Is 2015 the Year for the Bitcoin?

Alternative payment systems are becoming more prevalent in the payments world and there are many new systems that diminish the need for traditional banking processes. Bitcoins, which came about in 2009, are a currency used that are increasingly being looked at as another alternative payment system in the future.

Bitcoins are an online payment currency that have been revolutionary since their creation for being able to make peer to peer transactions without a middle man, i.e. not having to use a bank. Transactions can also be anonymous and there are no fees which make them very efficient and useful for consumers. ANX have recently issued a Bitcoin debit card which can be shipped to users and is the first Bitcoin debit card to allow users to pay with Bitcoins with the traditional credit card payment system, online and for carrying out cash withdrawals. The card supports 10 different currencies and sold out within 24 hours of being available.

The new card could mean an increase in interest in Bitcoins and their flexibility and versatility for payment could mean an upsurge in popularity. Being able to transfer money easily online without transaction fees or needing bank transfers is very useful for a consumer and so using Bitcoins means large savings on transaction costs. Also being able to pay now with Bitcoins means less dependency on banks and ATMs to get out cash.

However, there are still question marks regarding Bitcoins and the events of 2014 hit their credibility hard. Ross Ulbricht, the alleged creator of Silk Road, an online drug marketplace where Bitcoins are the currency, has recently been found guilty of charges related to drug trafficking, money laundering plus more and faces a minimum of 20 years in prison. Bitcoins are seen by many as a resource for illegal activity and is still generally not particularly well known globally.

An issue raised by many is the problem with the sporadic nature of the Bitcoin’s value. The value of the Bitcoin today is below $250 whereas at its peak in 2013 it reached a little over $1200. Will the volatility of the value affect a day to day consumer’s interest in getting an ANX debit card or even investing in Bitcoins in the first place? There has however been a lot of investment in Bitcoins by large investors, who say that there simply is a need for one ‘killer app’. In 2014, around $300 million was invested in Bitcoin startups, with startup apps such as ‘Purse.io’ which sources Amazon credits or gift cards and people can buy them off someone looking to get rid of them for Bitcoins.

2015 will be a very big year for the Bitcoin and the next year or two will be crucial to see whether it can evolve into a vital resource in the payment world. Better security and a stabilization of the value are important for whether other big companies such as ANX may invest and provide payment services that cater Bitcoins. This new card could mean even less reliance on traditional payment systems and pave the way for payment systems using Bitcoins.

Cryptocurrency has the potential to be the biggest commerce disruptor since the web. Now is the time to evaluate and leverage the inherent opportunities in Bitcoin's transactional currency applications and the underlying protocol.

All Payments Expo is rife with opportunities for cryptocurrency and mainstream payment systems to dissect potential partnerships and implementation challenges. Companies looking to invest, partner, or acquire new technologies will hear from the most provocative cryptocurrency leaders.

To see all APEX has to offer, download the agenda.

Register now and save $100 when you use the code XU2848BLOG.

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Register for All Payments Expo by Friday 1/10 to save $400!

Register Now. 

All Payments Expo is taking place March 3-5 at The Mirage in Las Vegas. All Payments Expo is the annual meeting place for payments professionals focused on areas of growth and convergence in payments. Our mission is to catalyze the partnerships necessary to build the next generation of payments, from the mobile environment to the brick-and-mortar POS. 

Save $400 if you sign up for All Payments Expo by Friday, Jan. 10. After Friday, rates go up. Register online by clicking here.

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Prepaid Expo Evolves… into All Payments Expo (APEX)

The longest-running event in prepaid is unveiling a new name and evolved mission: All Payments Expo (APEX), the NEW home for Prepaid Expo attendees, plans to stimulate cross pollination between prepaid and new and alternative players who are innovating payments, gifting and omni-channel retail strategies. The mission: catalyze the partnerships that are necessary to build the next generation of innovative payments, from the mobile environment to the brick-and-mortar POS.

