Click here to close now.


Symbian Authors: Jack Newton, Kevin Benedict, Matthew Lobas, Shelly Palmer, RealWire News Distribution

News Feed Item

New Insights About Consumer Adoption of Payments Innovation

Payments is a two-sided business. It requires the engagement of both merchants and consumers. So anything that is intended to “innovate” payments better deliver enough value to both sides so that both merchants and consumers have the incentives to move away from what they know works today to the promise of something that might work better in the future.

Turns out, that’s a big deal. And getting consumers and merchants to change the ingrained habits that dictate their behaviors isn’t easy. Finding the hidden clues that can unlock those behaviors is tasked to one of seven CEO panels that are a part of The Innovation Project 2013, a program hosted by on March 20-21 at Harvard University and designed to change the way that the payments and its broader commerce ecosystem thinks, talks, delivers and ignites innovation. Steve Levitt, economist, University of Chicago professor and author of Freakonomics, and Don Kingsborough, VP of POS Innovation at PayPal and former CEO of Blackhawk, will lead one such discussion entitled Shoponomics: Uncovering The Hidden Clues For How Consumers Buy And How They Pay.

Kingsborough, whose job it is to lead PayPal into the offline world, knows first-hand the complexities of igniting a new network of any kind. He did it with Blackhawk, the gift card network now readying for an IPO, and says, “getting consumers to adopt any new thing and having retailers adopt at the same time is difficult.”

And this is where the words of Levitt may be extremely insightful: “The conventional wisdom is often wrong.”

He has a point.

  • Square was never about the dongle; it was about a new business model that made it possible for micro merchants to get a merchant account – and use the dongle as a way to convert their phones into acceptance devices. Today it is about creating a new merchant-consumer network.
  • Starbucks’ mobile app was never about payment via mobile; it was about using the phone to give people better information about their prepaid card balances – which was then bundled with payment.
  • LevelUp wasn’t about offering zero interchange to merchants; it was about giving consumers a credit pegged to the frequency of visits to their favorite merchants – which created the basis for a new business model that, in turn, pegged merchant payments to a percentage of that credit.
  • M-Pesa wasn’t about replacing cash with the mobile phone; it was about giving Kenyans a safer way to send money to their relatives in the villages – which in turn, increased the amount of cash circulating in that economy as money was transferred from person to person in a safer, easier and more reliable way.

In every single one of these cases, trusting “conventional wisdom” would have gotten these innovators very little and probably into a heap of trouble (and debt).

As part of the panel facilitated by Levitt and Kingsborough, four of the most dynamic innovators in payments will give The Innovation Project 2013 delegates a first-hand account of what happened when they turned conventional wisdom on its ear and gave consumers something new to use when shopping or paying.

  • Dan Henry, CEO of NetSpend, says that it “provides something that better meets the financial services needs of its customers than a traditional bank account” yet prepaid remains one of the least sticky financial services products on the market. Dan will share the good, the bad, the ugly and the behavioral economics of the alternative banking product that few have managed to make pay (for themselves) and that NetSpend seems to have been able to deliver.
  • Alex Rampell, CEO of TrialPay, kicked conventional wisdom to the curb years ago when he realized that many people like to buy many things but few people like to buy all things especially the stuff that may be good for you but not all that exciting. TrialPay at its inception was all about getting people to acquire the stuff they may have wanted but didn’t want to pay for (or pay full price for), like software, by throwing it in with stuff that people were willing to pay for, like red roses on Valentine’s Day and creating a clever business model that gave everyone the right incentives to take action.
  • Ed McLaughlin, CPO of MasterCard, is all about moving MasterCard and its customers toward a world “where the physical and digital worlds are converging” and where “mobile will shape the way consumers shop for goods and services.” Ed will share how he and MasterCard’s various pursuits in payments innovation have shaped, reshaped and recast MasterCard's payments consumer innovation agenda.
  • Troy Carrothers, Head of Financial Services at Kohl's, will tell the story from the retailer’s point of view and from one that, like many, are working hard to keep up with the changing social and financial circumstances of its customers. Sales and coupons and promotions have been a core part of how Kohl's creates the demand for its “highly discretionary” items – and they have extended that to the mobile platform. Carrothers will describe how Kohl's is using mobile and digital to drive preference and conversion in a new retail world.

Levitt and Kingsborough’s job will be to draw new insights from the innovators who are on the front lines of payments innovation and at the same time provide fresh and practical insights to Innovation Project delegates who want to leverage the assets they have (or could acquire) and overcome the obstacles to getting consumers to embrace new ways to shop and pay.

For more information on The Innovation Project please visit To request an invitation, please click here.

