Tokenization: A Revolutionary Development in Mobile Payments Security

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An "arms race in code" has led to an improvement in payment account security that actually lives up to the term "revolutionary." It involves the use of a code that can produce a different number for each transaction, making it so that stealing account numbers is pointless. Called "tokenization," the idea has powered Apple Pay and Android Pay, and is poised to sweep through the rest of the payments industry.

Stolen credit card numbers have always been a problem with payment systems. In the early days, when everything was done on paper, there seemed to be no solution. Once everything was computerized, consumers and merchants both hoped that a fix was on the horizon, but it turned out to be a long time in coming. Now, with tokenization, it has finally arrived.

What Changed that Allowed Tokenization to be Developed in Earnest?

The big change that makes a solution possible, it turns out, wasn't done just with security in mind. Instead, it was meant to foster new methods of collaboration and competition between financial institutions. New protocols were developed for sharing information between banks and other fintech players, and these allowed app makers and others to develop new technologies. One of these new technologies is tokenization.

Is Tokenization Revolutionary in Ways Other than Security?

Yes. It is not monopolized by the major credit card providers or banks, but instead, can be done by any number of token providers. These include stores, websites, app providers, and more. This decentralizes the payment power structure and puts pressure on the big players to stay competitive. It also allows for a much wider range of applications.

Keeping up with mobile payments, tokenization, and other advancements is easy when you use mBeaconSAM and mBeaconPAY solutions from Netclearance. They ship with embedded hardware security elements which makes instant tokenization a breeze. Contact us today to learn more about how we can help your business come to the forefront.

The Network Effect in Mobile Payments

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The network effect is best described as greater use of a product resulting in an increase in its value. If you think about the telephone or social media, you can immediately understand why the more people are in a network, the more useful it is. Collaboration is one great way to increase the effective size of a network and thus the value and utility of the product. In financial transactions, this mostly refers to P2P (person-to-person) transactions. The more of your friends are in the network, the more useful it is.

The banking world's on-again-off-again relationship with collaboration has lasted since the industry's early years. At the dawn of the internet, most banks tried to build their own P2P solutions, individually. They lost out to the payment giant PayPal, especially as many delayed in embracing the true potential of digital networks.

The truth is that payment systems benefit heavily from a larger number of transactions. This is why PayPal beats out individual bank solutions to the point where many small businesses no longer bother with a merchant services account. PayPal's rival Square, more focused on face-to-face transactions, has also lured away sole proprietors and micro businesses.

The banks have finally clued in with the launch of Zelle, an API-enabled network with more than 30 partners, designed to work with thousands of banks and millions of consumers. The basic premise of empowering the network with more participants and transactions can thus be used to benefit smaller banks. MasterCard and Visa have also expanded the use of open APIs to encourage larger networks. Blockchain may also affect the development of P2P systems, although the technology is new enough that it might be unclear, as yet, how. It may come into play more strongly in cross-border ecommerce.

The rise of mobile payments is also driving peer to peer payment. As many people pay for shared pizza using their phones and the amount of cash in use declines, banks need a slice of the pie moving forward. P2P systems are taking over from cash and moving us closer to a cashless, or at least cash-less society.

Sources:

https://www.finextra.com/blogposting/15106/network-effects---the-forces-driving-ongoing-payment-trends

https://banknxt.com/55277/network-effect/

Peer-to-Peer Payments - The Network Effect

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The network effect is best described as greater use of a product resulting in an increase in its value. If you think about the telephone or social media, you can immediately understand why the more people are in a network, the more useful it is. Collaboration is one great way to increase the effective size of a network and thus the value and utility of the product. In financial transactions, this mostly refers to P2P (person-to-person) transactions. The more of your friends are in the network, the more useful it is.

The banking world's on-again-off-again relationship with collaboration has lasted since the industry's early years. At the dawn of the internet, most banks tried to build their own P2P solutions, individually. They lost out to the payment giant PayPal, especially as many delayed in embracing the true potential of digital networks.

The truth is that payment systems benefit heavily from a larger number of transactions. This is why PayPal beats out individual bank solutions to the point where many small businesses no longer bother with a merchant services account. PayPal's rival Square, more focused on face-to-face transactions, has also lured away sole proprietors and micro businesses.

The banks have finally clued in with the launch of Zelle, an API-enabled network with more than 30 partners, designed to work with thousands of banks and millions of consumers. The basic premise of empowering the network with more participants and transactions can thus be used to benefit smaller banks. MasterCard and Visa have also expanded the use of open APIs to encourage larger networks. Blockchain may also affect the development of P2P systems, although the technology is new enough that it might be unclear, as yet, how. It may come into play more strongly in cross-border ecommerce.