Since the Expo’s beginnings nearly a decade ago, prepaid has pushed the boundaries of what payments can do – and in the process, evolved way past simple stored value. It’s been an exciting journey to see prepaid move from the fringes to the mainstream, thanks to the growing sophistication of gifting, payroll and GPR.

And as technology has fueled innovation in financial services and retail, prepaid’s flexibility has lent itself as a building block for new innovations, including hybrid products, social gamification, PFM platforms, cash infusions in the mobile wallet, and more. GPR has evolved into alternative financial services; gifting has blossomed as an integral part of Omnichannel retail strategy; and emerging payments are, naturally, impacting the entire ecosystem.

 As technology advances, margins tighten and competition heats up, the prepaid business is changing, and All Payments Expo (APEX) will be focused on helping attendees map the evolution of their businesses. Our loyal attendees will be able to meet with their existing partners, customers and clients – but there will be a lot of new faces, and new potential partners, too.

Here’s a snapshot of how Prepaid Expo has evolved: And a window into how the industry has changed, too.

  

  Prepaid, you’ve come so far… 

2006: 1st Prepaid Expo in Orlando Focuses: Unbanked, Underserved, Payroll 

2014: (APEX) All Payments Expo in Las Vegas 
Focuses: Alternative Financial Services, Omnichannel Retail Strategy, Emerging Payments, Prepaid, Gifting, PFM, Healthcare Reform, Cash-Based Innovations, mPOS, Future of Interchange, Gamification, APIs, Loyalty, the Wallet and MORE.

If you’re in prepaid, your business is changing rapidly. So too, is the longest-running event built for the prepaid industry. See you in Vegas!

And by the way – we are already building out our agenda and speaker faculty for the 2014 event. If you’d like to get involved or speak, please contact Diana Middleton at dmiddleton@iirusa.com.

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How Restaurant Technology Innovation is Driving Revenue

A MenuPad, a new application used for ordering
 meals and wine and even paying the check. 
(Source: bizjournals.com)

The ecosystem of the restaurant experience is ever evolving. As technology advances, and customer habits grow increasingly impatient, diners are continuously seeking methods to streamline the interactions they may encounter as they search for their next meal. Businesses on the low tech side of the spectrum have begun to reevaluate the restaurant  recommendation revolution to drive revenue. 

While the main source of traffic to new restaurants are derived through word of mouth or favorable mention from friends and family, diners are now embracing a modernized approach when they consider to experiment with a new restaurant experience.

In the information age, knowledge and research are vital in making informed decisions. For many smartphone wielders, Yelp is no stranger and has become an essential tool. In Q2 2012, Yelp received traffic of 78 million unique visits, while users contribute 30 million reviews. Of these reviews 23% consist of restaurants.

The research phase continues with a wide array of websites and apps that have painstakingly collected, organized, and made available large catalogs of menus from surrounding restaurants. MenuPages collect and update thousands of menus (monthly) from nearly 30,000 restaurants in eight major markets. The interface is clean and simple while provides filters such as neighborhoods, price ranges, take out and list of other features. MenuPages also features the option to order directly through Seamless, the largest online food ordering company.

While the majority of restaurants accept walk-ins, operating the back of house becomes much less of a wild card if patrons develop the habit of making reservations before they dine. Digital reservation services, such as OpenTable, have streamlined the process to book your table for available time slots. A one-two combination partnership with Yelp, OpenTable is the reigning champion in the digital reservation service for restaurants. Having grown their customer base to over 13,000 restaurants in 50 states and multiple countries, it is hard to imagine there would be an emerging challenger. 

SeatMe, a San Francisco startup, has begun to step up to the plate and take a bite of that market share. SeatMe allows management of reservations, guests, and staff floor plans straight from a tablet or smart device. SeatMe’s guestbook also tracks unique schedules, performances, and tastes with nice design, easy usability, and good integration. SeatMe does not provide a stark distinction from OpenTable, but there are a host of differences as an alternative to look out for.

