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Report from Enhancing CX with Digital Commerce

A Report from the
Enhancing CX with Digital Commerce Conference

About the Conference
On 8 March 2017, APSCA hosted an international conference on Enhancing CX with Digital Commerce at RETAILTECH JAPAN, focusing on how to combine payments with an enhanced customer experience to create a new end-to-end shopping experience that begins with a consumer's initial interest in a product, through research, purchase and engaging with the brand as a customer.

The theme was "Building Payments into the Shopping Experience" and the following issues were explored:

Customer Experience and Retail Payments
NFC: Shaping the Future of the Connected Customer Experience
From Payments to a Buying Experience
The Whirlpool of Mobile Payments

Rethinking Digital Payments
Changing the Way Consumers Pay
Host-based Card Emulation for NFC-F
Simplicity & Security, Better Ways to Pay...

The Future of Payments
Future of Payment - Today and Beyond Tokyo 2020
Mobile Authentication and Customer Experience
Digitization of Commerce, Challenges & Solutions...

Below are some of the conclusions from the Enhancing CX with Digital Commerce conference. The full set of conclusions is available on the APSCA website. You will be asked to sign in to your APSCA User Account to download the conclusions. If you are unable to access your user account, please contact Echo Zhao at the APSCA office [email protected]

Customer Experience and Retail Payments
  • NFC specifications enable user-initiated, two-way communication between two electronic devices. QR codes are static data that only support one way communication.
  • NFC is a set of globally interoperable specifications. NFC also underpins globally interoperable mobile contactless payment standards and is now harmonised for transport ticketing.
  • As of today, a smartphone reading a QR code printed on a merchant point-of-sale has no way to verify that the QR code is genuine and does not contain fraudulent or malicious data.
  • Today there are no globally interoperable specifications for QR code-based payments. If and when they arrive they are unlikely to be based upon smartphones reading printed QR codes.
  • Adoption of NFC mobile payments by consumers appears relatively slow, even in markets where contactless payments acceptance and contactless card usage has reached momentum.
  • The payments industry needs to understand that consumers do not want a payment experience - they want a buying experience. Mobile payments must be more than payments.
  • The mobile payments experience should integrate payment cards, loyalty cards, receipts, coupons, gift cards and other benefits provided to the customer before and after purchase.
  • Rambus is proposing a Unified Payment Platform that is a digital retail wallet aimed at merchants, rather than a digital financial payment product aimed at bank card issuers.
  • Digital retail wallets would enable customers to store and easily access loyalty cards, gift cards, coupons and promotions while saving retailers the cost of issuing these products.
  • In-aisle checkout using a retailer's digital wallet may be the future of the fastest possible and lowest cost checkout that offers customers the best experience and levels of satisfaction.
  • In the gradual shift from plastic payment cards to widespread adoption of mobile payments there may be other intermediate form factors that will serve the needs of customers.

Rethinking Digital Payments
  • The progress of deploying terminal infrastructure for accepting contactless payments is still slow in contrast to the rapid consumer adoption of mobile NFC-compliant devices.
  • A key objective of innovative digital payments products for connected mobile devices is to simplify the payment process and provide a less intrusive and frictionless customer experience.
  • Mastercard is developing digital payments solutions aimed at minimising customer interaction, reducing waiting time and delivering additional convenience in a wide range of scenarios.
  • Sony has now developed host-based card emulation (HCE) for NFC-F which is supported in Android 7.0 and based on the FeliCa communication technology deployed nationwide in Japan.

The Future of Payments
  • In Japan the payments industry is now deploying a contactless payments infrastructure to prepare for the arrival of visitors from around the world for the Tokyo 2020 Olympics.
  • Payment schemes see the Tokyo Olympics as an opportunity to roll out a contactless payments infrastructure that will also support contactless cards and NFC mobile phones in Japan.
  • Visa believes that in Japan today the convenience and simplicity of contactless payment cards are more suited to low value payments than mobile contactless payments.
  • Connected digital devices provide more options to authenticate customers through what they know (a PIN), what they are (biometrics) and what they have (the device ID "fingerprint").
  • Rapid smartphone proliferation is driving payments industry adoption of biometrics for authenticating customers but there is not enough consideration of how to revoke biometrics.
  • Authentication of mobile payments will need to add further decision data to score payments risk such as the location of customers and their previous payment history and profile.

Driving Digital Commerce with an Integrated and Improved Customer Experience
  • There may be few improvements that can be made to the payment transaction itself to offer an enhanced shopping experience for customers using mobile payments products and services.
  • Widespread adoption of connected digital devices is offering more customer touch points before and after payment that are better opportunities for enhancing customer experience.
  • Most of these touch points are more easily available to retailers, Internet commerce companies and brands, than to payment card issuers and payment services providers.
  • The recently launched "Amazon Go" trial appears to deliver a revolutionary customer experience but will be difficult to evaluate without feedback from real customers.
  • Mainstream retailers are likely to take a more conservative approach to introducing "walk out - no checkout" systems in their stores than an Internet company like Amazon.
  • Intermediate improvements that serve to simplify and reduce the friction of payment, purchase and checkout are likely before an "Amazon Go" experience can be widely deployed in-store.
  • The best example of an unintrusive digital payment today may be Uber, where fare payment is completed by the mobile application automatically when the customer completes the trip.


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