Apple Pay announces partnership with Best Buy

Apple CEO Tim Cook announced on Monday the 27th of April that Best Buy will begin accepting Apple Pay in its iOS app. The announcement also revealed that Apple Pay support will soon after be in Best Buy stores later this year. This means that Best Buy is now the first big-name U.S. retailer that has gone against the trend of retailers who are members of the MCX program.

Barry Blackburn / Shutterstock.com

The MCX program is a group of retailers and food chains that are currently in the process of constructing a payment app named CurrentC that is seen to be a likely rival to Apple Pay. CurrentC, which is expected to be launched later in 2015 will use barcodes rather than NFC for payments and is currently still in the testing phase. MCX CEO Dekkers Davidson has insisted that there are no fines or payments for leaving the program. However due to exclusivity agreements signed by Best Buy, they will not be able to be able to utilise Apple Pay until the agreement has run its course as MCX members cannot use CurrentC and Apple Pay simultaneously.

Despite this recent news, Scott Rankin, the MCX COO, has insisted that Best Buy are still “a strong MCX partner and supporter of the CurrentC initiative.”. He goes onto state that “we are of the firm belief that there need to be at least two to three major players within the mobile payments ecosystem for it to succeed. We remain steadfast and passionate about CurrentC, as well as completely focused on delivering the best mobile commerce solution for our merchant partners and consumers.”A Best Buy spokeswoman however stated that “We remain invested in MCX” but would not commit to accepting CurrentC when it launches to the public.

Denys Prykhodov / Shutterstock.com

The MCX consortium has the goal of creating a mobile wallet that includes payments methods that are less expensive for merchants to process than more traditional big-name credit cards. Apple Pay on the other hand is more favourable toward traditional debit and credit accounts. The system does not support cheaper store-branded cards and bank account hook ups. The system allows people with the newer models of the iPhone to make purchases in stores by placing their Apple Watch or phone near the checkout terminal. This eliminates the need for cash or cards and also is useful for online purchases. It will mean there is no need for the hassle of typing in credit card and shipping info for each online purchase. The phone or watch’s fingerprint identification technology aids in securing the transaction.

This partnership is a big one for Apple as MCX gained support from CVS and Rite Aid when they turned off Apple Pay in their stores. It’s not currently clear whether other MCX members may follow the lead of Best Buy and move to Apple Pay and thus not placing their trust in the CurrentC initiative. The test is whether customers embrace the Apple Pay system and can be convinced that paying with a phone or Apple Watch is easier and more convenient than cash and cards.

About the Author: Harry Kempe, a marketing intern at IIR USA, who works on various aspects of the industry including social media, marketing analysis and media. He is a recent graduate of Newcastle University who previously worked for EMAP Ltd. and WGSN as a marketing assistant on events such as the World Architecture Festival, World Retail Congress and Global Fashion Awards. He can be reached at hkempe@IIRUSA.com

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Will Cashless Payments Cause Us to Spend More?

Contactless payment is widely regarded by many as the future of payments. Many believe that technology such as the Card Case app or Apple Pay will start to dominate the payments world as they are easy and fast forms of payments. In some cases you may not even need a wallet anymore.

Businesses are looking increasingly at giving customers the easiest possible experience in terms of their consumer journey. They want to make sure that at the end of the journey the customer doesn’t have to struggle to part with their hard earned money by waiting in long queues or wondering which credit card has the most on. Many believe it is in the best interests of the customer to be able to swipe something quickly and walk out with your new purchase. However, as easy and convenient as it is, could it mean increased spending for us on a day to day basis?

New research has shown that many people, especially the millennial generation, find that paying with cash is an easier way to not spend as much money. Personally, as someone who is fresh out of University, with student debts and an apartment in a foreign country, I am trying very hard to make every dollar count. This means taking out a certain amount of money in cash at the start of each week and saying to myself, I will spend this much and no more. It is a very simple budgeting technique used by many; however contactless payment threatens it. Waving a phone over a scanner or quickly swiping a card, to me and I’m sure to many others, does not really feel like you are parting with money as it does with cash.

More convenient payment systems will mean even if you have no cash, a consumer will simply spend little bits here and there, especially with credit. Obviously internet statements are a good way of keeping track every now and again but that will not stop when you want that desert at a restaurant instead of having a cash limit.