The inaction of waiting in line to be seated has even taken a turn for the tech as select restaurants have adopted a waiting list management system. NoWait is a Pittsburgh based startup that has developed an iPad app where customers may leave a name and number with the front of house, or host, and opt into receiving a text message when their table is ready. Customers can also check their status in line through a provided link via text message where they can access, “What’s My Place”, in the line. Acceptance of the NoWait system ideally organizes hosting duties in a manner where customers can inquire where there their position is in line without inundating the host or hostess with line status updates.

Once seated, the item selection has also stepped in to the technology retrofit. Restaurants are opting to do away with physical paper menus with tablet and smart device interfaces. Plate replaces a paper wine list or entire menu with a software format displayed on tablets. These “smart menus” are fully customizable to restaurants that have adopted the Plate platform, and can display notes, photos, and even pairings of particular wines to food items. Plate reports that with a few extra minutes playing with the menu can increase a diner’s order by 10-15%. 

For restaurants with a budget and cannot afford to distribute upwards of 10 tablets at any given time, SecondMenu offers a similar experience. Instead SecondMenu presents a restaurant's menu through the diner’s own smartphone. The SecondMenu web app is not activated via native apps which must be downloaded from an app store; rather it is through visiting secondmenu.com/restaurantsname or more easily in the form of a QR code.

Alternative payment methods have also managed to make its mark in efforts to accelerate the checkout process. With increasing support for NFC, or Near Field Communication, customers can simply tap their smart devices or use an app to pay using Google Wallet, PayPal, LevelUp, Square, or a slew of emerging payment services. Experimentation with BitCoin has also been recorded, in such with a restaurant in Berlin. Room 77, located in Berlin, serves Southwestern American fare, from burgers to burritos. The decors of the restaurant are reflections of a Texan steakhouse that we are all familiar with. 

One differentiation that Room 77 has over any other restaurant in Germany is that it is the only restaurant in Germany that accepts BitCoin. “When someone pays with by Bitcoin, either through a computer or smart phone, the Bitcoin is sent encrypted to ensure it can't be hacked. There are no transaction fees, and you can exchange a Bitcoin for real currency.”

There are a wide array of tools and new technology to incorporate in order to excite customers, while also differentiating your restaurant from conventional competitors. Adopting new methods to streamline management, or keep customers engaged, can improve the overall dining experience for patrons as well as the staff.

About the Author

Phil Ng is a Social Media Analyst at IIR USA with a specialized focus on technology and technology culture. He may be reached at PNg@iirusa.com.

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The Future of Alternative Payments

Research was conducted to figure out where exactly card-based e-commerce and alternative payments were going around the world. Whether it was trying to figure out if (when?) alternative payments will eclipse card-based e-commerce or whether new innovations would decrease or increase, the results of the study painted an interesting picture for the future. 

The research was conducted by Bain Capital and Advent projects that e-commerce transactions will grow at an annualized rate of14 percent from 2010 to 2015 rising from USD $942 billion. In addition to this, there is something that is somewhat staggering: Alternative payments are actually behind card based e-commerce. But not to worry about such numbers, alternative payments are expected to pass card based e-commerce by 2015. 

BERLIN, GERMANY - SEPTEMBER 05: A patient pays a quarterly consultion fee while handing over her Allgemeine Ortskrankenkasse (AOK) health insurance card on September 5, 2012 in Berlin, Germany. ( Getty Images)

The US and UK have the highest amount of e-commerce penetration rates at 77 and 60 percent respectively. In Netherlands, e-commerce growth is underpinned by an electric payment called iDEAL. iDEAL allows people to make bank transfers without entering their credit or debit information online. WorldPay estimates that there are as many as 230 alternative payments providers. 

Some believe that there can be an AP provider which can challenge the established e-commerce players. They also predict that there will be growth a 50 percent a year annually in China and Poland. Among the developed nations, Japan is expected to have a growth of 20 percent. And with the growth of other nations, prepaid may take off in ways that would turn society into more a plastic card carrying world than it ever was before. 

About the Author

Adam Wells studies English at Pace University.

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