4. Overview:
The mobile payment industry is rapidly expanding. In two years, an estimated
$90 billion will be spent through mobile payment methods, and close to $142 billion over
the following two years.
Unfortunately, there are two major hurdles businesses face when getting started
in the mobile payment industry: adoption and differentiation.
The first problem, adoption, is a classic chicken & the egg problem. Consumers
will not see the value in a mobile payment application if there are no businesses
accepting it, while businesses will not support a mobile payment app unless it brings in
more customers.
Secondly, the the industry is currently dominated by a few big names, including
Apple Pay, Google Wallet, and Paypal. Therefore, in order to successfully compete in
the mobile payment industry, a new entrant to the mobile payment market must
differentiate itself by dominating a particular niche.
Proposal: Foursquare Pay
Overview
Foursquare’s unique technology positions them to dominate a niche in the mobile
payment industry. Presently, Foursquare has the best and most accurate location
technology. Nearly all current mobile apps--including Twitter and Microsoft--use
Foursquare’s Venue API to integrate and populate location data. Additionally,
Foursquare boasts an extensive world-wide user base and roughly sixty-five million
independent places. Using this place database in conjunction with data from the
90,000,000 “tastes” users have added to their profiles, Foursquare is unique in it’s
ability to run proactive and predictive local searches and send users relevant contextual
notifications. By leveraging these databases, Foursquare can create a mobile payment
system that will drastically improve a consumer’s experience while assisting the growth
of small businesses.
Ensuring Adoption:
Foursquare’s strong user base and incredible location services give it the unique
ability to connect businesses with their target market. Using the millions of user-
generated tips and tastes, businesses can intelligently focus their marketing efforts like
never before. Additionally, using Foursquare’s robust database of users’ tastes and
unique ability to exactly pinpoint a user’s location, Foursquare Pay enables businesses
to not only attract customers, but to also improve their experience while saving them
money.
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5. Ensuring Differentiation:
Though other mobile payment companies like Apple Pay and Google Wallet also
have millions of users, they lack the data and relationships with those users that
Foursquare has cultivated over time. Regardless of this seeming advantage,
Foursquare Pay will not compete directly with the larger mobile payment companies.
Instead, Foursquare Pay will use this information to dominate the “small business” niche
of the consumer industry.
Foursquare Pay will appeal to smaller businesses by helping them solve their
main concerns: increasing sales and number of customers. Businesses will be able to
draw in nearby Foursquare Pay users by notifying them of real-time deals that appeal to
them. Not only will this bring in traffic during slower business hours, but it will also alert
users of the existence of a smaller business, especially if the business is new. By using
Foursquare’s extensive database of user tastes, businesses will be able to target their
offers to people who will likely want and purchase them.
On the customer side, Foursquare’s unique ability to exactly pinpoint a user’s
location makes it possible for users to receive push notifications about nearby locations
that appeal directly to them and may even be offering a deal.
Once a customer is in a business, this same unique technology allows a vendor
to see which Foursquare pay users are in their store as well as access those users’
profiles for to learn about their tastes and check them out.
When a user goes to check out, the vendor simply charges their purchase and
automatically applies any deals offered using their Foursquare Pay profile. This creates
a hands-free, one-button, mobile payment process for the customer. The overall result
is uniquely relevant, personalized, and convenient experience.
The following includes both the vendor side and the user side of the same
scenario.
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8. Community, Education, Interaction,
Service
Spreading good coffee culture, Edu-
cation, A loyal customer base.
Good notifications of successful
payment. A POS that is as minimal as
possible. More interaction — less
payment. Something that encourages
customer loyalty.
People chatting on their cell phones
or distracted while ordering.
Square
Keywords
Goals
Feature Needs
Pains
Uses
Age: 29
Occupation: Cafe co-owner, Barista.
Location: Cambridge, MA
Education: Bachelors
“I like to be able to look
my customers in the eye.”
PATRICK S.
Patrick and his best friend recently opened
up a coffee shop and they care a lot about
good coffee culture and about educating
their customers about the coffee process
and flavors.
They have several regulars who work and
spend a lot of time in the cafe and they’ve
begun to accumulate a small following of
people who care about good coffee.
Patrick and his partner use a tablet to
accept and manage payments.
They’re not quite big enough to invest in a
point of sale system, but they have an iPad
so they bought a Square reader to accept
payments. Because they like to talk so
much about coffee to their customers, they
really value a POS experience that main-
tains conversation and contact.
They like getting to know people and pro-
vide personalized service to them. Patrick
tries hard to memorize people’s usual
orders.
