C M Y CM MY CY CMY K DEVELOPER TRACKERTM powered by MAY 2016 CONNECTEDNESS OF THINGS POS/Ordering Recurring Payments Mobile Payments Gifting/Split Tab CRM/Marketing SHOPPING & Alternative Payments PAYMENTS Coupons Connectedness of Things MARKETING Storefront/ Loyalty/ Shopping Cart Rewards OPERATIONS Social Media Pricing Analytics Inventory Fraud Prevention Management Developer LandscapeTM Shopping & Payments – Alternative Payments Shopping & Payments – Storefront/Shopping Cart Shopping & Payments – POS/Ordering Shopping & Payments – Mobile Payments © 2016 PYMNTS.com all rights reserved 2 Developer LandscapeTM Shopping & Payments – Gifting/Split Tab Shopping & Payments – Pricing Shopping & Payments – Recurring Payments Operations – Analytics Operations – Inventory Management Operations – Fraud Prevention © 2016 PYMNTS.com all rights reserved 3 Developer LandscapeTM Marketing – CRM/Marketing Marketing – Loyalty/Rewards Marketing – Coupons Marketing – Social Media © 2016 PYMNTS.com all rights reserved 4 Developer TrackerTM Cover Story The Next (Wearable) Frontier of POS It’s easy to think about commerce and wearable technology and immediately picture consumers swiping their connected devices – be it bracelets, smartwatches, rings, wristbands, etc. – in order to enable payments. But what if the merchants instead had the power of wearables on their side? Thus enabling a business to bring the point of sale right to the consumer in a variety of merchant situations. That’s the idea behind an up and coming wearable POS solution from stealth startup LibriSpark, which CEO Jeremy Feldman told PYMNTS is designed to bring speed and mobility to both the customer and payment experiences. The solution will include both hardware and software to extend the capability and efficiency of retailers through the use of wearable technology. The POS wearable device will accept a variety of payment methods – NFC, magstripe cards, QR Code, etc. – and allow a consumer to make a payment with a merchant on the spot. The “line busting” solution eliminates the friction that can come with a retailer only having a single point where all transactions take place. As Feldman explained, traditionally the POS is intended to drive customers to a single point, increasingly the likelihood that congestion will occur when it gets busy. “Busy times are a critical time for a business. The more efficiently the POS can work, the better the user experience while minimizing the loss in sales due to waiting,” he said. The software aspect of the solution will utilize real-time data analytics to not only provide meaningful insights to LibriSpark’s customers, but also gather certain data metrics from the device to help fight fraud. Feldman said that while card-present fraud is an issue impacting merchants, the larger threat comes from fraudsters that tap into a payments API and pretend to be a legitimate hardware device in order to initiate unauthorized transactions. To combat this particular (and quite silent) threat, LibriSpark is focusing on different strategies that will assist in authenticating when an authentic hardware device is being used and when it’s not. Initially, the wearable POS solution will be targeted at the restaurant and bar industry, as well as merchants who need to accept payments while making deliveries. In these scenarios, the ability to provide the consumer with the opportunity to make a payment on the spot may serve as a true time saver. © 2016 PYMNTS.com all rights reserved 5 Cover Story Feldman said the door for LibriSpark is open to many different use cases – from retailers and farmers markets, to business professionals out in the field, cab drivers, and even car dealerships – places where a merchant doesn’t need to rely on a single-point checkout. Although the idea of a POS terminal device that can go anywhere a sales associate or merchant employee takes it sounds ideal, Feldman warned it’s not going to be the right move for all merchants. “For a lot of businesses the dedicated tabletop solution will remain necessary — it really all depends on the spatial integration of the business,” he said. Meaning that if your business is designed for that single POS – take your local coffee shop – a wearable might speed up the single line, but Feldman pointed out that because consumers would still have to remain at that single point to pick up their order, the true benefit of the solution wouldn’t be realized in that scenario. “I don’t see it having that big of an impact with businesses maintaining the traditional spatial or physical configuration,” Feldman explained, adding that he does expect merchants will soon realize the value is adopting new designs for the spatial aspect of their business. And that’s a move that could quickly enable new sales tactics to improve efficiency. From a sales standpoint, Feldman noted, if a great sales associate is developing relationships with the customer and can close the sale in the moment right after they’ve rolled off their sales pitch, that’s