Tipping the Scales on Mobile Payments: A note from Ed McLaughlin, Chief Emerging Payments Officer, MasterCard
Across the globe today, the ongoing convergence of the physical and digital worlds is dramatically changing how people interact with their families, friends, and the world around them. Everyone and everything is connected.
When it comes to how we pay for things, this seismic digital shift is the most significant milestone since plastic credit cards were introduced 50 years ago. It was crystal clear at this year's Mobile World Congress where we saw new players entering the mobile payments space and veterans doubling-down on their efforts to drive mobile payments ubiquity.
As we think about the rapid adoption of mobile payments, we believe the promise of services such as Apple Pay and Samsung Pay lies in creating safer and richer experiences for consumers. But, the key is not to simply recreate what you could do before, but to enable users to do something new and better. We know consumers don't set out to ‘make a payment’. They're just going about their everyday lives and are looking for better experiences, shortcuts. They want paying for things to be simpler and faster.
That’s why connecting with consumers wherever they are and whenever they want is critical. All retailers must have the ability to sell to their customers across platforms – in-store, in-app and online, and all users must have the choice of whether to pay in digital or plastic. And we also know consumers certainly don't want to lose any of the security or benefits they enjoy today. So our foremost objective is to make sure every digital transaction is as or more secure than anything we could ever do in the physical world.
Commerce also doesn't just mean paying for things. It can be sending money to a family member in another country or receiving social security payments from the government. As MasterCard CEO Ajay Banga laid out in his MWC keynote address, the explosion of mobile devices allows us to extend opportunities for financial inclusion to the 2.5 billion people around the world who are currently without bank accounts, creating better and safer experiences via a device they are likely already using to keep in contact with friends and relatives. This spurs economic and business growth, and helps governments be more efficient through benefit distribution and reduced crime. We know this works. MasterCard is already partnering with public and private organizations like the Government of Egypt, EcoCash, and the Bill and Melinda Gates Foundation to break down barriers to access around the world.
Finally, all of this goes far beyond mobile, or any single device. While mobile might have been the “star” in Barcelona, there was an impressive cast of characters at Mobile World Congress – from connected cars, to home monitoring devices and smart transport systems. We believe every connected device can be a commerce device. That’s our vision and how we are working with our partners across a range of industries to create the next generation of MasterCard for the digital age – a world beyond cash and a world beyond plastic.
Watch the video to learn how we're using our technology to connect people to what’s next.
Tech companies and the press gathered at Mobile World Congress in Barcelona to unveil the future of mobile. This year, there was a heavy emphasis on smartphones -- including some fresh competition for Apple and Samsung -- as well as wearables and security. Below, we round up the 10 biggest takeaways from the weeklong conference . . .
1. Major tech companies plan to bring Internet to emerging markets
When The Zuck speaks, the world listens.
Though his speech on Monday was meant to plug Internet.org, the Zuckerberg-backed service that aims to provide people in developing countries with free online applications, Zuckerberg surprised MWC spectators by saying he would go so far as working with rival Google if it meant spreading Internet access.
“Sure. I'd love to do more with them,” Zuckerberg told the MWC audience after someone asked if he’d consider collaborating on his project.
Zuckerberg’s remarks came on the heels of a speech at MWC by Google Senior VP Sundar Pichai, who detailed the company’s plans this year to launch solar-powered drones that provide Internet in regions without access.
Currently, Zuckerberg’s Internet.org brings some free Internet access to Colombia, India and four African countries.
While philanthropic, the project is also intended to communicate to wireless carriers that Facebook is capable of building the Internet infrastructure its services (including Facebook and WhatsApp) run on, analysts believe.
Because Zuckerberg’s plan is so costly and logistically challenging, the company will likely need to partner with local telecom providers, as well as global technology companies, perhaps Google, if its project is to be realized.
"To grow the Internet is expensive... we want to make progress," Zuckerberg said.
2. Wearables galore
Wearable technology has become the darling of the tech world in recent years, as evidenced by the prevalence of the devices at this year’s CES -- and the products unveiled at Mobile World Congress are no exception to this trend. MWC saw a variety of both brand new wearables as well as updated versions of fan favorites such as the Samsung Gear (the tech company released three new products: the Gear 2, the Gear 2 Neo and the Gear Fit), Pebble Time Steel (the premium version of its previously released, updated smartwatch), the elegant Huawei smartwatch and fitness tracker, and the LG Watch Urbane, among others.