The rise of mobile payments is also driving peer to peer payment. As many people pay for shared pizza using their phones and the amount of cash in use declines, banks need a slice of the pie moving forward. P2P systems are taking over from cash and moving us closer to a cashless, or at least cash-less society.

Mobile Payments are Revolutionizing Commerce

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When the first mobile payment was rolled out two decades ago, no one would have predicted that the trend would take the world by storm a few years down the line. By 2015, the global mobile payment revenue was $450 billion, and the figure is projected to surpass $1 trillion in 2019. Mobile payments are becoming more and more popular among mobile phone users, and unlike in the past where this mode of payment was mainly used for online purchases, in-store payments are also going mobile with technologies such as beacons and NFC. By 2020, for example, the value of proximity mobile payment transaction in the US alone is estimated to exceed $314 billion.

Reasons behind the rise of mobile payments

Increased adoption of mobile wallets

The introduction of Apple Pay on Apple smartphones back in 2014 spurred the rise of mobile wallets, and now we have several mobile wallets such as Microsoft Wallet, Samsung Pay, Android Pay, and Google Pay. The inclusion of these wallets on most smartphones today and the growing number of smartphone users in the world largely contributes to the prevalence of mobile payments. For example, more than 80% of Americans were reported to own a smartphone in 2017, and since a vast majority of them bring their devices with them everywhere, they can easily make payments on the go.

Mobile Payments offer more security to consumers

The modern consumer feels more at ease with mobile wallets compared to walking around with cash or even smart cards. Most smartphones present consumers with biometric technologies such as fingerprints and facial recognition which they can use to step up the security of their mobile payment systems. By installing such security features, consumers eliminate the need for passwords which can easily leak or get stolen.

The prevalence of contactless payment terminals

As consumers continue to adopt mobile wallets and use their smart devices to make payments, most brick-and-mortar stores are also updating their payment terminals to keep up with the trend. An example of such technology is the use of beacons in retail stores which allows customers to pay for items from any location in the store using Bluetooth devices. Another example is the use of NFC chips in checkout terminals to enable customers to make payments by just holding their mobile phones near the terminal. However, unlike with NFC, the beacon technology does not require the customer to be at the checkout terminal hence one does not have to endure long queues in a crowded store. The convenience of this technology, its security, and ease of use has greatly fuelled the rise of mobile payments.

Banking services are increasingly going mobile

Most consumers are now comfortable with mobile wallets and payments, and this has forced banks and credit unions to avail their services on easy-to-use apps that customers can install on their mobile devices. Such services include cash transfers, bill payments, currency conversions, and more, which enable consumers to access and manage their finances effortlessly from their smartphones.

Mobile payment systems can easily be tied to loyalty programs

Most retailers are now integrating their in-store mobile payment systems with reward programs. This encourages most customers to use their mobile devices to pay for in-store purchases since they can easily earn points every time they make a purchase, and the rewards are also easily redeemable.

Consumers are looking for convenience and speed, and it is indisputable that mobile payments will continue to thrive. It is therefore crucial that retailers keep up with trends such as contactless payments to remain relevant in the overly competitive sector. To learn more about our mBeaconPay and mBeaconSAM solutions and how you can use them to automate your check out terminal and improve customer service in your store, talk to us.

Cash a Thing of the Past? More Millennials Turning To Mobile Payments

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The question "Will you be paying with cash?" may soon become a thing of the past.

You read that right. More and more millennials are stepping away from cash and opting for mobile payments instead. As mobile payments become more prominent, cash use is expected to decline even further. The Innovation Group at J. Walter Thompson Intelligence has released "The Future of Money" report, revealing the global changes that are ahead of us in banking. Advances in the tech industry allowing for mobile payments are being embraced by millennials.

The report showed that sixty-three percent of millennial consumers rarely use cash. Seventy-five percent of millennials said they want more diverse financial products, that could be more suitable for their needs. Older consumers aren't as happy with the changes in technology. Millennials are twice as likely as baby boomers to use mobile payment options. 

 

What Does This Mean for the Future of Banking?

 

Banks will have to adapt. It is anticipated that millennials will outnumber baby boomers by 2019. If banks do not come up with efficient mobile payment options that meet their customer's needs, they will be left in the dust. Technology is continuing to expand and it's a race to keep up. 

Millennials are demanding more for their payment options. They want their bank brands to have good ethics, services, and most importantly, technology. Banks need to adapt to these demands, or they risk becoming obsolete. 

Netclearance offers a mobile payments option that meets every millennial's needs. They offer a technologically-advanced option that is continuing to grow with the times. As cash becomes less relevant and smartphones become more relevant, you can expect mobile payments to be a big part of the future. As a result, Netclearance has created a mobile payments solution that works for every age group.

