Tag: mobile consumers

Industry analysts had predicted that Apple would kick smartphone wallets into gear but that might not be it.

When Apple Pay was launched, many analysts believed this would be the start of powerful mobile payments trends. They felt that Apple was the key to the mainstream adoption of mobile wallets. That said, that wallet app has now been available for about two years and adoption has been slower than anticipated.

Some analysts are now saying that the start of the widespread use of mobile payments won’t happen for some time.

A couple of years ago, mobile payments trends were expected to become the next big thing. By now, it would be commonplace to see shoppers using their smartphones in-store to pay for groceries, clothing and other purchases. It would be routine to use a mobile device instead of a credit card or debit card at a checkout counter.

However, mobile wallets have not taken off as expected. This has been the case both among mobile device users and among retailers. Now Fitch Ratings financial industry group director Michael Taino is predicting that the rate of adoption for mobile payments won’t just be slightly slower than expected. It will be much slower.

Taiano predicts that mobile payments trends won’t truly take off for multiple decades.

In an interview with Fortune magazine, Taiano was quoted as saying that “This could be a multi-decade change that occurs.” He said that the adoption by consumers and retailers may be similar to the experience seen in the growth of e-commerce. He pointed out that as large as e-commerce now is and as much as it has grown over 20 years, it still represents only 8 percent of retail spending in the United States.

Taiano recently published a report based on his conclusions and the evidence that has led him to make them. He underscored a number of barriers that have stood in the way of mainstream mobile wallet adoption.

One hurdle in the way of mobile payments trends progress has been the lack of incentive to consumers. Shoppers find credit and debit card use to be simple, familiar and accepted in the majority of places they shop. Therefore, at the moment they don’t have much motivation to change those easy and convenient habits.

Macy’s has partnered with IBM Watson to enhance consumer shopping experience.

An AI mobile shopping assistant tool has been launched by Macy’s at 10 of its stores nationwide. The famous and popular American department store chain developed its shopping assistant called “Macy’s on Call” with IBM Watson. The mobile companion is a cognitive mobile web tool designed to help shoppers as they navigate through Macy’s stores.

Customers can use their smartphone assistant to answer their questions.

This is the pilot stage for Macy’s mobile shopping assistant. The mobile tool, which was created in partnership with IMB Watson through intelligent engagement platform Satisfi, will be tested throughout the pilot stage at the 10 stores.

Via the mobile browser on the consumer’s personal device, they can ask questions related to the Macy’s store. For instance, a mobile customer could ask where a particular brand, department or service is located in the participating store. The assistant, which uses artificial intelligence (AI) essentially acts like a sales associate, answering their questions. It uses natural language and provides feedback within a matter of seconds.

A Spanish language feature will eventually be added to broaden its user base.

The mobile shopping assistant is part of Macy’s strategy to reinvent its business and improve sales.

Macy’s Group Vice President of Digital Media Strategy Serena Potter told the Associated Press that “We want to improve the shopping experience. We want the customers to shop at Macy’s and come back.”

The goal of the retail giant is to boost sales while freeing up employees so they can cater to more complicated customer requests.

According to the vice president of IBM Watson, Stephen Gold, once trained, the technology can register if customers become frustrated based on their answers and it can alert a sales associate. This technology is similar to AI the company is working on with other brands like North Face and 1-800 Flowers. In these cases, however, the AI tech answers questions on their websites.

Macy’s is working hard to improve its sales, which have plummeted. The company has cut its full-year profit and revenue outlook for the year and has slashed thousands of jobs. Implementing its new mobile shopping assistant, Macy’s on Call, is part of its business reinvention strategy.