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D'coda Dcoda

Your favorite gadgets are threatening the planet's future [18Jun11] - 0 views

  • Earth is expected to be home to over nine billion people by 2050. That’s a lot of people for Mother Nature to manage.
  • Space issues aside, the biggest concern on an over-populated planet is whether or not there will be enough resources to go around. Last week, British investor and Co-founder of Grantham Mayo Van Otterloo (GMO) Jeremy Grantham offered what Business Insider called a “startlingly depressing outlook for the future of humanity.”
  • the purpose of this piece isn’t to tread well-worn ground about the planet’s perils. So forget about fossil fuels, drinking water, crops, ice-caps, trees and animals for now. What we’ll be looking at is all those elements that go into helping you do what you’re doing right now. Whether you’re reading this on your laptop, smartphone, tablet…or any other digital device, the natural environment has had a huge part to play in this experience.
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  • Indium
  • Tantalum
  • Besides the direct environmental impact of mining the Earth, there is a more immediate threat. You’ve no doubt heard about conflict diamonds or ‘blood diamonds‘, which are diamonds mined in a war zone and sold to finance an insurgency, invading army’s war efforts or a warlord’s activity. Well, your mobile phone contains a similarly valuable commodity that’s been at the center of controversy in recent times
  • Tantalum is one of the best superconductors on Earth, and it’s used to coat capacitors to obtain more power from less energy. This basically means that laptops and mobile phones don’t need batteries that are larger than the device itself – so this is one of the chief reasons why you can slip your iPhone in your pocket rather than carting it around in a wheelbarrow. In central African countries such as The Democratic Republic of Congo,the mining of the mineral coltan – from which tantalum is extracted – it has often been argued fuels wars and encourages child slavery. And these arguments are well-founded.
  • However, the majority of tantalum production shifted to Australia, and Western Australia became the world’s largest source of mined tantalum concentrates. The mine closed in late 2008, and has only recently reopened.
  • In 2010, major concerns were raised as to the availability of tantalum and the effect this would have on the supply chain. “The impact, the real concern, is actually obtaining the metal,” said Dennis Zogbi, CEO of Paumanok Publications, which researches the component industry and the tantalum markets. If the stockpile of tantalum ever runs out, this could be disastrous for the electronics industry.
  • Tantalum minerals are also mined in Canada, China, Ethiopia, and Mozambique, and mass reserves were found in Venezuela in 2009, and in Columbia a year later.
  • Bloomberg reported a couple of weeks ago that the first conflict-free tantalum has recently been certified by The Electronic Industry Citizenship Coalition and Global e- Sustainability Coalition (EICC/GeSI), an initiative backed by companies such as Apple and Intel.
  • Ethical electronics
  • Then there’s Indium, a rare chemical element you may or may not have heard of. Zinc ores are the primary source of indium, which – when isolated – is then used in liquid crystal displays (LCDs) and touchscreens.
  • Despite the best efforts of environmentalists, governments, businesses and consumers, there could be another ‘small’ obstacle to contend with if we’re to protect the Earth’s natural resources. And that is China
  • Last year, 85% of all indium was devoted to making indium tin oxide for use in LCD products, and the demand is predicted to grow at 15% a year over the next few years
  • A UN report published last month found that there are virtually no recycling initiatives in place for indium, and Thomas Graedel, one of the report’s eight authors, warned that a failure to re-use metals such as Indium doesn’t bode well for the future
  • “If we do not have these materials readily available at reasonable prices, a lot of modern technology simply cannot happen. We don’t think immediate shortages are likely but we are absolutely unable to make predictions based on the very limited geological exploration currently conducted.
  • The case for recycling
  • Your old mobile phone has circuit boards, batteries and an LCD screen – these all contain harmful materials that, when dumped in landfill sites, eventually break down and leak into the environment.
  • Over time, the likes of lead, cadmium and mercury pollution can be hazardous to the environment and to our health. It was for this reason that, in 2006, California became the first US state to make it mandatory for all mobile phone retailers to establish a collection and recycling program for mobile phones. The law also prevents residents from disposing of old mobile phones.
  • It’s very difficult to reclaim tantalum once it has been transposed onto an electronic component. For this reason, it’s important that you choose how you dispose of old devices carefully. Some organizations will promise to ‘safely’ recycle your handset, but this is very vague and may not mean the components are being reused. Given the amount of effort and strife that may have gone into producing it, you should ensure that it is actually reused. But this is something governments and industries need to help consumers achiev
  • The UN report analyzed the recycling rates of 60 metals, and 34 of these have recycling rates of less than 1%. Among the least-recycled metals were tellurium and gallium – which are used in solar cells – and lithium, a key element in your phone and laptop batteries.
  • China is a leading producer of indium, whilst Canada and Bolivia are also large producers. And Cornwall, England, was also found to hold significant indium deposits earlier this year too, something which could prove massively beneficial to the UK economy
  • As reported recently in National Geographic, China supplies 97% of the world’s so-called rare earth elements, elements we all rely on for all our high-tech gadgetry, including mobile phones and laptops. And in 2010, China gave a hint of what the future may hold for the rest of us, when it stopped shipments of rare earth elements to Japan for a month following a diplomatic dispute. This had a big impact on the price of rare earths on global markets. China is expected to reduce its rare earth exports to help protect the country’s own rapidly growing industries. Indeed, it’s worth noting that almost two-thirds of rare earth metals produced in China are already consumed ‘in-house’, so to speak.
  • If China does decide to cut back on its exports, global prices will sky rocket. Dysprosium, for example, is used in hard-drives and it now sells for over $200 a pound (roughly half a kilo), but the disturbing thing is that the price was only about $7 eight years ago
  • It’s thought that the global demand for many rare earth metals could exceed the supply as soon as the end of this year.
  • So how serious is this? Well, China has almost half of the planet’s rare earth reserves. The US holds about 13%, whilst Russia, Australia and Canada also has some stockpiles, so we’re not quite at the critical stage yet. But the writing is very much on the wall for many industries, not just electronics.
Dan R.D.

American Express' Digital Payments Platform Serve Teams with Sprint [18Jul11] - 0 views

  • American Express' new digital payments and commerce platform Serve has just announced its first carrier deal since its launch in March of this year. The company's new partnership with U.S. operator Sprint will allow Serve's mobile wallet application to be made available in the Sprint Zone for customers using select Android phones.
  • Serve, which can be funded by a bank account, debit or credit card, or from another Serve account, does not require users to be American Express card holders. Instead, it's aimed at those who don't rely on credit cards. With Serve, customers can shop both online and offline, anywhere American Express is accepted.
  • In the future, Serve will also be used for redeeming offers on goods and services, too, by way of a Groupon-like program.
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  • Later this summer, American Express announced a partnership with Patch, AOL's hyperlocal news and content outlet. Serve will power the Patch Deals platform, a Groupon-style discounts program with local merchants on the AmEx network.
Dan R.D.

