How will Apple's new mobile wallet Passbook impact other mobile wallets?

Drew Giovannoli

Drew Giovannoli, Techstars Alum, Ventes et marketing @ Fosbury.co, Expert du portefeuille, Gourmand, Musicien, Voyageur

Mise à jour il y a 255w

Over a year since the Passbook release, and I wanted to chime in on the impact Passbook has made in the mobile wallet ecosystem, specifically for the use of mobile coupons, loyalty cards, and gift cards.

These forms of "branded currency" make up $165 billion dollars in purchasing power each year (http://blogs.hbr.org/2013/07/the...), only 5% of which is digital. No one doubts that there is a tremendous opportunity here, and Passbook has certainly led the way with usability & adoption.

How will Apple's new mobile wallet Passbook impact other mobile wallets?

To set the stage, let’s take a look at the most obvious alternative, mobile applications. There are about 1 million apps in both the Google Play store and the Apple App store. Out of the apps that are downloaded, the biggest segment among iPhone and Androids are games at 33% and 37% respectively. If you also consider that the global average number of apps downloaded on each smartphone is 26 (as reported by Mashable Chart: The Average Smartphone User Has Installed 26 Apps | Statista), it's clear that your odds of getting an application downloaded are slim.

So how are mobile wallets any different? Well the beauty of a mobile wallet is that they are pre-installed across most mobile devices. Passbook is installed across every iPhone running ios 6 and higher (we're now on ios 7). Google Now, which can display your Google Wallet offers without an app, is pre-installed on Android Jelly Bean 4.1 and higher. So what this means is that you can reach all of your customers not through a crowded app store, but through a single link. You now have the potential to reach your customers where ever they exist, from emails, to Facebook, phone lists to twitter. Finally, brands can distribute promotions to an audience in an indiscriminate way.

In addition to Apple Passbook and Google Wallet, many players have jumped into the market like Samsung Wallet and Windows Wallet, but due to the fact that Apple and Google come pre-installed on phones, their penetration can run much deeper.

How will Apple's new mobile wallet Passbook impact other mobile wallets?

Time to talk facts about the total impact of branded currency in mobile. The stats I'll talk about can largely be found by purchasing the report here:

https://intelligence.businessinsider.com/welcome? utm_source=House&utm_medium=Edit&utm_term=PASS2&utm_content=link&utm_campaig n=BIIMobile

What's the growth in usage?

A report by BI Intelligence Insider shows the growth of U.S. Smartphone Mobile Coupon Users has grown from 4 million in 2012, to 29.5 million in 2012, and is projected to reach 47.1 million people in 2014.

Have any big brands bought in?

Baseball teams, Starbucks, Ticketmaster, Sephora and More!

American Airlines, currently manages 1.5 million users using Passbook service, and estimates that it delivers 20,000 boarding passes through Passbook per day.

In a Passbook test program during the 2012 season, approximately 12% of Major League Baseball e-tickets for four teams were delivered by Passbook.

Online concert and event-ticketing service Eventbrite delivered 20,000 tickets via Passbook just in the week after the Passbook app launch (5.2% of e-tickets).

These are major players in major industries. It is clear that Apple Passbook has made a major impact on the mobile wallet ecosystem and the future of digital "branded currency."

***I'd love to hear if you agree or disagree, if your business is using mobile wallets, and where you think it's headed next. Thanks for reading.

Drew Giovannoli
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Écrivez-moi au [email protected] si vous avez des questions

Blog: http://fosbury.co/blog
Notre site Web: http://www.fosbury.co

Fosbury crée des promotions mobiles qui aident à générer des ventes via des portefeuilles mobiles. En créant des campagnes telles que des coupons, des cartes de fidélité et des cartes-cadeaux sur Apple Passbook et Google Wallet, Fosbury peut atteindre la majorité des appareils mobiles pour développer votre entreprise. Qu'il s'agisse de messages push, de géolocalisation, de reciblage ou d'analyse de campagne, Fosbury est le moyen le plus intelligent d'impliquer votre client.