Mobile Wallets: The Fast Lane for Payments

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One-click payments revolutionized online sales because of their ability to offer convenience and efficiency to the customer. Brick and mortar stores have had to adapt to the fierce competition of their online counterparts by focusing on creating unique experiences for shoppers. Nevertheless, with the mobile-first Gen Z beginning to increase its share of the consumer space, customer experiences alone will soon not be enough to keep these fast-moving customers from viewing products in-store but then completing their checkouts much faster online.

A Generation Integrated with Tech


Over the next two years, there will be a 39% rise in the use of mobile wallets. Consumers want to spend less time at cash registers, or in line, and more time enjoying their new products. This trend presents brick-and-mortar stores with a new dilemma: decreasing checkout times. Immense marketing efforts to bring customers into stores and through the checkout line used to be enough. With the advent of mobile payment technology stores must now seek more modern solutions for their clients. It is essential they create a system with seamless transitions between their sales experience and the time it takes the customer to complete their purchase.

Catering to a New Type of Customer


The proposed solution with the broadest acceptance has been self-checkout. These lines allow customers who prioritize speed and efficiency to complete their purchases with a few taps on a screen. This solution, however, requires state-of-the-art technology that will meet the demanding needs of its customers. Another strong trend is individual Points of Sale (POS) terminals located within convenient reach of the customer. POS terminals accept mobile wallet purchases; these quick payments will decrease wait times and increase customer satisfaction. At Netclearance, we have created a Mobile Smart Payment Terminal, the mBeaconPay, which allows retailers to continue to focus on generating unique and personalized experiences rather than worrying about having a line of waiting customers.

Taking It One Step Further


Another movement guiding the paradigm shift toward mobile wallets is the Internet of Things (IoT) revolution. The advent of wearable technology has taken mobile wallets one step further with gadgets like smartwatches. Netclearance's response to the IoT revolution was mBeaconSAM. mBeaconSAM allows for next-generation mobile payments through a state-of-the-art Bluetooth 5 payment beacon. It fits perfectly into existing terminals like the mBeaconPay and instantly gives vendors the ability to accept payments from any smart device.

Online sales are dominated by the speed and efficiency of credit cards on file and one-click purchases, and now, thanks to technology like the mBeaconPay and mBeaconSAM, traditional stores do not have to worry about competing with the automated checkout process of the worldwide web. For more information about our next-generation mobile payments and smart terminals, contact us here.

Improving The Relationship Between User Experience and Payments

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Alternative payments are causing a major disruption in retail as customers look for faster and convenient ways of paying for products, and a majority of stores are now diversifying their payment methods to eliminate the risk of being faced out. However, even as the number of retailers adopting alternative payment methods increases, most are still losing customers at the critical check out stage.

Consumer behavior has rapidly evolved, and the purchasing experience is now as important to customers as the products you are selling. The modern consumer is looking for excellent customer experience and convenience, and if they fail to get it from you at any stage of the purchase process, then you risk losing them forever. However, most retailers still don't understand how much impact these two aspects have on their businesses.

In a recent market survey, 95% of consumers confirmed that good user experience is of essence when it comes to making purchases. Excellent user experience does not translate to a fancy website. It also takes into consideration how easy it is for customers to make payments to your store, even when they are in-store. It is therefore vital that you evaluate your checkout point to ensure that it delivers a seamless experience to consumers.

How retailers are boosting the in-store experience

Mobile wallets and mobile payments are increasingly becoming popular with consumers due to convenience, and customers expect you to replicate the same level of service at your POS terminal. They want to be able to make their payments fast and spend as little time as possible at checkout. Delivering this experience may seem a difficult task for retailers, but emerging technologies that enable contactless payments are making it easier than ever. 

One such technology is Netclearance's smart payment beacon technology  which gives consumers a lot of payment freedom because they can pay for purchases without having to interact with sales associates in a store. Beacons cover a wireless range from few inches to up tens of feet, which gives them a competitive advantage over any other proximity payment method. With this technology, users can connect to your POS terminal from any location in your store hence they don't have to wait in long queues to make payments. All the customers needs is a BLE enabled device -- which now comes with most smartphones (98% of smartphones compared to less than 20% with NFC) -- and your POS beacon. 

To learn more about beacon technology and how our mBeaconPay and mBeaconSAM solutions can help you deliver seamless experience at your POS terminal, visit our website today.

Payment User Experience: Key To Building Customer Loyalty

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As many businesses now offer similar products to a fixed customer base, it has become necessary to highlight areas of differentiation from their competitors. These areas of differentiation can help businesses cultivate loyal long-term customers.

