Nov 172014
 
apple-pay-screens

Has Apple Pay legitimised mobile payments? It appears so, reports the New York Times. Since the launch of Apple’s payments service, Google and other mobile payment providers are claiming usage has doubled with customers exploring the systems.

If this is true, it’s similar to how Apple legitimised the USB port in 1998 with the release of the iMac.

Prior to the iMac the USB port was a bit of an oddity, on most PCs the sockets sat unused and the few devices available on Windows computers worked reliably, as Bill Gates himself found out during a live demonstration at the 1998 Comdex show.

Unlike Apple Pay, the move to USB on Macs wasn’t welcome and it was a high stakes decision by Steve Jobs given that Apple’s existence was still precarious and its user base was still made up of largely of true believers who had been through years in the wilderness with the company.

Those users also had many thousands of dollars invested in Apple Device Bus (ADB) devices, all of which became redundant with the move to USB. Many customers at the time swore this was the last straw and they would move to Windows PCs.

Apple’s users didn’t carry out their threats and stayed with the company whose move to USB turned out to be a winner for the entire computer industry.

For Apple USB’s success meant their customers were no longer locked into a proprietary technology, for manufacturers they were able to start moving off archaic serial and parallel ports while for Microsoft the shift meant a better range of more reliable devices — although their operating systems struggled with USB until the release of the far more stable Windows XP.

It appears in this respect Apple Pay is repeating history in giving a boost to a technology that has been struggling to find traction in the market place.

The difference this time is that the payments industry is a far bigger market with far more implications for the broader economy than the computer peripherals segment.

If Apple raise the boat on payment systems, there are some incumbent businesses who are going to find themselves in a very different marketplace in five years time.

Oct 162014
 
using an iPad and the cloud for a point of sale cash register

Ahead of tomorrow’s announcements by Apple, the strategic leaks are happening fast on both the next version of the iPad and Google’s Nexus appearing in the media today.

The problem for tablet manufacturers is that sales have stagnated in recent times with the products no longer flying off the shelves.

Part of the reason for this is customers are happy with their existing products; a three year old tablet will do most of things a brand new one will do so there’s little reason for upgrading.

For vendors like Apple and Google it’s further proof that the PC industry model of three year upgrades is firmly dead, the sector will need something more than planned obsolescence to drive growth.

Sep 282014
 
windows-surface-at-microsoft-store

On Tuesday Microsoft are expected to announce their new Windows 9 operating system at a media event in San Francisco.

If the rumours are true, then the new system will be launched almost exactly two years after Windows 8 was released amid hopes that it would stem the PC industry’s decline.

Windows 8 didn’t deliver with most people being frustrated with the system’s inconsistent interface that tried to be unified desktop, laptop and tablet operating system which managed to be unsatisfactory on all of them.

As a consequence, users avoided Windows 8 like the plague with industry analysts Netmarketshare claiming most of Microsoft’s customers are buying systems kitted out with Windows 7 or just sticking with decade old Windows XP systems.

Courtesy of Netmarketshare http://www.netmarketshare.com

Courtesy of Netmarketshare http://www.netmarketshare.com

Making matters worse for Microsoft is the decline in personal computer sales in general with IDC estimating global shipments of both portable and desktop system will drop 3.8% in 2014.

These declines are already well established in the trends being seen in Microsoft’s business with the company’s Windows division showing an accelerating decline in profit margins.

Microsoft Windows division financial performance

Microsoft Windows division financial performance ($ million)

Should that decline continue with Windows 9, it may well be that Microsoft will have to consider the future of product.

As it is, the market may be deciding for them as users increasingly switch to tablets and smartphones. We may also see a wave of cheap Chinese made laptops running versions of Google Chrome or other Linux based systems also threatening the existing PC sales base.

Either way, a lot rides on what Microsoft announces in San Francisco this week. It could be the end of an era that defined the mass adoption of computers.

