem. This model I believe will be a powerful force to direct, not just traffic, but lock in loyal customers and sales in advance. If one goes down the rabbit hole deeper, if a consumer has spent their funds on "Mobilized Daily Deals," then the decision to where they shop is done.

These types of deals have long been available during the holiday season via bonus gift card offers and consumers may purchase gift cards online at a discounted rate. But the inconvenience of carrying multiple cards has made it impractical at scale. With the Mobile Wallet, such barriers are removed.

OK, now onto distribution. If you are a Daily Deal company, you are ripe for disruption if you are not plugged into and integrated with the major Mobile Wallets. Why? Because the convenience associated with receiving and redeeming offers via the Mobile Wallet will demand it.

Imagine if redeeming a Daily Deal was just like making a purchase using the Starbucks Card Mobile or LevelUp app. This is the future of Daily Deals and really offers period. Mobile Wallets will make getting great deals easy, simple, convenient and fast! Deal companies, merchants and marketers should get on board this "train of thought" or be left behind with a worthless ticket to nowhere.

So with, Google, PayPal, ISIS, MCX, Square, LevelUp and more Mobile Wallets launching this Fall or 2013, don't you think they might be interested in offering a high-margin, Daily Deal service of their own? Well, one may say it may be easier to just partner with Groupon or Living Social or another of the myriad of the high-volume, Daily Deal companies. On the other hand, with the stock hit Groupon has taken as of late, perhaps they are ripe targets for acquisition by Mobile Wallet companies. Via acquisition they may lock in merchant relationships, a sales force, a platform and revenues, all in one fell swoop. Or perhaps Daily Deal platform infrastructure companies will be ripe acquisition targets? Mobile Wallet companies are all armed with a massive customer base and billions of bucks. Buying infrastructure alone could make for an exellent investment. Of course some of these companies may already own a Daily Deal platform.

Amazon, which has a large investment in Living Social, may stand the best chance to stand firm and negotiate deals with all major wallet players. Amazon, has yet to make a move or tip it's hat with regards to it's plans for a Mobile Wallet, even though they are very adept at processing payments.

Apple, with it's much anticipated launch of it's iphone 5, with or without NFC and possible announcement that Passbook will become a complete mobile wallet, is news we are all eagerly waiting to hear.

First Data launched a new service named "OfferWise" at SXSW this past Spring. To quote First Data from their YouTube page "First Data's OfferWise solution is a revolutionary product that allows consumers to electronically link offers and deals to any payment card or mobile wallet." The release by First Data in June,  is titled "First Data OfferWise Solution Enables Universal Commerce for Offer Publishers and Merchants." First Data, if you are not aware, processes an estimated 60-65% of all retail transactions. If OfferWise can be a "platform in the cloud that seamlessly ties offers to Mobile Wallet," they could prove to be a platform of choice for Mobile Wallets and one not to ignore. 

Daily Deals in the Mobile Wallet, for clarity's sake, will not actually be a "gift or prepaid card," but will be a voucher, that may be redeemed via one's Mobile wallet, at a specific set of retailers, for a limited time. The other side of the equation to enable Daily Deal to be processed has to do with the integration to Point of Sale (POS), which I've touched upon in recent articles, and hence will not belabor again now.

How Mobile Wallets, Daily Deals, POS vendors and processors all decide to work together to build the future of Daily Deals and mobile commerce will be interesting to watch, but rest assured and God-willing, I will be here to comment upon it or be part of building it.

To wrap it up, and set up my 'Shameless Plug of the Day,' as a brand new journalist and as a FIRST-TIME EXPECTING DAD, I'll leave some meat on the bone for a later discussions and paid consulting. Just remember to tell others you heard it here first, refer others to read my articles and hire me to consult. I'm also open to offers I cannot refuse.