Brian Roemmele

Brian Roemmele, Alchimiste et métaphysicien

Mise à jour il y a 331w · L'auteur dispose de réponses 1.3k et de vues de réponses 11.9m

Apple has entered into the mobile wallet marketplace by sticking just a toe in the ocean of mobile payments. In the process Apple will change just about all aspects of discounts, ticketing and payments.

Meet Passbook

Today 6/11/2012, is the moment that many have waited for, the beginning signs of the Apple mobile wallet called Passbook. Passbook is an iOS 6 app fully integrated into iOS 6 with developer APIs to extend current features to other iOS apps. Passbook will have APIs for centrally locating just about all gift cards, loyalty cards, reward cards, incentive cards and ticketing. Much like the iOS Newsstand and Books apps this is more of a conduit for innovations.

Passbook is partly the work of the designer of Starbuck’s very successful 2D barcode mobile payment solution, the mobile wallet and NFC genius Benjamin Vigier now working at Apple. This guy is a powerhouse that designed Paypal Mobile, Sprint MyMoneyManager, Mobile Wallet applications for 2 top #5 US carriers, mFoundry Mobile Banking WAP platform, NFC Wallet for a top 3 US bank and led SanDisk mobile commerce and NFC activities. We will see a great deal of his work at Apple in the coming months.

I have had some time to digest my early exposure and early information about Passbook and can say with rather high certainty we are seeing the first brick in Apple’s “mobile wallet” system.

How will Apple's new mobile wallet Passbook impact other mobile wallets?

How will Apple's new mobile wallet Passbook impact other mobile wallets?

Beautiful Passbook UI.

Passbook, An IOS Wallet API

By creating Passbook Apple will establish a secure standard for storing and sorting virtual cards, tickets and offers in iOS devices. There will be a number of features included on the launch date but many more will be unveiled as the product becomes more integrated with Payment Cards. Apple has already established an impressive number of large retailers to use and integrate Passbook into existing iOS apps, for example Starbucks massively successful mobile payments app (Brian Roemmele's answer to What retailer is the most successful in mobile payments? What can be learned by this success?). More retailers will announce how they will use Passbook in the summer as they realign front end systems and back end systems.

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Passbook's user interface presents the user's personal items in a card-like interface that is updated live as things change. This skeuomorphism (http://en.wikipedia.org/wiki/Ske...) visual design is very much like the former Square Card Case (How important is Square's new stand-alone Card Case app?) that has been replaced by the “Pay With Square” app. Passbook goes far beyond this concept by being a truly open system that any retailer can use regardless of what payment card company is processing the payment. There will also be a rich feature set of controls that allows the user to finely tune the use of the system covering access to personal data and location information on to prior purchase history.

Passbook displays an image that is related to the functionality of the items in the wallet. For example, a coupon has a serrated edge showing graphically that it is a discount. In another example tickets will have a half circle cut at the top to present the image of a Ticket Stub. Each item in the wallet will come with a number of user and merchant set perimeters.

We are really seeing the stage being set for the framework on how Apple will integrate with Visa, MasterCard and the other Payment Card networks.

Caractéristiques notables

Géolocalisation- The appropriate reward/incentive/gift card/ticket will be automatically presented for use as the iOS user enters the retail location. Passbook is integrated with the lock screen so that when the device is near a retailer, a message pops up alerting the user that he or she has a ticket or rewards card that can be redeemed. This very powerful feature will allow users to have instant access to Passbook functions, however in the future retailers will be able to push offers/credits/incentives to users based on a number of criteria including location.

Exemples:

  • Starbucks will integrate their wildly popular Payment System that will open a card in Passbook app when within a preset distance from a store location. The users will have instant access to the Starbucks Payment Card barcode and present the iPhone to scan as normal.
  • Target will be able to present an instant coupon as the user enters the store. The can also notify the user of the balance on registered gift cards.
  • When entering an Amtrak train (CalTrain, Path, Subway) platform, Passbook will notify the user of the amount of credit/rides that are available and present a barcode to be scanned by the ticketing agent.
  • Eventbright, for example could create a "daily deal" integration to help fill local events in the last days or hours of the event maximizing attendance.

