Peter Guidi's Blog

Big Data and Mobile Payments: Three priorities.

In Uncategorized on March 28, 2013 at 9:11 am

The three high-level goals of a Big Data program are:

  1. Collect information: The objective is to collect information that deepens the understanding of customer’s plans, intentions and behavior so the organization has a basis for decision and action. The first step is to collect and save all of the digital breadcrumbs. The challenge is, since we can’t understand consumer behavior that we don’t have, we need to collect everything. Since it’s impossible to know the future value of data we must hang on to it for a very long time.
  2. Conduct Analysis: Big Data really means Big Data Analytics. The challenge is to find relevance in an ocean of information. There are multiple trends occurring within the consumer base, some evolve quickly, some play out more slowly. The goal of analysis is to provide insight and opportunity to the decision makers managing the business.
  3. Take action: More tactically, it is what you do with the information that counts. The key to Big Data and mobile payments is the dialogue that occurs between the consumer’s mobile application and the POS during the purchase cycle. The objective of action is to promote more profitable consumer purchasing behavior.

The success of mobile payments begins with transactions. Transactions are a result of consumer enrollment and adoption. Enrollment and adoption require constant visibility and consumer incentives, in ways similar to advertising typical of the current payments paradigm. The difference is that Retailers rather than Financial Institutions are promoting the method of payment. The key to ROI is engaging consumers and creating demand using Big Data solutions during the purchase cycle. This is the connection between BIG Data, mobile payments and the POS.  Access to Big Data during the purchase cycle requires an integration that is tightly coupled to the POS at the transaction services layer.

The retailer controls payments in the mobile environment. Retailers are being very careful about who they allow into the wallet…MCX is an outgrowth of this concern. Retailers are concerned that the current card fee structure will become the standard in mobile payments. Retailers are asking, “How do mobile payments make me money or even justify the infrastructure investment”. While the current focus on mobile payments are POS enablement and transaction fees, tomorrow the focus will be driving new business through consumer engagement. Big Data is the backbone of demand generation and the POS controls how Big Data solutions are enabled.

Smart phone technology changed the expectations of consumers, merchants and eco-system partners. The smart phone has also changed the way consumers do business; integrated mobile payments at the POS is the last frontier.

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