mobile commerce challenge or opportunity?

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mobile

commerce

or

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Opportunities and Challenges of Mobile Commer

ce

Ever since smartphones and tablets burst onto the scene, consumers have flocked to the ingenious devices. Annual smartphone sales now outpace traditional mobile phones by a rate of 3-to-1.1_And

shipments of iPads and Android-powered tablets are increasing at a tremendous rate of thirty-eight percent.2

THe UNsToPPAble

mobile revolUTioN

Consumers’ Mobile Love Affair

Over 1.1 billion smartphone

users worldwide.

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Savvy merchants realize mobile technology can help inject some much-needed excitement into their stores. Tablet registers, reimagined store layouts, innovative mobile apps and engaging consumer software offer new ways to connect with customers and increase profits. Mobile devices can help energize the consumer shopping experience and invite customers back to brick-and-mortar stores.

THe UNsToPPAble

mobile revolUTioN

Retailers Take Notice

A

energize the

shopping

experience

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mobile briNGs

oPPorTUNiTies

& cHAlleNGes

Mobile presents the retail industry with both major opportunities and

challenges. The ability to access vast amounts of data from online

sources from any location allows for new applications that completely

change the shopping experience and the relationship between merchants

and consumers. The parties who better leverage mobile media to foster

consumer engagement, increase loyalty and drive repeat business will

be the winners in this brand new world.

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Coined just a few years back, the term “showrooming” describes the practice of examining a product in a store, and then buying it online for a lower price. Showrooming has grown from a fringe practice to the norm, widely adopted by mobile users. And it’s spreading globally, from its start in the United States to multiple countries worldwide.

THe cHAlleNGe:

sHowroomiNG

examining a product in store...

...buying online at a lower price

While purchasing in-store is the most

popular for those who research in-store,

showrooMiNg may still be an issue for retailers

as 37% purchase on a smartphone or tablet

after researching in-store.

3

The main in-store mobile activities are

coMpArisoN shoppiNg (59%), looking for

coupons (48%) and searching for

product reviews (47%).

3

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THe oPPorTUNiTY:

relATioNsHiP selliNG

79%

of retailers plan to

integrate mPOS by 2015.

Forrester Research

70%

of retailers expect to

enable store associates with

tablet-based solutions in the

next three years.

RIS News

engage consumers...

...provide a personalized experience

To combat “showrooming,” retailers recognize they need to better engage consumers and develop their own mobile platforms and applications. With mobile solutions for smartphones and tablets, they can take advantage of back-office data, consumer data and online services to engage consumers in richer shopping experiences. Mobilility enables retailers to provide a personalized experience, while also leveraging location-based, geo-targeted offers and coupons.

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THe oPPorTUNiTY:

smArTer sTores

Mobile technology is reinventing commerce, helping retailers create smarter stores, bringing better service to the hospitality industry and expanding commerce options for a wealth of other industries. Mobile POS helps reduce lines at checkout; inventory management brings more flexibility and efficiency to store operations; and mobile CRM brings rich customer data to the fingertips of every sales associate.

Adoption of mobile solutions at POS is on the rise, with integration of mobile throughout the commerce experience expected to expand over the next two years.4

Projected % of Retailers Using Mobile Apps

4

83%

Inventory Management

62%

Mobile POS w/Tender

66%

Task Management

60%

Cross-channel Save-the-sale

66%

CRM

59%

Line Busting w/Suspend

64%

Messaging

43%

HR

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THe oPPorTUNiTY:

oNliNe comes iN sTore

While consumers can use online tools against a retailer (showrooming), retailers can turn this to their advantage by bringing the online experience in store. Many of the Internet giants, plus countless new companies, are developing ways to engage retail shoppers. Mobile wallets and NFC-driven concepts for digital couponing, offers and promotions can help drive store traffic.

Using online retail to create engaging experiences in store can come in many forms. With POS systems already in place, the opportunity to try different approaches and partnerships is easy and requires little additional investment.

Projected % of Retailers

Using Mobile Payment Apps

4

53%

PayPal

23%

Apple Passport

50%

Coupons on Mobile Screen

14%

Isis

42%

Google Wallet

12%

Square

11%

Amazon Payments

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THe oPPorTUNiTY:

eNHANced oPerATioNs

Increased revenue

• Upsell and cross-sell with fingertip access to past customer purchases

• Encourage repeat business with electronic loyalty and rewards programs

• Grow sales by bringing products to life in dynamic tablet catalogs

Greater sales

• Deploy more campaigns, including digital offers, promotions and coupons

• Create a checkout anywhere, increasing employee productivity

• Capture sales on the spot, never missing another sale

Better servIce

• Personalize service with access to customer profiles • Deliver faster response times by accessing inventory online • Enhance shopping experience with engaging tablet software

sATisfAcTioN

soLD soLD soLD

Large retailers can boost

revenue by $20,000 per

location by adopting mPOS

and saving one single

walkout per day.

Yankee Group

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?

