Credit companies pressure US retail industry to upgrade point-of-sale terminals
U.S. retailers are facing a deadline from American Express, Discover, Visa, and MasterCard, to make upgrades to their point-of-sale terminals to make them more compatible with mobile commerce. The deadline is set for October 2015, giving retailers plenty of time to invest in NFC-enabled terminals, but few retailers have shown enthusiasm in diving into the world of mobile commerce. Some retailers claim that mobile commerce is not yet at the point where it can be considered viable.
Mobile commerce is gaining modest ground in US
Despite concerns regarding security and efficiency, mobile commerce is growing in the U.S., backed heavily by financial groups and the telecommunications industry. These parties are investing heavily in NFC technology and the infrastructure needed to make mobile commerce a success. Part of this effort is encouraging the retail industry to make updates to its point-of-sale technology to foster the expansion of mobile commerce.
New terminals may mean better financial security
Retailers are tasked with upgrading their sales terminals to be equipped with NFC technology so as to better serve consumers with NFC-enabled smart phones and mobile devices. These devices can be used to make payments for goods and services, but only if they have an NFC terminal to interact with and finalize the purchase. Sales terminals are also expected to make up the bulk of the security features the mobile commerce industry needs to thrive. As such, these terminals may help placate the fears consumers have been having regarding the safety of their financial information.
Retailers still unconvinced of the popularity of mobile commerce
The retail industry has been disinclined to throw major support behind mobile commerce and prepare for the widespread use of NFC technology because of the relatively high upfront cost associated with such an initiative. Though there have been signs of mobile commerce catching on with some consumers, many retailers claim that there is not enough evidence to justify dumping funds into upgrading technology that is able to meet the needs that consumers have now.
Scan and Go to be tested in Sainsbury’s stores in UK
Many consumers have become familiar with QR codes because of how often they are used in marketing. Indeed, QR codes have become one of the favored tools for advertisers looking to engage mobile consumers. The codes can do much more than provide consumers with information on products and services, however, as the UK’s Sainsbury supermarkets are preparing to show. Sainsbury has become the next location for a pilot project for the Scan and Go program, which turns QR codes into virtual checkout stands.
System already quite famous in the US
Scan and Go was tested in the U.S. some time ago at some Walmart retail stores. The program managed to garner a fair deal of acclaim because of its ability to provide a convenient service to shoppers. Now, Sainsbury’s will be testing the program to see if similar results can be produced amongst tech-savvy consumers in the United Kingdom. Those that will be participating in the testing of the program will need the Scan and Go application, which allows them to scan the QR codes that will be riddled throughout local stores.
Consumers will be able to use QR codes to purchase items
When a customer arrives at a participating Sainsbury’s supermarket, they scan a QR code located near one of the store’s entrances. After “logging in,” shoppers can then scan the QR codes that are affixed to the products they are looking to buy. Even loose items, such as fruit, can have a QR code printed for them through an automated service. These codes provide information on the products and gives shoppers and opportunity to make a purchase from their smart phone when they are finished shopped.
Program will provide special deals for frequent users
Scan and Go is equipped with a tracking function that monitors the spending habits of shoppers. This information is used to provide these consumers with special discounts concerning the products that they purchase often. Sainsbury’s believes that the Scan and Go system could valuable to consumers that are short on time but must get their shopping done quickly. The company does not currently have plans to replace manned and self-service checkout stands with this system.