Sep 252014
 
512px-Steve_Jobs_and_Bill_Gates_(522695099)

It’s been a tough week for Apple, after the spectacular launch of the iPhone 6 the company has had two humiliating and worrying setbacks that indicate standards may be slipping at the once untouchable giant.

The iPhone 6 Plus should have been a triumph, and for a while it was, but the news the phones bend and distort has tarnished the product.

Compounding the bendable phone problem are the claims users are being charged to replace their damaged handsets.

On its own this problem might have been manageable like the iPhone4’s antenna problems in 2010, however today’s news that the latest iOS8 has had to be withdrawn after user complaints indicates a sloppiness has crept into the company.

Both problems, or all three problems if it turns out the stories of Genius Bars charging to replace damaged phones, show Apple isn’t paying attention to detail to the degree they’ve become known for.

The botched iOS8.0.1 rollout is sloppy work while the bendable phone is very much an uncharacteristic lapse in design.

For a premium brand with a large dose of arrogance, shipping defective products is both an embarrassment and damages the company’s name.

This inattention to detail is horribly reminiscent of Microsoft’s horror days at the turn of the Century where the company repeatedly rushed incomplete products to market — Windows ME being the most notorious example.

So maybe we are seeing Apple become the new Microsoft and the iPhone 6 Plus as the Windows ME of our time.

That doesn’t mean we’ll see the end of Apple, Microsoft is still a huge corporation, but it may be the tech industry’s most iconic business is beginning to lose its edge.

Image of Steve Jobs and Bill Gates via Wikipedia

Sep 152014
 
paypal-innovation-tour-046

The future of retail is being fought out on three fronts believes eBay’s Michael Camplin  — global, local, mobile and data.

At eBay’s Commerce Innovation Showcase at its San Jose head office Champlin shows visiting partners, media and government officials part of the payments giant’s vision for that future.

“It’s about connecting buyers and sellers across the globe,” says Champlin. “Local is important for us because even with the growth of the online ecommerce revolution that we’re in the middle of right now we still see 75% of commerce happens within fifty miles of the customer and 90% of that happens in bricks-and-mortar stores.”

“So to be able to connect buyers and sellers in those local stores is a major push we have at eBay.”

paypal-innovation-tour-003

The first presentation in the tour demonstrates a day in the life of an eBay customer from the bedroom of a fictional customer, Reese McLaren, a funky young guy shopping for new equipment ahead of a camping trip. Champlin illustrates how Reese can order, pay and collect through a store’s integrated online service from his home.

On the other side of the transactions, store employees use the PayPal apps like Red Lazer and Braintree to complete the order. A key part of that is using beacon technologies to log a customer into the store to alert staff that a customer has arrived to collect an order.

paypal-innovation-tour-015

At the next stage of the tour, we visit some demonstration stores; first we start with the Burger Bistro where eBay’s Eric Armstrong shows how restaurant’s point of sale system is integrated with PayPal services, showing waitstaff who is logged in through the company’s app.

Integrating PayPal’s services into the establishment’s point of sale system means customers can order through the PayPal Wallet service and waitstaff know if a customer has paid through the app.

paypal-innovation-tour-012

The app also speeds up settling customers’ bills as diners can pay the check through their phone and not bother with using cash or swiping credit cards.

One key point with PayPal Wallet is that users can enter any payment form that suits them and choose whichever option suits them at the time including direct bank transfers and credit cards.

paypal-innovation-tour-006

Another area that PayPal are pushing out are coupon offers. At present the company is subsidising them as they test how the services work. The objective is to offer a digital equivalent of everything people currently have in their wallets.

