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Why mobile payment systems aren’t catching on

Mobile payment platforms offer convenience, enhanced security, and more, so why aren’t more customers using them?

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Mobile payment systems and adoption rates

Samsung’s new mobile payment system, scheduled to release this summer, will solve on of the biggest limitations of Apple’s mobile pay system: the ability to work anywhere. Samsung’s system will work even at the millions of old-fashioned checkout terminals that don’t have a wireless connection.

While this is definitely a step in the right direction, Samsung faces a different, although equally serious, problem: none of the major mobile phone carriers have announced the pre-installation of Samsung’s software, meaning customers may have to add it on their own.

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Apple has deals with carriers to enable them to have greater control over hardware and software features. Add Google’s recent partnership deal (with formerly known Softcard) to add better pay technology to Google Wallet, and Samsung’s problems just got a bit more serious.

It’s not just Apple, Samsung is in on it, too

Samsung unveiled their new technology at the Mobile World Congress in Barcelona as part of the Galaxy S6 smartphone. The new phone will include a Near Field Communication chip, just like the latest iPhones, allowing the payment system to work wirelessly at stores with similarly equipped checkout terminals.

But, Samsung is also using the technology it recently acquired when it bought LoopPay last month. This allows a phone to send out magnetic signals, which can be registered as a swiped credit card at old-fashioned checkout registers. This allows the technology to work wherever credit cards are accepted.

Apple has seen greater success with Apple Pay than any previous mobile payment effort. But since Apple Pay requires one of the latest iPhones and only works at a fraction of U.S. retail outlets, that success is still limited. This could be one of the reason why some brands are giving away free card readers: to help adoption rates. As Matt Shultz, senior industry analyst at CreditCards.com aptly put it: “The biggest obstacles to mobile payments usage are convenience and security. Consumers are already very comfortable swiping their credit and debit cards. Most people don’t see why a mobile payments service would be quicker, easier or more secure.”

Study addresses adoption rates

A recent study by CreditCards.com and Princeton Survey Research Associates International (PSRAI) found U.S. consumers are no more interested in paying for purchases using mobile phones than they were six months ago, when Apple unveiled its high-profile pay-by-iPhone technology known as Apple Pay, according to a new poll from CreditCards.com.

The poll suggests that even though the number of mobile payments is growing dramatically, with Apple Pay becoming a dominant method, skeptics of paying by phone remain unmoved. Mobile payments in the U.S. are expected to nearly triple in the next five years, to $142 billion in 2019, according to the latest projection from Forrester Research. The fastest growing subcategory is in-person payments, like mobile wallets and are expected to grow tenfold in the next five years from $3.7 billion in 2014. Other mobile payment categories, peer-to-peer transfers, and remote transactions, are anticipated to grow more slowly.

Much of the growth will come about due to Apple Pay

Apple Pay certainly wasn’t the first mobile wallet, but Apple introduced a core of loyal followers to the concept. Peter Olynick, practice lead with Carlisle & Gallagher Consulting Group stated, “Apple Pay was a major event just because of the size, scale and number of people …the fan base, if you will…that Apple brings with it; given the size of that company, it is almost impossible for them to do anything small.”

While I agree with this sentiment, I think there’s something about Apple people, by and large, find to be innately innovative, whether it is or not. Apple lovers were anxious to test out Apple Pay just for the sheer novelty of the concept and now with multiple data breaches from companies like Home Depot and Target, people are more worried now about security, especially mobile security than ever before.

The takeaway

While mobile payment platforms offer convenience and novelty, it may be a while before consumers fully trust and understand them enough to use them with consistent regularity.

#MobilePayments

Jennifer Walpole is a Senior Staff Writer at The American Genius and holds a Master's degree in English from the University of Oklahoma. She is a science fiction fanatic and enjoys writing way more than she should. She dreams of being a screenwriter and seeing her work on the big screen in Hollywood one day.

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How to personalize your site for every visitor without learning code

(TECH NEWS) This awesome tool from Proof lets you personalize your website for visitors without coding. Experiences utilizes your users to create the perfect view for them.

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What if you could personalize every step of the sales funnel? The team over at Proof believes this is the next best step for businesses looking to drive leads online. Their tool, Experiences, is a marketer-friendly software that lets you personalize your website for every visitor without coding.

Using Experiences your team can create a targeted experience for the different types of visitors coming to your website. The personalization is thought to drive leads more efficiently because it offers visitors exactly the information they want. Experiences can also be used to A/B test different strategies for your website. This could be a game changer for companies that target multiple specific audiences.

Experiences is a drag-and-drop style tool, which means nearly anyone on your team can learn to use it. The UX is meant to be intuitive and simple, so you don’t need a web developer to guide you through the process. In order to build out audiences for your website, Experiences pulls data from your CRM, such as SalesForce and Hubspot, or you can utilize a Clearbit integration which pull third-party information.

Before you go rushing to purchase a new tool for your team, there are a few things to keep in mind. According to Proof, personalization is best suited for companies with at least 15,000 plus visitors per month. This volume of visitors is necessary for Experiences to gather the data it needs to make predictions. The tool is also recommended for B2B businesses since company data is public.