empowering a new sales edge. Feldman said that in the time he spent researching and talking with merchants about how they truly felt about their POS solutions, it became clear that with all the advancing technologies available and new security requirements, there’s still something missing from the POS space. The takeaway from Feldman’s inquiry? Though there’s an overwhelming number of options on the market, many merchants just aren’t completely happy with the POS they have. “Retailers are looking for POS solutions that will provide a better experience to their customers and that can also provide better insights and analytics, as well as functional ways to improve sales,” Feldman said. Even though many of the details surrounding LibriSpark remain under wraps, the stealth startup is certainly aimed at using wearables and IoT to fill the widening gap in a crowded POS market. © 2016 PYMNTS.com all rights reserved 6 What’s Inside The PYMNTS.com Developer Tracker, powered by Vantiv, is designed to provide merchants with a view into the breadth and depth of eCommerce and commerce-related software developers, and the work being done to help merchants keep pace with the multitude of providers and technologies available in the payments landscape. Here’s a quick snapshot of some notable news items from the last month: Two heads are better than one – at least that may be the thinking of software developers, many of whom announced new partnerships and collaborations this month, designed to better serve businesses and consumers. OTI PetroSmart, a subsidiary of On Track Innovations that provides fuel payment solutions, and Fuel Telematics Solutions (FTS) are teaming up to create to develop a mobile payments solution for the fleet sector. The pair will use beacons and NCR technology to authenticate vehicles and identify fuel stations. OTI PetroSmart will provide its EasyFuelPlus tool, which automates vehicle identification at the pump and uses OTI’s existing contactless card technology, while FTS will develop a cloud-based mobile payment platform for the solution. Meanwhile, SumUp and payleven are bringing mergers to mPOS. The pair announced they would merge, giving the new company a presence in 15 countries and more than €1 billion (roughly $1.1 billion) in annual processing value. According to company executives, products across both firms would be continued and there will be no impact on merchants. Snapchat has been working with retailer Target and luxury beauty brand Lancôme to ramp up its shoppable ads. Ten second ads from both retailers will be hosted on Cosmopolitan’s Discover channel on the photo- sharing app, and viewers will be able to “swipe up” for more information. Doing so will bring the customer to the brand’s mobile site, where they can shop the advertised products without leaving Snapchat. Finally, FICO and iboss Cybersecurity announced that they would collaborate to help companies stop malware breaches and data loss. Under the terms of the partnership, the pair will work to create the first cyberthreat security score and will combine the iboss security platform with FICO’s cyber analytics to detect and remediate cyber attacks. The Developer May Tracker Updates As of this month’s edition, we have profiled110 developers, including 10 new additions to the Tracker: Earny, Fuel Telematics Solutions, Gear Commerce, Inmoji, LiveWorld, mSIGNIA, OmnyPay, OTI, Plastiq and Sweatcoin. The developer community members identified in the tracker are separated into three broad categories: Shopping and Payments, Operations, and Marketing. We hope you enjoy this month’s tracker and we welcome your feedback. Don’t hesitate to tell us what you liked, who we’re missing and how we can make this report better by emailing us at [email protected]. © 2016 PYMNTS.com all rights reserved 7 News Shopping and Payments News Covering the latest developments from the companies impacting how consumers shop and the methods and channels in which they make purchases. Japan rolls our fingerprint payments plan for tourists Japan has big biometric payment plans for its tourists. The country’s government announced a new pilot program that will allow tourists to pay for purchases with their fingerprints. The program will be rolled out in 300 locations and will let tourists register their fingerprints, along with credit and debit card information, on kiosks at airports. After registering, tourists will be able to securely shop at registered stores, which will be located in cities most often visited by tourists. The launch of the program comes as Japan prepares for the Olympics, which will be held in Tokyo in 2020, and attempts to attract more than 40 million tourists annually by 2020. Ingenico acquires Think&Go Ingenico announced last month that it acquired NFC payment solution provider Think&Go. The company’s NFC products are designed for high-traffic areas with a high saturation of digital screens, which can be enabled for commerce, such as shopping malls, train stations and airports.