One area that businesses can differentiate from their competitors is in customer experience. Research has shown that 86% of US adults are willing to pay more for a better customer experience. The same research also revealed that 89% of US adults switched to a competitor following a poor customer experience. 

One aspect of the customer experience that can be enhanced by businesses is that of digital payments. Some customer expectations when making digital payments include the following:

  • Speed: Customers expect digital transactions to be processed instantaneously, with little to no delay.
  • Simplicity: The payment process should be easy to understand and use, requiring as few steps as possible
  • Security: Customers expect their transactions to be processed securely, minimizing the risk to their personal information.

mBeaconSam by Netclearance is a product that can meet the expectations of customers desiring an enhanced experience when making digital payments. Some of the features of mBeaconSam that serves to enhance the customer experience in making payments are:

  • Payments: mBeaconSam allows customers make payments using their smartphones or any other wearables. It uses Bluetooth Low Energy (BLE) to allow this functionality.
  • Security: mBeaconSam offers very high security and top-notch encryption. With its high-speed processors, crypto-engine, and secure memory, customers are guaranteed that their private information is securely maintained.
  • Up to date: mBeaconSam utilizes cutting-edge Bluetooth 5 technology. It also allows backward compatibility with older technology. In addition, mBeaconSam keeps up with technological advances by allowing wireless firmware upgrades.

mBeaconSAM is a necessary product for any business that wants to differentiate itself from competitors by enhancing user experience. For any questions or further information about the capabilities of this product, contact us today.

The Future of Payments - Welcome Gen Z

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We will be taking a look at the top 10 trends in payments, and how these could impact the industry and you. Today we start with the first trend, and it encompasses everyone born between 1995 and 2012. If you haven't already guessed, our first example is the Gen Z generation.

Right behind the Millennials are another group of consumers, and if you are a retailer, you should be paying attention to them. This group is collectively known as Gen Z, and by 2020 they will make up 40 percent of all US consumers. But what makes this generation unique?

Gen Z Are Digital

While Gen Z members are just teens and young adults today, they are the future for the payment industry.   The main difference in this group as compared to the previous generations is a technological one. Just imagine people that have never seen a world without Google, Apple, Amazon, or even Facebook. This is Gen Z.

Gen Z members are digital by default. They are both empowered and driven by their mobile devices. If they had to choose between their smartphones and television, friends, or money, they would take the smartphone. That is how ingrained they are in technology.

Gen Z Is Mobile First

Gen Z members are drawn to mobile apps. When compared to Baby Boomers, they are over four times more likely to use the apps on their smart devices. Gen Z wants their mobile wallet to make the decisions for them if at all possible. An intelligent digital wallet using our mBeaconPay solution would be ideal for these smart consumers.

Gen Z will be the first group to permanently exchange the leather wallet for the mobile digital one. This should illustrate the dependence they will have on digital payment methods. This is why technology like our mBeaconSAM, with its ability to enable existing payment terminals to accept app-driven mobile wallet payments, is crucial to meeting the needs of these consumers. 

Gen Z Buying Is Driven By Instant Transactions

When it comes to purchases, Gen Z is motivated by instant transactions. When they see something for purchase, they are more apt to buy immediately. They don't plan ahead for most purchases, so if this window of opportunity is missed, the process of selling to them will have to start over from the beginning at the next opportunity.

In-store proximity marketing capability will help to capture that potential sale moment for the Gen Z member. Our mBeaconSAM enables proximity marketing and is a natural fit for these mobile first, instant buying consumers.  

Gen Z Will Have Powerful Buying Influence

The smart and savvy Gen Z members will have tremendous sway in the buying habits of the other groups. Being so immersed in technology, Baby Boomers, Gen X, and in time even Millennials will look to Gen Z for advice on products and services. Gen Alpha, those born after 2012, will look up to Gen Z for guidance as they embrace their technology.

The importance of being ready for the next generation of buyers cannot be overstated. Smart digital embracing consumers will use whatever system is in place for them and ignore those that are not ready. Contact us today to see how we can help you be prepared for the next generation of active consumers.

Alternative Payments are About to Enter the Transaction Landscape

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Over the last few years, companies like Amazon and Venmo have made inroads into the payment processing business that were noticed mostly because of their recognizable names. Now, thanks to a new EU regulation, the alternative payment industry has gotten a big dose of rocket fuel. This regulation forces banks to provide third parties with access to customer data (with customer consent).

The third parties in question aren't advertisers, as some may fear, but instead are alternative payment businesses. This will greatly change the payment processing landscape by taking control out of the hands of the banks and traditional payment clearinghouses. That, however, isn't all it may do. According to an article in Wired Magazine, it could devastate the banking industry.