The Proof team is a success story of the Y Combinator demo day. They pitched their idea for a personalized web experience and quickly found themselves funded. Now, they’ve built out their software and have seen success with their initial clients. Over the past 18 months, their early-access clients, which included brands like Profitwell and Shipbob, have seen an increase in leads, proposals, and downloads.

Perhaps the best part of Proof is that they don’t just sell you a product and walk away. Their website offers helpful resources for customers called Playbooks where you can learn how to best use the tool to achieve your company’s goals be it converting leads or engaging with your audience. If this sounds like exactly the tool your team needs, you can request a demo on their website.

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Tech News

3 cool ways bug-sized robots are changing the world

(TECH NEWS) Robots are at the forefront of tech advancements. But why should we care? Here are some noticeable ways robots are changing the world.

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Bits of robots and microchips changing the world.

When we envision the robots that will (and already are) transforming our world, we’re most likely thinking of something human- or dog-sized. So why are scientists hyper-focusing on developing bug-sized (or even smaller!) robots?

Medical advances

Tiny robots could assist in better drug delivery, as well as conduct minor internal surgeries that wouldn’t otherwise require incisions.

Rescue operations

We’ve all heard about the robot dogs that can rescue people who’ve been buried beneath rubble or sheets of snow. However, in some circumstances these machines are too bulky to do the job safely. Bug-sized robots are a less invasive savior in high-intensity environments, such as mine fields, that larger robots would not be able to navigate without causing disruption.

Exploration

Much like the insects after which these robots were designed, they can be programmed to work together (think: ants building a bridge using their own bodies). This could be key in exploring surfaces like Mars, which are not safe for humans to explore freely. Additionally, tiny robots that can be set to construct and then deconstruct themselves could help astronauts in landings and other endeavors in space.

Why insects?

Well, perhaps the most important reason is that insects have “nature’s optimized design”. They can jump vast distances (fleas), hold items ten times the weight of their own bodies (ants) and perform tasks with the highest efficiency (bees) – all qualities that, if utilized correctly, would be extremely beneficial to humans. Furthermore, a bug-sized bot is economical. If one short-circuits or gets lost, it won’t totally break the bank.

What’s next?

Something scientists have yet to replicate in robotics is the material elements that make insects so unique and powerful, such as tiny claws or sticky pads. What if a robot could produce excrement that could build something, the way bees do in their hives, or spiders do with their webs? While replicating these materials is often difficult and costly, it is undoubtedly the next frontier in bug-inspired robotics – and it will likely open doors for humans that we never imaged possible.

This is all to say that in the pursuit of creating strong, powerful robots, they need not always be big in stature – sometimes, the tiniest robots are just the best for the task.

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4 ways startups prove their investment in upcoming technology trends

(TECH NEWS) Want to see into the future? Just take a look at what technology the tech field is exploring and investing in today — that’s the stuff that will make up the world of tomorrow.

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Woman testing VR technology

Big companies scout like for small ones that have proven ideas and prototypes, rather than take the initial risk on themselves. So startups have to stay ahead of technology by their very nature, in order to be stand-out candidates when selling their ideas to investors.

Innovation Leader, in partnership with KPMG LLP, recently conducted a study that sheds light onto the bleeding edge of tech: The technologies that the biggest companies are most interested in building right now.

The study asked its respondents to group 16 technologies into four categorical buckets, which Innovation Leader CEO Scott Kirsner refers to as “commitment level.”

The highest commitment level, “in-market or accelerating investment,” basically means that technology is already mainstream. For optimum tech-clairvoyance, keep your eyes on the technologies which land in the middle of the ranking.

“Investing or piloting” represents the second-highest commitment level – that means they have offerings that are approaching market-readiness.

The standout in this category is Advanced Analytics. That’s a pretty vague title, but it generally refers to the automated interpretation and prediction on data sets, and has overlap with Machine learning.

Wearables, on the other hand, are self explanatory. From smart watches to location trackers for children, these devices often pick up on input from the body, such heart rate.

The “Internet of Things” is finding new and improved ways to embed sensor and network capabilities into objects within the home, the workplace, and the world at large. (Hopefully that doesn’t mean anyone’s out there trying to reinvent Juicero, though.)

Collaboration tools and cloud computing also land on this list. That’s no shock, given the continuous pandemic.

The next tier is “learning and exploring”— that represents lower commitment, but a high level of curiosity. These technologies will take a longer time to become common, but only because they have an abundance of unexplored potential.

Blockchain was the highest ranked under this category. Not surprising, considering it’s the OG of making people go “wait, what?”

Augmented & virtual reality has been hyped up particularly hard recently and is in high demand (again, due to the pandemic forcing us to seek new ways to interact without human contact.)

And notably, AI & machine learning appears on rankings for both second and third commitment levels, indicating it’s possibly in transition between these categories.

The lowest level is “not exploring or investing,” which represents little to no interest.

Quantum computing is the standout selection for this category of technology. But there’s reason to believe that it, too, is just waiting for the right breakthroughs to happen.

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