The Evolution of the NYC MTA MetroCard?

Living in New York City, one would think that commuting within the metropolis, with one of the largest subway systems in the world, would have some sort of convenient, electronic method of paying for one’s fare. There isn’t. What New York City’s MTA, Metropolitan Transit Authority has is the prepaid functional MetroCard used for subway entry and bus fare.

For the general commuter, one can purchase the MetroCard in select locations such as certain local bodegas, MetroCard vending machines, and subway station booth agents. However for refilling options, the MetroCard can only be refilled in the vending machines and with subway booth agents, which are only usually situated in subway stations.

This is rather disadvantageous and frustrating for the commuter, especially those who need to take a bus frequently in order to transfer onto a connecting subway, not having much interaction with a booth agent or with a vending machine for MetroCard transactions.

Here the all too often not-present MTA Subway Station Booth
agent will assist you with your MetroCard needs.
(Source: NY Daily News)

One leading example of a good prepaid system utilized for commuting is the how the Octopus card is applied in the city of Hong Kong. Having frequented Hong Kong over the past few years, I have used this wondrous Octopus card for the Hong Kong MTR, the Mass Transit Railway, and buses.

For starters, one first pays upfront $150HKD for the card purchase from any Octopus card retailer, such as a subway station agent booths or local 7-Eleven. The $50HKD is practically a deposit-value computed into the card itself, while the additional $100HKD is valued for metro fare and miscellaneous use.

The miscellaneous use is what is so impressively versatile about the Octopus card that needs to be brought up, because it is not just limited to commuting purposes. The Octopus card can be used for normal day-to-day purchases at 7-Elevens, McDonalds, supermarkets, pharmacies, parking meters, vending machines, fast food outlets, and many other various Octopus partners. It is truly the universal prepaid method of purchasing in Hong Kong.

Seriously, it's that easy - just hover over it. (Source: WSJ)

The main reason why I am giddy to showcase the Octopus card transaction process is because on almost every Hong Kong block, there are two 7-Eleven stores, as well as one and a half Circle K convenient stores.

Of course, the actual amount of 7-Elevens is not to the exaggeration I have just stated, but the amount of 7-Eleven one abstractly notices in Hong Kong is outlandishly staggering that anyone having visited Hong Kong would agree with me of the convenience that 7-Eleven provides is too handy. This convenience extends to the ease of refilling one’s Octopus card, so that is pointless to worry about not having enough funds on one’s card, let alone for traveling purposes.

Just hover your Octopus Card
with at least $5 HKD over this machine,
an approving beep ensues, and voilà 
you've just bought your newspaper.
(Source: calvin-c.com)

Another incredible feature that the Octopus card can offer is that it can be specifically personalized to utilize as an identification card. Just by the simplicity of waving an Octopus card above the card-reading machine, entering an apartment complex or parking a car in a garage complex never got so easy.

One does not need to awkwardly greet the doorman anymore, while make chitchat about how great the weather isn’t. Octopus cards have accountable for elevator floors access, for room access, and even been used for students to account for school attendance. The list of utilization of the Octopus card just goes on and on, furthermore it will keep growing.

Right now anyone living in New York City may have noticed that the number of 7-Elevens have been increasing. In fact, 7-Eleven have begun their initiative to ardently persuade local bodegas to convert their establishments into 7-Eleven franchisees in Manhattan, with a target of 134 stores by 2017.

Probably not directly correlated to establishing prepaid stations for a medium of monetary transaction, this growing trend of 7-Eleven openings could coincidentally be the first stages of New York City’s answer for the question of what could be better than the MetroCard. After all, the act of waving the card over a card reader is much more efficient than swiping a card that even a seasoned MetroCard user like myself, since my middle school days, may at times mis-swipe.

To see "Please swipe again"
or "Swipe card again at this turnstile"
is rather too normal.
(Source: Staten Island Live)

It is now up to a monetary transaction servicer to take that role in which Octopus has, in Hong Kong since 1997, and to establish itself as the sole middleman of it all. The potential retailing partners are there as the 7-Elevens are starting to pop up. In fact with the numerous amounts of Duane Reade pharmacies in Manhattan, there probably could be prepaid stations set up in those establishments as well. Let the battle of prepaid supremacy in New York City begin!