Speaking to the trend of the smartwatch, this year’s unveils suggest that technology companies are tackling one of the long-time concerns about these types of wearable products -- people actually wanting to wear them. More and more of the products unveiled at this year’s MWC look less like clunky hunks of metal scaled down to wrist-size, and more like fashionable accessories that you’d actually want to wear to the office or the gym. In addition to increased aesthetic appeal, most of the devices on display at MWC include software updates and increased technical capacities to lure in early adopters and techies.
3. Virtual reality on the rise
Both HTC and Samsung unveiled impressive virtual reality technologies at this year’s MWC.
The HTC Re Vive, a VR headset developed in partnership with Valve, includes sensor technologies that allow the device to track users’ movements beyond simple turns of the head -- it actually tracks the wearer’s complete surrounding environment and has the capability to map out spaces/rooms the user is navigating through. The device’s promo video -- with the intriguing tagline, “Welcome to a new reality” -- shows a stunning display and vivid image quality. The announcement of HTC’s delve into the virtual reality space comes as a pleasant surprise that few saw coming in advance; initial reviews and reactions to the device are positive, and a developer version of the technology becomes available in spring 2015.
Samsung’s Gear VR Innovator Edition headset, developed in partnership with Oculus VR, works with Samsung’s line of smartphones -- including the S6/S6 Edge. The device actually allows for a smartphone to be physically clicked into place and viewed within the goggle-type headset. Good for more than just virtual reality gaming, the device can also be used as a source for viewing movies, television and photos
4. Blackphone
With security breaches increasingly a major concern among smartphone and other “smart” tech users, Silent Circle aims to address the issue of a more secure mobile experience with its Blackphone product. The company uses encryption and advanced software (aptly named PrivatOS 1.1) as well as a secure app system -- Silent Suite and Silent Meeting -- to assuage users’ fears over mobile security holes. The products are intended for both corporate as well as personal use.
At this year’s Mobile World Congress, the company unveiled its latest smartphone, the Blackphone 2, an improved version of the device that debuted at last year’s WMC. Silent Circle also announced its tablet, the 7-inch Blackphone Plus, an upgrade to its software and a couple of new, secure apps.
Both the Blackphone 2 and the Plus will be available later in 2015, though no set release date has been announced.
5. Fingerprint technology gets an upgrade
With Apple Pay and Samsung Pay, smartphone manufacturers have started using fingerprint touch sensors to secure sensitive personal and financial information. Perhaps taking note of this trend, Qualcomm released its own Sense ID fingerprint technology at Mobile World Congress. No longer will hungry phone users have to worry about cleaning their hands of all Cheetos traces before scanning their finger, as Qualcomm’s product can recognize fingers that are dirty or wet.
Because Qualcomm’s Sense ID registers details in three dimensions, it will be especially secure. The additional details collected, like fingerprint ridges and sweat pores, will make it more difficult for strangers to copy owners’ fingerprints. And with the ability to be embedded into steel, glass or aluminum, the scanner should be able to work most anywhere through phones’ screens and bodies. Products incorporating this technology will reportedly be available in the second half of 2015.
6. Ford electric bicycle
Having already made inroads into the electric vehicle space with the Focus Electric, Ford introduced a different kind of electric vehicle at MWC this year -- a set of electric bikes.
While the MoDe:Me is designed for commuters (and thus foldable), the MoDe:Pro is tailored for bicycle couriers. Both bikes have a 200-watt motor and a 9-amp-hour battery, which propel riders at speeds up to 16 mph.
The two prototypes (that’s all they are for now, unfortunately) become “smart bikes” by connecting with an app, MoDe: Link, that offers real-time navigation on the bikes’ handlebars, as well as the ability to find routes involving public transportation or a car.
What raised the most eyebrows during Ford’s e-bike showcase at MWC was the Mo:Des’ vibrating handlebars that alert riders when a turn is coming up and automatically light up the bikes’ turn signals.
