EDITOR'S
NOTE
BY
EMILY
REFERMAT
M2V: The perfect
payment match
Using mobile wallets to make purchases at a vending machine is a win-win
M
obile wallets have made waves since
Google launched its version in
2011. Personally, I think it's a great
addition to the up and coming smartphone culture. People are rarely without
their phones, why not also make it their
wallet. It would be so convenient — the
buzz word for millennials. The problem is
security and getting consumers, merchants and manufacturers to embrace it.
Security issues are something the providers are aware of and actively addressing.
Google holds information on secure
servers and encrypts
payment information
with SSL. Isis, which
announced a national
rollout of its mobile
wallet in July, places
the card information
on secure element
chips on the phone
with changing security codes.
PROMOTIONS
encourages
mobile
wallet usage
Loyalty programs
As for the world
embracing the
technology, a recent whitepaper by Dominic Hofer, CEO of Loylogic, claims that
loyalty programs will drive digital wallet
growth. Adding the ability for consumers
to redeem loyalty program points while
paying with the mobile device will provide
enough incentive for consumers to change
their behavior, merchants to change their
point of sale systems and handset manufactures to change devices. Already, this
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has begun. Mobile payment provider Isis
has partnered with Coca-Cola so consumers using bottler vending machines, and
who pay with their smartphone, can earn
My Coke Rewards towards a free beverage.
USA Technologies also announced a
new loyalty program with Isis — the 'Fifth
Vend Free' program. Customers are eligible to receive free products from a vending operator based upon loyalty rewards
earned by using the Isis Mobile Wallet™
for purchases at a qualifying terminal.
Most micro market kiosks already
allow customers to pay by smartphone,
usually through a connection to their
personal micro market account.
Evolving world
For those who point to the rather slowerthan-expected mobile wallet adoption,
I point to recent fgures showing an
increase. A 2012 Toluna QuickSurveys
poll of mobile payment adoption by age
group showed those aged 18 to 34 were
increasingly reliant on mobile payments
with 44 percent reporting they preferred
to pay with a mobile phone.
A recent statistic put the purchase
of smartphones (iPhones specifcally)
higher than babies born per second, world
wide — 4.6 compared to 4.2, respectively.
And smartphones are popular across
many age ranges, which can't be said
for other types of technology. Even in
vending, the number of users who read
VendingMarketWatch Daily Update or
visit the Website from a mobile device has
increased. Mobile to vending, or M2V is
just a matter of time.
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