9. Reliability, Convenience, Informative
Leadership & Management, Family
Life, Carer Success. Wants his pur-
chases and investments to work for
him.
Integration with existing products he
uses, like Mint.
Anticipation of purchases, prior knowl-
edge of habits and preferences.
Memory of past purchases.
Poor receipt management. No feed-
back.
Apple Pay, Square, Level Up
Keywords
Goals
Feature Needs
Pains
Uses
Age: 27
Occupation: Lab Technician
Location: Boston, MA
Education: Masters
“I want the process to be
as seamless as possible”
STEVEN F.
Recently married, masters educated.
Steven is an early adopter of new ideas
and technologies. He likes to own the latest
gadgets but is price conscious.
He values convenience and reliability
above all, but if he sees these qualities,
he’s willing to spend a little extra.
He is very social and knows and his envi-
ronment well. When he hosts guests, he
likes to take them to places with good
ambience and great service.
He is proud of the work of local companies
and efforts. He likes to support them, over
chains when he gets a chance.
10. Community, Trust, Curiosity, Cautious.
Friends, Family, Career success, Per-
sonal Happiness. Wants to feel like her
information is secure and her money is
safe.
Notifications, easy privacy adjustments.
Seeing what others have said. Promo-
tions and deals.
Mysterious process, Hidden Information.
Square, Google Wallet, PayPal.
Goals
Keywords
Feature Needs
Pains
Uses
Age: 33
Occupation: Bank Branch Manager
Location: Chicago, IL
Education: Bachelors
“Before I try a new
technology, I like to see that
it works well and it’s safe.
RACHEL W.
Rachel recently moved into the city from a
smaller town, for work. She is curious about
new technologies and hears about things
from blogs, news, television, etc.
But she is cautious about security, privacy
and her personal information. If she sees
friends using it, or hears enough about it,
Rachel will use new POS technologies but
may need some encouraging, or a good
reason to.
She uses PayPal and Google Wallet to
send money sometimes to her brothers
back home. She cares a lot about commu-
nity and good reputation in business.
She has a little more money to spend than
usual because of her new job, so he’s
recently upgraded t the latest newest
google phone and she’s curious what it
can do. She uses Foursquare to explore
her new city.
11. Company Info Subject Relevant Party
Amazon Amazon has also introduced a product, Local Register, which is undercutting Square on pricing by charging merchants a slightly lower fee of 2.5% on transactions. Revenue Merchant
ApplePay Every major credit card has signed up to work with Apple Pay. Adoption Company
ApplePay applepay: they’re NFC, they’re tokens, they’re issuer friendly, paypal - none of those Adoption Company
ApplePay it is almost impossible for consumers to get excited (and develop a habit around using it) if it’s something they can almost never use. Adoption Consumer
ApplePay
Why retailers are afraid of Apple Pay
Basically - they’re afraid it will give more power to credit card cos to charge eve higher merchant fees, which they have been fighting for years. CurrentC is there way of
trying to compete (although it was recently hacked, don’t know by who - but either way Apple tells people it’s safer because unlike CurrentC - it hasn’t been hacked yet. Adoption Merchant
ApplePay
chains have seen NFC system usage almost double since apple pay was released, but double of nothing is still pretty close to nothing. same goes for competition Google
wallet. Adoption Merchant
ApplePay
Apple Pay is aimed more at selling iPhones, by making it easier for consumers to pay for goods in stores and on mobile phones, using technology to prevent fraudulent
use, which in turn lowers the processing fees that credit-card companies charge merchants. Core Goal Company
ApplePay
with Apple taking just 0.15% of every Apple transaction, all that love and goodwill isn't going to add anything significant to the company's bottom line. So why bother?
1) It locks people into the iPhone.
2) Apples are everywhere in stores now.(strong, worldwide brand presence)
3) It could move the needle one day. (At physical stores, mobile Payments is expected to become a $142 billion business by 2019, according to Forrester Research.) Core Goal Company
ApplePay customer data. Shops want it. Apple Pay doesn't give it to them Differentiation Company
ApplePay
Apple (AAPL, Tech30) gets just 15 cents for every $100 in Apple Pay transactions, according to Gillis.