Google News Badges Are Achievements for Reading the News [22Jul11] - 0 views

  • Google News has recently rolled out its Badges program and entered the world of meaningless digital rewards. Get excited. From now on, if you have a Google account, log in and enable your web history before reading articles on Google News, you will accrue what are basically experience points (my words, not theirs) which will unlock badges and eventually cause those badges to “level up” (their words, not mine) from bronze to silver, gold, platinum and finally “ultimate.” Badges are related to certain subjects and level up based on articles read about that subject. For instance, to use the example from the instructional video, if you read articles about basketball, you will level up your basketball badge. While you might expect a news-site achievement program to stop there, Google has gone the extra mile to implement a balancing effect. Gorging on a whole bunch of articles in one day won’t earn you as much xp as reading a moderate amount on a regular basis. Pavlovian conditioning much?
  • There is also, of course, a social networking application to be had here. Badges are automatically set to private but can be shared with friends.
  • There is something slightly juvenile about the concept of giving away badges for reading the news, and something condescending about Google giving you gold stars for browsing their websites, and you know what? I don’t care.
Marc-Alexandre Gagnon

ePayments Week: Will NFC add value? - O'Reilly Radar [29Sep11] - 0 views

  • Square's chief operating officer Keith Rabois went against the grain this week and questioned whether there was any value to be had by implementing near-field communications (NFC) for mobile payments.
  • He may have a point that the particular technology matters less than the mobile wallet itself.
  • To name just three: Merchants can administer reward and loyalty programs more efficiently if they're managed through phones rather than on rubber-stamped cards. Merchants can deliver location- and time-specific coupons if they are acquainted with a customer's phone. Placecast is showing how you can deliver offers within a geofenced area. Merchants will also have the opportunity to move discounts quickly if they need to clear inventory. All of that is theoretically possible today with Twitter, but first you have to get them to follow you. Once someone has paid with their phone, presumably it's a lower barrier to get them to agree to receive offers via that phone. Merchants can dynamically steer customers to their best payment option. If PayPal offers a lower percentage for a period than the merchant's credit card service, the merchant can offer products or services at a discount and let the customers choose on their devices.
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  • Merchants can administer reward and loyalty programs more efficiently if they're managed through phones rather than on rubber-stamped cards.
  • Merchants can deliver location- and time-specific coupons if they are acquainted with a customer's phone.
  • Merchants can dynamically steer customers to their best payment option.
  • it's our data that we'll be giving up in exchange for being on the receiving end of those benefits listed above
Dan R.D.

Intuit eyes NFC for mobile payment system | Digital Media - CNET News [10May11] - 0 views

  • Intuit wants to give its customers a glimpse of the future of mobile payments through an adaptation of its GoPayment service that eliminates the need for credit cards. Tapping into the growing field of NFC (near-field communication) technology, Intuit's reimagined GoPayment service would let consumers wirelessly pay for items on the go through just a touch of an NFC-enabled cell phone. With the necessary NFC hardware and credit card information stored on a mobile phone, consumers could leave their money and credit cards at home and use their phones to buy items and services at stores, restaurants, and other retail outlets. Retailers themselves would be able to send certain information back to the consumer's phone, including receipts, coupons, and loyalty programs.
D'coda Dcoda

Announcing the FLORA, Adafruit's wearable electronics platform and accessories [20Jan12} - 0 views

  • Today we’re announcing our new open-source wearable electronics platform and series of accessories. We rarely announce something until it’s shipping to customers, but you’ll see a lot of these out in the world from our testers as they show off some projects – so we wanted to post about this now.
  • For the last few years Ladyada has been thinking about everything she wanted in a wearable electronics platform for Adafruit’s community of makers, hackers, crafters, artists, designers and engineers. After months of planning, designing and working with partners around the world for the best materials and accessories, we can share what we’re up to. The hardware is now in the hands of our staff and testers!
  • We call it the FLORA.
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  • The FLORA has built-in USB support. Built in USB means you plug it in to program it, it just shows up. No additional purchases are needed! Works with Mac, Windows, Linux, any USB cable works great. Currently the PCB comes with a mini B connector but future versions may change to microUSB. Either will work great. The FLORA has USB HID support, so it can act like a mouse, keyboard, MIDI, etc. to attach directly to cellphones. Our iPhone/iPad/Android app coming soon. The FLORA’s modules include: Bluetooth, GPS, 3-axis accelerometer, compass module, flex sensor, piezo, IR LED, push button, embroidered + capacitive keypad, OLED and more. The FLORA has a small but easy to use onboard reset button to reboot the system.
  • The FLORA is fabric friendly. The FLORA does not use FTDI headers (built in USB support) headers of any kind sticking out can grab and tear fabric. The FLORA has an onboard 3.3v 100mA regulator with protection schottky diode and USB fuse so that power is consistent and can power common 3.3v modules and sensors.
  • The FLORA has onboard polarized 2 JST battery connector with protection schottky diode for use with external battery packs from 3.5v to 16v DC in. Can be used with LiIon/LiPoly, LiFe, alkaline or rechargeable NiMh/NiCad batteries of any size.
Marc-Alexandre Gagnon

