{"id":5632,"date":"2015-02-23T05:34:38","date_gmt":"2015-02-23T05:34:38","guid":{"rendered":"https:\/\/passkit.com\/blog\/?p=5632"},"modified":"2015-02-23T05:34:38","modified_gmt":"2015-02-23T05:34:38","slug":"how-apple-pay-will-drive-mobile-wallet-adoption-in-2015-2","status":"publish","type":"post","link":"https:\/\/passkit.com\/blog\/how-apple-pay-will-drive-mobile-wallet-adoption-in-2015-2\/","title":{"rendered":"How Apple Pay Will Drive Mobile Wallet Adoption in 2015"},"content":{"rendered":"<p><a href=\"https:\/\/dxjl3qy52c1o9.cloudfront.net\/wp-content\/uploads\/2015\/02\/23041712\/Screen-Shot-2015-02-23-at-12.16.22-pm.png\" target=\"_blank\" rel=\"noopener\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-5639\" src=\"https:\/\/dxjl3qy52c1o9.cloudfront.net\/wp-content\/uploads\/2015\/02\/23041712\/Screen-Shot-2015-02-23-at-12.16.22-pm.png\" alt=\"Screen Shot 2015-02-23 at 12.16.22 pm\" width=\"694\" height=\"359\" title=\"\"><\/a><br \/>\nHow would we describe Apple Pay in one word? We\u2019d say Revolutionary. A major shift in consumer preference for the digital wallet is coming in 2015. Apple Pay may not be in your country yet, but soon it will be, and when it lands is your business going to be favorably positioned? More importantly are you going to be equipped with the tools and capabilities to give your valued customers what they want? Listen in to our recorded webinar to hear\u00a0our co-founders Paul and Nick discuss Apple Pay\u00a0as well as answer some mobile wallet questions sent in from our viewers. You can also view the transcription of the video below.<br \/>\n<iframe width=\"100%\" height=\"400\" src=\"https:\/\/www.youtube.com\/embed\/YlNO6mLQU6U?rel=0&amp;controls=0&amp;showinfo=0\" frameborder=\"0\" allowfullscreen><\/iframe><br \/>\nLeave your thoughts or questions below in the comment box!<br \/>\n<em>Video<\/em>\u00a0<em>Transcription:<\/em><br \/>\n<strong>Monica:<\/strong> Hey everyone, I\u2019m Monica and I\u2019m excited to join you today on this webinar. We\u2019re also\u00a0fortunate to be joined by our\u00a0PassKit\u00a0founders, Mr.\u00a0Paul Tomes and Mr. Nick Murray. What Paul and Nick don\u2019t know about Apple Pay,\u00a0Mobile Wallet and iBeacon\u00a0Technology, well it\u2019s just not worth knowing. Now Tim Cook announced during the world\u2019s largest earnings announcement ever, that 2015 is the year of Apple Pay. What does that mean for you? Well that\u2019s why we\u2019re here today. We\u2019re joined by\u00a0Entrepreneurs, Digital Agencies\u00a0and SMEs from all over the world and we\u2019ve received some fantastic questions\u00a0with regards to Apple Pay, Mobile Wallet and iBeacon Technology. So over the course of the next hour, I\u2019ll help to pose your questions to Nick and Paul and we will aim to get through as much as possible in our limited time.\u00a0We\u2019ll record this event so you can come back\u00a0and listen again\u00a0and if you have any questions during the session, please use the chat function. I trust that you all can hear me, so if you can please type Apple Pay in the chat function, we can see whether we\u2019ve got everyone. Good, great, excellent.\u00a0Alright, well it looks like we\u2019ve got lots of people, so let\u2019s get started.<br \/>\n<strong>Paul:<\/strong>\u00a0Hi.<br \/>\n<strong>Nick:<\/strong>\u00a0Hi.<br \/>\n<strong>Monica:<\/strong>\u00a0So Nick, what is driving the hype behind Apple Pay and why do you believe that it\u2019s important for me?<br \/>\n<strong>Nick:<\/strong>\u00a0Now that\u2019s a great question Monica and certainly there is a lot of hype but a lot of it is very well founded. The biggest driver in my opinion is just the sheer magnitude of the adoption of Apple Pay. Apple Pay is only available in one market currently, the U.S. and it had a bit of a rocky start with only\u00a0three banks supporting it. That\u2019s quickly grown now to over 90% of Credit Card issuers within the U.S.\u00a0support Apple Pay; but even within that territory and just the three months since Apple Pay has been out there, Apple just recently announced in their\u00a0earnings report, two out of three\u00a0dollars purchases made using contact list payment were made by Apple Pay. Now that in itself is\u00a0a phenomenal statistic. It\u2019s even more mind blowing when you consider that only the 5S and the new 6 and 6 Plus Apple devices are capable of doing Apple Pay, yeah. This is something that is unprecedented. In the short time since it\u2019s become released, it\u2019s become a mainstream\u00a0payment platform you know.<br \/>\n<strong>Paul:<\/strong>\u00a0And just in three months.<br \/>\n<strong>Nick:<\/strong>\u00a0Just in three months and this is\u00a0just the tip of the iceberg and what this means is you know\u00a0these American consumers are sending a very crystal clear message that they want to transact in brick and mortar\u00a0locations using their\u00a0phone, not just\u00a0online, not just putting their credit card in, not just using the you know stored\u00a0profiles and\u00a0passwords and\u00a0stuff to transact on auction websites and\u00a0sites like Amazon and so on for\u00a0home\u00a0delivery but they want to make\u00a0real\u00a0transactions in\u00a0real\u00a0brick and mortar\u00a0stores\u00a0using their phone. The second thing that they are telling us loud and clear\u00a0is that they trust, they trust the Passbook application and they trust Apple\u2019s management and stewardship of this with their most precious data\u00a0i.e.\u00a0their finances and their personal\u00a0information. You know for us&#8211;well\u00a0I\u00a0mean\u00a0this is what\u2019s making us\u00a0stand up and take\u00a0notice and even though it\u2019s\u00a0not global, the roadmap\u00a0is there and it soon\u00a0will\u00a0be available in more territories outside\u00a0of\u00a0the U.S.\u00a0and it\u2019s just something that\u00a0you know we would be foolish to ignore.<br \/>\n<strong>Paul:<\/strong>\u00a0Yeah\u00a0absolutely. Well if you take a look at the whole food market\u00a0in the U.S. since the introduction of Apple Pay; they\u2019ve seen mobile payments increase by 400% just in three months. Now those\u00a0sorts\u00a0of stats you just don\u2019t see well since the gold rush of the 18th\u00a0century and 19th\u00a0century. You just don\u2019t see that type of growth and the Panera Bread.<br \/>\n<strong>Nick:<\/strong>\u00a0Yeah\u00a0the Panera Bread,\u00a0U.S.\u00a0bakery chain. 80% of their transactions now are made using Apple Pay.<br \/>\n<strong>Paul:<\/strong>\u00a0That\u2019s phenomenal.<br \/>\n<strong>Nick:<\/strong>\u00a080%.<br \/>\n<strong>Paul:<\/strong>\u00a0You know it\u2019s\u00a0really phenomenal. You know the other thing is a consequence of that. So if you think about but\u00a0where does Apple Play sit. It\u00a0sits in this what used to be an innocuous application\u00a0that\u00a0was standard\u00a0since iOS6 or standard since September 2012. You get this\u00a0application\u00a0Passbook;\u00a0most people shifted it to the back screen now look as a consequence of Apple Play\u00a0and particularly\u00a0relevant\u00a0in the United States, Passbook has become\u00a0instantly relevant for those credit card holders. So before it was a newsstand\u00a0app, like a stock app\u00a0where you hand out folders. You couldn\u2019t delete the thing, so you would hide it because you never used it. Now it\u2019s suddenly jumped to the mainstream, it\u2019s a daily usage app. It\u2019s like Safari or the Mail App, that\u2019s native within the iPhone device. Now so this really is moved not only Apple Pay as a former transaction for trust, it\u2019s also moved the application that\u2019s built in\u00a0to the iPhone\u00a0device and subsequently built in\u00a0to many other different devices, but it\u2019s moved Passbook to being relevant for all of those people.\u00a0Now that impact is not just about mobile transactions becoming mainstream, that\u2019s mobile wallet becoming mainstream.<br \/>\n<strong>Monica<\/strong>:\u00a0Okay.<br \/>\n<strong>Nick:<\/strong>\u00a0Yeah and I think that on top\u00a0of that\u00a0it has woken up guys like Google, like Samsung.<br \/>\n<strong>Paul:<\/strong>\u00a0Yeah.