DIGITAL WALLETS VS. CREDIT CARDS IN NEXT-GENERATION REAL ESTATE


banner james carlini - Carlini's CornerBy James Carlini

A pragmatic, visionary perspective —–

This article is an excerpt from James Carlini’s upcoming presentation at the Windy City Summit in Chicago next week:

.Digital wallet applications are opening up a whole new retail experience for shoppers as well as the retailers themselves. Plus, the approach is more secure than traditional credit cards.

Credit cards are becoming obsolete as new approaches using Smartphones and their NFC (Near Field Communications) chip technology become part of the mainstream customer transaction experience. With Smartphones, other demographic information can also be collected real-time and used in a cross-marketing effort to capture the lost customer in multi-venue environments (i.e. attendees at a convention center are sent eCoupons or eDiscounts from other surrounding venues like restaurants or bars to have them patronize them after hours rather than going to a venue outside the immediate convention center area).

With the explosive change of edge technology going from desktops and laptops to Smartphones and tablets, new approaches to in-store customer transactions must be designed and implemented in all next-generation real estate.

Next-generation real estate includes: Intelligent Buildings, Intelligent Business Campuses (IBCs), Intelligent Industrial Parks (IIPs), and multi-venue Intelligent Retail/ Entertainment/ Convention centers (IRECs).

New digital wallet (or mobile wallet) capabilities including Apple Pay, MCX (Merchant Customer Exchange) and other mobile applications are being built up right now to support transactions initiated by the retail customer for purchases in all retail establishments.

The old phone company’s “Let your fingers do the walking” ad which focused on using the Yellow Pages has been replaced with, “Let your fingers do the buying” on your Smartphone.

Some people are looking at credit cards becoming a thing of the past as they see the power of their Smartphone taking on the capabilities to do all retail transactions without opening up their wallets or purses.

Most large retailers see the shift as well and are already supporting the MCX platform which will facilitate Smartphone retail transactions.

Banana Republic, Bed Bath & Beyond, Best Buy, Conoco, CVS, Dillard’s, Exxon-Mobil, GAP, Hobby Lobby, K-Mart, Kohl’s, Lowe’s, Rite-Aid, Sears, Shell, 76, Sunoco, Target, Wal-Mart, Wendy’s, and 7-Eleven, are just some of the retail partners already involved in this endeavor which provides a free, downloadable app that includes the facilitation for merchant loyalty points for rewards.

CAPTURING THE LOST CUSTOMER
The concept of creating a Virtual Resort (using WiFi and DAS Networks) will be discussed as well as a pragmatic, cloud-computing framework to develop a new strategic approach to cross-marketing near-by venues and the gathering of real-time customer demographics in a Smartphone-dominated retail customer environment.

From the book, LOCATION LOCATION CONNECTIVITY:
To design one venue, like a stadium or convention center, requires a certain level of expertise to plan and implement a working solution. When you add several different venues (entertainment, restaurants, and retail) together into one complex, the need to understand the interrelationships which are going on and the potentials for cross-selling and cross-marketing as well as the overall changes in network traffic patterns and usage peaks is critical.

What are the benefits to the building owners of building an electronic “Virtual Resort”? This intelligent amenity provides a competitive advantage for the complex in enticing prospective tenants by offering added capabilities to insure their business’s success as well as providing a more enhanced experience to anyone visiting any part of their multi-venue complex. Instead of space being a commodity, these added intelligent amenities makes the location more valuable to both the owner and the tenant because the business tenant now has more electronic marketing (eCOUPONS, ePASSES, eDISCOUNTS) pushing people into his establishment than in a traditional real estate space. For the building owner, having this capability is a distinct competitive advantage which will attract a higher-caliber tenant and create higher occupancy rates.

This is economic development for the 21st century.

By attracting the potential customer to more venues, the revenues generated will be greater not only for the retailers but also for the municipality which will gain sales taxes that would have otherwise gone to some community “down the road.”

It’s a win-win-win situation for local economic development where customers get discounts and special promotions, retailers get more business, building owners have more successful tenants, and the community gets more in sales tax revenues.

A LOOK AT SECURITY DIFFERENCES
There are definite security differences between NFC chips (facilitating the digital wallet application) in Smartphones versus the RFID chips found in many major bank credit cards. (See Chart 1)

NFC vs. RFID CHIP - From LOCATION LOCATION CONNECTIVITY - James Carlini

NFC vs. RFID CHIP – From LOCATION LOCATION CONNECTIVITY – James Carlini All Rights Reserved.

As Smartphones and Tablets become more ubiquitous, demand for speed (for new apps) will increase and not go down. Some new installation endeavors (like stadiums and ball parks) have already shown they are under-engineered, so current engineering “rules-of-thumb” do not reflect actual demand.

We need to focus on strengthening the resiliency of networks as well as increasing their speeds.

As we move to 5G Networks in the year 2020, they will be providing some very high speeds to the average user (See CHART 2). Having more bandwidth available will accelerate the amount of applications that are feasible for customer service, video, high-definition video, social networking, and so many other Smartphone applications.

FROM LOCATION LOCATION CONNECTIVITY - James Carlini.  All RIghts Reserved.

FROM LOCATION LOCATION CONNECTIVITY – James Carlini. All RIghts Reserved.

CARLINI-ISM : “Those cities which keep horse-and-buggy taxes and penalties as one of their major revenue streams, will become economic ghost towns.”

HIS VISIONARY BOOK AVAILABLE AT AMAZON –
http://www.amazon.com/LOCATION-CONNECTIVITY-JAMES-CARLINI/dp/0990646041/ref=sr_1_1?s=books&ie=UTF8&qid=1417203910&sr=1-1&keywords=location+location+connectivity

BARNES & NOBLE
http://www.barnesandnoble.com/w/location-location-connectivity-james-carlini/1120585793?ean=9780990646044

Follow daily Carlini-isms at http://www.TWITTER.com/JAMESCARLINI
Copyright 2015 – James Carlini

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