Mobile Wallet Media is a news media, analyst, marketing and consulting firm focused on the future of mobile: payments, commerce, daily deals, security, loyalty, marketing, prepaid cards, virtual currency and the convergence of them all with social and local. Randy Smith, the Founder and Chief Editor of Mobile Wallet Media, was also the primary founder, inventor and former CEO of MobilePayUSA, a TechCrunch Disrupt Startup Alley Winner in 2010.

A Glimpse of PayPal Mobile Payments for the USA in the UK?

By Randy Smith,
Mobile Wallet Media
Tuesday, August 28th, 2012

Could PayPal's "Pay InStore App," now on trial in the UK, be a preview of the future of PayPal's mobile payments in America? It seems to be the 'Missing Link' to provide mobile payments in the US. It appears to work much like the famed, Starbucks Card Mobile App.





I like this solution. It is as it says in their video "FAST, EASY, SECURE AND SIMPLE."  The PayPal Blog announced in May of 2012 their "Pay inSTORE" app would be availble for use at Oasis and other major retail brands. This app is available on iphone or Android and allows customers to pay via PayPal. This app enables retailers to use their existing infrastructure to add mobile payments.

PayPal's UK, Pay InSTORE App may be used in one of three ways:

1) Mobile Checkout via ipads.
2) Scan a bar code from the app.
3) Type the number below the bar code directly into the payment terminal.

The Pay inSTORE app may also be used to redeem offers collected online and forwarded to phone app. PayPal users may also opt in to receive and redeem special offers using the app.To quote the PayPal video "The app works with or without signal." as well. This is big!

The UK PayPal In-Store Checkout, like it's 'Sister App' in America, allows users to pay without using their mobile phone. In America, users enter their mobile phone number + pin and in the UK users enter a user or transaction ID to make a payment. Correct me if I'm wrong, but this will require integration at POS to accept these transactions. Payment terminals are programmed or setup to accept only a certain range of gift card numbers. Each gift card provider gets certified on each terminal but merchant acquirers can program terminals to only enable transactions through their partner processor. Having users enter manuelly, a virtual card number, representing a credit card, does not make sense as it opens the gateway to incompliance with PCI.

PayPal's, UK inSTORE Checkout enables merchants, unlike in the US, to scan a bar code to enable mobile payments. It appears the POS register will need to be setup to scan a 1D bar code as a gift card. This can be fairly straight forward, if the merchant has access or ability to configure their POS software to make this adjustment. From there it gets a bit trickier.

Each POS software has a gift card port and some are hard wired to a single processor or solution. If the processor has partnered with PayPal, then they will be able to route the transaction for approval through PayPal. Of course it is possible, through their recent partnership with Discover, that PayPal transactions could ride the rails of Discover, with the processor routing the transaction as a credit card transaction. If this is the case, the processors would likely still need to convert transactions from a non-financial or gift card transaction to a financial or credit or debit transaction in order to reroute through Discover. This may be an unnecessary or not the most easy step due to legacy systems.

Processors such as Mercury, PayPros and Merchant Link may have a key advantage here to utilize their existing relationships with POS vendors. First Data, TSYS, Global, ChasePaymentech and Vantiv (5th 3rd) may also make a big play here and now if they choose to do so. Eventually the transaction would be routed to PayPal to gain the actual authorization using the user's chosen method of payment encased in the Digital Wallet.

Though PayPal may be offering a preview of their mobile payments future for the UK and beyond, it still will require some POS and processor integration. Could PayPal already be partnering directly with POS vendors such as Micros and NCR to create a direct connection to PayPal?

This is by no means out of the question and makes a lot of sense for them to do this very thing. By cutting out the processors, they are creating their own payment network with each direct connection to PayPal. However, I'm sure most processors would wisely partner with PayPal here to take advantage of the 100 million+ PayPal users that PayPal would want to route through their gateway. This seems to be the way to go and is a Win-Win-Win, with the third 'Win' being PayPal connecting merchants with their users.