ABOUT THE AUTHOR

Chester Wai is a New Media Intern at IIR USA with a specialization in Economics, Cinema, and Cultural Studies. He may be reached at Cwai@iirusa.com

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Prepaid Expo 2013: Agenda Now Available for Download!

The prepaid world has gotten more crowded – and complicated – lately. And the rapid-fire competitive innovation and lingering regulatory uncertainties show no signs of abating. With new players cropping up to take advantage of the great opportunities in payments, it’s critical that you stay ahead of the competition in the year ahead.

How does the Prepaid Expo help you do business? For 8 years, the Prepaid Expo has served as THE gathering for the prepaid and payments community. In 2013, we’re kicking everything up a notch, with MORE opportunities for networking and meetings, MORE sessions, and MORE solutions to the industry’s most pressing concerns.

Download the 2013 brochure now for full details. And if you register by Friday November 9th, you’ll save up to $800. This is the lowest price offered for the Expo!

What Are the Threats to Your Business? How Will You Flourish at this Critical Moment? All your burning questions will be answered at Prepaid Expo 2013.

Pre-Conference, start the Expo at a turbo-charged pace, with association meetings or workshops covering everything from the latest knowledge on mobile, security and fraud for veterans to the basics of prepaid programs for industry newcomers.

Day 1 dissects the Future of Prepaid in Payments, and how to capitalize on the evolution now.
• Which technologies are fixtures or fads?
• How will technological disruptors change the landscape of payments?
• How do I bullet-proof my company for changes ahead?
• How can I capture the imagination and spending power of techno-savvy millennials?

Day 2 hones in on tackling the biggest challenges to prepaid today and crafting solutions and actionable plans.
• What’s in the regulatory pipeline, how can I clarify guidelines and what implementation will mean?
• Amid downward pressures in pricing, how can I innovate my business model to improve my margins?
• What causes churn in GPR, and how can I strengthen my relationship with customers?
• How will I energize the gift card category and motivate brick-and-mortar employees to promote gift card sales?
• Are contactless payments complementary or cannibalizing, and which technology will prevail?
• Amid the mobile hype, which technology will compel consumers to change their payment preference?

Day 3 focuses on growing your business to the next level to maintain relevance through the payments evolution.
• What are the opportunities I am missing, and how can I execute on them?
• How can I handle infrastructure challenges when expanding my prepaid program globally, and which products make the most sense for which geographies?
• What are the secrets to keeping a loyalty program top-of-mind when customers juggle an average of 11 loyalty memberships?
• How can I reach the underserved and build a bridge to consumers who are wary of traditional banking or financial institutions?
• What’s the B2B landscape, and how can incentives be tailored for maximum impact?

Register by Friday November 9th for Best Rates!

Download the agenda now for full details on all the sessions, speakers and opportunities to grow your business at the Expo. And make sure you register by Friday, November 9th to save up to $800. This is the lowest price offered for the Expo!

Online: www.prepaidexpousa.com
Email: customerserviceiir@informausa.com
Phone: 888.670.8200 or 941.951.7885

* Mention your Prepaid Expo Blog VIP code to SAVE 10% off the standard and onsite rate: XU2648BLOG10

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What Happens to a Cashless Society During an Event Like Hurricane Sandy?

I was lucky enough to weather the superstorm that hit the East Coast last week, safely in my home with both heat and power but as friends and family came to by to take refuge with us, I started pondering the repercussions of Hurricane Sandy that were less immediate. 

Fallen tree on my block caused by
Hurricane Sandy. Weehawken, NJ

Friends who came by told us of the one wrinkled dollar bill that they managed to find to buy and share a cup of coffee from a couple selling coffee outside of their Indian Restaurant near Hoboken, NJ, one of the more harder hit areas. My brother texted me as he searched frantically for a gas station that still had gas to sell in lower Manhattan. He had cash but no place to spend it.

We were lucky enough to have a local Pathmark open near us but all of their refrigerated units were covered with tarp so we couldn't purchase any dairy, frozen goods, and even the fresh fruits and produce were no longer viable. At least they were still accepting credit cards and plastic, right? Those who had cash on hand were lucky -- when the power went out, so did the option to use other forms of payments. 

