mobile payments

TABLE OF CONTENTS1.Clear Problem & Solution Statement 2.Competitive Analysis 3.User Research 4.Personas 5.User Flows + Storyboards 6.Sketching & Prototyping 7.User Journeys 8.Annotated Wireframes

Our Task

Foursquare

Helping Foursquare break into the mobile payment industry

Overview:The mobile payment industry is rapidly expanding. In two years, an estimated

$90 billion will be spent through mobile payment methods, and close to $142 billion over the following two years.

Unfortunately, there are two major hurdles businesses face when getting started in the mobile payment industry: adoption and differentiation.

The first problem, adoption, is a classic chicken & the egg problem. Consumers will not see the value in a mobile payment application if there are no businesses accepting it, while businesses will not support a mobile payment app unless it brings in more customers.

Secondly, the the industry is currently dominated by a few big names, including Apple Pay, Google Wallet, and Paypal. Therefore, in order to successfully compete in the mobile payment industry, a new entrant to the mobile payment market must differentiate itself by dominating a particular niche.

Proposal: Foursquare PayOverview

Foursquare’s unique technology positions them to dominate a niche in the mobile payment industry. Presently, Foursquare has the best and most accurate location technology. Nearly all current mobile apps--including Twitter and Microsoft--use Foursquare’s Venue API to integrate and populate location data. Additionally, Foursquare boasts an extensive world-wide user base and roughly sixty-five million independent places. Using this place database in conjunction with data from the 90,000,000 “tastes” users have added to their profiles, Foursquare is unique in it’s ability to run proactive and predictive local searches and send users relevant contextual notifications. By leveraging these databases, Foursquare can create a mobile payment system that will drastically improve a consumer’s experience while assisting the growth of small businesses.

Ensuring Adoption:Foursquare’s strong user base and incredible location services give it the unique

ability to connect businesses with their target market. Using the millions of user-generated tips and tastes, businesses can intelligently focus their marketing efforts like never before. Additionally, using Foursquare’s robust database of users’ tastes and unique ability to exactly pinpoint a user’s location, Foursquare Pay enables businesses to not only attract customers, but to also improve their experience while saving them money.

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Ensuring Differentiation:Though other mobile payment companies like Apple Pay and Google Wallet also

have millions of users, they lack the data and relationships with those users that Foursquare has cultivated over time. Regardless of this seeming advantage, Foursquare Pay will not compete directly with the larger mobile payment companies. Instead, Foursquare Pay will use this information to dominate the “small business” niche of the consumer industry.

Foursquare Pay will appeal to smaller businesses by helping them solve their main concerns: increasing sales and number of customers. Businesses will be able to draw in nearby Foursquare Pay users by notifying them of real-time deals that appeal to them. Not only will this bring in traffic during slower business hours, but it will also alert users of the existence of a smaller business, especially if the business is new. By using Foursquare’s extensive database of user tastes, businesses will be able to target their offers to people who will likely want and purchase them.

On the customer side, Foursquare’s unique ability to exactly pinpoint a user’s location makes it possible for users to receive push notifications about nearby locations that appeal directly to them and may even be offering a deal.

Once a customer is in a business, this same unique technology allows a vendor to see which Foursquare pay users are in their store as well as access those users’ profiles for to learn about their tastes and check them out.

When a user goes to check out, the vendor simply charges their purchase and automatically applies any deals offered using their Foursquare Pay profile. This creates a hands-free, one-button, mobile payment process for the customer. The overall result is uniquely relevant, personalized, and convenient experience.

The following includes both the vendor side and the user side of the same scenario.

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User Research

Surveys Interviews Affinity Mapping

contextual inquiry

Community, Education, Interaction, Service

Spreading good coffee culture, Edu-cation, A loyal customer base.

Good notifications of successful payment. A POS that is as minimal as possible. More interaction — less payment. Something that encourages customer loyalty.

People chatting on their cell phones or distracted while ordering.

Square

Keywords

Goals

Feature Needs

Pains

Uses

Age: 29Occupation: Cafe co-owner, Barista. Location: Cambridge, MAEducation: Bachelors

“I like to be able to look my customers in the eye.”

PATRICK S.

Patrick and his best friend recently opened up a coffee shop and they care a lot about good coffee culture and about educating their customers about the coffee process and flavors.

They have several regulars who work and spend a lot of time in the cafe and they’ve begun to accumulate a small following of people who care about good coffee. Patrick and his partner use a tablet to accept and manage payments.