If processors decide not to work with PayPal, then I'm sure PayPal, if it has not already offered POS vendors the option to connect their software directly to PayPal's API yet, will soon be announcing this soon. I'm not trying to trump PayPal's news or lead them down the road that is available to them, or maybe I am doing one of such? However, PayPal is not the only one that can, will or has already begun building direct payment gateways as such that connect POS to Mobile Wallet, but they will surely be a tough competitor in this space.

There is still, as I pointed out in my prior article on PayPal, another way to avoid this problem of integration, of which Square may have the same problem, and seamlessly use their partnership with Discover to enable their new 'Pay InStore' app, thus requiring no software or hardware integration at point of sale.

I again offer my consulting services. PayPal, networks, processors, POS vendors or Mobile Wallet companies such as MCX please reach out to discuss how we might work together. I look forward to talking to innovative people and companies soon!

Yes, I understand this is not normal journalism, but I'm not a normal journalist. I invented one of the original Mobile Wallets and have been an entrpreneur most of my life and a journalist for less than 30-days.



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.

The Mobile Wallet Olympics Have Begun!

By Randy Smith, Mobile Wallet Media
Monday, August 27th, 2012


This is week 5 of a 7-Week Series: The 7 S's Required for Success in Mobile Payments

Let The Games Begin!

Time is money in business and retail and possibly even more so with Mobile Wallets. The wallets that will make the biggest impact will be the one's with the most transaction SPEED at Point of Sale and most easily and seamlessly integrated with POS.

During and since the London Olympics, a fast and furious slate of news about Mobile Wallets strolled across our screens seemingly every other day. With all the pomp and positioning on par with the actual Olympics, I believe the 'Opening Ceremony for the Mobile Wallet Olympics' has officially taken place.  But rather than just two weeks of competition, the 'Mobile Wallet Olympics' will play out over the next 2-4 years.

The race for victory in mobile payments is much like the actual Olympics. In the actual Olympics there are a multitude of athletes, events and countries with clear-cut favorites and the underdogs, of which we love to see both win medals. With the Mobile Wallet Olympics, rather than people and countries competing for medals, there are products and companies competing for market share vs. medals. The top 3 companies that end up on the medal stand will garner most of the money and market share, but like those that make it to the finals in the actual Olympics, there will be victory and rewards to share in as well. And of course there will be many companies partnered to support and give their marque product, their Mobile Wallet, the best chance for success.

In replacing our good old friend the 'Mag-Stripe Card,' mobile payments cannot be slower. At POS the NFC Tap and the 2D bar code scan appear to be the clear front runners. Either of these mobile payment methods seem to be just as fast as cards or cash.

For Mobile Wallets to succeed they need SPEED of adoption and integration. The more simple, more options and more reasons merchants have to adopt technology, the more likely they will do so. Be it Usain Bolt or Michael Phelps in recent Olympics or Dale Earnhardt Jr. of Nascar on the race track, less drag and better mechanics are two key differentiators that set them apart from the rest. Of course a high level of talent must serve as the foundation for success to redeem these benefits. A merchant without a 2D bar code reader rigged for coupons or payments will soon be requirements to compete in market that is getting ever faster and efficient.

For readers not akin to sports analogies, please forgive me as I am a avid sports fan and ex-athlete (football, basketball, volleyball, hockey and baseball). Hopefully it still helps with perspective and vision.

For a POS mobile payment method to become a standard, the easier and more quickly it is for merchants to integrate, may make all the difference. Right now is seems that 'NFC is the turtle and the 2D bar code is the hare' in the race for standardization, but this race will tighten as more reasons are added for merchants to adopt new NFC or 2D bar code equipped terminals.

I found a good summary article, describing 'Future-Proofing' payment terminals. This article by MerchantAccountGuide.com, quotes Mike Duffy, president of Chase Paymentech: "As emerging payment options gain adoption in the U.S., merchants are looking to make the customer check-out process as easy and safe as possible. The Future Proof terminal is a one-stop solution for merchants to keep accepting today's forms of payment and prepare for new consumer payment preferences on the horizon."