Why is this a Big Threat to Banks?

The big threat, Wired says, isn't just that people will use outside payment methods - it's that banks lose exclusive access to the huge amounts of data that they currently get. This will gum up their automated risk prediction engines and force them to spend the time and money to develop individualized risk profiles for every loan applicant. Meanwhile, big tech companies like Google will be able to vacuum in data from the accounts of everyone who does any kind of business with them, giving them a huge advantage over any single bank.

Is this Really the Apocalypse for Banks?

There is no way to know for sure, but it is doubtful. Banks have existed, in some form or other, for thousands of years. That said, it is all but certain that a time of realignment and upheaval is about to come to that industry as it adapts.

To be prepared as a merchant, you should set yourself up to accept payments via a wide variety of clearinghouses. Netclearance's mBeaconSAM and mBeaconPay make it easy for you to do this. Give us a call to learn more about our expanded payment acceptance solutions.

Alternative Payments Pressure Traditional Banks to Innovate Fast

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Mobile wallet technology opened the door for customers to access accounts and engage with their financial institution with ease. Now that smartphones are taken for granted, so are many of the conveniences that once seemed miraculous. But now isn't the time to stop innovating. As non-financial organizations begin to adapt to their users' behavior they are recognizing the need for flexible payment options, voice-driven transactions and AI-powered purchases. Regulators have taken notice and are now encouraging traditional financial organizations to embrace open banking initiatives. In other words, third-party APIs can reach into customer bank accounts and make payments on behalf of the customer. 

Open Banking and Innovation

This month, European and British banks will participate in open banking initiatives as part of the European Commission's Second Payment Services Directive (PSD2). For consumers who prioritize convenience over traditional security and a private payments infrastructure, this directive allows them to enjoy the flexibility of third-party payment systems without ever having to access a mobile bank app. That's a problem for banks because it decreases customer engagement with bank services and because it limits the payment data that, as David Birch writes in Wired, "Banks need ... to develop new value-added services..."

Open banking stands to diminish future innovations and limit consumer services that traditional banks can provide to their clients.

Staying Competition

Amazon, Google, Facebook, Alipay, Venmo and others stand to edge out traditional banks but there are strategies and technologies that traditional financial institutions can leverage to stay competitive. To appeal to the demographics most likely to rely on alternative payment systems, banks and other institutions can harness wireless proximity beacon technologies that integrate with existing business application systems. Backed by Secure Access Modules (SAM) beacon technology has the capacity to perform with as much flexibility as alternative payment technologies, but is still a part of a bank's network. 

As part of the bank's existing payment infrastructure, wireless proximity beacons securely capture payment data where it can be accessed by authorized parties within the client's bank. The client is able to make payments via their tablet, smartphone, retail mobile payment terminals and even manage peer-to-peer payments. There are also capabilities that allow bank customers to access cryptocurrency wallets.

By keeping pace with customers' technology preferences and offering secure end-to-end services, traditional financial institutions can maintain their century's old advantage.

Mobile Loyalty Programs: Using Technology to Convenience Customers

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The use of mobile technology has become an imperative for virtually any kind of online business to convenience customers. To maintain those customers, many businesses now use mobile loyalty programs. Unlike other loyalty programs, these work on a different level from the old process you remember.

If you remember when customers had to store a card in their wallets to become a part of your loyalty program, you can reinvent things using a mobile device.

We'll help make this happen with mBeaconPay and mBeaconSAM at Netclearance.

How Has Mobile Changed Loyalty Programs?

As Forbes notes, loyalty programs work digitally now so customers don't have to use a card. Storing the program in a mobile wallet ultimately allows more awareness of participation.

Using this method puts you in a more advantageous place since you can send mobile alerts to customers about loyalty program incentives. As part of your new push to connect more personally with customers (in real-time), this is one of the best solutions.

For business partnerships, it's also invaluable. When someone buys one of your products in a certain location, you can alert a customer about a coupon available for a discount on another product.

Finding the Right Technologies to Make Loyalty Programs Work

At Netclearance, our mBeaconPay platform already helped manage ways to offer mobile pay programs for customers. Our more recent mBeaconSAM takes things even further by being the first commercially available Bluetooth 5 payment beacon.

This works well with not only mobile devices, but also wearables. Any loyalty program you use becomes all the more convenient and accessible.

Thanks to proximity marketing capabilities, you can capture people in the moment to take advantage of your loyalty program. Because the beacon uses bank-grade encryption, the user is going to have more confidence buying something on their mobile device without hesitation.