<br \/>\n<strong>Nick:<\/strong>\u00a0Google Wallet has been around for almost seven years now and they\u2019ve tried numerous things and numerous incarnations of\u00a0Google\u00a0wallet and it\u2019s been\u00a0nearly to be cancelled, and they\u2019ve got Google Checkout, and they\u2019ve cancelled that. And they have been trying this for so\u00a0long\u00a0and where Google has failed, Apple has succeeded, and where Samsung has failed, Apple has succeeded.\u00a0And now these guys are playing catch up because consumers both Android and\u00a0iOS are demanding that they\u00a0have\u00a0this capability, that they have\u00a0the ability to pay through their phone\u00a0to transact through their phone,\u00a0to be rewarded through\u00a0their\u00a0phone.<br \/>\n<strong>Nick:<\/strong>\u00a0Absolutely.<br \/>\n<strong>Monica:<\/strong>\u00a0Good,\u00a0and Paul, can you\u00a0actually\u00a0give your definition of Mobile\u00a0Wallet\u00a0though?<br \/>\n<strong>Paul:<\/strong>\u00a0Oh yes, that is a fair call. We talk about Mobile Wallet and\u00a0you know\u00a0it\u2019s our passion and it means various things to various people.<br \/>\n<strong>Monica:<\/strong>\u00a0Yeah, exactly.<br \/>\n<strong>Paul:<\/strong>\u00a0&#8230;and I believe we\u2019ve\u00a0got\u00a0a very\u00a0defined\u00a0view of this\u00a0and it dates back, if you think back to 2012 when Passbook was first announced to the world. That\u2019s for us the definition of a Mobile Wallet. Some people say digital wallet, it\u2019s the same type of thing for us. So that was an answer for 2012 as a single non-deletable pre-installed application on your iPhone, and that allowed the consumer, the user\u00a0of the iPhone to store and manage digitized\u00a0valuables, you know things like offers, tickets, coupons, membership cards, IDs, stamp cards, gift cards, you know anything that would be in your leather wallet,\u00a0digitize that and shift it into your mobile wallet application or digital wallet application. And also similar to your leather wallet, you could store multiple\u00a0brands in the wallet, so quite different to a Starbucks application which just allows you to store a Starbucks card or Starbucks gift card and collect Starbucks rewards. A wallet application, a mobile application allows you to store all of those different brands in one single app,\u00a0the same way you can receive lots of emails from different people in one single application, the same way you can surf different websites in one single application. Mobile Wallet application is lots of different content, lots of different brands in one convenient application. Now I mention leather wallet, it\u2019s quite Mobile Wallet and digital wallet, better words for that case, allows not only to store that stuff but it enables transaction and with the added benefit of making use of the Smartphone capability. So unlike a leather wallet\u00a0which\u00a0doesn\u2019t really know what time of day it is, or doesn\u2019t really know the location you\u2019re situated in, doesn\u2019t really know where\u00a0you\u2019ve been\u00a0or where you\u2019re going, the Smartphone obviously holds those\u00a0capabilities. We\u2019ll talk a little bit more about that later, but that\u2019s really allowing you to unlock the power of that in conjunction with the convenience of storing all of those cards in your Smartphone and you know your Smartphone never gets thicker with all the cards. I know my wife often says, \u201cI can\u2019t carry these cards around with me today, my wallet\u2019s&#8211;my leather wallet\u2019s full\u201d and\u00a0obviously she\u2019s\u00a0very\u00a0delighted\u00a0that\u2019s she\u2019s now got a solution through Passbook, so keeping the wallet slim and all the convenience that comes along with that\u00a0single Mobile Wallet App.<br \/>\n<strong>Nick:<\/strong>\u00a0Yeah and I think when we talk\u00a0about Mobile Wallet, for Apple it\u2019s very clear, it\u2019s the Passbook application that is preinstalled into 400 plus million devices, that\u2019s relatively simple.\u00a0For Android, the landscape is more complex; there is Google Wallet which serves as a Mobile\u00a0Wallet,\u00a0there\u00a0is Samsung\u00a0Wallet, which is available in some territories\u00a0and on some Samsung hardware. There are other applications, for example there is\u00a0AliPay\u00a0across China, there is\u00a0PayPal, of course they have their own Wallet capability. We\u2019re still waiting for that marketplace to mature, to consolidate. But\u00a0the\u00a0Mobile Wallets,\u00a0each of these\u00a0wallets to a certain degree have\u00a0their\u00a0capabilities, which Paul has just mentioned.<br \/>\n<strong>Paul:<\/strong>\u00a0I notice a great question from John actually which\u00a0links\u00a0to that. Would you just read that out for the benefit for everyone else? We just got one from John from UK. Thanks for your question.<br \/>\n<strong>Monica:<\/strong>\u00a0So we know that Apple Pay is important but in Europe more than 70% are Android phones, even with that difference between Apple and Android, Apple still making more transactions?<br \/>\n<strong>Nick:<\/strong>\u00a0So I think it\u2019s been a long term acceptance by the market that Apple owners have a propensity to spend more, to transact more and more open to transact using their phone and transacting online. It\u2019s just the nature of the demographic of Apple subscribers. Yes the volumes for\u00a0Android phones are higher and I think Tim could be very clever when he said $2 out of every 3. He wasn\u2019t saying 2 out\u00a0of\u00a0every 3 transaction, it\u2019s the net transaction value coupled with volumes and with actual activity within the market. That said, you know these guys are neck and neck; when one starts to lead the other quickly catches up and vice versa and so whilst there isn\u2019t a compelling, single, homogenous Android solution today, that\u2019s not to say that it isn\u2019t\u00a0coming and I think\u00a0what we are trying to\u00a0say here is\u00a0these last three\u00a0months\u00a0results from\u00a0Apple Pay\u00a0are a real wake up call to say that this is the start of a new paradigm; that things are changing just like the introduction of the credit card.\u00a0You know people are now shifting fundamentally shifting their behavior and more importantly their expectations about\u00a0what they should be able to do with the technology that they own.<br \/>\n<strong>Paul:<\/strong>\u00a0Actually that\u2019s a good point\u00a0and just responding to that, it\u2019s important given what we just said about what Mobile Wallet is. Yes Apple Pay is an important component of the ecosystem for transaction,\u00a0but as Nick said at the beginning what it is doing, and what Apple is pioneering but driving demand for consumers across any Smartphone is the trust with the phone to conduct a transaction and leverage that phone to\u00a0tell them\u00a0information. So if we think of the benefit for everyone in this audience, given the diverse audience we\u2019ve got; you\u00a0know Mobile Wallet really is a channel. It\u2019s enabling Marketers, Business Owners, Brands to extend their brand promise\u00a0via\u00a0this channel\u00a0to improve conversion rates, whether\u00a0that\u2019s through an Apple Pay transaction or indeed through a\u00a0transaction\u00a0with other wallet content like a Membership Card, like a gift card\u00a0and drive traffic and sales. So most of us are familiar around the channels around Social Media, EDMs, Online Marketing, Google Ads, Facebook Ads and so on, but the Mobile Wallet is now becoming a mainstream marketing channel. Now\u00a0it\u2019s not mainstream yet but\u00a0Apple Pay is\u00a0shifting the perspective and shifting that demand around what Mobile Wallet is. It\u2019s not just your leather wallet, it\u2019s now an extension of your brand\u00a0via another channel of value that customers are storing inside an application.<br \/>\n<strong>Nick:<\/strong>\u00a0Yeah and\u00a0I think what Apple Pay has done in its short time and will do in those markets that it\u2019s not in yet but when it\u2019s introduced into those markets is to really shift that consumer mindset and that consumer behavior and it opens up a whole realm of possibilities. Now as Paul said Passbook\u00a0first\u00a0came out in 2002, June 2002.<br \/>\n<strong>Paul:<\/strong>\u00a02012&#8230;feels that long.