Matt Quinlan - CTO, Visa
Visa platform metrics:
> 30k transactions/second capacity
> Our peak last year was 12k transactions/second
> 150 million transactions/day
Usher Lieberman, Director Corporate Communications, TheFind, Inc.
"We optimize for the best user experience, not necessarily for the most revenue."
"New tech has to be 10x better. It has to solve real consumer pain points. Consumers and merchants have no appreciation of the complexity behind a transaction. To wallet or not to wallet? Consumers don't think about mobile wallets . . . Cards work just fine for consumers. Most mobile solutions solve marketing problems . . . Excited about wallets that don't claim to be wallets - Braintree - über - enter card info once. The friction is low."
Gregory Gresh, CEO MPayMe (znap pay)
"Can payees dictate mobile transactions? FI driven systems have been successful systems. Merchants can afford to wait and see, but they are missing opportunities . . . Stay away from pure payment plays - look at end to end plays - retailers don't get value out of interchange - but they would if paired with coupons, etc. . . . I see a market change for networks of they don't adapt."
"WIIF is the question merchants are asking. Where merchants have incentive to adopt, that is what will win . . . I would never have thought Verifone would be in such disarray. Must keep up with innovation. Being a pure play hardware player had not worked out well. We act like Switzerland."
"Mobile campaigns do not can cannibalize e-commerce, if anything they enhance . . . Visa will be friend in ecosystem . . . Our service is about driving consumer awareness to drive transactions . . . Working with merchants directly works best to integrate with their POS. having one-time use coupon code is very important."
"In the course of the consumers purchase journey, you can give the consumer the opportunity to give or sell them your currency - branded marketing currency drives continued engagement and loyalty . . . I built tech at Visa - mining social graph - payment data - frenemies - partnerships are the name of the game vs. building all internally and offering full solution . . . Wallets are payment credentials. We should look at it as consumer identity and wrap value around it. Tying consumer identity to each transaction is key to prevent fraud . . . Leading with pay tech only has not worked."
Darren Beyer, Head of Platform, CARDFREE
"Were taking the learnings from Duncan and Starbucks and building from there. We are building a smart engine that engages the customer . . . Visa is everywhere, but they are not good at targeting. Merchants are good . . . How do I make phone talk to POS? Explain to merchant all they need to do us add bar code reader . . . What is critical is part of our smart engine concept. Instead of sending out campaign to everyone, get them to register and create smart offer to enhance ROI. One thing startups don't like to think about is risk and fraud. One of the things we do us look at offers the same as payments in regards to fraud . . . slickdeals.net - highlights how consumers gamed or abused offers by redeeming coupon thousands of times - a consumer doing it a few times is not a problem . . . Sadly disappointed industry has not achieved standardization - can't say what it will be . . . POS providers will introduce channel conflict - interesting play . . . must add value beyond payment."
"It's a safe bet to invest on your app, your tenders, your brand. Retail apps have grown 525% in past year. 82% of time is spent interacting with app vs. 18% mobile web. Mobile's biggest influence is on driving in store sales . . . five mobile trigger points
1 - discovery
2 - check in, menu preview, data
3 - driven offers, in restaurant & at table mobile interactions
4 - mobile payment checkout
5 - ereceipt, promotions, social sharing
. . . Payment is the most impactful customer touchpoint. It is when prospects are transformed into customers . . . can monetize CPC, CPA in app so much it can produce a substantial revenue stream."
"With native app transactions are quicker than HTML5 and you can do push offers through app . . . mobile drives 30 - 40% of our sales . . . We hired Mobify to outsource our mobile commerce app - but our CEO comes into office and asks, don't I need to own this?"
Eddie Myers, President & COO, PayPros
"60% of smart phone users wake to their cell phone. Mobile phone is already in hand at line in Starbucks."
>The obstacles - adoption and sustained traction:
- real consumer value and seamless acceptance
- mag stripe does not loose power
> Everything must be ubiquitous, frictionless, simple
> Driving adoption: software differentiation through payment innovation
> Decision buying cycle is changing: consider > evaluate > advocate > buy
> What if it came turned on?
- It must be integrated.
- It must work with existing equipment.
- It must be simple.
- Spending time on real-time card redeemed offers is the big future winner.
> Visa thinks of the phone as a remote control for the card."
Arif Ahmed, SVP, Mobile Payments Innovation, US Bank
"We are not trying to replace mag stripe. We are interested in consumer engagement. How can we make it easier to overcome fragmentation? We are trying to make whole process frictionless. As far as data is concerned, US ad market is 150 billion dollar market. We know offers are going to be big deal. Context is data that banks have, Facebook has and Google has . . . Today transactions are still running on 30-year old platform. With mobile it will change because of all the extra data like location or offer data. We would not like to decline transactions if we can mobile verify that a customer is in the Bahamas. We are over sharing data right now . . . Making customers relevant offers makes it easy for us all. We can be conduit for offers. Top of wallet is going to change with mobile. We are trying to use data to give consumer incentive to put card on top of wallet. We have certain data across certain merchants. Merchant has SKU but not holistic data that banks do. I think data will be shared where they can get best ROI . . . Offers are not new for banks - been sending for 20 years. Offers are small offers right now - not for buying car - get $5 off . . . Companies that followed PayPal had much more regulation. A bank does not want to be a retailer or carrier. When retailers realize how expensive it is to be a bank then they may not want to be in it . . . Web scraping does not happen with permission of bank - like Mint - it's not easy to walk away from such a service."