How Mobile Payments Will Evolve In the Next Several Years - 0 views

  • Mobile payment has become a mainstream tech topic in the last couple of years, mirroring the rise of smartphones and application stores. E-commerce is becoming m-commerce. The focus point of the buzz has been the evolution of near-field communications as related to smartphones. The thing is, nobody in the payments industry expects NFC to be a player in mobile payments for years, if ever. In that case, what does the mobile payments ecosystem look like in the short term?
  • The current mobile payments market centers around several cores: direct carrier billing, mobile wallets, online and offline sales, mobile credit card readers and application stores. During meetings with various mobile payments experts and executives at CTIA last week, the most uttered phrase was: "This is not something I would use to buy a fridge." Where are mobile payments going?
  • The Non-Promise of NFC OK, let us get one thing straight: NFC may never be a widely used form of payments. There are so many reasons why it will not be. Foremost, the logistics of NFC are a nightmare. The actual technology is probably ready. The infrastructure around the technology is not. There are too many competing interests coming from above the retail market that creating a universal NFC reader between smartphones and financial services is not going to happen anytime soon. The closest thing to a widely used system would be Mastercard's PayPass, but even as widespread as that is, it is no where near the type of market penetration that would create an inflection point for NFC to take off. Second, PayPass needs a software upgrade to offer any type of deals, something that will be important in the mobile payments world.
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  • The second half of the NFC conundrum is that there are a lot of hands reaching for the supposed pile of money that NFC payments will enable. Look at Google's announcement of the Wallet product. Or the ISIS partnership between Verizon, T-Mobile and AT&T. Google is partnering with Mastercard, CitiBank, Sprint, FirstData, Verifone, VivoTech (the NFC partner), Hypercom, Ingenico and NXP (another NFC partner). All of these large companies are going to want a slice of the pie. Where does that leave the retailers? You know, the ones that are actually trying to make money with good and services? Sadly, on the outside of the circle. The carriers are the biggest culprits, wanting to take as much as 50% of transaction revenue because it is "going over their pipes." The financial services companies will be happy taking their normal rates in the 1.75% to 3% range as long as there is a promise that more people will pay electronically (read: sans cash). Between retailers, partners and infrastructure, NFC has years to go before it will be viable for all parties involved.
  • What will happen in this time frame? Think about the so-called "4G" technology WiMax. The technology is already becoming antiquated with LTE and all the major carriers are working on the next version after that. Sprint is keeping a hybrid of WiMax and LTE going forward but overall it is a tech that died before it even matured. NFC may be the same. What if there are massive leaps in quantum teleportation in the next several years? Does NFC become the WiMax of the payment world?
  • Maturation Of Direct Carrier Billing The "I do not see myself buying a fridge with this" line comes mostly from the direct carrier folks. Direct carrier billing is the perfect area for micro-payments and payments that stem from ease of use. Think of parking. If you could pay for your parking on the street with your phone, would that convenience be worth an extra couple of cents on the dollar to you? The direct to carrier ecosystem has evolved to the point where it actually makes sense for offline and online use. Zong (acquired by eBay for PayPal integration), PaymentOne and Boku are the leaders in this space. PaymentOne has processed $5 billion in mobile payments and lets users pay with their phone numbers, validating transactions via text. Zong allows that capability as well. Payment One's "One Care" features, announced last week at CTIA, makes direct to carrier billing safe and secure. Transparency is important in mobile commerce because consumers do not really trust their phones to handle their money quite yet. The most important aspect of direct to carrier billing now is that the revenue mechanism has been flipped. It used to be that merchants only got some 40% or less of payments while the carriers and partners took the rest. Even with high margin transactions, that is unacceptable. Today, direct to carrier billing provides the merchants with more than 80% of the revenue, sometimes nearly 95%.
  • The Dongle World: Smartphones As Credit Card Readers Square, VeriSign and Intuit are pushing hard into the dongle department. Jumio is doing the same thing, just without the dongle. There is not much to be said about the dongle world that we have not already touched on at ReadWriteWeb outside of the notion that it is bringing easy credit card readers to the mobile masses.
  • The dongle competitors are not worried about what is happening in the ecosytem because it does not really touch their core business. For instance, PayPal does not see NFC or dongles infringing on its business in any way, shape or form. As Laura Chambers, PayPal's head of mobile, said in a recent interview, "we are not worried about much in the ways of competition. There is a lot of white space in the industry for horizontal movement."
  • What Is PayPal Really Doing? In the interview with Chambers, the first question I asked was, "Why does it seem like PayPal has become a "me too" operator in mobile payments?" It is a fair question, even if Chambers balked to acknowledge that PayPal has been in "me too" mode for the last year or so. PayPal has ignored the dongle movement and NFC is not on its radar as a technology it feels it needs to integrate. "What is the difference between a tap versus a swipe?" Chambers asked. "We are working with what works in the current infrastructure ... We have sat down with consumers and merchants to work with them on what they want." PayPal is growing sideways because there is not a ton of room right now to grow vertically. PayPal will get into NFC solutions when the time is appropriate. Its strategy now is to create as much flexibility for consumers as possible through its mobile wallet program. PayPal's stance is data driven - the company can track when and what consumers buy from mobile phones and tablets. Hence, PayPal is focusing on the shopping end of the spectrum, as opposed to a pure payments play. "60% of people buy more and spend more on mobile," Chambers said. "But, we see that people are not really buying different things on mobile ... the No. 1 driver of growth in mobile payments is boredom." That fits in well with what PayPal sees as "couch commerce." They released a study recently saying that mobile shopping is going to boom this holiday season. As such, PayPal is ready to deploy an end-to-end solution for merchants and consumers to reward loyalty and provide deals and offers along with digital receipts. PayPal believes that it has a lot of room to grow in mobile through these types of horizontal movements. We are also seeing this on a non-mobile front with eBay partnering with Facebook and the Open Graph API and the new X.Commerce initiative that consolidates the PayPal, Zong, Magento, RedLaser and Milo technologies. The company is calling it an "open commerce ecosystem."
  • Future Of Mobile Payments This article is the first in a series of the trends in mobile payments that ReadWriteWeb will be working on in the next several months. There are a lot of questions and the answers are just beginning to emerge. Who are the winners in the space? Are retail shops in danger of "becoming expensive fronts for online shopping," as Chambers said in the interview? Does NFC really have potential to disrupt offline payments or is it just cool technology? These questions and more are what we will be tackling in the months to come.
D'coda Dcoda

The coming war on general computation - Cory Doctorow @ #28C3 [01Jan12] - 0 views

  • The last 20 years of Internet policy have been dominated by the copyright war, but the war turns out only to have been a skirmish. The coming century will be dominated by war against the general purpose computer, and the stakes are the freedom, fortune and privacy of the entire human race.
  • The problem is twofold: first, there is no known general-purpose computer that can execute all the programs we can think of except the naughty ones; second, general-purpose computers have replaced every other device in our world. There are no airplanes, only computers that fly. There are no cars, only computers we sit in. There are no hearing aids, only computers we put in our ears. There are no 3D printers, only computers that drive peripherals. There are no radios, only computers with fast ADCs and DACs and phased-array antennas. Consequently anything you do to “secure” anything with a computer in it ends up undermining the capabilities and security of every other corner of modern human society.
Marc-Alexandre Gagnon

The Future Of Mobile Payments: Text A Word And Pay For Something - 0 views

  • Imagine a world where by simply texting a word, like "Sandwich" will result in a quick and seamless transaction so you could  go about your day.  Think about how much easier our lives would be if we didn't have to wait in line, handle cash or be turned away from food or beverage if we don't have our wallets in hand
  • What if texting wasn't just meant for communication, but also designed for transaction?
  • Today, most people take more precautions about carrying their mobile devices than carrying their wallets or purses.
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  • The new question is: if your house is on fire what do you grab, your wallet or your phone?
  • I bet the answer is an overwhelming "phone", since we do almost everything with our mobile devices and very soon we won't be needing a wallet.
  • Our vision at Seconds is to make it easier for merchants and customers to interact and transact.  This is no more apparent than when looking at our latest innovations on the mobile payment front: Pay by Text.
  • Okay, here's a great one.... how about anything to do with hospitality?  Already, when you check in to a hotel they ask for your contact information, namely a cell phone number.  By running on the Seconds platform the can now open a quick and easy channel for you to text and pay for room service, any and all products... not to mention your room.  Or what about on a Vegas Casino floor....
  • Here's how it works: Once a mobile user sets up a Seconds account and attaches a payment card, they now can simply pay for the desired product with a one word text to the merchant's Seconds number, in this case it would be the word "Sandwich".  The resulting text a few seconds later will inform the user they indeed have been successfully charged X amount.  Done.
  • We are currently one month into a pilot program with a customer testing the functionality and perfecting the process.   Each week we are seeing more and more mobile transactions through Pay by Text, and if things keep going the way they are now this could become the default payment method outside simple food offerings.
  • Roll with me for a moment.  Imagine going to a movie and rather than waiting in line for the teller to give you a ticket you just simply text "Mission Impossible 4" to the box office and the next thing you know you have paid for the movie and are sent the secret code to enter via text.
  • Or how about the next time to your favorite band is in town.... do we really have to deal with the whole Ticketmaster ordeal?  Why can't I send a text to the concert organizer with a simple "Said Band Name" and pay for the price of admission.
  • Important Note: This is not carrier billing, where you place the transaction onto your cell phone bill.  Seconds is completely separate from the carrier and a stand alone mobile payment system.
  • So, what about NFC? The problem with NFC technology is you actually have to be in physical proximity for the transaction to work.  The whole point of "Near Field Communication" is touching or swiping your device on a reader which will result in a transaction.  But what happens if I want to pay for something when I am not actually at the specific location or can't get within a few inches of the reader?  What if it's ecommerce, which will become more prevalent as time goes on?  Although it might have its place, it looks as if NFC  underwhelms and under-delivers.
  • That is why we are very excited about our Pay by Text technology, we see a whole new world of payments when you disassociate proximity with transaction.  It's going well right now and the future is looking very bright for Seconds.
Marc-Alexandre Gagnon