<br \/>\n<strong>Nick:<\/strong>\u00a0Sorry\u00a02012 and at that time it had access to the location of the user, it had access to a small amount of information that provided a channel, a closed loop channel for us to interact with the user. What the Mobile Wallet does as a channel is so much more powerful than digital advertising today. If we think about the goal of digital advertising today, it is to go where your people go, to be seen where your people are online. If that person is searching for a product, I want my brand\u00a0up there in the top\u00a0results or in the paid ads or on the side column. If my client is on Facebook,\u00a0again\u00a0I want\u00a0him\u00a0to see my\u00a0brand\u00a0either in a Facebook post or\u00a0in\u00a0the sidebar. If their browsing their Twitter feed, it\u2019s popping up\u00a0on\u00a0there. If they are looking through Qoura or\u00a0Stack Overflow or checking out the latest news blog&#8230;<br \/>\n<strong>Paul:<\/strong>\u00a0Or LinkedIn.<br \/>\n<strong>Nick:<\/strong>\u00a0Or LinkedIn\u00a0or whatever, I am seeing my brand pop up. And there\u2019s a whole, phenomenally driven by Google but there has been a whole decade of technology devoted to\u00a0understanding how consumers behave online; gathering and analyzing their behavior and pushing them with\u00a0just the right app or just the right advert at the right time. And I think you\u2019ll notice it now if you go\u00a0online\u00a0and\u00a0you go and\u00a0browse at a product you haven\u2019t browsed at\u00a0before, you know\u00a0some&#8211;go and have a look at\u00a0screw pork cork screws, something like that,\u00a0Google for that.<br \/>\n<strong>Paul:<\/strong>\u00a0You know why are you&#8230;?<br \/>\n<strong>Nick:<\/strong>\u00a0You know\u00a0I\u2019m just\u00a0trying to think of something, an example that somebody is going to go after and have it looked at. The one for me that gets me is, because we are in the wallet business and wallet is a search term which\u00a0means\u00a0a lot, I\u2019m continuously bombarded with adverts\u00a0for\u00a0Bellroy Wallet.<br \/>\n<strong>Paul:<\/strong>\u00a0Yep, I get that too.<br \/>\n<strong>Nick:<\/strong> They pop up everywhere and I\u2019m thinking geez Bellroy, they must be the best; and after like three years of conditioning I might actually go out and buy one.<br \/>\n<strong>Paul:<\/strong>\u00a0That\u2019s three\u00a0years.<br \/>\n<strong>Nick:<\/strong>\u00a0But you know that\u2019s the strategy. The strategy is find out where your people are when they are online and get in their face. What the Digital Wallet, what the Mobile Wallet allows you to do is to turn that on its head, yeah\u00a0and you are now able to say when that individual is coming to me, give them something of value. When they are close to my location, when they\u2019re in my store exhibiting a particular behavior, push this to them or remind them of this or\u00a0provide them with this opportunity when they\u2019re in there. Imagine you\u2019re in the market for a new TV or actually you\u2019re not in the market for a new T.V. your wife is browsing the whatever section.<br \/>\n<strong>Monica:<\/strong>\u00a0Cosmetics.<br \/>\n<strong>Paul:<\/strong>\u00a0Thank you.<br \/>\n<strong>Nick:<\/strong>\u00a0Cosmetics section\u00a0or wildly overpriced kitchen accessories section and\u00a0so you take a wander off and\u00a0you\u2019re looking at\u00a0the big screen TVs. So\u00a0you\u2019re\u00a0standing in front\u00a0of a\u00a0TV, now\u00a0could be watching the game\u00a0but you could be eyeing up the opportunity. You could have your phone in\u00a0hand; you could be doing some research on those and what we might notice is that you\u2019re moving backwards and forwards between products or you\u2019re moving away and you\u2019re coming back and what might just be going on is in your mind\u00a0you might be thinking,\u00a0you\u2019re trying to justify the purchase yourself. You don\u2019t\u00a0really\u00a0need a TV or you don\u2019t\u00a0really\u00a0need that TV, it seems like a good deal\u00a0but if in that point,\u00a0if\u00a0we can pick up on that behavior and push a\u00a05%\u00a0coupon&#8211;discount coupon\u00a0for you, this is only special offer, show this get 5% off. That might be just all that you need to\u00a0be able to\u00a0push you over the edge and what we\u2019ve seen time and time again in the past few years we\u2019ve been working with brands, small and large deploying and experimenting with these technologies since Passbook has\u00a0been&#8211;has\u00a0become available on iOS6. We\u2019ve been working\u00a0with\u00a0brands and we\u2019re\u00a0consistently\u00a0seeing\u00a0higher\u00a0redemption rates, higher activity rates, higher responses to calls to action which all in all result in higher\u00a0dollars in their tail and this whilst it\u2019s\u00a0easier to\u00a0do on iOS, it\u2019s\u00a0also entirely\u00a0feasible\u00a0and possible using\u00a0Google as well.<br \/>\n<strong>Monica:<\/strong>\u00a0So issuing a coupon to push someone over that edge,\u00a0like\u00a0how is that done?<br \/>\n<strong>Nick:<\/strong>\u00a0Well it\u2019s not so much the technology, first and foremost is understanding what you want to do. One of the first things we tell our customers is,\u00a0with great power comes great responsibility, you know.\u00a0You do have the power based on what somebody is doing or has done or\u00a0has exhibited\u00a0or where they are or where they have been\u00a0to interrupt them and to get right up on the lock screen,\u00a0right in front of, right next to you know the Whatsapp message from their spouse\u00a0or\u00a0the email from their kids\u00a0or\u00a0the SMS\u00a0from the\u00a0bank.\u00a0You\u2019re right up there front and centre. So first and foremost, it\u2019s about what do you want to achieve, you know and the key concept is to always be adding value. It\u2019s one of the things to liking it too\u00a0is, imagine you could be stood behind your customer\u2019s shoulder when\u00a0they are in the store, what would you say to them? What would you do? What advice\u00a0can\u00a0you give them? And then be able to push those. The technology part is the easiest part.<br \/>\n<strong>Paul:<\/strong>\u00a0Yep<br \/>\n<strong>Nick:<\/strong>\u00a0The hardest part is\u00a0really deciding&#8230;<br \/>\n<strong>Paul:<\/strong>\u00a0Not to start or refusing to&#8230;<br \/>\n<strong>Monica:<\/strong>\u00a0Yes.<br \/>\n<strong>Nick:<\/strong>\u00a0Time to start and exercising restraint\u00a0I\u00a0think and respecting the power that it gives you. Because if you\u00a0can do\u00a0that and if you can add value every time, you build trust, you build convenience, you build a\u00a0real love and fondness for your brand, and it\u00a0feels so differentiated, it feels so personal because of the way\u00a0that it\u2019s\u00a0delivered\u00a0and because it\u2019s just\u00a0oh\u00a0right what I need, right when I needed it.<br \/>\n<strong>Paul:<\/strong>\u00a0I do think just as you\u2019re talking. I do think one of the things we\u2019ve seen though and I guess that\u2019s why we\u2019re all together here talking about this, is one of the big barriers though is looking for excuses why not to do this as opposed to excuses to do this. So we\u2019re talking about the reasons we\u2019ve seen this unprecedented explosion of Apple\u00a0Pay transactions. We\u2019ve seen trust from consumers, we\u2019ve seen demand from consumers and\u00a0then\u00a0we\u2019re getting questions like, well\u00a0it\u2019s not there in Samsung yet or it\u2019s\u00a0you\u00a0not this\u00a0blah blah blah or\u00a0we don\u2019t or\u00a0it sounds\u00a0technically\u00a0difficult. Well technology really isn\u2019t the barrier to make the most of these technologies. It really is about\u00a0getting into that lean mode of thinking, that really want to be experimenting, adding value, using the\u00a0smart phone to be that person on the consumer\u2019s shoulder to add\u00a0value at that point, continue\u00a0to learn.\u00a0Now the beautiful thing of\u00a0Mobile Wallet, unlike traditional Marketing campaigns\u00a0which have a lot of\u00a0time\u00a0to then feedback, tell you where you\u2019ve done something; you spent a bunch of money, a load of money on a print campaign, a TV advert, whatever it might be, the data that you get, the insights that you can get from starting will then further\u00a0propel\u00a0you\u00a0as more and\u00a0more consumers start to use it.