They’re not quite big enough to invest in a point of sale system, but they have an iPad so they bought a Square reader to accept payments. Because they like to talk so much about coffee to their customers, they really value a POS experience that main-tains conversation and contact.

They like getting to know people and pro-vide personalized service to them. Patrick tries hard to memorize people’s usual orders.

Reliability, Convenience, Informative

Leadership & Management, Family Life, Carer Success. Wants his pur-chases and investments to work for him.

Integration with existing products he uses, like Mint. Anticipation of purchases, prior knowl-edge of habits and preferences. Memory of past purchases.

Poor receipt management. No feed-back.

Apple Pay, Square, Level Up

Keywords

Goals

Feature Needs

Pains

Uses

Age: 27Occupation: Lab TechnicianLocation: Boston, MAEducation: Masters

“I want the process to be as seamless as possible”

STEVEN F.

Recently married, masters educated. Steven is an early adopter of new ideas and technologies. He likes to own the latest gadgets but is price conscious.

He values convenience and reliability above all, but if he sees these qualities, he’s willing to spend a little extra.

He is very social and knows and his envi-ronment well. When he hosts guests, he likes to take them to places with good ambience and great service.

He is proud of the work of local companies and efforts. He likes to support them, over chains when he gets a chance.

Community, Trust, Curiosity, Cautious.

Friends, Family, Career success, Per-sonal Happiness. Wants to feel like her information is secure and her money is safe.

Notifications, easy privacy adjustments. Seeing what others have said. Promo-tions and deals.

Mysterious process, Hidden Information.

Square, Google Wallet, PayPal.

Goals

Keywords

Feature Needs

Pains

Uses

Age: 33Occupation: Bank Branch ManagerLocation: Chicago, ILEducation: Bachelors

“Before I try a new technology, I like to see that it works well and it’s safe.

RACHEL W.

Rachel recently moved into the city from a smaller town, for work. She is curious about new technologies and hears about things from blogs, news, television, etc.

But she is cautious about security, privacy and her personal information. If she sees friends using it, or hears enough about it, Rachel will use new POS technologies but may need some encouraging, or a good reason to.

She uses PayPal and Google Wallet to send money sometimes to her brothers back home. She cares a lot about commu-nity and good reputation in business.

She has a little more money to spend than usual because of her new job, so he’s recently upgraded t the latest newest google phone and she’s curious what it can do. She uses Foursquare to explore her new city.

Company Info Subject Relevant Party

Amazon Amazon has also introduced a product, Local Register, which is undercutting Square on pricing by charging merchants a slightly lower fee of 2.5% on transactions. Revenue Merchant

ApplePay Every major credit card has signed up to work with Apple Pay. Adoption Company

ApplePay applepay: they’re NFC, they’re tokens, they’re issuer friendly, paypal - none of those Adoption Company

ApplePay it is almost impossible for consumers to get excited (and develop a habit around using it) if it’s something they can almost never use. Adoption Consumer

ApplePay

Why retailers are afraid of Apple Pay

Basically - they’re afraid it will give more power to credit card cos to charge eve higher merchant fees, which they have been fighting for years. CurrentC is there way oftrying to compete (although it was recently hacked, don’t know by who - but either way Apple tells people it’s safer because unlike CurrentC - it hasn’t been hacked yet. Adoption Merchant

ApplePaychains have seen NFC system usage almost double since apple pay was released, but double of nothing is still pretty close to nothing. same goes for competition Googlewallet. Adoption Merchant

ApplePayApple Pay is aimed more at selling iPhones, by making it easier for consumers to pay for goods in stores and on mobile phones, using technology to prevent fraudulentuse, which in turn lowers the processing fees that credit-card companies charge merchants. Core Goal Company

ApplePay

with Apple taking just 0.15% of every Apple transaction, all that love and goodwill isn't going to add anything significant to the company's bottom line. So why bother?1) It locks people into the iPhone.2) Apples are everywhere in stores now.(strong, worldwide brand presence)3) It could move the needle one day. (At physical stores, mobile Payments is expected to become a $142 billion business by 2019, according to Forrester Research.) Core Goal Company

ApplePay customer data. Shops want it. Apple Pay doesn't give it to them Differentiation Company

ApplePay

Apple (AAPL, Tech30) gets just 15 cents for every $100 in Apple Pay transactions, according to Gillis.