More retailers turning paper checks into e-transfers - MarketWatch - 0 views

  • SAN FRANCISCO (CBS.MW) -- When an unidentified $30 debit showed up on her bank statement as an electronic funds transfer, Cheryl Hicks was mystified.
  • Each month, three electronic transfers go through her account -- and this wasn't one she recognized. "It just said ACH debit and the amount," said Hicks, a 33-year-old communications manager who lives near Everett, Washington.
  • Hicks soon discovered her phone company transformed the paper check she sent for payment into an e-transfer, and her bank failed to list either the check number or the recipient on her statement.
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  • Hicks' inability to readily identify the EFT debit illustrates a mounting bookkeeping problem some checking customers are encountering as banks and retailers seek to minimize the handling of paper checks to cut costs and boost profit.
  • "While the EFTs are helpful to everybody and clearly more efficient, I'm not sure the banking system has adequate safeguards," said Kent Phelps, a vice president of software engineering for WitsEnd Software, which develops programs enabling check scanning.
  • Customers lack the ability to set parameters on the practice, he said. "I ought to be able to tell the bank 'I'm going to authorize EFT, but I want to be called if its over $5,000 or will empty the bank account."
  • A fast-growing number of U.S. retailers are scanning images of checks into banks' computer systems and destroying the originals. An estimated 461 million check payments have been converted into e-payments since January 2002, according to NACHA, the Electronic Payments Association.
  • Meanwhile, a law called Check 21 will go into effect next October allowing banks to send checks to each other electronically, eliminating the need to transport them manually from bank to bank, and authorizing check "substitutes" to be used in a court of law.
  • Banks and merchants say electronic check scanning helps detect fraud more quickly, while also saving 5 to 25 cents a transaction, according to NACHA.
  • Some problems arise In bank-to-bank electronic transactions, the check payment moves faster through the system -- meaning consumers should no longer count on a three- to five-day lag time. Otherwise, check-writers are unlikely to notice a change, aside from receiving copies of their returned checks in lieu of the originals.
  • Some consumer advocates warn that many merchants aren't fully educated in the legal ins-and-outs of check scanning. Gail Hillebrand, senior attorney with Consumers Union, nonprofit publisher of Consumer Reports, said she's received complaints that companies have run checks through twice, once as an electronic transfer and again as a regular check.
  • "There are a lot of merchants who don't really know what the rules are," Hillebrand said. "The merchant thinks 'you owe me money, I have this check here because I didn't send it in last month, I'll send it through now.'
  • "The fact that that is inconsistent with NACHA rules and probably illegal, the merchant doesn't know and hasn't been educated."
  • Hicks couldn't find any notice on phone bills that her checks would be converted to electronic transfers, though the NACHA rules governing the process require companies to notify consumers every time they plan to convert a check into an electronic payment.
Marc-Alexandre Gagnon

American Express Buys Virtual Currency Monetization Platform Sometrics For $30M | TechCrunch - 0 views

  • Exclusive: In a push to boost its payments platform for the gaming industry, American Express, has acquired virtual currency platform and in-game payments provider Sometrics. The total deal value is $30 million, but both parties declined to reveal further details about the split between cash and stock. Sometrics will become part of the Enterprise Growth Group, and will be used within American Express’ Serve digital payments platform to incorporate virtual currencies and loyalty programs.
  • Sometrics helps gaming publishers market free-to-play online games and monetize virtual currency with a consumer destination site and in-game payment solutions. Sometrics’ in-game payments platform basically powers virtual currency transactions and payments for game publishers. Sometrics also serves users with targeted offers based on their location, demographic, conversion history and social affiliation.
  • The company currently supports dozens of payment options (including mobile carrier infrastructure and credit card support) and hundreds of brand engagement ads, reaching a total global audience of more than 225 million consumers in more than 200 countries. And through Sometrics’ analytics capabilities, developers are able to view and analyze which audience demographics are responding to which payment options, respond by pushing traffic to the options that convert best, and optimize those conversions to help maximize revenue. Current gaming partners that use Sometrics include Nexon, NHN USA, IMVU, PopCap, BigPoint, Habbo, and many others.
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  • The company also operates GameCoins.com, a centralized place to discover new gaming titles and earn virtual currency to be spent on games. Game Coins can be converted into a publisher’s virtual currency, as well as into Facebook Credits.
  • To date, Sometrics has helped process 3.3 trillion units virtual currency since the company’s launch in 2007. Sometrics also says that gaming partners see an average 15 percent revenue lift through the use of its virtual currency payment solutions.
  • To date, Sometrics has raised $6 million in funding from the Mail Room Fund, an investment consortium that includes the William Morris Talent Agency, Accel and Venrock, as well as AT&T, Greycroft Partners, and Steamboat Ventures.
  • Sometrics will be added to American Express’ Serve digital payment and commerce platform. The credit card giant debuted Serve in March as a way to integrate a variety of payment options into a single account that can be funded from a bank account, debit, credit or charge card. American Express will continue the operation of Sometrics’ current business and will work with Sometrics will allow Serve customers to purchase virtual currencies via the platform. Over time, AmEx plans to integrate Serve into the payment path of the games that Sometrics supports.
  • Of course, American Express isn’t the only credit card company looking to capitalize on the changes taking place in the payments industry. Visa has big plans to dominate mobile payments and the digital wallet, buying virtual goods payments platform PlaySpan for $190 million, as well as acquiring mobile payments company Fundamo for $110 million.
  • But in the past year, American Express has actually been making some interesting partnerships in the payments space, recently teaming up with Foursquare, Facebook and even Zynga for deals. This could help the company dominate social payments and close the redemption loop.
  • And AmEx has been boosting its Serve platform with carrier partnerships, including Sprint and Verizon. Serve has also formed relationships with other partners including TicketMaster, AOL, and a number of gaming companies (however, those names have not been disclosed yet).
Marc-Alexandre Gagnon

AmEx Links Up Facebook With Coupon-less Deals, And Lets Merchants Go Social | TechCrunch - 0 views