\u00a0So from our experience the successful businesses are the ones\u00a0that take action and look for the reasons to make this work and the ones that are\u00a0sort of sitting in the background and not profiting from this sector at the moment, are the ones that are\u00a0looking for excuses\u00a0why not to do it. Now clearly there are challenges around\u00a0you\u00a0know how\u00a0do you actually wire this thing\u00a0or how do you think through the campaign, how do you\u00a0really\u00a0maximize the benefit\u00a0and the\u00a0pattern\u00a0of it? Those are\u00a0things that\u00a0aren\u2019t very important\u00a0and indeed we spend a lot of time with clients\u00a0making sure that they\u00a0have the best type of thing\u00a0and experience and can leverage the wave of Apple Pay and can jump on the iBeacon bandwagon and all of those sorts of things but it really is about deciding to step forward.<br \/>\n<strong>Nick:<\/strong>\u00a0Yeah.\u00a0Somebody else is being pummeled\u00a0by Bellroy.<br \/>\n<strong>Paul:<\/strong>\u00a0I see that.\u00a0That\u2019s\u00a0in Saudi Arabia\u00a0as well\u00a0so let me\u00a0look up Bellroy and tell you right here.\u00a0There\u2019s another question.<br \/>\n<strong>Monica:<\/strong>\u00a0We\u2019ve got a question that\u2019s come through from Lorenzo. So using iBeacon installer, do you expect the customer to have your app\u00a0installed that would react to the beacon or\u00a0maybe you have a pass installed, is there a way to push a message without a prior app or pass\u00a0installation?<br \/>\n<strong>Nick:<\/strong>\u00a0Okay.\u00a0You know\u00a0strictly speaking\u00a0there isn\u2019t a way of just suddenly attracting some of the attention if they don\u2019t have\u00a0a pass installed or if they don\u2019t have\u00a0an\u00a0app\u00a0installed. There are some strategies where in collaboration with other apps\u00a0you are able to utilize their app to\u00a0be able to\u00a0deliver messages on your behalf and that\u2019s a service that we are also able to provide.\u00a0But in general, no a customer has to make a choice and there are a number of strategies\u00a0both\u00a0in store and\u00a0online and offline\u00a0to be able to get them to install a pass. But the one thing that\u2019s certainly not necessary is to have an app.<br \/>\n<strong>Paul:<\/strong>\u00a0Yeah definitely.<br \/>\n<strong>Nick:<\/strong>\u00a0You don\u2019t need an app to benefit from iBeacon technology and to benefit\u00a0to have\u00a0the\u00a0ability\u00a0to push, you do need a pass. But considering a pass\u00a0is typically something of value, then passes are a lot easier to get a user to\u00a0install and if you have an app, actually passes are a gateway to building the trust and confidence of the user to install your app because the two can be linked together and they work very nicely together. But the pass is a great entry\u00a0channel;\u00a0it doesn\u2019t require any sign in, any\u00a0log in,\u00a0any giving of IDs. It\u2019s a single\u00a0click or a single\u00a0scan\u00a0and you\u2019re able to put something into that\u00a0customer\u2019s\u00a0and avoid the&#8211;what we say apathy&#8230;<br \/>\n<strong>Monica:<\/strong>\u00a0Yeah.<br \/>\n<strong>Nick:<\/strong>\u00a0&#8230;of users who just don\u2019t want to install another app for a single\u00a0narrow function&#8230;<br \/>\n<strong>Paul:<\/strong>\u00a0Maybe\u00a0to give an example around\u00a0the distribution piece\u00a0and I see Lorenzo is from Switzerland.\u00a0This is a client, a partner in Manila in the Philippines. Now they are a major integrated tourist destination. They do have an application but similarly to get someone inspired around downloading an integrated resort destination app, maybe you do it when you\u2019re in the exact destination but you don\u2019t normally use it\u00a0if\u00a0you\u2019re in the shopping mall or going to the cinema or whatever. So they used one of our products too which uses Mobile Wallet content and promotes\u00a0social\u00a0sharing and what they were able to do is through a very simple distribution campaign, whether that was email\u00a0they had the QR\u00a0codes outside for initial distribution. They ran a very small campaign in print, they did some small\u00a0online advertising but by very small and niche advertising, so low cost. By using Mobile Wallet and using the para-social sharing they\u00a0had acquired the full profile data and\u00a0a new marketing channel via the Mobile Wallet for\u00a027,000 new customers in just 24 hours and\u00a0then 40,000 customers\u00a0in just\u00a0over\u00a0a week. The incentive they gave away was a cinema ticket for\u00a0one in five people. So if you were\u00a0an\u00a0originator,\u00a0you were the first person to get\u00a0this membership card for their integrated tourist resort. That would post to their Facebook and say hey,\u00a0get this\u00a0if you get this one as well, if I collect five of you as referees, I get\u00a0a free\u00a0cinema ticket. So\u00a0there was kind of this viral nature of marketing but\u00a0ultimately\u00a0the return on investment was\u00a0being\u00a0able to be measured by the\u00a0number of people using that wallet functionality, that wallet content as opposed to a like on Facebook, or as opposed to sort of a more ethereal measures where we like to feel good about our business but it doesn\u2019t seem to correlate to our\u00a0revenue, it doesn\u2019t seem to correlate to our traffic. Whereas through Mobile Wallet content they had a\u00a0very tight progression or correlation to traffic, commerce, number of people who are actively using that content and using that social integration.<br \/>\n<strong>Nick:<\/strong>\u00a0Actually, that brings another advantage of the Mobile Wallet. When linked with traditional digital media channels\u00a0one of the biggest challenges with digital media is somebody is in front of the screen; they\u2019re at their desk\u00a0online or whatever or they\u2019re looking at their smart phone and the problem is that even though the offer may be really compelling, it may not be the right time, just not now. It\u2019s like if you\u2019re walking down a\u00a0high street and someone gives you a coupon but you just had lunch.<br \/>\n<strong>Paul:<\/strong>\u00a0Yeah.<br \/>\n<strong>Nick:<\/strong>\u00a0It might be a great offer only available today,\u00a0but I\u2019ve\u00a0just had lunch, you know.<br \/>\n<strong>Paul:<\/strong>\u00a0Yeah.<br \/>\n<strong>Nick:<\/strong>\u00a0What happens to most of that advertising is it gets trashed\u00a0but the Mobile Wallet gives you an opportunity for that user to save it\u00a0inside their wallet, to be able to respond to that ad\u00a0and put it into a repository, into\u00a0a format, into\u00a0an app that they trust\u00a0and once it\u2019s in there as an issuer, even if that lunch special expires you are able to\u00a0target them the next day. You are able to\u00a0push an update\u00a0of your new specials or push a reminder or based on whatever pattern they have, you can respond to that. Another\u00a0good\u00a0example of a campaign\u00a0which we\u2019re running with a major U.S. retailer right now is they have a loss leading offer where throughout the store there\u2019s points of sales where they scan and get a pass for a 20% discount on today\u2019s purchase. It\u2019s a loss leader but they scan that, they\u2019re taken to a page where they insert their mobile phone number and then they receive a text, or they send a text I can\u2019t remember now. But the issue is through text so\u00a0it\u2019s tied to that individual so that we know that pass holder is a\u00a0unique individual and it also prevents abuse of the offer. Then out of that we had over 40% of the people take up the offer. They\u2019re in store, they get the thing and they take up the offer;\u00a0and for those that don\u2019t take up the offer, the pass is still\u00a0retained within the Passbook. After seven days of that offer they then retarget those\u00a0who haven\u2019t used the offer\u00a0with a new incentive. Whereas the others who do use, depending on their spend,\u00a0get sent different offers as well.\u00a0And so this is just an example of in-store offering a\u00a0high\u00a0incentive to get inside the pass,\u00a0and then once they are in the pass because we know who that user is and because it is being redeemed\u00a0at checkout, we know exactly what it is that\u00a0they bought, what they spent, what they are interested in.