So much of the excitement surrounding the rise of contactless payments is focused on how much it is for the customer without looking so closely about the benefits for businesses. An interesting development for me would be a form of inbuilt budgeting system within the app or form of payment. As contactless payment develops, as does the internet of things, meaning more interconnection. This could mean a weekly budget for those millennials trying hard to make the pennies count that is on a payment app which is connected to a calendar which may warn of upcoming events that could stop you getting that pair of jeans that may not strictly be necessary. In a world where businesses need to increasingly think about the consumer’s experience, helping them with little things like that could ultimately mean the difference between gaining or losing a customer.

About the Author: Harry Kempe, a marketing intern at IIR USA, who works on various aspects of the industry including social media, marketing analysis and media. He is a recent graduate of Newcastle University who previously worked for EMAP Ltd. and WGSN as a marketing assistant on events such as the World Architecture Festival, World Retail Congress and Global Fashion Awards. He can be reached at hkempe@IIRUSA.com

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Digital Gift Cards to Overtake Plastic 1-2 Years

1-800-Flowers E-Card Expert Says Digital Wallets Herald End to Another Holiday Tradition

By Marc Dresner, Senior Editor, IIR

Like almost every other person I know who is not the parent of a young child, the 2014 holidays concluded with a stack of gift cards in place of a mountain of crumpled wrapping paper.

I’m not complaining, but if you’re the sentimental type like me, you probably get a little wistful looking at a Christmas tree that doesn’t have any presents under it.

My father-in-law still insists on hiding gift cards inside large, ornately wrapped boxes—sometimes it’s a series of boxes like those Russian nesting dolls—but the gag has gone a little stale and it annoys his wife to no end.

Friends of mine keep a pile of phony presents under their tree to achieve that nostalgic effect, which I find a little creepy and depressing.

At my home, we’ve taken to interspersing the cards in colored envelopes among the ornaments. We take turns hunting-and-plucking them from the tree on Christmas Day. 

It's less dramatic than a big box, but at least you get to scavenge for something with your name on it.

Now it looks like I may have to kiss that tradition good-bye, too.

Yes, friends, 2015 may be the beginning of the end for plastic gift cards.

Chris Adamo

According to Chris Adamo, Manager of Partnerships & Gift Cards, B2B, at 1-800-FLOWERS, e-cards will overtake plastic as the gift of choice within the next year, maybe two years.

“We’ve seen digital gift card sales triple in the past year.”

“For our brand as a whole we’ve seen digital gift card sales triple in the past year,” said Adamo, who has been developing e-cards in B2B for the online florist for several years.

Adamo says he expects digital wallet adoption to catalyze the migration to e-cards in the consumer space.

That’s good news for retailers, according to Adamo, who reports that digital gift cards have increased redemptions and purchases at 1-800-FLOWERS.

Digital cards are also perfectly suited to double as loyalty cards, says Adamo, which means a new level of access to customer information.

In this podcast for On Payments—the All Payments Expo (APEX) interview series—Adamo shares his experience and explains why it’s time for retailers to ramp up their e-card initiatives.

Access the podcast and a transcript here!

Editor’s note: Chris Adamo will be a featured speaker at APEX 2015—The All Payments Expo—taking place February 23-25 in Las Vegas.

For information, a brochure or to register for APEX, please visit www.allpaymentsexpo.com.

Ps. SAVE $100 of registration with promo code: XU2848BLOG

ABOUT THE AUTHOR/INTERVIEWER
Marc Dresner is IIR USA’s sr. editor and special communication project lead. He is the former executive editor of Research Business Report, a confidential newsletter for the market and consumer research industry. He may be reached at mdresner@iirusa.com. Follow him @mdrezz.

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Your Holiday Gift from All Payments Expo | Register by Friday 12/19 & Save $300

Register by December 19th and save $300 - Use the code XU2848BLOG | Register.

Find Your Next Buyer at APEX

With more than 1,300 global payments players on the hunt for new technologies and partners, APEX is the best place to kick off 2015 with meaningful meetings and new business opportunities.

 

 Meet the executives with buying power to take your business to the next level. 

 

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All Payments Expo Agenda Now Available!