So for Apple Pay to move the needle just 1% on Apple's expected sales in the last three months, users would have had to use it for transactions worth $451 billion (which is
highly unlikely). Revenue Company
ApplePay quoted tim cooke saying 2/3 of all contactless payments were made with Apple Pay. Stats Company
CurrentC
CurrentC makes processing payments cheaper for retailers (retailers might get away with paying a tenth as much. but It's cheaper for shops to process payments, because
the system is generally slower) Revenue Merchant
EMV Why the switch to EMV - SECURITY: The U.S. makes only 24% of all credit card sales and is responsible for nearly 50% of fraud worldwide. Security Consumer
foursquare
The big idea was to help people find the best and most interesting experiences in the real world. And to build a company that would bring our vision of context-aware
services — software that can learn about the places you’ve been and can proactively recommend places you’d love — to hundreds of millions of people. Core Goal Company
foursquare
Foursquare used it’s Billions of check-ins in conjunction with Volunteered Geographic Information from it’s users (VGI) to develop truly advanced technology that told
foursquare where it’s customers were and habits about their movement through space and time. Differentiation Company
foursquare
one of the only companies doing proactive and predictive local search and firing off contextual notifications — it’s hard. And we’re one of the few companies on the planet
with the team, technology, and data to pull it off. Differentiation Company
foursquare the Foursquare app can ping you to suggest a sandwich shop you’d love as you walk through a neighborhood for the first time Differentiation Consumer
foursquare we can raise your awareness of the best experiences nearby and help you find places you’ll love Differentiation Consumer
foursquare
7 billion checkins have taught us about more than 65,000,000 places that exist in the world. The 250,000,000 photos and 70,000,000 tips you’ve left have shown us what’s
great inside those places Stats Company
foursquare 90,000,000 “tastes” you’ve added to your profiles have taught us about the things you want us to help you find. Stats Company
foursquare hundreds of millions of API calls we get per day from the 85,000 partners building on our platform contribute the freshness of the data and our popularity scores for places. Stats Company
foursquare the world’s most accurate place database, Stats Company
foursquare Foursquare helps power location services for Twitter, Microsoft, Pinterest, Waze, Flickr, Samsung, Citymapper, and thousands of others Stats Merchant
Mobile Payment
merchants have to be convinced that Apple Pay is worth accepting. For many of them, that decision will be a combination of how many consumers have the capability to
use it and whether accepting Apple Pay will bring them more customers and more volume and/or keep them from losing customers who want to use it. Adoption Merchant
Mobile Payment they’re much more interested in making it easier, safer, and more secure for customers to buy, doing so in a high quality and low cost way. | CEO, Braintree Core Goal Consumer
Mobile Payment “Accessing the physical point of sale is still the holy grail,” Crone said. Core Goal Merchant
Mobile Payment make payments more contextually relevant Differentiation Consumer
Mobile Payment
“The marketplace is going to soon move beyond a focus on coupons and offers,” Ms. Carrington said. “Those are important – they are table stakes and must be done.
“But there is more that can be incorporated into a digital wallet that really differentiates it from others in the marketplace and those consumers will find extremely appealing
because it removes friction from their commerce experience.” Differentiation Merchant
Mobile Payment
“The friction of waiting is removed from the equation,” Ms. Carrington said. “This is an example of how digital wallets can create a differentiation in the marketplace that is
valuable to both merchants and consumers.” Differentiation Merchant
Mobile Payment Cutting down on swipe fees could amount to hundreds of millions -- even billions -- more dollars in profit Revenue Merchant
Mobile Payment mobile-payments transactions total $240 billion, compared with in-store sales of $6.2 trillion Stats Company
Mobile Payment mobile sales platform POS market share: Mobile Point of Sale Projected to Reach 46% Market Share in 2017 Stats Merchant
12. PayPal
And I think our integrations with companies like Uber or Airbnb or Order Ahead or Eat24 are examples of where we can partner with merchants to enable the experience
that they want to have with differentiated, where payments becomes seamless and in the background. Adoption Company
PayPal
our thinking around the in-store experience has certainly evolved the last couple of years. Technology innovation and EMV regulations in America are forcing a massive
change and reinvestment in point-of-sale hardware and solution adoption. Adoption Company
PayPal PayPal also offers card readers for smartphones and a cash register for stores. Adoption Merchant
PayPal
An independent PayPal, which will be led by American Express Co. veteran Daniel Schulman, will have more flexibility to develop new software for merchants and pursue
mobile consumers Adoption Merchant
PayPal PayPal is also letting merchants add mobile payments features to their own apps Adoption Merchant
PayPal
have a committed approach that is agnostic to platforms and across channels. We are focused on helping merchants to have flexibility, to differentiate their experience over
other merchants. This is what they say is mission critical to their business and we want to make sure we can also leverage merchant transactions data to provide a
differentiated experience in a way that others can’t. Core Goal Company
PayPal
it is our job as a payments company to make sure that we enable payments in a way that is faster and easier, safer and more secure for both the merchant and a
consumer. Core Goal Consumer
PayPal
PayPal payments brand at the physical point of sale and has to hustle to make up lost ground.