\u00a0We can start to build a profile around that individual\u00a0and start to deliver them offers that they are truly going to value and that they are going to take up; and even if they don\u2019t take up those offers, we would still have an opportunity, a channel to be able to try something differently.<br \/>\n<strong>Paul:<\/strong>\u00a0Well when you think of that redemption rate\u00a0I know we\u2019ve got some&#8230;<br \/>\n<strong>Monica:<\/strong>\u00a0We\u2019ve got a&#8230;<br \/>\n<strong>Paul:<\/strong>\u00a0&#8230;traditional marketers that\u00a0have, that\u00a0are now\u00a0moving into the digital marketing space and looking a Mobile Wallet as that space; moving from old printed coupons to now Mobile Wallet coupons. When we talk to them about these\u00a0redemption rates, they can\u2019t even believe\u00a0it. You know the typical traditional marketing redemption rates\u00a0if you were being\u00a0handed\u00a0out a coupon at this\u00a0outlet and handing out to everyone that\u2019s walked through the door,\u00a0they\u00a0would hope\u00a0to see\u00a0about a 0.5% redemption rate. As\u00a0you recall\u00a0what\u00a0Nick said 40% and not just that in store take up of the\u00a0offer, it\u2019s the channel there that\u00a0provides\u00a0them that extra value. So we don\u2019t have\u00a0lifetime value dates from this client but\u00a0it isn\u2019t just about that one time transaction, the loss leader and hope for the\u00a0best. We\u2019ll\u00a0give the loss leader out, we\u00a0hope\u00a0we can get them back because they love our brand so much and you\u2019ve lost them forever with a piece of paper. It\u2019s now become that channel of communication\u00a0where you build a relationship, you build rapport, you build value\u00a0such that your brand loyalty increases through that new channel. I can see there\u2019s a couple, there\u2019s loads of questions.<br \/>\n<strong>Nick:<\/strong>\u00a0Let\u2019s take those\u00a0two\u00a0technical\u00a0ones later and let\u2019s go to the one in the middle shall we.<br \/>\n<strong>Monica:<\/strong>\u00a0Okay. I had a\u00a0future client I think meeting yesterday. I was telling him about the pass and well the app. As far as we know passes have cost have the advantage of not having the app installed to interact. Of course previous sent by SMS and the app has the interaction with the user because they see the icon on the phone but they have to install it which in our opinion is harder. Any more advantage or disadvantage from each?<br \/>\n<strong>Nick:<\/strong>\u00a0So Passbook, if you can target\u00a0an individual either through an SMS or an email or an offer in store with a QR code or a URL, so one of the great benefits of passes both on Android and iOS is that there are multiple channels to get in there. It\u2019s not\u00a0that\u00a0you have to get to the App Store or\u00a0have to go to\u00a0the Play Store; you can respond\u00a0from a click on\u00a0an SMS,\u00a0from\u00a0an MMS, from an email\u00a0or\u00a0as an attachment or a\u00a0as\u00a0a link\u00a0or from a\u00a0web\u00a0URL. So that\u00a0it is very easy to target users in multiple\u00a0ways\u00a0using multiple channels. And if we\u2019re talking about\u00a0the advantages\u00a0and the disadvantages of a pass versus an app; with a pass you\u2019re limited to what Apple or Google or\u00a0PayPal or AliPay or Samsung say you can do within the Passbook App, so they are\u00a0respectful of\u00a0users\u2019 privacy\u00a0and in some cases they will throttle you so that you don\u2019t send updates every hour. There are certain rules\u00a0and there are certain restrictions in terms of the format of the pass, the content, the amount of content and so on. So you\u2019re bound by those restrictions\u00a0but the benefit is it\u2019s a single click. It literally is one, if you can just get them to do that click, they will be presented with a pass\u00a0and that pass is available to be installed; and that\u2019s a huge plus\u00a0because it also offers you then the opportunity to\u00a0deliver on your brand value, on\u00a0your brand promise\u00a0and build the trust necessary\u00a0to get an app. Now with an app, the downside obviously\u00a0everybody\u00a0knows is that it takes a lot\u00a0of money to invest to build the\u00a0app and it takes a lot more money to market the app, to get that app out there in front of customers. Particularly we\u2019re talking about Android\u00a0you\u00a0know because Android isn\u2019t Android. Think of Android like Windows:\u00a0Windows XP, Windows 95, Windows ME, Windows\u00a0Vista, Windows&#8230;<br \/>\n<strong>Paul:<\/strong>\u00a0Now you\u2019ve\u00a0got\u00a0another dimension\u00a0in Android as well with the\u00a0different\u00a0devices.<br \/>\n<strong>Nick:<\/strong>\u00a0And that\u2019s&#8211;but that\u2019s\u00a0exactly what Android is, you know Android\u00a02 is a completely different animal from Android 4, which is a completely different animal to Android 5, which is a different animal to Android 5 installed on a Google device and Android 5 installed on a Samsung device&#8230;<br \/>\n<strong>Paul:<\/strong>\u00a0Nick has\u00a0clearly\u00a0got a lot of friends\u00a0with Android.<br \/>\n<strong>Nick:<\/strong>\u00a0&#8230;and Android 5 installed on a T-Mobile\u00a0carrier\u00a0in France\u00a0who have decided to take all this. It\u2019s just a minefield and developing for Android is\u00a0just\u00a0painful and expensive.<br \/>\n<strong>Paul:<\/strong>\u00a0But a Pass&#8230;<br \/>\n<strong>Nick:<\/strong>\u00a0A pass\u00a0on Android is no different to Pass from iOS. Now\u00a0the plus of an app particularly on iOS is that you get to use the full capability of the phone. You get to use the\u00a0full capabilities of the phone, you get to use the GPS, you get to use the WiFi to know exactly\u00a0what they&#8211;where they are, you get to use\u00a0all these new motion\u00a0APIs that have been built into iOS8\u00a0to understand what they are doing. Is the phone in the bag? Is the phone in the pocket?\u00a0Is the phone&#8211;there\u2019s so much you can tell about the user and more importantly is you get to\u00a0determine your own response from an iBeacon. Let\u2019s give the hospitality example where we\u2019re working with a hotel at the moment with their membership app\u00a0and show what\u2019s possible. Now this is an iBeacon powered example. It does require an app to do but it\u2019s incredibly cool. The user&#8211;the app is distributed to the user\u2019s membership program and first and foremost\u00a0as far as the user is concerned, this app functions as a convenient way for them to see their loyalty points from their rewards program. However when a VIP, particularly a\u00a0Gold or Diamond member approaches the hotel, the beacons in the lobby trigger the phone to wake up. And what we mean wake up we don\u2019t mean,\u00a0wake up the screen or buzz\u00a0or alert\u00a0the user but it wakes up the radio and the functionality of the phone.\u00a0The phone then coins through the APIs and delivers a picture\u00a0of the guest\u00a0from their\u00a0profile to the concierge. The concierge is then able to search for that guest, pull them out of the queue and take them off to be checked in privately. As far as the guest is concerned, he has no idea that iBeacons or this app has had any role in that experience, he just feels great experience from a user. And it\u2019s these types of innovative and magical experiences that are possible when we can build the trust and the credibility and the acceptance of the user to actually install the app in the first place.<br \/>\n<strong>Paul:<\/strong>\u00a0Actually\u00a0I just want to respond to that question\u00a0because it is a question we get often\u00a0asked. What\u2019s better, an app or a pass?\u00a0And I would say don\u2019t ask the question, they are different and there is value for an app plus a pass plus beacon technology when in certain situations there is value for a pass without an application, and there is value\u00a0for the pass to be first and an\u00a0app to be second. Now we obviously have lots of clients and partners who already have an app\u00a0are trying to build the Mobile Wallet capabilities in that app so we\u2019re obviously spending a lot of money investing and as Nick talked it\u2019s magnified by 100 when you talk about Android. Instead of utilizing the capabilities that are built into the phone already so they can concentrate on the experience, the cool experience that Nick talked about for the consumers in an app; using a Wallet capability inside the phone so they can store stuff to use\u00a0for use\u00a0later, they can transact\u00a0with that, they can still have location data working in conjunction\u00a0between\u00a0the Wallet\u00a0and the\u00a0application.