Visit us at Netclearance to learn how these mobile beacons can change how you've long approached loyalty programs in your marketing efforts.

Alternative Payments Ready to Rock the Transaction Landscape

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Every so often, the advance of technology results in a batch of new capabilities reaching the public almost at the same time. This is what's happening with payment technology right now. Soon, there will be a shakeup of a magnitude that hasn't been seen since credit cards were invented. What's going on?

Private E-Wallets

These systems are set up on private networks and allow customers to keep money available in electronic form - without the need for a bank or credit card. They can be used at any merchant connected to the system. Often, this is just one chain of stores, but there are exceptions.

These systems are often connected to store loyalty programs. This makes it easy for both the store and its customers to keep track of everything.

Cryptocurrencies

Cryptocurrencies like Bitcoin are exploding onto the wider scene in a big way. Once the domain of offbeat online stores, these alternative forms of money have now crossed over to physical business. Demand is now soaring.

How do These Advancements Threaten Banks?

Banks will see several threats from alternative payment methods. One of the biggest ones is that they are losing control of the payment process and the financial data that goes with it. This means they will face competition in the big data arena as well as in their traditional domains.

Another threat is the simple fact that big changes are here. The banking industry, as a whole, is very hidebound. Whenever such industries are forced to deal with big changes, shakeouts occur. This scares banks that aren't ready to adapt.

It's easy for you to be ready for the wave of change that's on its way. Use Netclearance's mBeaconSAM and mBeaconPay to easily set up your own private wallet system and accept cryptocurrencies while also taking standard credit and debit cards. Just give us a call and we'll help you get started.

Why Mobile Loyalty Programs are Great For Your Business

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Now is the Time

57% of consumers report that they would like to engage with their loyalty programs via their mobile phones. Launching a mobile loyalty program is imperative to the success of your business in this era of technology.

Here is Why

Loyalty programs provide a myriad of benefits for small business trying to stay afloat in the competitive environment with corporate giants. Incentivizing consumers is a time-tested way of ensuring they come back time and time again.

There are over 200 loyalty programs in the United States alone. So what will make your loyalty program stand out from the crowd? Well, mobile loyalty programs definitely will.

A Seamless Customer Experience

Forget about interrupting a transaction to record phone numbers and emails. Mobile Loyalty programs augment consumer information into a single file which is at your disposal anytime, anywhere. Let the system worry about updating customer points, applying discounts automatically, and retrieving coupons.

Pay Less, for Much More

There is no need to waste resources on printing paper coupons with digital loyalty programs. The era of technology enables small businesses to save money by using mobile loyalty programs which cover most of the operations of a loyalty program. For as little as 50$ a month, you can launch your digital loyalty program.

Source of Consumer Data

A mobile loyalty program is the motherload of consumer information that will assist you in researching the purchasing behavior and patterns of different demographics. This information is vital to tweaking future marketing campaigns.

Launch Your Mobile Loyalty Program

Using a Mobile Loyalty Program cutting coupons is a thing of the past. Mobile loyalty technology spoils your consumers with various options such as direct saving of cards, instant searches, automatic stamping, and rewards, using the new NCS state-of-the-art proximity Beacon Technology.

For more information, contact us.

Why your Business Needs a Mobile Loyalty Program

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Businesses use customer loyalty programs to promote brand loyalty and encourage repeat business from new and existing customers. To understand why repeat business is essential for enterprises, here are three surprising facts about its impact on companies.

• Increasing customer retention by 5% can boost the overall profitability of a company by 75%.

• 61% of SMEs report that they generate more than 50% of their revenues from repeat customers.

• According to Marketing Tech Blog, the worth of loyal customers is approximately up to ten times as much as their first purchase.

It takes fewer resources for an enterprise to retain its customers than to acquire new ones. Many entrepreneurs are aware of this fact, and that is why most stores use loyalty card programs to engage and reward their regular customers. However, as mobile technologies such as mobile wallets and mobile payments continue to revolutionize the retail sector, the traditional card is increasingly becoming a thing of the past, and businesses need to adopt mobile loyalty programs to keep up with the competition.

What are the advantages of having mobile loyalty programs?

• They reduce the operational cost of businesses

You don't need as much money to invest in mobile loyalty programs as is the case with traditional cards. You also spend less time updating offers, and you can send them to all your customers instantly.

• They help you to understand your customers

Mobile loyalty programs provide insight into the purchase behavior of your clients which assists you to understand their needs. Using this information, you can send customers relevant offers at the right time. Based on market statistics, 75% of customers will most likely use loyalty programs if the promotions are relevant.