How will Apple's new mobile wallet Passbook impact other mobile wallets?

Mises à jour en direct- All cards will have a dynamical update function that allows for up to the second changes to be made and pushed to Passbook and through the a standard iOS notification. Using geolocation and live tracking it will be possible to allow tickets

Exemples:

  • Virgin America may need a boarding gate change and they can push an update on a Passbook ticket with the user receiving a notification.
  • Target will be able to dynamically update the amount on a Target gift card with-in seconds.

Calendar and Reminders Intergration- Passbook will have synchronized tickets and offers with the Calendar and Reminders apps. This will make allow for future events to have a card Passbook that will notify and activate at an exact date.

Exemples:

  • You can purchase an airline ticket that has date exclusions with reminders that can be set to notify you when you are in an open use date.
  • Through the calendar invite function you can push event tickets to friends to RSVP and attend.

With just these basic features combined there will be a rather rich user experience. As developers extend use cases and Apple extends more advanced functionality and integration we will witness a spectacular platform for new wallet/payment innovations. There is even a whimsical shredder that virtually "shreds" as a reenforcement for a card deletion from Passbook.

How will Apple's new mobile wallet Passbook impact other mobile wallets?

Technologie

Apple will be very pragmatic and practical in using technology. Absent in this version is any mention of NFC technology. This is not at all surprising as Apple has not yet released an iOS device with NFC, however there is little doubt that this is on the way (Réponse de Brian Roemmele à Pourquoi l'iPhone 4S ne prend-il pas en charge la technologie NFC? La NFC sera-t-elle ajoutée aux prochaines versions pour iPhone?). Apple is using the simple bar code on the iOS screen for redemption. There will also be other server based ways to access cards on the user’s iOS device through the API that would activate via just Geolocation. All of this integration is just dead simple and just works.

When NFC is released on the next iPhone we will see far deeper integration to retailer’s existing payment systems through NFC readers that are being rapidly deployed at the larger retailers as a part of Visa’s and MasterCards mandate to have a high degree of EMV and NFC acceptance by 2014. There will be financial and liability inducements to merchants to adopt upgrades to the existing payment equipment as nearly 100% of US payment cards will have EMV and NFC by 2014 (http://usa.visa.com/download/mer... et http://www.fastcompany.com/18128...). There is nominal costs of less then $100 for these upgrades for most merchants and in many cases the upgrade will be free. Apple will be at the tip of the spear with NFC integrated into the iPhone just as more NFC systems will be in use at merchants.

Passbook And Payment Cards

Thus it is just a matter of time before we see the Payment Card integration of Passbook (with a slight name change) in the future. At this point Apple will have no desire to replace Visa and MasterCard but to become a conduit for these existing services. Apple’s own iTunes accounts will be available for retail purchases at the Apple store, however there is little chance that iTunes will ever become a retail payment system.

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Siri + Passbook, A Transaction Completion System

In my post, Siri deviendra-t-il un système d'achèvement de transaction? I spoke to how Siri will become a transaction completion system. In this use case one could say "Please order a Venti Macchiato and pay with my Starbucks payment card. Leave a 10% tip.". This would be theoretically possible with the iOS 6 release of Siri and Passbook when it hits the market.

The Passbook Conduit, Disruption Not Needed

Passbook is a platform for innovation and is a very bold move that will impact any company wishing to be a part of what is currently called the “mobile payments” market. Apple is wisely choosing a path to work with rather then against existing infrastructure. I have advised far too many companies that have been wrongly convinced that there is true “disruption” in the mobile payments industry. Some startups have burned so many bridges in believing they will be disruptive that they have simply no path back to working with the many companies Apple is choosing to work with. The idea that there would be disruption in Payments has wasted the talent of some of the best people in tech by focusing on the wrong "problems".