\u00a0So the best way really is, again go back to basics and what is it that the client wants to achieve?\u00a0What is it that they want to do first? What can they afford to do? Those are the important questions if you are working with this client and they are asking\u00a0questions about what\u2019s better\u00a0an app\u00a0or\u00a0a pass. Try to remove the challenge around what\u2019s better and say well what do you want to achieve\u00a0and then help solve that situation and then in indeed that\u2019s how we get\u00a0into building an app before releasing a pass or indeed\u00a0helping them build their passes and then\u00a0help the integration\u00a0with apps and iBeacon technology.<br \/>\n<strong>Nick:<\/strong>\u00a0Yeah I second that. I\u00a0mean if you\u2019ve already got an app\u00a0then adding Passbook to an app is\u00a0almost a no brainer.<br \/>\n<strong>Paul:<\/strong>\u00a0Piece of cake.<br \/>\n<strong>Nick:<\/strong>\u00a0It\u2019s not difficult and\u00a0you know\u00a0the benefits are huge. There is no limit to what you can achieve,\u00a0what\u00a0you can achieve.\u00a0If you have an app which has in-app purchases, gaming apps in particular as well;\u00a0passes represent a fantastic way to give a physical, tangible reward to an individual\u00a0or even a digital reward as technology within the pass\u00a0that is\u00a0able to\u00a0bypass\u00a0the App Store\u00a0and deliver your users\u00a0or\u00a0unlock features of your app without having to\u00a0have a purchase or\u00a0pay\u00a0commission to Apple\u00a0so those are also opportunities for people that already have an app.<br \/>\n<strong>Paul:<\/strong>\u00a0I see we\u2019ve got a couple questions on redemption, quite a lot. We\u2019re trying to cope with lots of questions coming in so please bear with us, they scroll fast so.<br \/>\n<strong>Monica:<\/strong>\u00a0This is a very interesting question.\u00a0Small businesses get excited about Passbook. It\u2019s harder to target larger firms because they already have a cash register scanner in place in all of their selling points. How can we integrate PassKit nicely with larger firms?<br \/>\n<strong>Paul:<\/strong>\u00a0Good question.<br \/>\n<strong>Nick:<\/strong>\u00a0Yeah that\u2019s a good question. Now\u00a0I think the first piece of advice here is you know don\u2019t&#8211;and especially if you are selling,\u00a0and\u00a0if you are targeting, if you\u2019re trying to sell a campaign to these firms, it\u2019s very difficult to tell them that they have\u00a0got\u00a0to\u00a0invest\u00a0$200\u00a0per register to update their registers. The best approach is to augment what they do\u00a0currently. So let\u2019s look for current loyalty programs, current store\u00a0value card\u00a0programs\u00a0and so on. Understand the process, go\u00a0and\u00a0mystery shop yourself, sign up\u00a0for the program, get the card, have a look at what do they do.\u00a0How do they identify the user\u00a0that comes to the\u00a0point of sale\u00a0system?\u00a0You know because in reality,\u00a0through\u00a0the point of sale system all that happens is they\u00a0are entering a unique number or a unique code into\u00a0that system either by swiping a magnetic swipe card or asking you for your telephone number or an ID number or a customer number and keying it into the system or they\u00a0may be scanning a 1B bar code already. If these\u00a0shops\u00a0are already offering\u00a0programs\u00a0where they scan a\u00a0card, Tesco in the UK is a good example where they\u2019re scanning a club card; then these types of systems\u00a0offer the easiest opportunity for integration because you\u2019re simply replacing that card which is scanned with a digital\u00a0version of a physical card. For others, there are other ways around it but I would start by\u00a0looking to supplement and provide the option for iPhone users or for Smartphone users to enjoy the benefit\u00a0of accessing their loyalty program or that opportunity or that campaign through their mobile phone.<br \/>\n<strong>Paul:<\/strong>\u00a0So we have a\u00a0department store client which is Asian based, predominantly Hong Kong, China and\u00a0they&#8211;prior to using\u00a0one of our solutions they did issue, and they still do,\u00a0they\u00a0issue\u00a0plastic gift cards to their\u00a0high net worth individuals. So if a high net worth individual would spend a certain amount of dollars per month, they would be rewarded with a gift card in plastic. It would be sent through the post,\u00a0the plastic card would be&#8211;actually they get a letter, they then have to go to a different\u00a0part of the store, pick up the plastic\u00a0card then use the plastic card back in store so it\u2019s quite convoluted, particularly for higher net worth individuals who really don\u2019t\u00a0got\u00a0a lot of time for doing that stuff. Plus they are extending their branch\u00a0and the store distribution so the cost of managing that\u00a0gift card was going up\u00a0exponentially. When you move in to China you can see those costs\u00a0as well, maybe at small volumes, the cost per card and the distribution mailing cost and the management of that program\u00a0might sound small. When you\u2019re talking of the number of billionaires, millionaires in China that started to get significantly higher. So what they\u00a0did is, they\u2019ve offered the choice of the consumer to accept a digital gift card in lieu\u00a0of a\u00a0plastic gift card and there was no additional incentive for the actual value of that card, so it was actually the same value but to this company the cost is significantly lower. There is customer convenience\u00a0on that side\u00a0as well\u00a0and the actual processing of that digital card in store is exactly the same and already in the store\u00a0because this is\u00a0like\u00a0a department store with roaming sales associates. They were able to use\u00a0the Smartphone\u00a0they would normally have to be able to\u00a0check out product information to simply scan that phone and that communicates direct\u00a0back to the\u00a0point of sale\u00a0system. So there were no new scanners, there was no new hardware done, there were no changes to their back end; it was purely by using our solution, by consuming our API, to then be able to offer those digital cards. Now the last stat I had for them was a couple of months ago,\u00a0is out of all the customers they offered this\u00a0to, so this is high net worth individuals predominantly I think it\u2019s\u00a0about 80% iPhone users to 20% non\u00a0iPhone; they had 60%\u00a0people\u00a0choose the digital gift card\u00a0over the plastic and that was\u00a0quite\u00a0a few months ago. I will go back and\u00a0talk to them and see where that stat is at.\u00a0But just even that,\u00a0people are demanding it and it\u2019s helped them from that brand\u00a0engagement. Now that client\u00a0is going on to offer membership cards in digital format, again rather than maintain all this old\u00a0plastic stuff and they can still utilize internal systems. So I guess going back to the question, for the larger organizations, we\u2019re very comfortable,\u00a0we\u2019ve seen\u00a0Passkit, we\u2019ve seen\u00a0Mobile Wallet work for larger organizations\u00a0with minimal capital investment, and minimal switch over from existing hardware, point of sale scanners,\u00a0and you\u00a0name it. There is a solution out\u00a0there;\u00a0it all\u00a0depends on how sophisticated they\u00a0want to get and the best thing\u00a0is just\u00a0to\u00a0take a step forward, you know replicate what you got today in paper or\u00a0plastic format, go digital\u00a0and then as you start to get more experienced, you learn more about your customers, you learn how people transact with their Smartphones, you learn all types of campaigns that work\u00a0really\u00a0well; then you\u00a0can start talking about maybe we need to\u00a0do\u00a0some different back ends, this seems like a CRM database, maybe have real time, maybe we do different scanning solutions, maybe start looking at MFC. All of those things, but don\u2019t\u00a0kind of\u00a0worry about that yet, it\u2019s a move forward, take your existing program, move into the Smartphone revolution because\u00a0the consumers already have, and it\u2019s the merchants that\u00a0kinda need to now.