• Mobile loyalty programs improve customer relations

Through mobile loyalty programs, you can communicate directly with your customers at any stage of their purchase process. Excellent customer service is crucial for customer retention, as clients are 79% likely to defect to a competitor if they feel that you are offering poor customer service. Clients also want to access your rewards and redeem them with ease, which is what mobile loyalty helps you to achieve.

To help you get started with mobile loyalty programs, Netclearance has a turn-key mobile loyalty program that integrates seamlessly with our state-of-the-art beacon technologies. 

The Benefits of Payments Decentralization

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A blockchain distributed ledger is a synchronized database spread across multiple networks. Simply imagine a repository of data that is accessible to everyone and which receives instantaneous updates from two locations at the same time. This technology powers and underlies cryptocurrencies such as Bitcoin.

Blockchain distributed ledgers have significant implications in business technology. The focal ramification is decentralization of payments. This technique creates advanced gateways for the transfer of mass data, cutting out the middleman through assured peer-to-peer connectivity, security, and anonymity.

Blockchain distributed ledger technology is quickly succeeding traditional money transfer infrastructure that relies on centralized payments. Consumers want a secure, efficient, and swift payment experience.

Centralized payment infrastructure requires the use of a middleman, who has to carry out multiple verification before the flow of money can proceed. For instance, your bank has to wait for the power company to balance its accounts for a successful transfer of funds.

Netclearance leverages blockchain distributed ledger technology in its applications to enable merchants to accept cryptocurrencies or tokens as payments without relying on a merchant processor or financial institutions to handle the payment transactions.

The Netclearance's next-generation applications, mBeaconSAM and mBeaconPay, integrate seamlessly with multiple payment terminals and retail registers, allowing traders to make payments using Bitcoin. Furthermore, mBeaconSAM and mBeaconPay offer alternative payment methods for users who prefer to use cryptocurrencies to settle bills.

Blockchain distributed ledgers offer foundation to decentralized payments. This opportunity provides you and your clients compelling, flexible, incorruptible, seamless, and fast money transfer options.

To learn more about our decentralized payment solutions, visit our website or contact us

Modern-Day Decentralization of Payments Through Blockchain and Cryptocurrency

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For the longest time, we trusted and held banks, financial institutions, and other centralized intermediary systems accountable to coordinate and safeguard all our valuable monetary transactions. Currently, however, the world is experiencing a paradigm shift towards decentralization. The foundation of this shift is on a framework known as blockchain. The technology involves the real-time recording of transactions of value on an unalterable, copy-proof digital distributed ledger. One can share information on this continually updated database, but it is incorruptible and does not exist in a single location. Therefore, records are public, decentralized, easy to verify but unchangeable. Netclearance is playing vanguard in the move towards such kinds of decentralized payment methods.

Transactions, transfers, and payments by crypto or digital currencies use the blockchain framework. Some in the trade sector, most recently in retail, already know of or use these types of payments. Cryptocurrency is global, not nation-specific. It does not limit trade to a particular region, and this feature supports decentralization.

The recent stabilization of this highly fluid type of payment, its rise in value, and decreased fluctuation are also among the reasons for its increasing popularity. A store, online or physical, only requires internet connectivity to facilitate payment through Bitcoin, Litecoin, Ethereum or any other kind of similar currencies. Our company is keen on supporting such straightforward ways of making payments.

Most importantly, the security of the payment is unlike any other seen before, even with banks and electronic money transfers. With fraud reduction and chargeback and rolling reserve elimination, there's nothing more a trader could require security-wise. And along with all that, the technology is one of the speediest ways to perform transactions. All these advantages motivate the move from centralization to decentralization and are in line with our objectives as a leading payment provider.

Netclearance is therefore at the forefront of supporting the decentralization of payments. We are building our latest infrastructure with digital currencies in mind. Our products such as the BLE-enabled mBeaconSAM mobile payment terminals and the mBeaconPay now allow tokens and cryptocurrency as disbursement upon a business transaction. We are also keen on providing merchants the current exchange rates. Hence, they have the opportunity to convert digital currency into its monetary equivalent in US dollars among other national or regional currencies.

For both the merchant and the consumer, try our product today and experience all the above conveniences of decentralized payment methods using our platforms on-premises or online. As we move to a fast, non-cash, low-reliance-on-intermediary-financial-institutions world, you can trust Netclearance to help you move with the times. Modernize your shopping and business experience and join us as we blaze the trail for decentralization of payments in the enterprise world. For more information on our payment platforms that support decentralized payments, contact us.