Or, more intriguingly, PayPal is planning to disrupt it by using its assets to change where that game is played. Differentiation Company
PayPal At PayPal, our thinking has always been about enabling payments everywhere consumers and merchants want to shop. I Differentiation Consumer
PayPal
“It has to be the experience you have online today. You’ll get what you want really fast, pay really fast and get out. And the merchant will know more stuff about you, and
that will make your experience better.” Differentiation Consumer
PayPal You have to help save the consumers time, and save them money. More than ever you have to keep them safe.” Security Consumer
PayPal
furthest along in digital payments. It has 157 million active buyers and sellers completing transactions via the Web. PayPal processed $215.6 billion in payments in the past
12 months and has $7.58 billion in revenue. Stats Company
Reserve is consistent with a trend of worry-free payment flows Adoption Consumer
Reserve
this is about not having to pull out your phone at all. Imagine being able to walk into any kind of physical store selling goods or services, and paying merely by identifying
yourself to a sales associate. The store might be able to identify the presence of your phone, and then match up your name to the list of phones in the store. Any amount
you owe is then automatically charged to your phone-linked credit card Core Goal Consumer
Reserve all transactions in the real world moving towards this kind of payment process Core Goal Merchant
Reserve Reserve gets some fairly valuable data about consumer spending. Differentiation Merchant
Square Square has promised merchants that they’ll be able to accept payments based on Apple’s service. Adoption Consumer
Square Square is compatible with EMV cards and has the cheapest hardware to make it acceptable Adoption Merchant
Square Square is introducing Square Order, which lets people pay without having to pull out their phones Core Goal Consumer
Square
mobile application can detect when a user is approaching a coffee shop and signal a barista to start making a drink, which can then be picked up with the payment settled
in the background. Core Goal Consumer
Square it has now become a high priority for the company to reach out to consumers again Core Goal Consumer
Square
Square had largely deemphasized marketing its consumer products in recent months, focusing its website and public-relations efforts almost exclusively on reaching
merchants Differentiation Consumer
Square “Square really innovated the business model for the micro-merchant, but it doesn’t have consumers,” Differentiation Merchant
Square small and medium merchants remain Square’s core -- and satisfied -- customers. Differentiation Merchant
Square
Square takes 2.75 percent of every transaction and has a stamp-sized card reader, keeping a portion of that after paying processing fees to Visa, MasterCard and other
card issuers that take on the task of protecting merchants and consumers against fraud. Revenue Company
Square it is likely that Square is bearing the cost of fees imposed by card processors and banks in the hopes of getting merchants to adopt Order. Revenue Company
Square A key challenge for all payment providers is to balance the need to serve customers quickly while complying with regulations and credit security. Security Company
Square
The stiffening rivalry among Square, Apple, PayPal and other payment-technology providers -- all betting on a future when digital wallets replace cash and credit cards --
reflects the rising stakes in a market that EMarketer Inc. estimates will be worth $118 billion by 2018, from $3.5 billion this year. Stats Company
Square Square, co-founded by Twitter Inc. Chairman Dorsey, was one of the first companies to introduce technology that turns smartphones and tablets into credit-card readers. Stats Company
Square Square has signed up more than 1 million businesses since debuting in 2009 Stats Company
Square San Francisco-based startup processes about $30 billion in merchant sales annually and fees have generated about $900 million in revenue this year Stats Company
Square
Square was valued at $6 billion in its latest round of financing this month, up from about $5 billion in January. The company has been the subject of reports this year that it
has been in acquisition talks. Stats Company
Square Square customers could be lured away by rival services that offer lower fees, easier transactions and a deeper pool of buyers and sellers. Threats Company
Square “Reports that we tried to sell the company or of a delayed IPO? False,” Square said in the post. “We’re here for the long term.” - Jack Dorsey Threats Company
Starbucks Starbucks is introducing order-ahead functions to its own app, which it is currently testing in Portland, Oregon Differentiation Consumer
14. Case 1: Vendor Side (see appendix F1 for journey with images)
Pat is opening up Bon Me for the day. In between his usual morning
duties, he wants to use the Foursquare Pay for Vendors app to set
a few promotions for the day. He sets the promotion during their
slowest time of day -- coming out of the lunch rush and the few
hours after.
Review:
First, Pat was able to use Foursquare’s location services to
notify Foursquare pay users in the area about a deal at his
business, enticing more customers into the restaurant.
Pat knew exactly when Rachel walked into the store. This
was only possible because of Foursquare’s ability to accurately
pinpoint a user’s location.