Game Changer But Not Game Over: A Gold Rush Opportunity

Passbook will have a direct impact to all existing and startup companies that are in Payments, gift cards, loyalty cards, reward cards, incentive cards and ticketing. Over time the impact on the Google Wallet, Pay With Square and PayPal Here/Retail will be rather significant. I would also add any company that create discounts and offers to consumers as Passbook will be the central hub for this activity in iOS. I however can see 100s of massive opportunities for existing and startup companies to work in and around this new Apple ecosystem.

Very much like the app store, Apple will actually liberate 1000s of new ideas and startups. Companies that have been working with me over the last few years will likely be some of the first to announce product into this new ecosystem. If you had dreams of spectacular wallet ideas, your platform has arrived. I am predicting a huge "gold rush" opportunity in this industry as Apple fully deploys in to becoming the conduit of all possible transactions, not just Payments. We have only seen the tip of the iceberg.

Apple has a rather long history of changing the business plans of even the most successful companies, today we are seeing this again. Passbook will render irrelevant and redundant perhaps dozens of products in the market and not yet to market.

Some may claim that this move by Apple is minor at best and perhaps ignore the true gravity of Passbook, however history will show this would be a regrettable position to take; betting against Apple.

Richard Beck

Richard Beck, Product Strategist, Marketing, Presentations

Répondu il y a 317w · L'auteur dispose de réponses 64 et de vues de réponses 42.6k

User interest in Passbook is huge, since the release of iOS 6 we've seen website views for Passbook increase 10 fold.

NFC has a big problem in that it is a technical specification and not a solution. For Apple to make NFC work, they would need to provide solutions down to the POS level, and clearly this is not a business that they are in.

Instead, Apple has decided to make updatable Passes easily available in people's phones - they have effectively decided to concentrate on the user experience problem and are leaving third parties to concentrate on the full integration.

Because for many businesses, they will need to integrate passbook use-flows into their businesses and into their customer-facing systems. In one sense, this is a lot of work, but in another sense it's much easier enabling thousands to of companies to do this on their own than trying to create a standard for NFC working with banks, visa/mastercard, national organizations (Interac in Canada, Proton in Belgium, Switch in the UK etc), airlines, movie theatres etc.

Richard Beck.
Digital Possibilities Passbook Specialist Centre:
http://digital-possibilities.com...

Dion Lisle

Dion Lisle, Directeur général (2018-present)

Répondu il y a 331w · L'auteur dispose de réponses 163 et de vues de réponses 168.2k

Don't let the loyalty play here fool you, this is a wallet. don't forget we use wallets for more than just payments. I and many others have said all along, payments will NOT lead the charge for digital wallets.

This will replace tickets and coupons as well as loyalty cards, followed by receipts and then payments is the natural next step.

Look at Starbucks success with their prepaid card and mobile app. It is successful due to its' ease of use, ubiquity and daily usage. Big box retailers like Home Depot (sorry PayPal) or Macy's are not frequent enough to change our behavior, however if you roll them all together under an iUmbrella (tm) and then use if for everything, voila a wallet is born.

Apple already holds 100 million credit cards, using them to pay is not a far off bridge. The key is by the time Apple tells us to pay with our iPhone, we will already be using it for 50% of what our leather wallets do.

A final thought - NFC, which I am a big advocate of, has nothing to do with this announcement. NFC, bluetooth, QR code, swipe, whatever it is just a modality. Apple will use whatever works best for users (and profits them)

Now if Apple can solve the single sign on across all my accounts, they will really own my loyalty.

David True

David True, Partenaire de PayGility Advisors (2016-present)

Répondu il y a 331w

Commenting here on a couple of threads, so pardon the discontinuity...

Brian's over is superb as usual. But I remained skeptical on Apple adopting NFC for reasons I've noted elsewhere. On modality I tend to Don Lisle's approach-- Apple will do what works best for customer and them (and as you can see I don't think that will be NFC).

Chris Drit's point on providing merchant value is key-- I've seen no mobile payments solution yet the do that, and I've only seen one the eliminates friction (i.e. no merchant hardware of software change) in adoption. Apple hasn't done that.

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What Passbook does is a big step in getting consumer to want to use their phone for some kind of POS commerce-- something lacking in any significant mobile payments effort I know of (there are some small loyalty card wallet players).

