Google Wallet is going to change the world – at least if you believe the massive hype surrounding its recent announcement. One retail expert, though, is saying it might be a good tool for retailers down the road but don’t put your eggs in that basket quite yet.
In short, Google Wallet uses a smart phone equipped with the Android operating system and hooked up to a Citi MasterCard as a point-of-sale payment device. Your phone becomes your electronic wallet, which allows you to amass all of your loyalty rewards without swiping various cards. And it can find the best and closest bargains through your phone’s GPS.
Greg Hammermaster, president of Sage Payment Solutions in McLean, Virginia, and a former member of the Visa Commercial Card Executive Council, said retailers shouldn’t be drawn by all the hype surrounding Google Wallet just yet.
“It would be challenging to chase [Google Wallet] right now because there isn’t going to be a lot of uses out there,” he said in a phone interview. “It’s such a nascent industry, it is too early to anoint who is going to win or lose.”
Google said in a press release that Google Wallet is built to work with the MasterCard PayPass network – a merchant point of sale service that enables consumers to tap to pay. As a result, Google Wallet will immediately be accepted at more than 124,000 PayPass-enabled merchants nationally and more than 311,000 globally.
Google is also working with point of sale systems companies and top retail brands to create a new SingleTap shopping experience. Consumers will be able to pay for an item using a credit card or gift card, redeem promotions and earn loyalty points – all with a single tap of their Google Wallet. Google is working with VeriFone, Hypercom, Ingenico, VIVOTech and others to develop these next generation point of sale systems.
Retailers participating in the new SingleTap experience include: American Eagle Outfitters, Bloomingdale’s, Champs Sports, The Container Store, Duane Reade, Einstein Bros. Bagels, Foot Locker, Guess, Jamba Juice, Macy’s, Noah’s Bagels, Peet’s Coffee & Tea, RadioShack, Subway, Toys”R”Us and Walgreens.
Hammermaster said it would be at least three to five years before Google Wallet gets the wide exposure and customer adoption it needs to be useful to retailers. Retailers should focus more on making sure their websites are geared to mobile phone users.
A better investment than Google Wallet in the short-term, he counseled, would be for retailers to focus on mobile phone credit card devices like those used in the Apple store at Westfarms, for example. It expedites the checkout process and has a lot of functionality for smaller merchants who need to sell their wares at locations like summer fairs and arts and craft shows. Mobile phone credit card devices are also less expensive for start-up retailers.
“Before you get a credit card terminal, you might want to use your phone. We’re finding that to have a lot more traction,” Hammermaster said.
That’s not to say a retailer shouldn’t take part in Google Wallet if the company comes calling for a beta test in a set geographic area. The promotion Google would do for the testing would be great exposure for any retailer, Hammermaster said.
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Hoffmans mark 90th year
Hoffman Ford, Porsche, and Saab are marking their grand re-opening on June 23 with a celebration at its East Hartford location commemorating Hoffman Auto Group’s 90th anniversary. Four generations of Hoffmans have runs run the automotive retail group, which offers 10 brands at three locations (East Hartford, West Simsbury, and New London).
The celebration will include performances from The Connecticut Opera Guild, Goodspeed Musicals, and The Bushnell, among others. The Hoffman family has been a longtime supporter of the arts in Connecticut.
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Cheshire clothing store opens
The grand opening of Source Clothing Co. in Cheshire took place on June 11. The new boutique, located at 187 Highland Ave. in the Stop & Shop plaza on Route 10, features high-end women’s apparel, accessories and jewelry at discount pricing. The new boutique carries products in standard, petite and plus sizes from designers such as Anthropologie, Bebe, BCBG, Charley 5.0, Chinese Laundry, Citizens for Humanity, Crystal Rock by Christian Audigier, Diesel, Donna Karan, Ed Hardy, Eileen Fisher, Elie Tahari, and Emma and Sam among others. For information, visit www.sourceclothingcompany.com.
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Shoppers going mobile
JiWire, which provides mobile advertising, is out with its first-quarter report on consumer buying habits using mobile devices. The survey is based on data from approximately 450,000 public Wi-Fi locations, as well as a survey of more than 5,000 consumers randomly selected across JiWire’s location-based media channel within the quarter.
According to survey results, 31 percent of the mobile audience researched a purchase on their mobile device before buying it in-store at a later date. Additionally, 40 percent researched future purchases on their mobile device and then made a purchase online at a later date.
