A piece I wrote in character for an event we are having at Fluxx on innovations in the payments industry.
There’s a new kid on the block – and he’s looking to wipe the floor with the opposition at Fight Night on 4th October.
Fluxx is hosting an evening of Contactless Boxing – debating the future of payments and what it means to all four corners of society. And fresh face ‘The Innovator’ came out swinging when he vowed to win over the crowd at the Carter Lane event in three weeks’ time.
“I understand the consumer, the retailer and how to make it work better than anyone,” he insisted. “For most people mobile payments are not core to their needs. Cash and plastic works for them. Right now they are confused by the different options available to them – contactless, SMS, proximity, QR etc. But we know that in five years’ time our products will be integral to their lives, the natural way to pay.”
If you read the press you would be forgiven for thinking that we are in the middle of a mobile payments revolution. In the near future we will be binning our wallets stuffed with plastic cards and paper notes in favour of a contactless nirvana, where with a swipe or a tap or even by our mere presence we will be able to pay for a coffee and, given time, a television or a new kitchen.
With Barclays Pingit we can now pass money between each other with nothing more than a mobile number and a bank account. In case you hadn’t noticed, the London Olympics were billed as the first contactless Games. So will paying for things be quicker, less hassle and safer? Are we heading towards a cashless utopia or payment chaos? Do people really care – or is it a case of inventing a solution for a problem that does not exist. After all coins, bank notes and plastic cards are all mobile, easy to use and accepted everywhere.
If a solution is required, The Innovator is convinced the ensuing fight will be straightforward for his camp. He explained: “I’m no banker, nor do I come from a deep financial services heritage – and that’s an advantage. I’m a lean start-up venture like Jack Dorsey’s Square and Europe’s iZettle. I’m free from legacy systems, a cumbersome corporate culture or a tarnished public perception. My strength is through insight, clear thinking, and an ability to be lean in delivery, making the right partnership deals.”
“The problem with the banks and payment providers is that they seem to have missed the point. They are caught-up in an arms race with each other – releasing multiple products from mobile wallets, to apps and stickers. These only serve to confuse customers and frustrate retailers. They have missed that it is not about payments and more about customer experience. It is about simple ease of use and a value add – be that loyalty and reward, or a deeper understanding of what they want mixed with the magic of discovering something new. Innovators like Jack Dorsey get this.”
“I liken it to the Betamax and VHS video format wars in the 1980s. Betamax was perceived as being the superior product to VHS in having better picture quality. But for most consumers that difference was negligible. VHS won out because it was a better customer experience – it was affordable, available and offered 30 minutes more tape capacity for recording. It will be same with contactless payments, the winning format will be the one that gets the customer experience right – and that will be me.”
It is fair to say we are in the midst of a gold rush, with all the associated fevered confusion. Banks and payment providers, mobile manufacturers and network providers, Silicon Valley tech giants and innovative start-ups are all seeking to claim their stake on our financial lives and its associated consumer data. It is hard to tell who the winners and losers will be. One thing is certain: The Innovator will be the first in the ring.
