To follow up on Mike’s post, I thought I would share a quote that re-frames the issue in what I think is a useful way by focusing on mobile
It gets past the typical discussion of this technology vs. that and puts mobile payments into the broader context of what consumers (and merchants) may actually gain through mobile wallets and related technologies: a host of new ways to engage and improve the customer experience.
“Merchants don’t give a rip about mobile payments, chip cards, PCI compliance, NFC, or any other payments technology. What they do care about is customer engagement. They care about leveraging mobile communications capabilities to find new customers, to help customers find them, and to enhance the experience consumers have while shopping with them. They care about knowing who a customer is at the time that customer walks into their location, even when that customer has never visited before. They care about speeding up their in-store and drive-through waiting lines by allowing customers to pre-order and pay without having to physically exchange anything. Finally, they care about extending their relationship with their customer well beyond the confines of their business’s physical location and the time that their customer spends within its doors…..So if you are a payments player with a mobile payments strategy, or if your business model focuses on NFC, secure elements, card emulation, payment processing, or leveraging existing payments infrastructure, then you had better start rethinking your business plan. Merchants don’t want mobile payments — they want mobile customer engagement.”
The quote comes from Square, Starbucks, and the Death of Mobile Payments | Aite Group Blog.