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data points deliver local context for the user and can help solve some of mobile payments biggest problems. But how?


BY: DAVID BAIRSTOW vp, product management skyhook

t’s no surprise that everything is going mobile, and payment methods are no exception. While some people still prefer to pay the old fashioned way, payment apps have become increasingly popular. According to Statista, worldwide mobile payment revenue in 2015 was $450 billion and is expected to surpass $1 trillion in 2019. These numbers are too big to ignore, however some people consider mobile payments to be unsafe. In order to capture the most users, brands and mobile payment companies need to make their process as easy as paying with a credit card. Enter location-based triggers. Mobile payments have a unique advantage over credit card services, in that they can be aware of user device signals such as Wi-Fi, cell tower, GPS and gyroscope, whether users are at the register or not. These contextual


Payment Quarterly | Q4 2016

CREATE MORE CONVENIENT PAYMENT EXPERIENCES & FOSTER ADOPTION For some users, accessing payment information from their phone to pay at the register is seen as troublesome and time-consuming. Accenture claims that while 52% of North Americans are “extremely aware” of mobile payments, only 18% use them on a regular basis. Simply reminding users that a mobile payment option is available has been one of the more difficult challenges of mobile payment apps. However, accessing a user’s location gives payment apps an opportunity to enable better adoption, a more efficient payment process and a better user experience. By geofencing eligible venues, payment apps can automatically “wake up” when a user enters a retail location that accepts their method, surfacing the payment screen and saving valuable time for the user at checkout. This automatic response can make paying with your phone as easy as swiping a card. Discounts and store-specific offers can also pop up according to a user’s location and preferences within the app, making mobile payment methods even

more worthwhile and engaging. Skyhook works with a large online payment company to action mobile payment screens across their partner stores—whether they be gas stations, big-box retailers or fast food venues. Throughout the US, when app owners enter any retailer in hundreds of chain locations that accept this form of mobile payment, they can receive an offer or have the payment screen automatically surfaced for a seamless payment experience. Making the app location aware has additional benefits including the option to deliver a report that give deeper insight into consumer preferences and behavior when they’re not at payment venues. The result is that the online payment company can deliver user insights to partner retailers based on where users go, when and how often. PROVIDE NEW FEATURES THAT INCREASE EFFICIENCY AND REVENUE Features such as geofencing can solve a variety of problems for both users and retailers. For example in a quickservice restaurant setting, customers can use mobile payments to order their food in-app and pay for it ahead of time. With location-enabled features, app users can automatically send their proximity updates to the restaurant. Employees

Payment Quarterly | Q4 2016  
Payment Quarterly | Q4 2016