About The Innovation Project

Over 2 days, 100 speakers and 500 senior members of the payments industry will change the way that the payments and its broader commerce ecosystem thinks, talks, delivers and ignites innovation. On March 20th and 21st the greatest minds in commerce and payments will assemble at Harvard University near Boston to kick the conversation about innovation up to an entirely different level at a program called The Innovation Project. Speakers and delegates are among the most senior executives from literally every established payments company worldwide, along with the CEOs of the most innovative start-ups from Adyen to iZettle. One of its five modules includes pairing industry CEOs with external thought leaders such as Al Gore (former US VP), Steve Levitt (Freakonomics), Eric Reis (The Lean Start Up), Rosie Rios (US Treasurer), Russell Simmons (Rush Card), Raj Date (CFPB), and Josh Lerner (Architecture of Innovation) to challenge the conventional wisdom around what it will take to get merchants and consumers to adopt new ways to shop and pay. Warren Buffett is the program’s keynote. The Innovation Project also hosts the industry’s 2013 Innovation Awards, given to 15 of the industry’s top innovators over dinner, which this year will be emceed by B.J. Novak of The Office and will introduce delegates to 40 of the hottest “next generation” payments innovators.

About is reinventing the way in which companies in payments share relevant information about the initiatives that shape the future of commerce and make news. This powerful B2B platform is the #1 site for the payments industry by traffic and the premier source of information about “what’s next” in payments. C-suite and VP level executives read it daily for these insights, making the audience the most valuable in the industry. It provides an interactive platform for companies to demonstrate thought leadership, popularize products and, most importantly, capture the mindshare of global decision-makers. It’s where the best minds and best content meet on the web.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Luxoft Holding, Inc., a leading provider of software development services and innovative IT solutions, has been named “Bronze Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Luxoft’s software development services consist of core and mission-critical custom software development and support, product engineering and testing, and technology consulting.
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target - this makes the integration of these separate pipelines and the coordination of software upd...
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
In his session at @ThingsExpo, Tony Shan, Chief Architect at CTS, will explore the synergy of Big Data and IoT. First he will take a closer look at the Internet of Things and Big Data individually, in terms of what, which, why, where, when, who, how and how much. Then he will explore the relationship between IoT and Big Data. Specifically, he will drill down to how the 4Vs aspects intersect with IoT: Volume, Variety, Velocity and Value. In turn, Tony will analyze how the key components of IoT influence Big Data: Device, Connectivity, Context, and Intelligence. He will dive deep to the matrix...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Building actually breathes - immediately flagging overheating in a closet or over cooling in unoccupied ho...
SYS-CON Events announced today that Cloud Raxak has been named “Media & Session Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Raxak Protect automates security compliance across private and public clouds. Using the SaaS tool or managed service, developers can deploy cloud apps quickly, cost-effectively, and without error.
Scott Guthrie's keynote presentation "Journey to the intelligent cloud" is a must view video. This is from AzureCon 2015, September 29, 2015 I have reproduced some screen shots in case you are unable to view this long video for one reason or another. One of the highlights is 3 datacenters coming on line in India.
“The Internet of Things transforms the way organizations leverage machine data and gain insights from it,” noted Splunk’s CTO Snehal Antani, as Splunk announced accelerated momentum in Industrial Data and the IoT. The trend is driven by Splunk’s continued investment in its products and partner ecosystem as well as the creativity of customers and the flexibility to deploy Splunk IoT solutions as software, cloud services or in a hybrid environment. Customers are using Splunk® solutions to collect and correlate data from control systems, sensors, mobile devices and IT systems for a variety of Ind...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud without worrying about any lock-in fears. In fact by having standard APIs for IaaS would help PaaS expl...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated and cloud solutions through hybrid hosting – a sustainable solution for the data required to manage I...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk will be on IBM Cloudant, Apa...
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text message to Betty – mobile messaging now offers tremendous value to businesses for customer and empl...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
The enterprise is being consumerized, and the consumer is being enterprised. Moore's Law does not matter anymore, the future belongs to business virtualization powered by invisible service architecture, powered by hyperscale and hyperconvergence, and facilitated by vertical streaming and horizontal scaling and consolidation. Both buyers and sellers want instant results, and from paperwork to paperless to mindless is the ultimate goal for any seamless transaction. The sweetest sweet spot in innovation is automation. The most painful pain point for any business is the mismatch between supplies a...
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, focusing on how to help solve the problems that developers are continuously battling.
As enterprises capture more and more data of all types – structured, semi-structured, and unstructured – data discovery requirements for business intelligence (BI), Big Data, and predictive analytics initiatives grow more complex. A company’s ability to become data-driven and compete on analytics depends on the speed with which it can provision their analytics applications with all relevant information. The task of finding data has traditionally resided with IT, but now organizations increasingly turn towards data source discovery tools to find the right data, in context, for business users, d...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 150 developers, designers, quality assurance engineers, project manage...