  • American Express is going all in on the daily deals business, striking a deal with Facebook that is similar to the one it already has with Foursquare. Through a new Facebook app called “Link, Like, Love,” AmEx cardholders can link their cards to their Facebook accounts just like they can already link their cards to their Foursquare accounts. Once they do so they will get a dashboard of deals from brands such as Whole Foods, Dunkin’ Donuts, Virgin America, and Sports Authority. (These offers are different than Facebook Deals, which Facebook sources itself)
  • Unlike Groupon or LivingSocial, these AmEx deals don’t require anyone to pre-purchase anything or present any coupons to merchants. One of the biggest challenges for the daily deals industry is how to measure how many offers are actually redeemed at thousands of different participating businesses. But AmEx has an advantage here in that it is already a payment network that is set up and accepted in businesses large and small around the world. All people have to do is buy the deal item with their AmEx card and they will be credited the deal amount. The Facebook twist is that the deals you see are influenced by what you and your friends “like” on the Web using the Facebook like button.
  • Although many of the deals at launch are with national brands, AmEx is also leveraging its relationships with smaller local merchants. It is a launching a program aimed at them called Go Social which allows merchants to manage deals across both Facebook and Foursquare, with other social networks to be added in the future. Business owners will be able to create their own coupon-less deals in a self-serve manner that are triggered whenever someone with a linked account buys a deal item. Self-serve has been a challenge so far with local merchants, but AmEx can market to them through its existing channels.
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  • Go Social will also allow merchants to put their locations on social networks like Facebook and Foursquare, and track their deal campaigns across those networks. Since AmEx has all the payment information, it can track deal redemption fairly easily. Closing the offer to redemption loop is the singel biggest challenge in the daily deals space. Even Groupon Now, Groupon’s mobile app with instant deals, requires participating merchants to have iPhones and train staff on how to redeem the offers. AmEx doesn’t try to change the behavior of the consumer or the merchant, other than give them an incentive to pay with AmEx versus cash or a credit card.
  • While it all sounds good on paper, the proof will be in the quality and density of deals that AmEx can procure. This will be a battle between local sales forces. But it looks like Groupon and LivingSocial finally have some serious competition.
Marc-Alexandre Gagnon

American Express To Release An API For Digital Wallet Platform Serve; Focuses On Data And Personalization | TechCrunch - 0 views

  • Over the past year, American Express has been making several key payments partnerships with technology companies and launched its take on the digital wallet, Serve. Serve integrates a variety of payment options into a single account that can be funded from a bank account, debit, credit or charge card. The company has also landed a number of lucrative carrier partner deals for Serve. Separate from Serve, American Express’ recent partnerships in the payments space include Foursquare, Facebook and even Zynga for personalized deals. We sat down recently with Harshul Sanghi, American Express’ new VP of Enterprise Growth Group to chat about Serve, the digital wallet and how the company plans to dominate the payments space.
  • Sanghi, who was formerly the Managing Director of North American venture activities for Motorola, joined AmEx in September. His focus is on further developing the Serve brand and forming these partnerships that help expand the card member base into new segments.
  • Sanghi explains that while every payments company (including even Google) and credit card company is releasing their own version of the digital wallet, it’s whats in the wallet that’s truly important. “The wallet that has the most brand partnerships is what customers are going to gravitate too,” he says. And this wallet needs to tie in seamlessly with loyalty programs, and virtual currencies, which is why AmEx bought virtual currency monetization platform Sometrics a few weeks ago. And the wallet needs to store offers and deals as well so that consumers don’t have to carry around coupons or discounts to a store.
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  • While commercial partnerships are definitely key to the broad appeal of Serve, part of Sanghi’s master plan in furthering Serve’s presence is a connection with developers. “It is difficult for mobile payments startups to scale without partnerships with some of the major financial partners,” he explains. “There are a lot of regulation in terms of moving money, and fraud management and we want to be the partner mobile payments startups think of in this space.” Sanghi says that in first half of next year, American Express will open up the Serve platform to developer community.
  • Another area where American Express is focusing its efforts when it comes to Serve is on data. “Data is going to be a differentiating factor in the payments space,” Sanghi explains. A personalized experience is going to be key in providing the digital wallet that consumers flock to, he says. And it’s not just purchasing data that American Express is looking to mine.
  • Intent data, structured data and unstructured data will all play a part of delivering a personalized payments experience. That means analyzing things such as Tweets, Twitter sentiment, your social graph, Facebook updates and more to deliver targeted offers. “The magic is going to be in marrying structured data and unstructured data for results in real-time,” Sanghi says.
  • With 100 million card members, American Express’ data opportunities are massive. But privacy is a key concern in this data mining, says Sanghi, and the company has to be sure they aren’t abusing these issues, especially as it relates to financial information. For example, the company’s Facebook partnership, in which AmEx cardholders can link their cards to their Facebook accounts to receive deals, is an opt-in experience.
  • Across the board, American Express is going to be announcing many more commercial partnerships including those with gaming and telecommunications companies. Serve will also soon enter new geographies, says Sanghi, which will also be a key part of the platform’s growth in the next year.
  • Of course, American Express has competition in the digital wallets space, and companies like PayPal and even Google are also looking to compete. And fellow credit card companies such as Visa have major ambitions to dominate the digital wallet. Regardless, all of these companies need to fine-tune their offerings so that the benefit to consumers is clear. The battle to become the de facto digital wallet is just starting, and which payments provider that will create the technology that keeps consumers engaged has yet to be determined.
Marc-Alexandre Gagnon

OPENWAYS ANNOUNCING: Mobile Key DUAL© with Pure NFC™ in Cooperation with Nordic Choice Hotels, NOKIA and NXP - 0 views