In fact, one report told of low income New York residents who had to survive the storm without teh ability to buy food with their Electronic Benefit Cards (EBT). Is the grid, is connectivity, the cloud, something we've taken for granted when reflecting on the future of money and alternative payments? 

What happens to a cashless society, where all payments are digital, when the power goes out? 

There seems to be a dichotomy emerging between a future that seems bright with rapid technological innovation and a society overwhelmingly fascinated with the end of the world, i.e., fictional apocalypses, crises, and doomsday scenarios. But when fear becomes a plaything, what happens when the unthinkable becomes real.

About the Author

Valerie M. Russo, Social Innovation Lead, Senior Strategist at IIR USA, has a background in technology, anthropology, marketing and publishing.  Russo has worked in a variety of digital media roles at Hachette Book Group, Aol, and Thomson Reuters. She is a published poet and maintains a literary blog. She may be reached at vrusso@iirusa.com. Follow her @Literanista.  

Editor's Note:

Our thoughts go out to all of those affected by the storm.

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Well-Designed Mobile Payments Key to App Success

Great design is often highly subjective and can be maddening for executive decision makers. Steve Jobs’ well-known response to his engineers trying to find a solution he would accept was: “I’ll know it when I see it.” Design, and the delightful products and experiences that result, is an art informed by science. And, like other arts, it requires taste to recognize and restraint to implement.

For many years design was secondary for many business processes. Payments would certainly fall in this category. There was engineering in a payment process and there certainly was logic. But there wasn’t joy. There was rarely an engaging or even memorable experience. The purchase experience often didn’t match the overall brand aesthetic and messaging.

The car-buying process is a fine example. Porsche, BMW or even Ferrari are world leaders in design at all levels. But buying or leasing one of these luxury automobiles is a multi-hour nightmare of paperwork and fine print that leaves the purchase as an unbranded—and often dreadful—experience.

As payments moved online and now are heading to mobile, the experience of finalizing a sale—of actually accepting money from a customer—is an important frontier in design. Like every other area of industry that great design has entered, this is both a threat to established players and a huge opportunity. Mobile payments, in particular, present unique challenges.

The talent race will be fierce, but firms with the ability to create great mobile payment experiences will be well-positioned to thrive in a market that is being conditioned to expect more than a standard, secure payment process.

In mobile, brands must understand that the purchase process is central to successful app design. Apps are best designed with a limited feature set optimized for short sessions and immediate gratification. Because smartphones have become an indispensable tool of modern life that literally go everywhere with their owners, there is also a personal connection between the user and the brand that is impossible to duplicate with legacy technology.

This combination of short bursts of use with personal connection is common among all top-tier apps, from the stoplight photo-editing session of Instagram to the Angry Birds level that can be completed (or at least attempted) in a 10-floor elevator ride. Payment processes must be fast, engaging and personal to elevate a brand in this environment.

Leaders in the mobile payments space understand this reality. This month, for example, Square acquired80/20, a design firm in Manhattan. The resumes of the 80/20 co-founders include leadership roles at Apple and Adobe, but the acquisition also gives Square a solid foothold in an area rich with high-grade design talent. The talent race will be fierce, but firms with the ability to create great mobile payment experiences will be well-positioned to thrive in a market that is being conditioned to expect more than a standard, secure payment process.

What will the best mobile payment experiences look like in five years? Some of today’s leaders are pointing the way, and I’ll discuss what they’re doing right in my next post. But for many of us, the mantra that Jobs used still holds true. It is hard to define exactly what will make a mobile payment process great, but we certainly will know it when we see it.

* Republished with permission from Paybefore, as published October 2012.

ABOUT THE AUTHOR

Joseph DeSetto is Paybefore’s emerging payments blogger and program manager of the Mobile Development Bachelor of Science degree at Full Sail University. He is the author of The Business of Designand previously served as chief technology officer for two mobile startups.

Paybefore™ is the leading provider of information to the prepaid industry. 

