Top Five Trends from #MWC15
Mobile World Congress 2015 took place in Barcelona, Spain and was bigger than ever with 93000 attendees. MWC is one of the world's largest mobile events and typically serves as a platform for unveiling new innovation and disruption in the space, and setting trends for the year. This year's congress was no exceptionHere is our round-up of key trends to note from this year's MWC. Enjoy!\
Top Trends:
- Mobile payments advance and competition heats up
- Mobile Security is top-of-mind for consumers and tech companies
- Internet connectivity expands further into the developing world
- Tech challenges Telecom as companies like Google move into the wireless space
- Wearables and the Internet of Things (#IoT) go mainstream
1. Mobile payments advance and competition heats up
Samsung's mobile payment service using LoopPay technology was announced with the initial preview of the Galaxy S6 smartphone.Why is this a game changer for the mobile payments market?
With unparalleled retail penetration, this move positions Samsung as a key player in the mobile payments space.LoopPay works with 90% of merchant's point-of-sale terminals and is the most accepted mobile payment service solution worldwide
Most competitors, including Apple Pay, Google Wallet, and Softcard, use Near Field Communication (NFC) technology which requires retailers to update their payment infrastructure in order to accommodate mobile payments.
This issue has been a key obstacle in universal adoption of mobile payment services. 700000 payment terminals can accept payments using NFC technology.
"This acquisition accelerates our vision to drive and lead innovation in the world of mobile commerce'…'we are delighted to welcome LoopPay to take us closer to this goal.” - JK Shin, President and Head of IT and Mobile Division at Samsung*
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| The Mobile Payments Landscape |
What are the implications for brands?
"Having access to loyalty program points and rewards within a mobile wallet is the number one feature they [consumers] are interested in.” - Thomas Husson, Analyst, ForresterThe global Mobile Wallet market will reach a value of $1,602.4 BN by 2018
- Consider mobile payment integration when auditing or designing loyalty programs. Integration of retailer's rewards programs with mobile wallets is something few in the space have done but will provide a huge competitive advantage to the mobile payment service provider who does this well. Integration of loyalty programs is likely to increase mobile wallet usage and penetration.
- Look for integration with apps to enhance user experience. Brand partnerships, like Domino's Google Wallet payment option, stand to enhance mobile wallet adoption, and also offer a more seamless experience for the consumer
- Convergence across mobile messaging and mobile will potentially create shifts in user behavior. The potential of mobile messaging providers to expand their capabilities to mobile payment services will heat up competition in the space. SnapChat released SnapCash earlier this year, and LINE, a popular Japanese company which originated as a mobile messaging service, is expanding to include a mobile payment service. In addition, Burberry recently teamed up with LINE to broadcast its runway show during London Fashion Week. As brands partner with messaging apps that are moving into the mobile payments space, there is potential for users to be able to purchase directly from the apps
2. Security is top-of-mind for consumers and tech companies
The mobile space is responding to the flurry of high-profile data thefts and security breaches this year by integrating state-of-the-art biometric security measures into devices.Fingerprint Scanning: Vkansee, a New York-based startup, has created a scanner that uses an optical sensor to scan fingerprints with more accuracy. The resulting fingerprint scans are more secure because the sensor captures 150 data points from each fingerprint compared to the 10-11 data points existing fingerprint scanners in Apple and Samsung phones capture today
Eyeball Scanning: ZTE introduced the Grand S3 smartphone which scans a user's eyeball with a camera and uses patterns in the eye to unlock the device. Although this phone is currently only available in China, the eye- scanning technology is a departure from fingerprint-scanning and represents the next level in device security.
Implications for Consumers and Brands
Security and privacy continue to be top-of-mind for consumers as hackers and data thieves become more sophisticated. Although Samsung's LoopPay technology works at most retailers, it's security is still up for debate, and the potential for fraud via Apple Pay has recently come into question. The most secure technology could result in a competitive edge for device makers and mobile payment service providers
3. Connectivity is expanding to emerging markets
Although many of us cannot imagine our lives without the Internet, two-thirds of the world's population, 4 billion people, lives without Internet access. This is due to a myriad of factors, with cost of access and lack Internet availability being primary reasons. Google and Facebook are working on initiatives to bring Internet access to the world. |
| Image Source: Jon Shenk/ Google |
Facebook's Internet.org initiative is on track for aggressive expansion and will be in 100 countries by the end of 2015. As a part of this initiative, Facebook works with data providers to offer free Internet access with the objective of bringing connectivity to the entire world. The goal is to get people to see the value that Internet brings to their lives and pay for more premium access plans. Facebook is planning to use drones, lasers, and satellites for its Internet.org initiative.