<br \/>\n<strong>Nick:<\/strong>\u00a0Yeah. There\u2019s a second part to the question\u00a0that\u2019s just\u00a0popped up\u00a0as well. What about redemption, in this case can the\u00a0register connect\u00a0to the internet and redeem a pass easily?\u00a0So it is an important consideration if we want this pass to be interactive, if we want the user to know that they\u2019ve been rewarded new points or\u00a0that they\u2019ve increased their balance or that their balance has been reduced or whatever we want to do; there does need to be that closed loop. Now there is no one standard answer to this and again it comes back to understanding the process. One agency that we were working with just last week in Singapore, they are targeting a major Cafe chain, essentially selling&#8230;<br \/>\n<strong>Paul:<\/strong>\u00a0Bubble Tea.<br \/>\n<strong>Nick:<\/strong>\u00a0Bubble Tea, yes.<br \/>\n<strong>Paul:<\/strong>\u00a0Bubble Tea might not mean a lot to everyone.<br \/>\n<strong>Nick:<\/strong>\u00a0Anyway, people are going crazy for this stuff and they hit the limelight recently because they sold out of 7,000 gift cards in the first 24 hours. But they proved expensive to print and to maintain and so on and so they are interested in going digital. Now what we found is that\u00a0they\u2019d invested a lot of money in their register system to process these cards and they were very reluctant to upgrade their registers and in particular to upgrade the software in their registers. Adding a scanner was not so much of a problem but they didn\u2019t want to go through the pain of upgrading the software and also the delay of upgrading the software. But what we found, what we discovered through mystery shopping and experiencing that product was that there is a real time update\u00a0through\u00a0their\u00a0website.\u00a0So through their\u00a0website you are able to log on and immediately after having a transaction at one of these establishments using the card, you can see\u00a0that transaction reflected on the website. And the website on that backend is really easy to\u00a0integrate too. POS systems are\u00a0typically\u00a0harder, particularly when you\u2019re dealing with larger organizations;\u00a0there is a licence fee\u00a0per\u00a0terminal and\u00a0it becomes very painful to deal with but understanding the process truly from end to end, it\u2019s usually easy to find a place to hook into that, into that\u00a0process. In\u00a0addition to that, as Paul said, within the retail store value app, we used the Android\u00a0phone;\u00a0we used the Wi-Fi connection of the Android phones to do the API\u00a0calls back to the pass and to do the verification\u00a0from\u00a0there. We\u2019re also working in conjunction with a partner in\u00a0Australia;\u00a0we have developed a very low cost piece of hardware, less than US$100 that sits between the point of sale system and the scanner and sits between the point of sale system and the printer. So if you imagine the cable coming from the scanner to the receipt printer, sorry from the till to the receipt printer and from the till to the scanner; this thing sits in between those two cables and intercepts the signal both ways. It has a 3G card inside, very, very cool and it handles all of the logic and all of the API work which\u00a0is involved.\u00a0So what, if we should come back to the original message, starting small, doing what is possible today,\u00a0it very, very quickly gains attention, and they gain appetite and they gain confidence to then make those investments in the larger hardware. But certainly when thinking about approaching these stores, replication and augmenting their existing processes should come first, and then build out from there as they start to\u00a0really experience and\u00a0understand the value of what\u00a0unlocking the\u00a0Mobile Wallet can do for them.<br \/>\n<strong>Paul:<\/strong>\u00a0We get so excited by the vision of the future, obviously that\u2019s where we started\u00a0PassKit\u00a0and where we\u00a0can\u00a0see the world going. What we\u2019ve\u00a0seen\u00a0particularly for Marketing agencies or indeed CMOs within Corporates or to a certain extent the media side businesses is struggling with is they want to get here before starting, starting somewhere and if they equally need to get sign off, there\u2019s all these questions like\u00a0oh what about this, what about that, we\u2019ve already got\u00a0these loyalty campaigns,\u00a0we\u2019ve already spent this money on this. The best way to\u00a0win over those nay-sayers, the people that aren\u2019t as enlightened as all of us in this room, is to get going with a low risk, maybe a small scale implementation of Mobile Wallet. Now every single case\u00a0without question\u00a0of\u00a0all\u00a0our clients\u00a0that have done that approach has got the CMO, the CEO, the CFO, the COO, you name any CXO, whatever it might be, everyone\u00a0is then saying, what are we doing next, when are we going next? We\u2019ve worked with a major port, terminal in Europe,\u00a0across\u00a0actually a number in Europe\u00a0you\u00a0know and we talked initially about\u00a0massive beacon deployment and\u00a0you know integration with that as they only did was offer a free Wi-Fi pass. So to sign up they already had is sign up for our loyalty program and get 30 minutes extra Wi-Fi. Now what happened in the past was you sign up for Wi-Fi, you put your name in, you put your details, you get this plastic card, comes through the post, when you get home you\u2019re outside of an airport and it\u2019s not really useful. It\u2019s not really useful to anyone after you\u2019ve gone home; you are outside\u00a0of\u00a0these airports.\u00a0So through delivery and simple looking and observational process and the pain that consumers were feeling and\u00a0then\u00a0replacing that pain with\u00a0something of convenience, which is\u00a0a Pass\u00a0which remember\u00a0what we said is a channel. A pass which adds value for\u00a0the consumer, they\u00a0get 30 minutes free Wi-Fi, they\u00a0also get\u00a0access to discounts from further merchants in the channel, and now becomes a new channel. So you want to\u00a0keep that relationship alive, you still collect their email, you\u2019re still collecting their phone number, but you\u2019ve also got an additional marketing channel with no stand filters not forever filling up\u00a0and assuming you trust that relationship\u00a0with respect the person keeps the pass in there, likely\u00a0to use it again, maybe tell other people about this cool thing that they have joined, this new loyalty application I\u2019ve got for this terminal, if you\u2019re going through this terminal, you really should download this one, it\u2019s given me lots of\u00a0discounts. And then you can start to even see the broader ecosystem\u00a0outside of those airport terminals linking to hotels, linking to supporting merchants, linking other airports of a similar sort of family and\u00a0sister group of airports. So it really\u00a0does start with getting excitement in a very simple way and allowing the data to help you move that forward with stake holders or\u00a0indeed just\u00a0if you are a\u00a0small business owner, allowing the data to\u00a0prove to\u00a0you that this is the\u00a0next thing to do or if it doesn\u2019t prove it, you\u2019ve actually lost not\u00a0a lot of\u00a0time\u00a0or\u00a0effort. It\u2019s\u00a0certainly\u00a0not going to cost you\u00a0the same time and resources as\u00a0building an app,\u00a0and then\u00a0launching\u00a0that\u00a0app and getting one installed.<br \/>\n<strong>Monica:<\/strong>\u00a0Thank you but noticing the time actually, I think we have time for\u00a0just one\u00a0last question.\u00a0Question\u00a0from\u00a0Cindy from Singapore. Right now Apple Pay is only available in the U.S. Do\u00a0I\u00a0wait until it comes to my country?<br \/>\n<strong>Paul:<\/strong>\u00a0Wow.\u00a0Well\u00a0I hope by now\u00a0you know it\u2019s no.