& cplSiteName &

Retailers Join to Boost (or Fragment) mCommerce

Sarah Thomas
8/15/2012
50%
50%

12:25 PM -- Wal-Mart, Best Buy, 7-Eleven and Target are among the big-name retailers teaming up to take on the wireless operators and Google (Nasdaq: GOOG) in the crowded mobile commerce market.

The companies, along with 11 others, announced the formation of the Merchant Customer Exchange (MCX) on Wednesday. The venture plans to build a mobile app that will let customers make payments, redeem coupons and rebates and store their loyalty program information on their smartphones.

When I saw this news, I thought, "Great, the retailers are an important piece of the value chain for mobile payments." But, then I realized that the MCX is being positioned as a competitor to Google, operator initiatives like Isis and even Square Inc. and other credit-card company services, rather than a link in the chain. Now, it just seems like yet another half-baked solution in an increasingly congested market. (See Mobile Commerce Sidesteps the Carriers , Learning to Play Nice With NFC and Verizon Blocking Google Wallet? Poor Decision.)

Sure, the retailers -- which do a combined $1 trillion in yearly sales -- are powerful players since they own the point-of-sale and decide what credit cards to accept. But, it seems to me they would be much better off working with other players in the market to make existing services more robust and, importantly, widely accepted. (See Mobile Money: What's the End Game? )

I understand that everyone -- wireless operators, software companies, handset makers and vendors are guilty too -- wants to be the mCommerce leader rather than just one part of the puzzle, but it's frustrating to see the market becoming so fragmented before it has even taken off.

— Sarah Reedy, Senior Reporter, Light Reading Mobile

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Snuffaluffagus
50%
50%
Snuffaluffagus,
User Rank: Light Beer
12/5/2012 | 5:23:49 PM
re: Retailers Join to Boost (or Fragment) mCommerce


This makes sense to me.  You see it as fragmentation, I see it as retailers finally controlling thier own fate.  MCX will most likely be ran as a non profit or minimal profit organization.  This could potentially give the retailers at least $10 Billion more in profits.


Typical Visa/MC/AMEX and I suspect mobile providers/Google take 3-5% of sales.  MCX with no profit motive could likely do this for no more than 2%.  Leaving at a minimum 1% or $10 Billion in the retailers pocket.


Plus they plan to make this an all inclusive app that has store coupons, loyalty program etc.  Mobile operators like Google/VZ/ATT are only interested in taking a cut of the sales and not in their loyalty programs or coupons leaving this to others to handle.  I believe the average consumer would prefer to have single app that does everything for them with retailers and not have to deal with multiple apps.

More Blogs from Que Sera Sarah
WiC congratulates the winners of our inaugural Leading Lights awards: Cisco's Yvette Kanouff, Zayo Group's Sandi Mays and startup Grid4C.
Leaders from Mellanox, Arista Networks, Syniverse, ECI Telecom and Cisco round out WiC's inaugural female tech pioneers of the year.
Women from AT&T, Ciena, Ixia, Zayo Group and Fujitsu make our shortlist for working to advance the cause of women in the next-gen comms industry.
Join WiC and Flex's Caroline Dowling for a live radio show on Tuesday at 12PM ET on how technology is powering the fourth revolution and to what effect in the future.
New companies with a focus on video graphics, smart grid predictive analytics and a quadcopter camera make up WiC's finalists for Female-Led Startup to Watch.
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP’s Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it’s going from two industry veterans.
LRTV Documentaries
Leading Lights 2016 Highlights

5|25|16   |   02:26   |   (1) comment


Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
LRTV Huawei Video Resource Center
UBBS 2016 Highlights

5|12|16   |     |   (0) comments


Highlights of Huawei's UBBS event in Hong Kong.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
DT: Telcos Must Escape Vendor Prison
Iain Morris, News Editor, 5/24/2016
AT&T to Start 5G 'Friendly' Trial by 2016 End
Dan Jones, Mobile Editor, 5/24/2016
WiCipedia: Short Skirts & Back-Up Plans
Eryn Leavens, Special Features & Copy Editor, 5/20/2016
Eurobites: Be More European, EU Tells Streaming Services
Paul Rainford, Assistant Editor, Europe, 5/20/2016
Cable Is Eyeing Its Retail Options
Mari Silbey, Senior Editor, Cable/Video, 5/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.