  • The best of mobile technologies are now combined to offer hoteliers the most advanced front desk bypass solution that is 100% deployable today, 100% future proof, 100% compatible with the major electronic locks and 0% dependent on Mobile Phone Operators/Carriers
  • Modern travelers are expecting self-service options to make their journey easier. Who did not dream to one day be able to arrive at the hotel and go straight to the room without having to go through the burden of the check-in process? Thanks to Mobile Key by OpenWays, guests can already choose to proceed straight to their room upon arrival and securely open their door with their cell phone. They are no longer forced to wait in line at the front desk – unless they want to.
  • 100% Deployable Today / 100% Future Proof / Truly Ubiquitous "Mobile Key works TODAY with ALL cell phones worldwide. With NFC (Near Field Communication) enabled cell phones gradually hitting the market in larger volumes during 2012 and 2013, we are pleased to announce Mobile Key DUAL© with Pure NFC™," said Pascal Metivier, Founder and CEO of OpenWays. "Mobile Key DUAL© combines the established and highly ubiquitous CAC™ (Crypto Acoustic Credential) technology with both RFID and NFC technologies so we can offer the only 'fully deployable today' while 'fully future proof' solution to our customers. Thanks to Mobile Key DUAL©, hoteliers can offer today a mobile-based front desk bypass solution to all their guests while being sure that the investment they are making is made for the long run."
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  • In 2010, Nordic Choice Hotels was first to try mobile NFC key technology in hotels: It was an important learning experience that helped identifying needed improvements and changes
  • “When Nordic Choice Hotels conducted an NFC key pilot in 2010 at our Clarion Hotel Stockholm property we learned that mobile keys are the future for hospitality. We also learned of some limitations to the technology and it was decided not to expand the trial,” said Svein Krakk, Nordic Choice Hotels CIO. “Indeed the pilot we ran was very educative and helped us identify several areas that needed to be improved in order to make NFC viable within a hospitality environment.
  • “The No. 1 priority for Nordic Choice Hotels is to provide freedom of choice for our guests," Krakk said. "Freedom to choose the phone you prefer, to use any mobile operator, to use mobile keys or ordinary keys independently or in combination. We started looking for alternative technologies addressing some of the shortcomings of the pilot. First the user interface needed to be improved. With the latest generation of NFC phones it is not very easy for the end user to figure out how to position the phone vis à vis the lock reader. We also wanted a solution that bypassed the SWP protocol which is designed to make the solution mobile operator and mobile carrier dependant. The pilot was limited to one mobile operator. More than 1,500 mobile operators / carriers exist around the world and our guests could come from anywhere, so offering a solution that works only with one or a few carriers would be pointless.”
  • Hotelier’s independency and cost control are key "Equally important, the SWP standard drives the cost and complexity if implementation towards areas that hoteliers do not like," he said. "It implies a long list of fees to pay to the mobile phone carriers and it places our brands and hotels in a state of dependency that is not acceptable. In addition, we felt that using a solution that would make us dependant on one lock vendor only was not a good idea."
  • A good mobile front desk bypass solution must be guest centric, supported by a strong business case and must be deployable for real "In 2010, we also tested the Mobile Key solution by OpenWays with CAC™ technology," Krakk said. "We appreciated that it was compatible with all cell phones worldwide, that it was easy to use and that it was mobile carrier independent. Equally important, the pilots conducted were great successes both from a technology and a guest satisfaction stand point. As a result, we decided to deploy Mobile Key by OpenWays in several hotels and we are continuing as we speak. "We also decided to challenge OpenWays to think about the next steps and to include NFC as part of their strategy," he added. "Obviously, we wanted an NFC solution that would be free of the identified shortfalls but also would allow us to eventually offer more services to our guests in the years to come. We do realize that it will take years before NFC phones reach any form of critical mass, nevertheless we want to be sure to deploy and invest in the most future-proof platform while our dependency on both mobile carriers and lock vendors would be minimal. As a result, OpenWays proposed to us Mobile Key DUAL© with Pure NFC™. We were immediately seduced with the open architecture of the OpenWays solution. We were thrilled with the idea to offer a DUAL platform allowing us to leverage all mobiles today with the CAC™ technology while building an infrastructure for when NFC will be reaching critical mass. We are now looking forward to go live with several hotels this year."
  • Mobile Key DUAL© with Pure NFC™ is very unique: The solution is protected by 26 patent filings and patents; It allows OpenWays' customers to deploy globally without having to ever worry about knowing if their guests have the right phone or the right carrier; And, it works with all phones and all carriers. "Pure NFC™ allows adding NFC features while still being fully carrier and lock provider independent," Metivier said. "It is highly secured and operates on trusted networks. It leverages modern cryptology combined with highly secured OTP (One Time Password) principles. Implementation costs are significantly lower than with the sole SWP protocol and significant engineering efforts were invested in making the user interface intuitive. This was achieved with the design of very specific RFID antennas designed to provide high reading performances with the next generation of NFC handsets. Other areas of focus were ergonomics and human factors. With NFC, what appears to be a good idea -- because you simply have to wave your phone to a lock to open it -- can sometime be a very bad idea when you truly analyse user behaviours and expectations."
  • A solution compatible for both new build and existing hotel locks Like Mobile Key by OpenWays, Mobile Key DUAL© with Pure NFC™ can be applied to existing hotel locks and/or major renovations. New locks that are factory made with the OpenWays module built in can be provided by the major electronic lock vendors.
  • A solution that works with ALL cell phones and ALL Smartphones With Mobile Key by OpenWays, all smartphones can receive an app and leverage any data network (2G, 3G, 4G and even the hotel WiFi network) to use Mobile Key. The same is true for hotel staff who use our “Mobile key for Master Keys” that offers much more security (real time master key management) and flexibility than traditional plastic cards.
  • A “green” solution that contributes to reduced waste Mobile Key is green. The more guests use their mobile phones as room keys, the less plastic key cards will end up spoiling the environment. Today everyone is concerned about the planet, and hoteliers want to allow their guests to contribute to waste reduction programs. Because Mobile Key by OpenWays is only made with data, it is the cleanest room key a hotelier can offer. "With Mobile Key DUAL© with Pure NFC™, we are making a giant step forward and confirming our global leadership in key management via Mobile phone," Metivier said. "Mobile Key DUAL© with Pure NFC™ is a solution that is going to be 'new for long time' and will be also applied to many other market segments outside the hospitality industry, such as residential, commercial buildings, university campuses, and more. "We would like to thank our partners Nordic Choice Hotels, Nokia, NXP, KABA SAFLOK and Ariane systems that are making these first 2012 deployments possible," he said.
  • About OpenWays | OpenWays is a global solution provider of mobile-based access-management and security solutions. With offices in Chicago, Las Vegas, Seoul and in Europe, OpenWays provides technology solutions allowing for the secure issuance and delivery of access rights and keys process via any cell phone operating on any network. The OpenWays solution is truly unique as it is built on the concept of credential dematerialization. The OpenWays mobile room key solution works on ALL the 6 billion cell phones in service in the world today. For more information, please contact Barb Worcester at +1 440 930-5770 or email barbw@prproconsulting.com. More information can be found by visiting www.OpenWays.com.
Marc-Alexandre Gagnon

NFCNews | MTN Irancell, Etick to test mobile wallet in Iran - 0 views

  • MTN Irancell, one of Iran’s mobile operators, has teamed up with Etick Pars Intelligent Technologies and Bank Pasargad to develop a mobile wallet solution for the Iranian Market.
  • According to Telecompaper, Etick and Irancell plan to test a system that will enable customers to make contactless mobile purchases from a prepaid account that can be reloaded through bank transfers or cash deposits at contactless point of sale terminal.
  • The mobile wallet will also support transit ticketing. Starting with buses in Mashad and Ahwaz, which currently operates under a smart card-based ticketing system from Etick, commuters will be able to purchase and redeem transit passes with a tap of their mobile phone.
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  • The partners are also looking to add support for loyalty programs and vending machine purchases.
  • The system is designed to work with an NFC-enabled SIM cards as a secure element, or with Gemalto’s Gemalto’s Upteq N-Flex NFC solution, which can turn standard mobile phones into NFC-enabled devices.
Marc-Alexandre Gagnon

Does Facebook hold the future of mobile payments in its hands? - Mobile Commerce Daily - Payments - 0 views