How can

operations

improve

NAviGATiNG

THe oPPorTUNiTies

How do you plan to stay relevant

While the opportunities to leverage mobile technology are vast, so are the options and potential challenges. How does a retailer choose the right path? How do they limit their mistakes or avoid them altogether? And ultimately, how does a retailer develop the right, comprehensive mobile strategy – a roadmap from concept to deployment, all while maintaining uninterrupted store operations, POS functionality and sales?

?

What’s

missing

What is the strategy

to further the brand

What is the competition doing better

?

Mobile or

cloud

wallets

?

NFC, Beacon, Barcode

?

iOS, Android,

Windows

mPOS, Retailing, CRM

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reimAGiNed

It’s no wonder many retailers are feeling overwhelmed by the changing landscape. After all, not much has differed in store layouts over the last one hundred years. While there have been advances in technology and processes in the last century, the shopping experience is still very similar. Most notably, associates have stayed behind the counter, separated from their customers, until now.

not much has changed in store layout...

...associates have stayed behind the counter

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Now, retailers have an opportunity to dramatically rethink store layouts, bringing customers and employees closer together. Mobile technology can affect the entire store, playing a role in improving both operations and the shopping experience.

reimAGiNed

sTore lAYoUT

c E Floor Sets Client Engagement Self Service Checkout Training Reporting Inventory

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Keeping an eye on future technology is a key component of any strategy. For example, whatever mobile platform a retailer implements, it must be flexible and scalable – able to securely integrate both current technology as well as new and emerging solutions. This is also true for other verticals like transportation,

health care, petroleum and taxi, to name a few.

solUTioN

scAlAble, flexible

Out-of-store Sales Mobile CRM Mobile Inventory Line-busting/ POS RETAIL POS SYSTEM Roaming POS mWallets

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THe riGHT

PArTNer

The opportunities and challenges of mobile commerce do not have to be faced alone.

Navigate the new landscape with a trusted partner. VeriFone has been integrating the

newest and greatest technology into payment systems for over thirty years. With

VeriFone, gain access to the industry’s broadest collection of mobile payment solutions,

POS software and platforms for wallets, apps and innovations. From retail and

hospitality to transportation and petroleum, a wide variety of industries can iNcrEAsE

rEvENuE, buiLD cusToMEr LoyALTy and iMprovE sErvicE AND opErATioNs with a partner that

has the right mobile expertise.

Trust in an expert already in place at the point of sale.

bringing the newest and greatest payment technology

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mobile PAYmeNTs

deployed cutting-edge mobile payment

solution, PaYware Mobile

• Turned over 3,000 smart devices into

mobile payment solutions

• Empowered sale associates to perform

line busting, price checking and

inventory management

• Enabled all forms of payment, including

mag-stripe, debit/credit, chip and PIN,

EMV and NFC

emPoweriNG

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mobile reTAil

Integrated, highly engaging tablet software,

GlobalBay retailing

• Enabled sales associates to access online

catalog in real time, cross-selling and

upselling consumers on the spot

• Empowered associates to order

out-of-stock items online, shipping directly to the

customers’ homes

• Deeply integrated the mobile solution within

the existing back-end infrastructure

emPoweriNG

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mobile PlATforms

• Enabling 80% of retailers accepting PayPal,

Google Wallet or Isis in the United States

• Making it seamless to remotely add and

manage multiple wallets in millions of

POS systems through innovative software

and services

• Offering the most extensive line of NFC

payment solutions in the world

emPoweriNG

Opening the

point-of-sale to

outside innovation

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cAPiTAlize

oN THe

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verifoNe mobile

solUTioNs

emPoweriNG mobile commerce

Simplifying the

integration of mobile

devices, software and

platforms that can help

grow business.

To help navigate the mobile revolution, trust in the proven expertise of VeriFone. Already at the epicenter of commerce, VeriFone is uniquely suited to help simplify the deployment and integration of new concepts at the point of sale.

unMatched MoBIle PortfolIo

For most merchant types and use cases, VeriFone offers a mobile solution to match.

enhanced custoMer exPerIence

New software for tablets and smartphones is revolutionizing merchant-consumer interaction.

enaBlInG MoBIle PlatforMs

To answer demand for mobile wallets, apps and alternative payments, VeriFone makes it easy with unparalleled open access.

trusted exPertIse

For mobile solutions today and tomorrow, look to the proven expertise of VeriFone: the leader in electronic payment technology and ironclad security.

LEArN MorE Now

Click the “Learn More Now” button below or

visit us at global.verifone.com/mobile-solutions

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refereNces

1 _{IHL Report, “Mobile POS: Hype to Reality” May 15, 2013} 2 _{http://www.idc.com/getdoc.jsp?containerld=prUS24314413} 3 _{JiWire’s Mobile Audience Insights Report for Q2 2013}

http://econsultancy.com/us/blog/63268-showrooming-is-on-the-rise-stats

4 _{2013 RIS News Store Study - Free Version}

5 _{Yankee Group}

http://www.mobilecommercedaily.com/large-retailers-to-ramp-up-mpos-strategies-in-the-second-half

© 2013 VeriFone, Inc. All rights reserved. VeriFone, the VeriFone logo and PAYware are either trademarks or registered trademarks of VeriFone in the United States and/or other countries. All other trademarks or brand names are the properties of their respective holders.