Passbook will allow Apple to test and adjust and get the consumer end right, while figuring out the merchant end.

Then we'll seen mobile payments catch on.

Bhavesh Patel

Bhavesh Patel

Répondu il y a 200w

Apple’s Passbook is used more frequently than PayPal or Google Wallet, pointing to the significant potential a more complete wallet offering from Apple would have.

The Digital Wallet Usage Study from Thrive Analytics found that 79 percent of consumers have used PayPal, 40 percent Google Wallet, 26 percent Groupon and 17 percent Apple’s Passbook. However, Passbook is used more on a weekly basis, with 60 percent saying they use Passbook weekly compared to 49 percent for Google Wallet and 40 percent for PayPal.
“With the number of consumers carrying cash at an all time low and high awareness of digital wallets – 78 percent – it is surprising that adoption rates are still relatively low at 32 percent,” said Jason Peaslee, managing partner at Thrive Analytics, Kettering, OH.
“Given the more frequent use of Apple’s Passbook on a weekly basis, I think if Apple were to extend its capabilities it could become the big player to piece everything together and gain significant market share,” he said.

How will Apple's new mobile wallet Passbook impact other mobile wallets?

Mobile drives use
While Passbook is used more often on a weekly basis than other digital wallets, it tends to have smaller transaction values, with 39 percent of transactions less than $10.

Other digital wallets are having a harder time building a user base, with 5 percent having used Pay Pass by MasterCard, 4 percent Dwolla, 4 percent Venmo, 4 percent Isis and 2 percent V.Me from Visa.

For more please feel free to contact us on Mobile Application Development Company | Web Development | iOS Application Development - Peerbits

Tom Raley

Tom Raley

Mise à jour il y a 323w · L'auteur dispose de réponses 121 et de vues de réponses 67.7k

For many years tablet computers existed but they were uncommon. Then Apple created the iPad and the entire world of tablet computing exploded. I think Passbook is the same thing for mobile wallets.

I spent a couple weeks as part of a group testing prototype Passbook apps in our local shopping district. We found the implications pretty surprising. If you really want to understand how Passbook works, you gotta try it in person!

The biggest impact is the elimination of apps as the controllers of the experience. Yes, we can use apps to manage and coordinate pass usage, but the passes themselves are the carriers of value. Sorry if that sounds vague but again, when you try it, it becomes very clear. The pass is the link, bypassing apps. Which means, much of the confusion that has blocked adoption of mobile-based loyalty and gift programs, suddenly disappears. The experience becomes more transparent.

From the perspective of technical architecture, we'd say that we've moved much of the infrastructure "back" onto the server, leaving the pass as just the easy-to-use portal, which means that the user gets a much simpler experience. (This also means that the power to drive loyalty shopping market gets shifted to a different group of vendors, but that's another story.)

Oh, and when people say "it's just a loyalty program, not a payment systems yet" -- my response would be "GREAT!". Loyalty concepts can make a huge, huge amount of money. They are much less complex than payment systems, with less liability.

Mikka Lustre

Mikka Lustre, still thinks an axe is the best tool for hacking

Répondu il y a 331w · L'auteur dispose de réponses 2.3k et de vues de réponses 32.3m

Way I understand this, it's not a wallet system but a coupon/loyalty setup. That means no one who isn't in the system and doesn't pay Apple money will be able to take advantage of it.

Now, given the sheer number of iPhones out there, chains would be fools not to consider it (once we know how much Apple charges per transaction we might have to revise the 'fool' comment) but for small and independent locations I don't think this is a viable tool as far as I understand the technology (GPS based alerts).

Setups like Google's Near Field Communication (NFC) wallet which allows for both the loyalty/coupon functionality and direct pay (would be great if this also integrated with TabbedOut) might have chance if there's more adoption on the device side (which we now see with both the HTC One X and relatives and newer Samsung devices such as the Samsung Galaxy Nexus and Galaxy S3). Apple will indubitably be successful in some way but I doubt it'll take chunks from the wallet ecosystem and cannibalize more from the Google Local+ and GroupOn/Clones world.

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