  • With more than 200 million mobile users, Facebook and its currency platform Credits is poised to be the future of how we pay for both virtual and physical goods.
  • Right now there are various different technologies and start-ups actively looking at ways to penetrate the mobile payments market. Each company has taken a different approach, from digital bar codes to near field communication (NFC).
  • Introduced in May of 2009, Facebook Credits was originally designed as a virtual currency to allow people to make purchases within games and non-gaming applications on the Facebook platform.
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  • Much like Apple with iTunes, Facebook takes a 30 percent cut on every dollar spent through the Credits platform.
  • Today users can buy Credits with 15 currencies, including U.S. dollars, Euros, the British Pound and the Venezuelan Bolivar.
  • It is important to first highlight, that for any mobile payments system to work, consumers will need to open some form of application to allow users to connect the phone to complete the payment. 
  • To date, Facebook sees over 200 million unique users accessing the social network through a mobile devices each month.
  • Almost all of the major brands who would adopt mobile payments in the beginning (i.e. Best Buy, Gap, Target) have invested heavily into growing a Facebook presence. It is this ability to connect to users and their social graph through a Facebook payment option that makes Credits and mobile payments an attractive model.
  • From this point, it is Facebook’s network that makes its payment option so attractive. As I scan my phone to finalize my purchase, I am presented with the option to share this purchase with my friends. Selecting yes, opens up an additional discount for my friends and I. From there my friends have the option to use the promotion through Best Buy’s ecommerce page or on location.
  • For now, Facebook prefers to play down talk of its broader ambitions for Credits. The 30 percent tax Facebook imposes on those who accept Credits might be too high to allow for the regular sale physical goods and services.
  • Other big players include PayPal who has more than 81 million active registered accounts and 210 million accounts, in 190 markets and it supported 24 currencies.
  • One factor that is definite is the speed at which small business will adapt mobile transactions.
  • Probably an even bigger player is Apple and its 100 million iTunes users. The iPhone is set to be the main phone to drive mobile payments, even if other phones offer these features. But one thing is for sure: the mobile (social) payments market will be fragmented for the first few years and Facebook is easily in the position to come out victorious.
  • While analysts feel 2011 is the year for mobile payments, there is still uncertainty of how quickly consumers will move their wallet to a digital format or what platform they will use. 
  • Google, with its Google Checkout and Android phones is also set to be a big player. With NFC technology being implemented on all future Google phones, we expect a mobile payment app preloaded on these phones. 
  • Third-party companies such as Bling Nation and Square to name a few win over merchants by cutting the transaction process fee by as much as 50 percent. With consumers swiping their debits cards more so than ever, this is a huge savings for any company.
  • Additionally, the three major U.S wireless carriers, Verizon Wireless, AT&T and T-Mobile partnered with Discover Card to form a mobile payment company called “Isis,” a venture to provide mobile payment carrier billing solution for payments.
  • The closet form of mobile payments in the U.S. that can be utilized nationally is the Starbucks digital gift card. 
  • While this option only applies to Starbucks stores, consumers can now makes purchases by scanning their phones.
  • The biggest challenge, currently keeping mobile payments from going mainstream is technology adoption. 
  • Not only do consumers need to carry a phone that has the correct technology, retailers also need to implement technology that connects with the phone.
  • Other challenges that could cause slow growth are the number of companies attempting to break into the space. 
  • From small start-ups to large tech companies such as Google and Apple, many consumers could be slow to adopt as they wait it out and see which platform becomes widely adopted.
  • To truly accelerate growth, we believe a large company needs to step up and look at the opportunity as a way to break into the $6.2 trillion retail market by covering the costs of technology adoption.
  • One player who is seen to have this ability is Apple. 
  • As the largest tech company in the world, rumors have come up, that Apple will implement NFC technology into the next generation iPhone 5 and with 100 million users already connected through iTunes, giving away the retail technology to scan mobile payments could be a quick way to gain accelerated usage.
  • Though it cannot be applied to all of your purchases, Starbucks seems to be the furthest along, allowing customers to purchase digital gift cards that can be scanned at all Starbuck locations nationwide.
  • To help accelerate growth, implementing a rewards program will draw more consumers to try the new payment platform.  This option to collect and track rewards is one of the key features that have helped Starbucks see quicker adoption.
Marc-Alexandre Gagnon

Update: Facebook Has A Mobile Card Up Its Sleeve In Addition To Advertising | paidContent - 0 views

  • For as long as Facebook has been running its Facebook Credits program—the virtual currency that users can redeem on games and other content peddled through Facebook’s network—it has been letting users top up those Credits using their mobile phones. It does this in partnership with companies like (reportedly) Boku and (definitely) Zong, the payments company bought by eBay’s PayPal last year. Users can also top up their Credits via PayPal and credit cards.
  • It’s not known how much, exactly, is purchased via the mobile channel today, but it is an example of how mobile is actually already driving significant revenue for Facebook. “Facebook Credits make a lot of money through mobile phones,” enough that Zong was “growing very fast last year” because of Facebook purchases, according to Frederic Court, a partner with Advent Venture Parnters, one of the VCs that backed Zong before the eBay (NSDQ: EBAY) buy.
  • This is because while sometimes the mobile payments were actually more expensive than a PayPal or credit card transaction, they are often a lot quicker to do, especially if you are in the middle of a game. And, as with other mobile-based payment options, they appeal to those who don’t have or want to enter card details.
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  • Commissions on those Credits netted Facebook $557 million in revenues in 2011. (Facebook writes in the S-1 that the “other fees” that it designates on the same line as Payments was “immaterial.”)
  • At this point, Facebook doesn’t take any commission on Credits that are purchased via mobile: that service—which uses the premium SMS channel to send a code to a user to redeem Credits on the main site, and then charges the amount directly to the user’s mobile bill—already has some other parties taking a cut, including the provider (eg Zong or Boku), the mobile carrier and even another processing middleman. Rather, Facebook’s cut comes in the form of a commission on the payments, similar to what Apple (NSDQ: AAPL) takes for transactions on its App Store. That fee is 30 percent.
  • Could Facebook eventually take more control of its payments, and potentially cut out some of those middle people? Probably not soon, in Court’s opinion. “Zong brought something to Facebook that it didn’t know how to do, and it became very deeply integrated,” he said. “I don’t see them starting to do what Zong does, which is connecting hundreds of operators.” Then again, he added, “When they have a worth of $100 billion with $10 billion on the balance sheet they can do pretty much anything they want.”
  • What’s interesting is that as Facebook starts to expand some of the other functionality on its mobile platform, that will also open up a lot more opportunities in terms of mobile transactions as well.
  • As Facebook enables and opens APIs to get publishers to build apps for its mobile platforms (via the web and apps), “Facebook will make sure those are monetized,” he said. “I have no doubt Facebook will be making money on mobile games and other content given the engagement and scale on mobile. There is an amazing opening there.” Paying for Credits that will actually get used on the device itself, he said, will be “even more natural.”
  • Facebook in the S-1 said it had 425 million monthly active users accessing the social network via mobile devices, with that number outpacing the growth of overall subscribers.
  • “Credits is a wallet that you can top up in all kinds of ways,” he said. “Facebook has created its own currency and has imposed that on anyone offering digital goods on Facebook.” If anything, that currency might have a life outside the platform, to to buy things outside of Facebook.
  • But even with the opportunity for Credits, Court doesn’t see this eventually overtaking revenues from whatever advertising Facebook plans to put on its mobile services “for a very simple reason,” which is down to how those games are played today. “If you look at Zynga, only between two and three percent of people who play actually pay. The rest play for free. Tt will be the same for Facebook on mobile, with only a fraction spending money,” he predicted. “With advertising, 100 percent of the population is exposed.”
  • Even though Facebook has listed “no mobile ads” as one of its risks on the S-1, it could be playing its cards very close to its chest: the last few days has been a lot of speculation already about how soon Facebook will launch those mobile ads.
  • Razorfish (via Digiday) says that it is already working on a pilot for rich-media ads for the social network.
  • The blog Inside Facebook, meanwhile, has put its money down on sponsored stories to be the “most likely” first stab at mobile advertising on the site, with running a mobile ad network the second-most likely option. (That’s one that we explored a bit yesterday as well.)
  • Update: Razorfish’s VP of mobile, Paul Gelb, has made a correction on how his comments were portrayed in the Digiday story (via Twitter): his agency is not working on any mobile ad buying with Facebook. “In the interview I was referring to rich media featured stories, not paid ads,” he said.
  • A Facebook spokesperson, via email, added the following: “We want to clarify that we are not working with any agency to create paid ads on our mobile platform.”
  • Much has been made of the mobile risks that Facebook laid out in its S-1 IPO filing earlier this week. Essentially, it’s seeing/pushing massive growth in mobile, but it still hasn’t tried out advertising, its most effective route to revenues, on this platform. That’s not to say it won’t. But meanwhile, there is another area where Facebook is already making money through mobile.
Marc-Alexandre Gagnon

