Jan Ondrus ESSEC Business School Google, Amazon, Apple and NFC: Another Clash of the Titans?
Jan 15, 2015
Jan Ondrus ESSEC Business School
Google, Amazon, Apple and NFC: Another Clash of the Titans?
There was a time when...
... the payment industry was very happy
1-4 % commission
on any purchase
Market was stable & balanced
Money was relatively easy
But as any party, it could not last forever...
With new technology developments...
Telcos and device makers became interested in the payment market
Mobile phones were getting more popular
& m-commerce was about to take off
As a result...
Some Titans wanted to dominate the market
While others tried to collaborate
Most initiatives just failed...
The market went from buzzes to failures...
Until...
Nov 15 2010
Google announcement about NFC
Looked like someone was finally bringing the missing piece
It generated...
... a lot of buzzes &
ideas again
and more importantly...
... financial interests
New Titans on the market: New opportunities
Good or Badthing for the
payment industry ?
In any case, the whole industry has reacted...
Forming different alliances
So now what?
Are we going to repeat the same story again and again?
Let’s take a closer look at the newcomers...
✔ Strategic alliances✔ Google Checkout✔ Google Places✔ Android
✘ Credit card # stored✘ Privacy issues
✔ Physical and digital retail✔ Amazon Payments✔ Amazon 1-‐Click✔ Knowledge about consumers✔ Credit card # stored
✘ Alliances✘ Hardware✘ Mobile plaCorm
✔ iTunes store ✔ iPhone/iPad✔ IntegraGon✔ Image✔ Credit card # stored
✘ Physical merchants✘ Alliances✘ Interoperability✘ Payment engine
Any possible winner?
Too early to say...
The industry is still facing the same issues as before...
http://designforrecognition.files.wordpress.com/2010/06/chicken-the-egg.jpg
Chicken and egg problem
Standardization & Interoperability
Control of the secure element
Finding the right business model
Minimizing merchants’ rejection
Avoiding consumer’s disinterest
Web 2.0 Summit, Eric Schmidt (Google)
So did it really change the game?
Only the future will tell...
To conclude...
Create sustainable ecosystem(s)
Align business models and environments
Provide appropriate technology