Second, Pat was able to use Foursquare’s database of user-
specific tastes to make a plausible recommendation to Rachel. Not
only does he improve her experience at Bon Me, but it is also
easier to sell Rachel something she will probably like.
To sum up, by using Foursquare Pay, Pat both increased traffic to his store, and
improved his customer service.
1 Pat opens Bon Me for the day drawing 1
2 He sets a deal for the low point and saves the
deal.
Appendix C1a,
C1b
3 Customer walks in — It’s Rachel drawing 3
4 Pat recognizes Rachel by her photo and greets
her by name.
Appendix C1c
5 Rachel is not sure what to order drawing 4
6 Pat sees Rachel’s “tastes” on her profile screen. Appendix C1c
7 Pat recommends the Spicy Chicken Bowl. Rachel
agrees.
drawing 4
8 Pat then rings her up. Appendix C1d
of3 4
15. Vendor Main
Screen
User Profile
Payment
Confirmation
Deals Main
Screen
Ender Order
Number
Print Receipt Email Receipt
Ender Order Total
Taps a User Tab Taps "Deals"
Turn Deal On/Off
Create New Deal
Set $ or %
Set Numerical
Amount
User SIgns/
Accepts
Set Date
Enter Text to be
pushed to users
Add Notes to
user profile
Set Time
Delete Cancel Save
Edit Deal
16. Case 2: Customer Side (see appendix F2 for journey with images)
Rachel, is on her lunch break, walking by the Children’s Museum.
She’s a recent transplant from a smaller town and she’s been using
Foursquare to explore Boston and find great places to eat and
drink.
Review:
First, Rachel got a push notification about a nearby
restaurant deal. Because Foursquare knew her location and her
tastes, it only sent her a notification from a place that she would
like.
Second, because Rachel linked a credit card to her
Foursquare profile, she was able to pay without pulling out a wallet
or a phone.
1 Rachel passes near Bon Me in fort point. drawing 5
2 She’s looking at Foursquare to discover a
place.
drawing 5
3 At that moment she gets a notification
about the deal.
drawing 6
4 She decides to go. She walks in to Bon Me
and pockets her phone.
5 She puts in her order with Pat and he
proceeds to ring her up.
drawing 4
6 After Pat flips the tablet, she confirms her
order total, tips and presses Accept.
drawing 7, Appendix
C1d
7 Rachel moves down the line and gets her
food.
of4 4
22. 4. Pat recognizes Rachel by her photo and greets her by name.
5. Rachel is not sure what to order
6. Pat sees Rachel’s “tastes” on her profile screen.
7. Pat recommends the Spicy Chicken Bowl. Rachel agrees.
24. 1. Rachel passes near Bon Me in fort point. She’s looking at Foursquare to discover a
place.
2. At that moment she gets a notification about the deal.
25. 3. She decides to go. She walks in to Bon Me and pockets her phone.
4. She puts in her order with Pat and he proceeds to ring her up.
5. After Pat flips the tablet, she confirms her order total, tips and presses Accept.
28.
6
8
7
3
2
9
54
1
2
3
4
5
6
8
9
Toggle existing deals on/off.
Add a new deal
Tab to GUESTS view.
Scrolling View of currently offered deals.
Description of the deal.
% of $ value off.
Slide deal offering times.
SAVE current deal.
7Notification that Foursquare Pay user entered.
1
C1b
29.
11
10
12
13
14
10
11
12
Change sorting of Foursquare customers.
FS User who has entered the restaurant.
Notes about Rachel.
13
14
Rachel’s “tastes” — Collected from the Foursquare app.
FS User who has entered the restaurant.
C1c
31. 1
Customize what notifications you
are comfortable receiving.
1
2
2 Search for restaurants.
3
3 Filter by businesses accepting
Foursquare Pay
32. 4 Notification (with iconography)
that this business accepts
Foursquare Pay
5 Notification (on Detail Page) that
this business accepts
Foursquare Pay.
5
4
33.
Starting the onboarding process for new
users
1
1
2
2 Showing people how they can discover new
places using Foursquare
3
3
Showing people that they can connect a
payment method to Foursquare to experience
a hand-free payment
34. Push notification from places nearby that you love,
and are offering a deal.
Push notification from places nearby offering deals4
5
6 Person can upload a photo of
themselves to help merchants
identify them for hands-free
payment
Connect a payment method to
account
7
4
5 6
7
35.
Starting the onboarding process for
new users
1
2
2 People can add a payment
method
3
3
Once info is uploaded, user
presses save to save it to their
profile
1 4
4 People can scan their CC to save
time