For staff, eBay are offering the ability to bring your own device for point of sale systems with cloud base apps turning staffs’ tablets and smartphones into POS terminals.

paypal-innovation-tour-028

 

Tying into the Point of Sale capability is the PayPal Now service that allows establishments to swipe credit cards directly into the app through a dongle that reads the chip or stripe. Despite the rise of online payment services, swiping credit cards is still the main way US customers pay their bills.

paypal-innovation-tour-031

Despite the continued popularity of credit cards, eBay are hoping to move customers over to the online services through ease of service; the one stop authentication service means customers are logged into the payment platform as soon as they check into a location.

One area PayPal sees great opportunity in stadiums and major events where attendees automatically check in and can then access food and souvenir stands without having to re-authenticate or authorise each purchase they make.

paypal-innovation-tour-039

A key part of eBay’s retail strategy is the use of beacons to monitor customers entering establishments. The one illustrated is the PayPal beacon that was a limited release earlier this year. The device doesn’t have its own battery, instead relying on a USB socket for power.

Two weeks after this tour Apple launched its Pay service with its range of integrated APIs to offer many of things shown in this showcase. eBay and its Braintree subsidiary was conspicuously missing from the listed partners.

For PayPal and eBay the field has suddenly become more competitive, this is a sector that is now at the forefront of the battle between today’s internet empires.

Sep 102014
 
apple-play

As expected, Apple announced their new range of iPhones and a smart watch today with many digital trees being felled as the tech media falls over to describe all the shiny features of the new devices.

Buried in Apple’s announcements though are the company’s real long game in payments and the Internet of Things.

For the IoT, the various ‘kits’ Apple have announced in the last year — HomeKit, HealthKit and now CloudKit — are the serious plays in this space as they bundle together programs, devices and data streams across health and smarthome applications.

CloudKit moves Apple onto another level as it makes it easier for developers to build back end applications that tie into smart devices; even if someone isn’t using Apple equipment they still may find themselves firmly in the walled garden of Cuptertino.

The long awaiting release of Apple Pay leverages iTunes’ strength as a payment platform, bundling a secure chip into the new iPhone adds to the company’s pitch of being a trusted partner to merchants and payments processors.

What today’s announcements of new hardware, software and APIs indicate is Apple’s shoring up the perimeters of its walled garden.

For it’s competitors, this raises the ante; Google Wallet has nothing like the market penetration or customer acceptance that iTunes has and earlier this week Amazon effectively admitted the Fire smartphone has been a failure by slashing prices. Facebook has made promising noises about payments but still remains locked in an advertising driven business model.

While there’s no doubt the new iPhone will be a success, although the jury is out on the smart watch, Apple’s real game is in controlling a large part of the payments industry and the internet of things. Today’s announcements are a key step in that strategy.

Aug 202014
 
hilton-hotel-digital-squatters.jpg

“My ambition is to only spend four or five hours in the office,” said Vodafone Australia CEO Iñaki Berroeta when asked at a lunch in Sydney today about how he would like to structure his working day.

For many Australians, this is becoming the reality of work as increasingly their job is following them home and into their social lives according to Microsoft’s Life On Demand white paper released this week.

The blurring of the lines between home and work is no surprise to small business owners, senior executives or those establishing a startup, however according to Microsoft this is becoming normal for the majority of workers.

In their paper, Microsoft found 30% of Australian workers are checking work emails on devices at home before they leave for work and 23% are doing work activities while they are socialising with their friends.

Overall, more than a quarter of Australians work from anywhere which has more than doubled in the last five years.

This is largely due to the rise of tablet computers and accessible wireless broadband. A direct consequence of this is nearly half of commuters work or study while on public transport.

Being able to work on the train, bus or tram is changing the usage of public transport with many commuters preferring to use the usually slower option (at least in Australia) over driving as it’s seen as more productive time. This is a cultural change that governments have been slow to understand.

Equally slow have been many businesses in understanding they have to deploy the tools that allow workers to be efficient while out of the office, this is the whole point of cloud services.

The workplace is changing as mobile internet becomes an expected part of society. How is your businesses catering to both your staff and customers’ needs in the age of the smartphone and tablet computer?