iphone 5 will get us closer to going cashless

The future is mobile and according to Fast Company, Apple is helping it edge forward another step.

Currently under development, iphone 5 due for release in 2011 is being touted to feature cashless payment technology. According to the article in Fastcompany, Apple has just taken out a patent on RFID technology which will enable them build an RFID loop into their iphone circuitry to act as both an RFID tag or tag reader.

This is an exciting revelation that provides further proof that retail has truly shifted to being ‘anywhere a transaction happens’. By thinking of the ‘store’ in these terms, brands open up new opportunities to create even more value, convenience, delight (and differentiation) for shoppers.

The penetration of smart phones will be at the heart of the digital path to purchase. In the USA, Nielsen predicts 51% of all consumers will own a smart phone by 2011. Whilst Morgan Stanley has predicted that by 2014 more Americans will be accessing the internet via mobile devices than desktop computers.

This has massive implications for brands and retailers who will be defined by how they adapt, harness and apply convergent digital solutions into their marketing.

According to the In-Store Marketing Institute, marketers will need to do the following to take full advantage of the new digital era:

1. Focus on insights
2. Look beyond the brand to solutions
3. Focus on message, audience and technology (in that order)
4. Develop relevant content
5. Target
6. Commit the organisation
7. Integrate activity
8. Test
9. Scrutinise partnerships
10. Be ready to adapt

For me, the key points here are integration and ensuring that technology remains the servant (not the master). An exciting time.

No cash? No worries

Contactless payment is a technology more brands are adopting into their retail* spaces.

For me, this is direct evidence that the promise of "convenience" is now far, wide and even more expected by customers/ shoppers.

In the US, Visa has just recently launched their contactless payment alternate for New Yorker commuters using a bus, subway, train and taxi. Payment can be made via a pay-wave card or by downloading an app to their smart phone. According to the article in Mobile Commerce Daily "the programs in New York and New Jersey are part of Visa’s long-term strategy of extending the speed, security and convenience of Visa acceptance to new locations."

To a different type of Subway, contactless and cashless payment is starting to evolve more rapidly particularly in high-demand convenience industries such as QSR. In countries such as Asia (think Japan and Korea) and the USA it's helping to facilitate easier customer transactions. Customer benefits include convenience (ie: 'order ahead'), speed and personalised service whilst restaurants are being attracted by increased revenue from larger order sizes (evidence from GoMobo points to this), faster order handling and greater opportunity to build & retain loyalty.



* retail = defined as anywhere a transaction occurs (not just a physical store)