Related articles

• Mobile payments expected to grow - Confused.com (confused.com)
• With or without Apple, NFC mobile payment market to hit $100 billion (bgr.com)
• Isis Mobile Payments Bring Businesses Closer To Customers (networkingexchangeblog.att.com)
• The Beginner's Guide to Mobile Payments (openforum.com)
• Moving to Mobile Payment: Put the Right App in Your Digital Wallet (dailyfinance.com)

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Open Call: 2013 Paybefore Awards Nominations

Get the recognition you deserve by entering the 7th annual Paybefore Awards®. Programs and companies will be recognized in 20 categories, including Best Consumer Value, Outstanding Newcomer and Breakout Prepaid Company of the Year.

And, we’ll honor an individual(s) who has made the most significant impact on the prepaid industry with the prestigious Industry Achievement award.

Nominations Due: Wednesday, Nov. 21, 2012.

>> Click here to download the Call for Nominations brochure and to learn about our new and revised categories, and how you can participate in selecting Best-in-Category honorees as Paybefore Awards' "Sixth Judge"!  

For 2013, there are three parts to the Nomination Submission Form. You must complete and return all three parts electronically to Paybefore no later than 5 p.m. Eastern on Wed., Nov. 21, 2012. Email Parts I, II and III to paybeforeawards@paybefore.com. Please send all three parts of your Nomination Submission Form in a single email; one email per Nomination, please. Questions? - Call Jen Spiller at +1 617.671.1157 or email jspiller@paybefore.com. 

Join the Paybefore Awards celebration at 2013 Prepaid Expo USA. 

REGISTER BY OCT. 26 2012 FOR THE BEST RATES & SAVE UP TO $800

Online: www.prepaidexpousa.com

Email: customerserviceiir@informausa.com 

Phone: 888.670.8200 or 941.951.7885

* Mention your Prepaid Expo Blog VIP code to SAVE 10% off the standard and onsite rate: XU2648BLOG10

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Disruption from Mobile Extends Beyond App Downloads

The smartphone market, as an outgrowth of the PC market with several of the same leading brands carried over—most notably Apple and perhaps soon, Microsoft—is big on specifications. Screen sizes, storage capacity and, since the App Store was unveiled a few years ago, the number of apps available for download on a given platform. In Apple’s digital marketplace alone, the original App Store, more than 650,000 apps are now available.

Thousands more are available for Android users—through both Google Play and Amazon, and Microsoft is slowly building its market with thousands of apps for Windows Mobile, as well. Add in the staggering number of actual downloads—more than a billion per month on Apple devices alone—and large numbers dominate the mobile conversation.

But lost in the numbers is the impact of the transition to mobile. Certain uses of these devices have a significant effect on some industries, especially retail and commerce. Looking at a few apps currently on the market is a glimpse of the seismic changes ahead as mobile apps simultaneously become increasingly advanced and ubiquitous.

For example, every retailer’s worst nightmare came true when a startup app developer named Occipital released its iPhone app, RedLaser, in 2008. RedLaser, now part of eBay and available on multiple platforms, scans barcodes using the camera of a smartphone and queries competing retailers for price comparisons. The already slim margins of retailers shrink to nothing when customers stroll the aisles doing instant price comparisons that would have beeen impossible only a few years ago.

"Brands and their retail partners must adjust to the reality that in the new mobile world, no one truly shops alone." —Joe DeSetto

But miniaturized margins are only the beginning of retailers’ concerns. When you barcode scan toys this Christmas, one of the retailers most likely to appear is, of course, Amazon. To date, local retailers held one serious advantage over Amazon—immediate gratification. Even if Amazon could beat a local store on price, many customers won’t wait three to five days for the FedEx truck.

But what happens when you combine mobile scanning with same-day delivery? We may be about to find out. In several cities across the United States, Amazon is beginning to roll out this option as it builds large distribution centers within a few hours drive of millions of customers. The time is drawing near that customers in a retail location could scan a product, order from Amazon right on their phones with a credit card on file and still have the product a few hours after the day’s errands are finished.

While this bit of futurism won’t immediately spread to everyone and requires Amazon to build out even more infrastructure than it currently has in place, the secondary effect of customers shopping with mobile apps in tow has already taken hold. Mobile devices are great for research. As such, not just rewards and price comparisons are a tap away, but product reviews, how-to videos, the friend on Facebook with an opinion on everything, and other sources of hard facts and completely subjective impressions.