Michael Niemann, Director, Strategic Planning and New Business Development, T-Mobile
"Privacy is number one issue for carriers. Mobile is 23% of mindshare of consumers but only 1% is monetized. You can't conduct national campaign without unified platform.
Joanna Lambert, SVP of Strategy & Business Innovation, Enterprise Growth Group, AMEX
In response to moderator's (Rick Oglesby of Aite Group) question about 300 million dollar spend to acquire Revolution Money and asking about Bluebird:
"In 2008-09 there was a lot of consolidation. Revolution Money was a software platform we have been able to utilize. It drives a lot of cultural change into the company. We've become more software based. It's allowed us to bring in talent from likes of PayPal. With Serve we launched with a funding agnostic platform, a prepaid card and the 'Serve' brand . . . Zynga - FarmVille - we're helping them to better their brands. We made an investment in Payfone . . . We had a big hit with Bluebird thru Walmart. Within 3 months we had 375k new customers. with Bluebird remote deposit capture is new. 70% of Americans live paycheck to paycheck. Getting the funds loaded onto account right away is very important . . . the alternative banking opportunity is huge - 45 billion in fees . . . We have a few advantages (over Visa/MC banks). We don't have expense of banking infrastructure. We have long history of customer service. We've done a lot with Open network . . . Some were second guessing why we were linking card and digital wallet. Now we want to leverage the Amex brand . . . iI you get stuck on strategy it will hurt you. Must be able to pivot. Look at what consumers need and solving their pain points . . . no bluebird from j-hook - on payback, merchant coalition - we are looking at global strategy for it . . . there is not enough room for all wallets and merchants are building own wallets. Starbucks is interesting. They started with existing use case and turned it digital. The key is to start with something simple."
My question: Are you building a mobile wallet that will enable mobile wallet infrastructure for both private label and universal or coalition wallet?
Joanna: "We are investing in infrastructure in mobile wallet. The future is unclear."
"We have 265 locations now. We are a self serve store. We allow customers to create thru app and have it be fun because we don't have a lot of interaction. Our app is something we can control . . . We wanted something that could integrate into our loyalty program and allow us to pay and engage customers. We are never going to have presence of bigger brands . . . Finding a solution that did not add cost or change to POS platform was a key. We needed better data. We wanted better customer engagement
. . . the biggest biz case is franchise buy in. The solution we are looking at has several different pay options. Our prepaid app is very important. We will accept all tender types. We interfaced with POS system - QR code comes up and customer scans it. we use Paydiant thru loyalty card provider."
We do not have legacy or brick & mortar branches. It's about taking advantage of opportunities . . .
We were given money and opportunity to build mobile wallet. I said hey we gotta do this! The real key was getting key executives to participate in pilot. We first needed to educate people first on what a mobile wallet was. The tough part is we have not gone any further with it
. . . There was no biz case - but going forward we will need one. We don't share data with anyone. We have more data than fed government. We must get over sharing of data. Historically we've been a fast follower."
"Blurring of lines between payment, ad tech and data companies. We don't have cookies on iOS or Android. We're talking with CPG's and automotive . . . Need biz dev to frame to large firms and vice versa big firms need to be able to know startup culture . . . I'm the guy who writes check at seed or dream stage. Our investment is on team to execute. In startups we measure growth in weeks. Some of the founders are some of the brightest guys I've met . . . 10X at A and 5X at B and I'm sitting pretty good. I'm looking at 30% success rate and a minimum of 2X ROI . . . Must have innovation filter team. Innovation is the difference between 1-2 points and even survival. It's the only way Citi or Visa is going to capture top candidates. Folks at Citi have 526 emails in inbox, so I'm going with experienced biz dev guy very early. (To young professionals) work for series C company first then goto B and before startup."
Allen Weinberg, Partner, Glenbrook Partners
"Things are going to shake out pretty fast (in payments) . . . I find it a little sad that innovation is not coming out of incumbents, it's coming out of startups. Braintree starred as PowerPoint project. They are solving real problems about payments dial tone. TabbedOut, Marqeta a single piece of plastic with multiple tender types is like Blackhawk in the cloud. It can dial down to merchant location . . . Tier one's replace POS system every 3 years or so. There are people laying awake trying to figure out how to add 2-3 points to bottom line. I will pay big money to buy new customers or on programs that increase spend
. . . A lot of the smart innovators out there are making it a marketing decision and not a technical one.
If you are in a retailer the rev gen side is always going to have more resources. First Data just acquired Clover. But you'll never hear about it. They are trying insulate them (from corporate influence)."
Andy Radlow, Citi Prepaid
"FI's are being forced to focus on strengths. Look at Citi. They have a rotten US retail presence. Innovation within the financial services ecosystem does not foster innovation . . . Greendot is old guy. The mid-tier was Braintree. The newbie is Open Coin . . . We only work with large retailers. Major retailers are flush with opportunities. For them it's about risk aversion and ROI."