Cryptocurrency Acceptance on the Rise in the Retail Industry

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While it is still a relatively novel technological innovation, cryptocurrency continues to gain popularity in today's digital world. Bitcoin is one of the first digital currencies based on a decentralized peer-to-peer network hence it is not tied to any country and does not necessitate any go-between, for instance, the Central Bank. Record of all transactions is in a decentralized database known as Blockchain technology. There is, therefore, need to understand how one can apply it in the retail business industry.  

Bitcoin has evolved into the retail sector’s payment solution. Bitcoins are acceptable as a means of payment for products sold or services provided.  As a currency, it is widely accessible to anyone with an internet connection.  An online business can readily accept bitcoins by adding this payment option to the others it offers like PayPal. Bitcoin, therefore, makes shopping easier for people or enables them to shop leading to the growth of a potential new global customer base.

Speed is another imminent benefit of using Bitcoin. This is because when a customer pays with bitcoins, they are available at immediately. In the meantime, this enables the retailer to dispatch the requested product or provide the service required instantaneously. Retailers are also able to take advantage of the swift delivery if they make use of bitcoins to procure their merchandise especially goods from other countries without any delays. Bitcoins have the upper hand over conventional means like credit cards which could take days for transactions to materialize.

Integrating Bitcoin requires no added infrastructure because the solutions are well-matched with most store systems. Businesses can directly incorporate the online currencies into existing payment terminals. Bitcoin is gaining momentum as a mode of payment and perhaps we are on the brink of a radical paradigm shift in the retail sector as it continues to influence how clients and retail businesses conduct transactions. For more information, contact us.

Decentralization of Payments and their Benefits

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Decentralization of payments system sets off the primary payments and mutual claims from other payments for specified short periods. The system combines credit and clearing operations. It is a means of substituting non cash operations with cash operations. It concentrates all payments for incoming commodity material values or services in the bank in special liability and assets accounts that suit the users of the system.  

Credit allocation completes decentralization of payment and pays off unaccounted for values in operation. The system ensures acceleration of funds turnovers to settle accounts and to strengthen financial control under certain conditions. The payment system depends on the nature of users and their financial relationship. It obtains credit on time for utilizing operations and completing payment.

Block-chain technology is the best-known cryptocurrency that is fast spreading into the mainstream. It handles money transactions similar to spreadsheets. Whenever someones transacts, the system automatically updates the ledgers with new information. Block-chain technology eliminates the need to deal with merchant processors or financial institutions. Instead, you hook directly into the block-chain alternative which handles all your payment processing.

The mBeaconPay and mBeaconSAM payment acceptance systems accept tokens and cryptocurrencies as payment methods. Integrating mBeaconPay or mBeaconSAM with your current payment acceptance system enables you to reach people who are using cryptocurrencies. The block-chain technology takes care of currency conversion and everything else. The system processes cryptocurrencies like other payments.  

The block-chain ledger facilitates and verifies transactions and is a digital public ledger proof of all activities on your system. Participants in the network can access the shared data anonymously and view transactions. However, decentralized network takes care of security and record of digital assets without leaving any weak spots in the system that someone can exploit to steal or alter information.

To learn more about our decentralized payment solution contact us.

Solving the Crypto Payments Acceptance Challenge in Retail

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                                                                   mBeaconSAM

Blockchain technology, and the accountability and security that it affords has given rise to a new form of currency called Bitcoin. Bitcoin is a cryptocurrency that began on January 3, 2009, and has gained acceptance with circulation currently exceeding $7 billion. With Bitcoin and cryptocurrency becoming mainstream, retailers will need to find payment solutions to meet the desires of consumers who prefer to pay with Bitcoin.

Bitcoin and blockchain technologies are still in their infancy, but the practicality they offer has big banks paying attention. Financial institutions have discovered that using Bitcoin allows faster, more efficient, clearing and settlement of accounts between banks. The technology enables the sending of money directly between parties securely and accurately, between banks as well as retailers and consumers. While Bitcoin has become accepted by people and is growing in usage, consumers are finding that they can't use the currency for retail purchases.

Netclearance is leading the industry in providing solutions to merchants, enabling them to accept Bitcoin and other cryptos in consumer transactions. Netclearance applications allow merchants to receive cryptocurrencies and tokens as payments, increasing business opportunities and customer payment options.

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                                                                  mBeaconVault

Netclearance offers payment solutions utilizing next generation, Smart Wireless Proximity Technology, offering advantages for consumers and retailers. Netclearance's mBeaconPay and mBeaconSAM integrate seamlessly with retail cash registers,payment terminals,unattended vending, and enables acceptance of Bitcoin payment by retail businesses, helping consumers to adopt it as a method of payment.

Bitcoin represents a growing trend in the financial industry and will continue to influence the way consumers and retail businesses conduct transactions.

To learn more about this or anything else contact us today.