\u00a0This is&#8211;you know\u00a0Apple Pay is the\u00a0catalyst;\u00a0it really is the fire that\u00a0actually\u00a0we\u2019ve all been waiting for. You know when we first spotted the opportunity back in\u00a0June 2012\u00a0when Apple first worked with us around\u00a0Passbook;\u00a0we actually thought\u00a0commerce capabilities or Credit Card storage\u00a0in Passbook would come a little bit earlier, so we\u2019ve been kind of waiting and setting up for this. This is not about waiting for Apple Pay to be available in your\u00a0country;\u00a0this is about taking action now. If you realize\u00a0the importance of the Mobile Wallet\u00a0as a marketing channel, as a\u00a0relationship, as an ad channel; as Nick said flipping the\u00a0advertising\u00a0space on its head, not about wanting to\u00a0be\u00a0where the customer is hanging out, but being where the customers are. You know putting your brand wherever the customer\u00a0is in proximity when the customer behaves\u00a0in\u00a0a certain way, having your brand, having your customer\u2019s brands appear in the face in the most intimate objects that consumers are carrying around with them today. You know it\u2019s time to experiment now, place,\u00a0put stuff in people\u2019s wallet\u00a0now and through that experimentation, when Apple Pay is there, and we\u00a0know it\u2019s coming\u00a0in every country, they\u2019ve made it very clear. Tim Cook said\u00a0Apple Pay, 2015 is the year of Apple Pay. Through that experimentation, your brand or your client\u2019s brands\u00a0would be right next to your consumer\u2019s credit cards.<br \/>\n<strong>Nick:<\/strong>\u00a0Yeah hopefully, and it will be a tsunami. I mean we\u2019ve seen this now with the U.S and that\u00a0adoption rate\u00a0is only going to get quicker as more and more countries start to adopt it and\u00a0people start to get the hype,\u00a0and\u00a0everybody is saying when is it coming. Much better\u00a0that you are already in people\u2019s Passbook or\u00a0you already have the channel for people to\u00a0get into Passbook when\u00a0Apple Pay is announced, rather than waiting for Apple Pay to come and then starting to react to that.\u00a0Before\u00a0we close out so there were two very quick questions that we can answer.<br \/>\n<strong>Monica:<\/strong>\u00a0Hmm hmm.<br \/>\n<strong>Nick:<\/strong>\u00a0One was, what about languages, does it support right to left? The answer is yes, it supports Arabic, it supports Hebrew, absolutely no problem. In fact, you can have up\u00a0to 40 languages embedded in a\u00a0Pass,\u00a0and it will automatically adjust to the\u00a0user\u2019s preference.\u00a0So for the same, if you distribute one pass, if the phone has\u00a0got\u00a0Arabic as a preference,\u00a0you would see it in\u00a0Arabic.\u00a0If it\u2019s got Vietnamese as a preference, you\u2019ll see it in Vietnamese, providing\u00a0of course you have programmed those translations into the pass.<br \/>\n<strong>Paul:<\/strong>\u00a0Yes and also translate because that wouldn\u2019t be nice.<br \/>\n<strong>Nick:<\/strong>\u00a0Second technical question is\u00a0what kind of equipment is required to scan?\u00a0You do, if you want to scan a Pass from the screen, then you require a\u00a02D optical scanner. ID barcodes aren\u2019t supported by Passbook; they are supported in some of the Android Wallets but not by Passbook.<br \/>\n<strong>Paul:<\/strong>\u00a0There\u2019s not a very good excuse.<br \/>\n<strong>Nick:<\/strong>\u00a0Yep and\u00a0laser,\u00a0traditional laser scanners don\u2019t work. However, that said there are some work-arounds. We have been able to work\u00a0with a convenient store chain in a major, a major Asian economy.<br \/>\n<strong>Paul:<\/strong>\u00a0You won\u2019t say it.<br \/>\n<strong>Nick:<\/strong>\u00a0No slip up, not trying to\u00a0give much away and but through a software update to their drivers for their scanners we are able to scan 1D barcodes from the\u00a0screens and we\u2019ve adapted our API for Passbook to use a certain space on the Pass layout to display a 1D barcode instead of the space\u00a0of\u00a0a 2D barcode and that\u2019s opening up some interesting\u00a0opportunities. You also though, don\u2019t need to scan the pass. There are a number of\u00a0ways, there are a number of strategies that we have been able to develop and deploy for customer redemption.\u00a0Customer is issued a receipt with a\u00a0QR\u00a0code\u00a0on that they scan themselves,\u00a0it\u00a0then updates the Pass. Customer is\u00a0issued with a code that they\u00a0key\u00a0and\u00a0then update the pass. Customer is directed to click a link on the back of their Pass, present the Pass to the cashier who types in a code in to the form that is provided to redeem the Pass. There are many, many ways in which the Pass can be scanned and redeemed. Oh and of course you can use an\u00a0Android\u00a0or an\u00a0Apple\u00a0device as well as\u00a0a scanner using some of the software that either we provide or\u00a0also generic scanning software to scan a URL that\u00a0could\u00a0be embedded in the Pass. So redemption is unique to each situation,\u00a0but as of yet with literally hundreds of campaigns, most likely in the thousands of campaigns now, we haven\u2019t yet come across a scenario that we weren\u2019t able to create an acceptable, I wouldn\u2019t say optimal, but\u00a0certainly an\u00a0acceptable\u00a0experience for both clients and for the business. And the business is also important because as well as making it simple and seamless for the customers, we also want to make it as simple and seamless for the staff so that you don\u2019t have the overhead of training and development\u00a0and the risk of things going wrong or a bad experience at the checkout\u00a0because people don\u2019t understand; and that again is where moving slowly and augmenting what they do already and\u00a0providing an additional channel to what they do already is usually the best strategy to migrate\u00a0these particularly the larger organizations, they don\u2019t move quickly and to slowly migrate and evolve their capability. Sorry Monica.<br \/>\n<strong>Monica:<\/strong>\u00a0No worries.<br \/>\n<strong>Paul:<\/strong>\u00a0That was perfect timing. It\u2019s great that we got a load more.\u00a0I know that Monica is going kick us in the\u2026<br \/>\n<strong>Monica:<\/strong>\u00a0Yeah we really have run out of time now. Let\u2019s get this back with me. Thank you everyone for making this such an interactive and informative Webinar, and we thank you Nick and Paul for sharing your infinite wisdom with us. It was a true pleasure to have you join us and it is very apparent, to me at least that we\u2019ve only just scraped the surface of the ever great opportunities out there. If you do want to learn more, Paul and Nick will be in London\u00a0from the 25th\u00a0to the 27th\u00a0of February. To\u00a0all\u00a0businesses,\u00a0get started and take full advantage of the Mobile Wallet capabilities.\u00a0So\u00a0please go to passkitpartners.com for more details and thanks for joining us folks, signing out.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How would we describe Apple Pay in one word? We\u2019d say Revolutionary. A major shift in consumer preference for the digital wallet is coming in 2015. Apple Pay may not be in your country yet, but soon it will be, and when it lands is your business going to be favorably positioned? More importantly are [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":13751,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,15,31],"tags":[58,214],"class_list":["post-5632","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-apple-pay","category-blog","category-mobile-wallet-2","tag-apple-pay","tag-mobile-wallet"],"_links":{"self":[{"href":"https:\/\/passkit.com\/blog\/wp-json\/wp\/v2\/posts\/5632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/passkit.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/passkit.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/passkit.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/passkit.com\/blog\/wp-json\/wp\/v2\/comments?post=5632"}],"version-history":[{"count":0,"href":"https:\/\/passkit.com\/blog\/wp-json\/wp\/v2\/posts\/5632\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/passkit.com\/blog\/wp-json\/wp\/v2\/media\/13751"}],"wp:attachment":[{"href":"https:\/\/passkit.com\/blog\/wp-json\/wp\/v2\/media?parent=5632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/passkit.com\/blog\/wp-json\/wp\/v2\/categories?post=5632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/passkit.com\/blog\/wp-json\/wp\/v2\/tags?post=5632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}