While Chase and Verifone lead the market in showcasing of 'Future-Proofed' terminals, Merchant Account Guide describes Merchant Wherehouse's terminals as follows:

"The company introduced its "agnostic" Genius platform, which can be integrated into any POS system, regardless of device or operating system. Like Verifone and Chase, Merchant Warehouse has also been throwing around the "future proof" label. And it claims that Genius can "integrate every conceivable transaction technology, payment and type and customer engagement program" -- including  NFC, EMV, QR codes and mobile payments, as well as loyalty, gift and reward programs."

In my opinion the 'Four Horseman' of the Future-Proofed terminal must include the following types of readers: 1) EMV, 2) NFC, 3) 2D bar code and 4) mag-stripe. Of course 2D bar code readers are an investment ($150 - $300 each) some retail merchants have already made. It's my strong bet that many more of the Mobile Wallet apps will use, like Starbucks and LevelUp, the display of a 2D barcode to enable mobile payments. If the payment terminal has a 2D scanner, it will be able to capture the card credentials, actual or tokenized, and process the transaction with any POS system, without integration.

A 5th horse in the race for alternative payments may very well be Pay-Pal's 'In-Store Checkout's Mobile Number + PIN' solution. I know I said in my last article this solution, "as is," is not secure enough to scale without massive potential for fraud, but I think they will soon rectify this problem. When they do, this will be a very convenient and secure product.

Most POS software allows for configuration of their software to scan 2D bar codes for the purpose of payment. This is already being done with gift cards. However, is there enough value for the merchant to buy and configure their software to do as such if they have not already done so? Well, with Square and LevelUp already processing their mobile transactions as such, I think there might be. An additional question that must also be asked is:"Will there be added difficulties to connect closed loop with open loop or the proprietary Mobile Wallet platform? I believe that the 2D bar code will become a standard for processing mobile payments and that all Mobile Wallets must have a 2D bar code display option to process payments.

Future of Mobile POS
I believe 2013 is going to be a huge year of adoption of mobile POS solutions. This is due to the perfect storm of mass adoption of smartphones, payment apps and ipad mobile POS solutions that increase speed, convenience of checkout for merchants and consumers alike. Plus mobile POS checkout can also enhance margins for merchants and discounts for consumers. All the momentum in the media with major retailers like JCPenny and Starbucks making moves to fully embrace mobile POS and payments, will readily move the adoption meter to include Tier 2 and 3 stores. Don't be surprised if you see signs at the mall this Fall featuring mobile payments during our first 'Mobile Christmas.' It is prime time to be in the retail POS industry!

Merchant service providers or resellers need to provide case studies or paint the picture how employee costs may be cut by improved SPEED of order processing and checkout combined with the opportunity to "up-sell customers." I see mobile POS being used to accomplish both by extending the reach and capacity for order-taking and checkout.

In restaurants, mobile POS enables a server to add an order in seconds without duplication, delay or increased chance of errors. The time freed up for servers will enable ample time for up-selling and providing better service, thus consumers will be more satisfied and more likely to return sooner and more often. At a busy night at the bar, a "line-busting" mobile order capability could increase orders by 15-30% or more. Bottom line is adding Mobile POS technology can cut employee costs and enhance service and sales.

Merchants can effectively market these solutions by tying to loyalty and 'Offers tied to enrollment.' Smartphones and tablets are everywhere now and "Cool, Convenient and Savings" is the way to sell. The new mobile channel will move to eventually tie all campaigns under one coherent marketing umbrella. Loyalty programs tied to paper or plastic have long restricted the adoption rates of consumers. Who wants to carry around a card for every store they frequent? Merchants may empower their customers to "Go Mobile and Earn Special Rewards." Once customers are on a Mobile POS or Mobile Wallet platforms, merchants are enabled to extend personalized offers based upon past order history or proximity offers using GPS and coherently tie to all other marketing channels.




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.