What does greater Internet connectivity mean for brands?
Greater reach
A more connected world means that there is much greater potential to reach many people including those in developing and emerging markets.What's in it for Google and Facebook?
First mover advantage sums it up. By introducing the Internet to first- time users, each company stands to grow a user base and build loyalty among these new markets. More platform users represent new opportunities for brands to buy ad space, and thus more ad revenue for platforms.Changes to platforms
With the goal to connect the entire world, billions of more potential users would help inform decisions about platforms like Facebook. It will be interesting to see how social platforms evolve to accommodate new users from emerging markets.4. Techchallenges Telecom as companies move into the wireless space
In addition to reinforcing its commitment to bringing connectivity to emerging markets, Google also announced that it will test offering a wireless service within developed markets. Google's move into the space will utilize Wi-Fi and should provide disruptive for existing telecom companies like AT&T and Verizon.Disruptive Approach: User behavior has changed considerably since the introduction of the smartphone. Many users primarily use their phones to check email, play with apps, and access the Internet whereas, prior to the smartphone, the main use of phones was to talk and text.
Although it is not clear what Google's plan and pricing model will look like, it is a safe bet that Google's offering will be less expensive and be priced from a data perspective. Currently, wireless plans from providers like AT&T and Verizon are based off of pricing plans for voice calls and text packages with data plans tacked on. Under the current plan structure, the majority of a user's monthly bill go towards voice and text. In addition, more and more apps like WhatsApp and Skype allow for calling and messaging, do not require telecom voice services, and send data via the Internet.
Looking Ahead: Google is expected to partner with smaller telecoms like Sprint and T-Mobile to compete with AT&T and Verizon, and phones using Google's Wi-Fi service will switch between Wi-Fi connections and cell towers when Wi-Fi is not available.
Implications for Brands
Overall, it seems very possible that Google could disrupt the wireless landscape, but as of now, nothing is certain as questions remain about Google's approach. The company has yet to disclose which areas it plans to launch its wireless service in, and if it will support all devices. It is rumoured that the service will only be compatible with the Nexus 6 Android, the company's only smartphone, which may also affect consumer adoption.
5. #IoT Goes Mainstream
The premise of #IoT are smarter, connected devices, working together as a network to create efficiencies, make life easier, and save money. From a brand perspective, data on usage and patterns will help brands better understand their users.Of the entire IoT ecosystem, wearables made a big splash at MWC this year. MWC 2015 was a showcase for how wearables are responding to consumer needs and becoming more mainstream. A notable improvement this year over past introductions of new devices was the attention that companies paid to style and the appearance of new products.
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| Image Source: sogeti.com |
Notable products:
- Huawei watch
- LG watch urbane
- Kairos watch
- Pebble time
- Runcible
- Smart suitcase
- LifeBeam smart hat
- HTC Vive
Implications:
Connectivity and smarter devices are the name of the game, and tech companies are paying attention to appearance. Brands that balance functionality and appearance to appeal to consumers will win.
Wearables of Note
1. LG Watch Urbane LTE
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| Image Source: PCMag.com |
- A smartwatch designed as a luxury wristwatch. Users can use the watch to make calls, NFC to make payments, and supports other apps such as email, calendar, etc
- Runs on the LG Wearable platform. Uses LTE instead of 3G
- Pricing has not been disclosed
2. Huawei Watch
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| Image Source: PCMag.com |
- A smartwatch designed as a classic timepiece. Has to be synced with an Android smartphone to make calls and features a heart rate and activity monitors, and can receive SMS and email.
- Runs on Google's Android Wear platform
- Rumored to be close to $1000 USD
3. Runcible
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| Image Source: PCMag.com |
- A circular smartphone alternative aimed at eliminating the disruption and distraction that social feeds and endless alerts cause. Aimed at providing users a simpler experience
- Runs on a Firefox operating system. Supports up to 12 contacts with other calls going to voicemail. Alerts users of above average social activity, but not to every single alert.
- Rumored to be in the $600 range
4. HTC Vive
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| Image Source: technobuffalo.com |
- A virtual reality headset that features a 360-degree field of vision and 3D audio for gameplay
- 1080 pixel screen and a 90 frame-per-second display. The complete system features a headset, two bay stations which track users' movements, and two wireless controllers
- TBD
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