Brands and their retail partners must adjust to the reality that in the new mobile world, no one truly shops alone. The brand’s j-hook displays are no longer the only connection to the customer. Smart brands must now consider how mobile devices at every step of the customer interaction will significantly change behavior, as their customers will be looking to their phones as a source of information, opinion, prices and promotions. Thousands of apps are out there, but the truth is that users with only a few apps installed on their phones still disrupt industries in new and surprising ways.

* Republished with permission from Paybefore, as published September 2012.

ABOUT THE AUTHOR

Joseph DeSetto is Paybefore’s emerging payments blogger and program manager of the Mobile Development Bachelor of Science degree at Full Sail University. He is the author of The Business of Design and previously served as chief technology officer for two mobile startups.

Paybefore™ is the leading provider of information to the prepaid industry. 

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Mark Your Calendars for the Biggest Event in Payments: Prepaid Expo 2013

This is a unique moment for the world of payments, and the prepaid industry is poised for explosive growth and consumer ubiquity. With the influx of new competition in the ecosystem, what are you doing to maximize your firm’s opportunities? What is your outlook for the future? Now is the time to be proactive and win business. 

The 8th Annual Prepaid Expo, March 4-6, 2013 

Book your seat for the Prepaid Expo today to be a part of the largest industry event for prepaid and payments.

5 Reasons You Must to Attend Prepaid Expo 2013

1. 300% MORE Future-Forward Content: 
More than a day’s worth of content focused on the evolution of payments, including: which innovations will be fixtures or fads, how disruptors are charting new courses in commerce, GPR acceptance and what it will mean for prepaid adoption, and sessions devoted to mobile, NFC, EMV and apps.

2.  Regulatory Content to Mitigate Uncertainty: 
More than a day’s worth of insight from regulators, lobbyists and industry and consumer advocates alike, all to help you interpret the rules and regulations and understand how compliance will affect you.

3. 250+ Retailers in Attendance: 
Two days of content tailored for retailers’ unique needs to grow the gifting category, including in-store marketing and re-selling strategies, eye-catching design, digital gifting, loyalty programs and B2B growth strategies.

4. Senior-Level Decision Makers: 
With more than 50% of Prepaid Expo attendees in C-Level, Founder, President and VP-Level roles, Prepaid attendees meet who matters across the industry. Qualifying executives have access to our exclusive Executive Agenda, which provides executives with three full days of business meetings, executive idea exchanges, private sessions focused on strategy and EXCLUSIVE Q&As with our keynote speakers. Space is limited, so apply by clicking here.

5. Save Money, Miles and Time. 
The stored value community stops for 3 days to attend the Prepaid Expo. You’ll meet 1,700 like-minded peers, acquire new partners and strengthen existing relationships at the meeting place for prepaid and payments professionals.

REGISTER BY OCT. 26 2012 FOR THE BEST RATES & SAVE UP TO $800

* Mention your Prepaid Expo Blog VIP code to SAVE 10% off the standard and onsite rate: XU2648BLOG10

Online: www.prepaidexpousa.com
Email: customerserviceiir@informausa.com 
Phone: 888.670.8200 or 941.951.7885

The Prepaid Expo is THE BEST WAY to scope out the competitive landscape and network with industry peers at this critical time in payments. 

RSVP here and invite your colleagues: 
LinkedIn
Facebook

We look forward to seeing you in person next March!

Get Involved:

Are you looking for a creative way to reach top-level decision-makers? Why not consider sponsoring a luncheon, cocktail party or refreshment break, or an Exhibit Booth? For more information on sponsorship or exhibition opportunities, please contact Terri Sobol at +1 646-895-7473 or email tsobol@iirusa.com. 

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It’s going to be very difficult to compete as a pure prepaid-debit play, going forwards

Have you joined our discussions on Facebook yet?

Like us to join here, www.fb.com/Prepaidexpo and tell us your thoughts on the topic.

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Groupon Joins the Crowd in Mobile Payments

Groupon, the popular deal-of-the-day website, recently announced that it will now join the already crowded waters of mobile payments. With the launch of Groupon Payments, merchants are now able to accept credit and debit cards by swiping through a card reader attached to a smart device.