Commerce Weekly: Chasing down abandoned shopping carts - O'Reilly Radar [10Nov11] - 0 views

  • Inviting customers back to their carts
  • Only three out of every 10 online shopping carts actually make it to checkout, according to email marketing vendor Listrak. That's 70% of carts lying abandoned in the virtual corridors of ecommerce. Listrak wants to improve those numbers. It's one of several vendors offering "shopping cart abandonment solutions" — essentially, programs to follow up with shoppers who've left the store and ask them, "Haven't you forgotten something?"
  • Retailers would love to close more of those sales: Listrak estimates $18 billion lost in sales to U.S. retailers every year. A Forrester study last May found that 89% of consumers had abandoned a shopping cart at least once. Forrester's authors attributed that high rate to growing user sophistication: as shoppers become more experienced online, they are more likely to comparison shop even as they move toward checkout. Other industry observers offer a simpler explanation: shoppers are shocked at high shipping costs. A 2006 study by Goecart blamed comparison shopping, high shipping costs, and plain old running out of time as the leading causes of abandonment.
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  • Listrak sampled Internet Retailer's Top 1000 online retailers, loading up carts and then abandoning them ("Hey you kids! Knock it off!") to see who would follow up. Only 14.6% sent a follow-up email, and fewer still sent a second or third email which, Listrak's CEO Ross Kramer told Internet Retailer, is where about half of the revenue comes from. Among Listrak's suggestions to retailers: get the shopper's email address first.
  • Intuit cuts payment rate for AT&T subscribers Intuit announced a partnership with AT&T for its GoPayment mobile payment solution, which competes with Square. Like Square, Intuit offers a free card-swiping attachment that plugs into the audio jack of an iPhone, iPad, Android or Blackberry device, allowing anyone to collect credit card payments. Intuit's basic rate of 2.7% slightly undercuts Square's 2.75%, but AT&T customers will pay even less (1.7%). Intuit originally charged customers $175 for the swiper dongle, but last January, in a bid to compete with Square, it began offering the dongle for free. Still, Intuit has struggled to gain the visibility that Square founder Jack Dorsey and COO Keith Rabois and high-profile investors like Richard Branson have brought to Square. This week's deal with AT&T is a reminder that Intuit is serious about GoPayment, which may actually offer more to merchants since it integrates with QuickBooks, its bookkeeping package that also targets small businesses.
  • PayPal embraces NFC (just a little) PayPal has made something of a point of not jumping on the NFC bandwagon, emphasizing the technology-agnostic nature of its mobile payments platform. Demonstrations at PayPal's recent Innovate conference emphasized payment options like PayPal's Empty Hand system, which lets you buy things with only your mobile number and a PIN. Still, NFC seems an inevitable part of the payments picture in the years ahead, and this week, PayPal delivered the peer-to-peer NFC payment technology that it promised last July. Shimone Samuel, Product Experience Manager for PayPal Mobile Applications, wrote on the PayPal blog that the technology for NFC P2P is included in version 3.0 of PayPal's Android app. No need for it in the iOS app yet, obviously, since the most recent iPhone upgrade disappointingly didn't include support for NFC. As we noted back in July, in practice, the transfer of funds through PayPal's NFC system isn't substantially different from what was already possible using Bump, which sends the transfer through servers in the cloud rather than wirelessly between the mobiles. But the NFC system will let PayPal developers acquire experience with NFC wireless transfers, which should serve them well as NFC-enabled point-of-sale terminals begin to show up next year and beyond.
Marc-Alexandre Gagnon

Stocks Cashing In on Mobile Payments (AXP, EBAY, GOOG) [27Aug11] - 0 views

  • The race to replace your wallet with mobile payment options is on.
  • Consumer demand for smartphones, combined with near-field communication, or NFC, technology that enables everyday purchases, is fueling the shift from credit card swipes to mobile payments. With smartphone sales expected to increase 50% this year, mobile payment services are in a mad dash to capture market share, and the growing competitive space has sparked strategic partnerships among big names.
  • Meet the contendersMobile payment sales in the U.S. are expected to increase at a 68% compounded annualized growth rate over the next five years. It's no wonder that big players like American Express (NYSE: AXP  ) and Google (Nasdaq: GOOG  ) want in on the action.
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  • American Express recently took the spotlight when the company signed a deal with Verizon Wireless allowing mobile users to make purchases on Verizon devices using a streamlined process. As the largest U.S. wireless carrier, Verizon reaches a broad audience. The partnership comes at the right time as American Express opens its own digital payment software called Serve, which will come pre-installed on all Verizon smartphones and tablets.
  • In an apparent bid to boost sales of Android phones, Google launched Google Wallet, a mobile payment platform for Android users. How it works: Google's Android platform will support NFC technology (more on that in a minute) capable of turning your phone into your wallet, letting you store digital credit cards on your Google Wallet account. Just walk into a store, pick up a product, and tap your phone on the payment reader. Google's service will support the payment networks of Citigroup's (NYSE: C  ) Citi, MasterCard (NYSE: MA  ) , and First Data.
  • eBay's (Nasdaq: EBAY  ) PayPal has dominated the online payment space for over a decade, but as the competition gets tough and the focus shifts to mobile devices, the company will need to make big moves to maintain its head start. One such move was initiating Titanium+Commerce, a mobile payment program that lets small businesses design their own smartphone apps for processing PayPal transactions.
  • Another emerging competitor in the mobile payments space is ISIS, a mobile commerce network founded as a coalition among AT&T (NYSE: T  ) , Verizon Wireless, and T-Mobile. Similar to Google Wallet, ISIS will run on any NFC-enabled device offered by the three carriers. Payment network partners will include American Express, Discover, MasterCard, and Visa (NYSE: V  ) .
  • Why this will workFor one thing, smartphones have conquered dozens of industries by gradually replacing everyday items like pocket calendars, road maps, and cameras with their ever-evolving apps. I have no doubt the move to mobile payments will quickly make credit cards a thing of the past. Who will finish the race with the most market share? The company that can get the most merchants to adopt its service. At this point, ISIS shows the most promise because merchants will benefit from a solution offering multiple wireless carriers.
Marc-Alexandre Gagnon

Gartner Identifies the Top 10 Strategic Technologies for 2012 [18Oct11] - 0 views

  • Gartner, Inc. today highlighted the top 10 technologies and trends that will be strategic for most organizations in 2012.
  • Gartner defines a strategic technology as one with the potential for significant impact on the enterprise in the next three years. Factors that denote significant impact include a high potential for disruption to IT or the business, the need for a major dollar investment, or the risk of being late to adopt.
  • A strategic technology may be an existing technology that has matured and/or become suitable for a wider range of uses. It may also be an emerging technology that offers an opportunity for strategic business advantage for early adopters or with potential for significant market disruption in the next five years. These technologies impact the organization's long-term plans, programs and initiatives.
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  • The top 10 strategic technologies for 2012 include:
  • Media Tablets and Beyond.
  • Mobile-Centric Applications and Interfaces.
  • Contextual and Social User Experience.
  • Internet of Things.
  • App Stores and Marketplaces.
  • Next-Generation Analytics.
  • Big Data.
  • In-Memory Computing
  • Extreme Low-Energy Servers.
  • Cloud Computing.
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