Wednesday, November 12, 2008

Visa befriends Android

Thanks Contagious

Visa recently unveiled a partnership with Google’s mobile platform, Android, where users can sign up to receive offers from marketers that will be delivered directly to a simple interface on their mobile phones. In practise, this means that Starbucks could send consumers vouchers for cut-price cappuccinos straight to their mobile handset.

Those who opt in click an ‘offers’ button for the latest promotions, and can then use their handset to find out the location of their nearest Starbucks (normally right in front of them). Visa is also teaming up with Nokia to roll out a mobile payment system before the year-end.
Contagious caught up with Prakash Harirami, senior business leader, global product innovation at Visa, to find out more.

Contagious: What are the specific benefits for Visa Mobile services developed for the Android platform?

PH: The benefits include:
Alerts: Near real-time notification of purchase activity based on customised cardholder preferences. The consumer can personalise the types of alerts delivered to their mobile device according to pre-selected parameters, such as the size of the transaction or whether the transaction is in foreign currency
Offers: Consumers will receive targeted offers from merchants directly to their phone. These offers, ranging from discounts to loyalty offers, could be based on a consumer’s previous purchase activity.
Locator: The Locator service is expected to integrate with technology developed by Google, such as Google Maps and Google location-based services, to show consumers nearby locations of merchants sending them offers, or of an ATM that accepts Visa.
Finally, with more than three billion mobile devices worldwide and 80% of the world's population living within range of a cellular network. Visa has a significant opportunity to extend our products and services to geographies where they don't exist today and enhance the consumer payment experience.

Contagious: Nielsen Monitor-Plus reports that credit card companies in the US – including Visa – have reduced the number of TV spots that they’re buying by 24% year-on-year. Are you planning to invest more in mobile platforms instead?

PH: This is a significant milestone because it shows how Visa is making mobile commerce a global reality. We developed a flexible, iterative mobile platform approach to encourage market trials, learn from real experience, and draw out the business models that make the most sense in each situation and local market. Visa’s continued investment in its mobile technology comes as more consumers adopt mobile devices which play a central role in commerce.

Contagious: How easy to track are the promotions that are run on the platform?
PH: Visa can easily track mobile offers/promotions on its platform, including redemption rates and purchases by merchant.

Contagious: How big will Google Android be?
PH: By developing these mobile services for the Android platform, Visa has taken a step toward achieving our goal of combining two of the world’s most powerful and ubiquitous consumer innovations: electronic payments and mobile technology.

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