All Payments Expo is your Q1 meeting place to execute 2015 strategy:
 
• Meet with Existing Partners & Clients in Prepaid, Gifting and Incentives
• Meet New Prospects in Omnichannel Retail and Disruptive Technology
• Get Free Meeting Space and Intuitive Technology to Find, Vet and Manage Meetings

 

Download the Agenda Here

New Ideas from these Payments Movers and Shakers to Keep You Competitive:
1-800 FLOWERS
Macy's
Emerge Financial Wellness
Softcard
Gliph
Boom Financial
GoCoin
Digital Currency Council
Paybefore
Darden Restaurants
NBPCA
PayPay Financial
SavedPlus
Flash Foods
Ethereum
Overstock.com
Coin Capital
CVS
Connexions Loyalty
TechCafe
Transcard
Locke Lord
Gx
Hudson Bay Co.
Paybefore
Dorado Industries
Cabela's Inc.
YellowPay
Dravis Group
SeaWorld
Home Depot
Strategic Counsel Corp.
Women's Annex Foundation
Cold Stone Creamery       
Federal Reserve Bank of Atlanta
Wallaby Financial
Papyrus
GoBank
Fandango
FBI
Verifone
Sears Holdings Corporation
Icon Capital Reserve SA
Mobetize, Corp.
Groupon
Bain Capital Ventures
Xerox
Regions Bank
Mercator Advisory Group
Moven
RK Incentives
Cirque du Soleil
Coinsetter
Socure
Sparkpr
SnipSnap
Unidos Financial
National Anti-ORC Association
451 Research
Square
MacAngel LLC.
Transact24
Datzing
Domino's
BankingUp
Rebellion Lab
DineEquity   
Momentum Groups
Accion Venture Lab
Drizly
Bryan Cave
Toys R Us
Plug N' Play
Rushcard
Tally Capital
Keefe Bruyette & Woods
Claire's
U.S. Senate
BitGo
BitPay
Mercator Advisory Group
BigDoor
Central Bank
Wal-Mart
Cracker Barrel Old Country Stores
General Catalyst Partners
HouseTab
Bitcoin Strategy Group
EMV Migration Forum
NCFTA
Self Synthesize!
Gift Card Network
Fiserv
MintCombine
Giftcards.com
Logbar, Inc.
Hyatt Incentive Rewards
Libra
Davis Polk & Wardwell
Kofax

Register for All Payments Expo 2015 now! Use code XU2848BLOG to save $100 off the current rate – total savings of $400 when you register by 11/21 – Register here.

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Register for APEX by this Friday 10/24 to Save $500!

Rates for All Payments Expo 2015 go up after this Friday, 10/24 make sure you register now to maximize your savings. Register now and save $400 off the standard rate, but you can save an EXTRA $100 when you use the code XU2848BLOG - Total savings of $500! Register here.


Increase deal flow and new partnerships for your business by harnessing the changes happening in payments and commerce being discussed at All Payments Expo 

The APEX experience will support every aspect of your strategy - from customizable content across four forums to a complimentary meeting platform, complete with bookable free meeting space, powered by partneringONE


Here's what's new for 2015:

Tailored Forum
Customize your content and hand-pick your sessions across four different focus areas ripe with partnerships, innovation and business development opportunities: Prepaid, Disruptive Technologies, Omnichannel Retail and Gifting/Incentives.

Meet the Regulators
Meet with the regulatory bodies and law enforcement agencies who are impacting your business. Take advantage of this relaxed, informal way to meet and educate the regulatory community.

Private Boardrooms
Exclusively for seasoned executives, APEX has developed four private discussion-based sessions that delve into the most pressing challenges facing the industry. These discussions are private, off-the-record and limited to 25 participants.

Private Retail Exhibit Hall Tour
Retail participants will get exclusive access to the exhibit hall while it is otherwise closed - plus a tour of new technologies led by Martha Weaver, Executive Director, Gift Card Network.

Women in Payments Lunch
A mentoring and networking opportunity build just for women in payments. Conversations built around the biggest questions circulating the industry, including the impact of mobile and cryptocurrency on payments.


Book by this Friday to lock in the lowest possible price ($500 savings) and get access every tool to build your business. Use the code XU2848BLOG to save. Register now.

If you have any questions about the event, please reach out to Ryan Geswell at rgeswell@iirusa.com

See you in Las Vegas!

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