In an almost mirror proposal to its leading competitor, Square, Groupon touts that their service will guarantee the lowest rates possible, or match the lowest available. The new rates systems are structured in three tiers:

 • Swiped transactions — MasterCard, Visa and Discover (1.8 percent plus 15 cents) and American Express (3 percent plus 15 cents)

• Keyed-in transactions — MasterCard, Visa and Discover (2.3 percent plus 15 cents) and American Express (3.5 percent plus 15 cents)

• Non-Groupon merchants can also sign up for the service, however, they will be charged slightly more (2.2 percent plus 15 cents for MasterCard, Visa and Discover) Square offers 2.75% on all transactions or a flat $250 per month fee for businesses that generate less than $250,000 a year in revenue.

The new Groupon Payments Service also introduces a Merchant App. The app allows the merchant to accept daily deals, update business reports in real time, and also to scan and redeem Groupons which could attract those who already participate in offering Groupons to customers. The app will primarily be operated by the merchant until the customer will need to designate a tip and sign a digital receipt with their finger as they would any ordinary credit card device.

After the transaction is complete, the customer will receive an email with an electronic receipt. Payments through Groupon will have a quick turnaround. Merchants will be able to view transactions online immediately, and will be receive cash in their bank accounts from transactions of the day overnight.

 
As far as physical card swipers, Groupon has developed two methods to attach the reader to smart phones; a card reader dongle attachment, and a sturdy phone case. The card reader dongle attachment in appearance is like any of the ubiquitous card readers that are offered by Square and other services. The phone case reader is just that, a phone case that is attached to the smart phone in a sturdy non-intrusive package. The dongle is free when merchants sign up for Groupon Payments, the phone case on the other hand is available for $100.

In an interview with AllThingsD, Mihir Shah, Groupon’s VP of Mobile and Merchant Products, noted that he doesn’t think that Groupon Payments will compete with Square, rather it is targeting existing “Groupon merchants, who are running a brick-and-mortar restaurant business, like a restaurant or spa, and have already been accepting credit cards for a long time, and have high volumes,” he said. “The thing that comes up again and again is credit card processing, and we think they are paying too much.”

Though Groupon (NASDAQ: GRPN) stock price has dipped in recent months they aim to diversify their revenue streams by entering the already crowded waters of alternative mobile payments market. As the mobile payments space grows, services will attempt to one-up each other in order to become more appealing to, the real benefactors of their efforts, merchants and customers.

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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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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Cashless Food Trucks

Have you ever wished that whenever you get something to eat at a stand or a truck on the side of the road, you wouldn't need cash to pay for your purchase? Wouldn’t you love to just use your debit or credit cards to pay for that two-dollar frank or fifteen-dollar lobster roll? 

Well, gourmet food trucks are now allowing the use of debit and credit cards. They are now equipped with tablets and smartphones for credit card payments and email receipts to paying customers. 

Red Hook Lobster Pound truck (Photo: mediageek)

Global transaction will increase from $241 billion in 2011 to $1 trillion in 2015. Gourmet trucks used to be a cash only operation but with the prices and the times changing, it was only a matter of time for the use of credit cards. 

Gourmet trucks are using Square and with that attachment, the business can then accept the payment. The other fact that works with the usage of credit cards is that the business can adjust the state taxes accordingly. 

Red Hook Lobster Pound Truck is one of the trucks that are utilizing this aspect of card transactions. This allows the trucks to travel through each state and adjust the taxes. 

But one of the problems with accepting electronic payments is the wireless connection. The hope for trucks to combat the connectivity disadvantage is that carriers continue to improve 4G LTE networks. Even though NFC seems to have a bright future in the way people receive payments, there are downsides to it. A merchant must acquire NFC readers and consumers have to buy NFC-enabled phones. 

The efficiency of mobile payments is still improving but there is something there. Businesses can integrate their mobile-payment transactions with QuickBooks, which unifies bookkeeping. Of all the innovations that are moving from cash to plastic cards, who would've thought the last item that would be on the list would be a food truck?

The food truck concept is already a great convenience for someone who does not want to pay a whole lot of money (unless you want lobster rolls) and keep on going. But now that some truck owners are going to use modern devices so that you can now use your cards it is even better. 

About the Author

Adam Wells studies English at Pace University.

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