7. More Pebble watches, more Kickstarter records
In May 2012, Pebble became the most successful Kickstarter in history, raising more than $10 million from 68,000 backers. Then, in February, the Pebble Time smartwatch raised $10 million in 48 hours, once again becoming the fastest growing and most successful crowd-funding project on Kickstarter. Then, at Mobile World Congress, Pebble upped the ante with the Pebble Steel, a sleeker version of the sporty Pebble Time that boasts 10 days of battery life. The company also announced a Smart Straps program who developers can create new straps for Pebble Time with innovative functionality, such as GPS or heart rate or even more battery life. The Pebble Time Steel will cost $299 ($250 for early Kickstarter backers) and will ship in July.
8. Samsung unveils next generation Galaxy models
Samsung traded swappable phone batteries for slim, glass bodies with its Galaxy S6 and Galaxy S6 Edge phones. Previous Samsung phones were built with plastic, but the newest versions are made of glass and aluminum and come in a variety of colors. The two versions don’t look identical, however, with the S6 Edge sporting a curved screen that wraps around the phone’s sides. Beyond being just plain pretty, the S6 Edge’s design does have some added features. An alarm clock mode, for example, allows users to view the time and date on the curved screen, and contact shortcuts can be added to the area as well.
Both phones’ LED displays also got a major upgrade, to what Samsung said it believes is the world’s highest resolution. Users can enjoy the extremely sharp 5.1" QHD Super AMOLED displays through Samsung’s newest version of the Gear VR headset. To be transported to virtual worlds, users can simply attach the phones directly to the Gear VR, which now has a phone charging capability.
And finally, among other improvements such as wireless charging, is a fingerprint sensor that will work with Samsung Pay – much as the iPhones now work with Apple Pay. Once Samsung Pay becomes available, it will be compatible with most existing check-out terminals in the U.S., thanks to Samsung’s MST technology.
9. Smartphone manufacturers Huawei and Xiomi make a splash
Though Samsung wowed many MWC attendees with its Galaxy S6 Edge, which it called the fastest and most beautiful smartphone on the market, the most exciting Asian company at MWC was arguably one many attendees hadn’t heard of: Huawei, a Chinese telecom company that’s made a pronounced turn away from equipment and infrastructure and towards consumer-facing devices.
At MWC this year, Huawei’s big debut was its smartwatch, which earned plaudits for its sleek appearance and adherence to traditional watch designs. Indeed, Huawei has marketed the device as a smart watch for people who want the feel of a regular watch. To reinforce that idea, Huawei hired Ben Norton, a watch designer who’s worked previously with Fossil and Emporio Armani, to develop its first smartwatch.
Currently, Huawei has less than 1% of the U.S. market, according to IDC, but that number could increase as the company seduces American consumers with its attractive alternative to clunkier smart watches made by Google, Apple and Samsung. Any success Huawei has in selling its smart watches to an American audience will help the brand sell its other products, like its “honor” smartphone, in the U.S.
Xiaomi, one of Huawei’s chief competitors and the world’s third largest smartphone manufacturer, was also at MWC this year. Though the company’s products aren’t yet available in the U.S., Xiaomi presence at MWC signals that Chinese technology companies are more aggressively seeking adoption outside of Asia.
This week, for instance, Xiaomi launched its first accessories store in Europe. The store sells fitness bands, headphones and battery packs. How Xiaomi handles expected patent infringement questions regarding its smartphones and tablets will likely dictate how soon American consumers can purchase the company’s products.
10. Huawei proves wearable technology comes in many forms
Another such consumer-facing wearable unveiled by Huawei this week is the TalkBand N1 headphones. These Bluetooth headphones are innovative for a number of reasons. In addition to tracking fitness statistics, the headphones can store and play up to 1,000 songs on a built-in 4GB of storage, making lugging around a portable media player unnecessary. Like all of the TalkBand wearables, the TalkBand N1 headphones are capable of.receiving calls, and the headphones will alert the wearer the name of the person calling via voice notification so he or she can choose whether to accept it.
But, as with most wearable technology, the TalkBand N1’s big focus is fitness tracking. The earbuds can track steps, calories and distance, and this information can be synched to TalkBand’s smartphone app. They come in silver, gray and red colors, and are waterproof.
Huawei also announced the TalkBand B2, which fits around users’ wrists. Its core, however, can be taken out and worn as a Bluetooth headset to make and receive calls. The device also can of course track users’ fitness activity and sleep habits.