Page 16 - Advanced_Payments_Report_2014

ADVANCED PAYMENTS REPORT 2014 – SPONSORED BY

Quick Response (QR) Codes restaurant and bar industry, enabling customers to check in when
they arrive, monitor their tabs and walk out without waiting for their
QR codes are another technology that can link the physical world
bill when they are done. Their purchases are charged directly to
(a consumer’s smart phone in a store) with other devices (a POS
their card or account provided when they registered for the service.
terminal) to trigger a payment.
The innovative design of frictionless payments has shown positive
Starbucks’ enormously successful mobile app proves the model for results among consumers and is one of the trends to follow in 2014.
individual retailers, with Starbucks reporting that mobile and gift
card payments now account for more than 30% of total US payments. Software or Hardware?

Other applications such as LevelUp in the US and FlashIz in Europe The location of the payment credentials is central to the question
are leveraging the technology in a multi-merchant environment. of which technology will be most successful. Achieving the balance
However, to be successful as an open payment system, they must between security and customer experience is limited by the terms
conquer the chicken and egg dilemma of recruiting both consumers of the technology chosen.
to use their apps and merchants to accept them. This year’s survey results indicate that the most suitable candidate
Other Cloud Solutions for the secure element is likely to be software based (e.g. cloud) by

a substantial margin over prior years. SIM and embedded chips still
Applications are emerging that integrate the payment process
seamlessly into the “shopping” experience. Uber was one of the frst were felt by many to ofer the best solutions, but there is a notable
to innovate in the taxi business, making it easy and transparent to shift in favour of software solutions compared to prior years.
order a taxi while incorporating the payment process automatically Maybe the right question is not which technology will win, but how
on the back end. will these technologies interact and co-exist?
Other applications are targeting similar experiences for the From the consumer perspective, technology is largely irrelevant,
and in the end, the technology that
provides the best balance between user
The most suitable candidate for the “secure element”
experience and security will prevail.
(% of respondents who agree or strongly agree)

Some form of a software based secure element
saved in the cloud 41%

The SIM (or UICC) card 23%

Embedded chip in mobile phone 22%

Other, please specify 9%

Micro SD card 5%
0%
10% 20%
30%
40%
50%

16 www.edgardunn.com | www.paymentscardsandmobile.com Edgar, Dunn & Company in association with Payments Cards and Mobile