So for Apple Pay to move the needle just 1% on Apple's expected sales in the last three months, users would have had to use it for transactions worth $451 billion (which ishighly unlikely). Revenue Company

ApplePay quoted tim cooke saying 2/3 of all contactless payments were made with Apple Pay. Stats Company

CurrentCCurrentC makes processing payments cheaper for retailers (retailers might get away with paying a tenth as much. but It's cheaper for shops to process payments, becausethe system is generally slower) Revenue Merchant

EMV Why the switch to EMV - SECURITY: The U.S. makes only 24% of all credit card sales and is responsible for nearly 50% of fraud worldwide. Security Consumer

foursquareThe big idea was to help people find the best and most interesting experiences in the real world. And to build a company that would bring our vision of context-awareservices — software that can learn about the places you’ve been and can proactively recommend places you’d love — to hundreds of millions of people. Core Goal Company

foursquareFoursquare used it’s Billions of check-ins in conjunction with Volunteered Geographic Information from it’s users (VGI) to develop truly advanced technology that toldfoursquare where it’s customers were and habits about their movement through space and time. Differentiation Company

foursquareone of the only companies doing proactive and predictive local search and firing off contextual notifications — it’s hard. And we’re one of the few companies on the planetwith the team, technology, and data to pull it off. Differentiation Company

foursquare the Foursquare app can ping you to suggest a sandwich shop you’d love as you walk through a neighborhood for the first time Differentiation Consumer

foursquare we can raise your awareness of the best experiences nearby and help you find places you’ll love Differentiation Consumer

foursquare7 billion checkins have taught us about more than 65,000,000 places that exist in the world. The 250,000,000 photos and 70,000,000 tips you’ve left have shown us what’sgreat inside those places Stats Company

foursquare 90,000,000 “tastes” you’ve added to your profiles have taught us about the things you want us to help you find. Stats Company

foursquare hundreds of millions of API calls we get per day from the 85,000 partners building on our platform contribute the freshness of the data and our popularity scores for places. Stats Company

foursquare the world’s most accurate place database, Stats Company

foursquare Foursquare helps power location services for Twitter, Microsoft, Pinterest, Waze, Flickr, Samsung, Citymapper, and thousands of others Stats Merchant

Mobile Paymentmerchants have to be convinced that Apple Pay is worth accepting. For many of them, that decision will be a combination of how many consumers have the capability touse it and whether accepting Apple Pay will bring them more customers and more volume and/or keep them from losing customers who want to use it. Adoption Merchant

Mobile Payment they’re much more interested in making it easier, safer, and more secure for customers to buy, doing so in a high quality and low cost way. | CEO, Braintree Core Goal Consumer

Mobile Payment “Accessing the physical point of sale is still the holy grail,” Crone said. Core Goal Merchant

Mobile Payment make payments more contextually relevant Differentiation Consumer

Mobile Payment

“The marketplace is going to soon move beyond a focus on coupons and offers,” Ms. Carrington said. “Those are important – they are table stakes and must be done.

“But there is more that can be incorporated into a digital wallet that really differentiates it from others in the marketplace and those consumers will find extremely appealingbecause it removes friction from their commerce experience.” Differentiation Merchant

Mobile Payment“The friction of waiting is removed from the equation,” Ms. Carrington said. “This is an example of how digital wallets can create a differentiation in the marketplace that isvaluable to both merchants and consumers.” Differentiation Merchant

Mobile Payment Cutting down on swipe fees could amount to hundreds of millions -- even billions -- more dollars in profit Revenue Merchant

Mobile Payment mobile-payments transactions total $240 billion, compared with in-store sales of $6.2 trillion Stats Company

Mobile Payment mobile sales platform POS market share: Mobile Point of Sale Projected to Reach 46% Market Share in 2017 Stats Merchant

PayPalAnd I think our integrations with companies like Uber or Airbnb or Order Ahead or Eat24 are examples of where we can partner with merchants to enable the experiencethat they want to have with differentiated, where payments becomes seamless and in the background. Adoption Company

PayPalour thinking around the in-store experience has certainly evolved the last couple of years. Technology innovation and EMV regulations in America are forcing a massivechange and reinvestment in point-of-sale hardware and solution adoption. Adoption Company

PayPal PayPal also offers card readers for smartphones and a cash register for stores. Adoption Merchant

PayPalAn independent PayPal, which will be led by American Express Co. veteran Daniel Schulman, will have more flexibility to develop new software for merchants and pursuemobile consumers Adoption Merchant

PayPal PayPal is also letting merchants add mobile payments features to their own apps Adoption Merchant

PayPal

have a committed approach that is agnostic to platforms and across channels. We are focused on helping merchants to have flexibility, to differentiate their experience overother merchants. This is what they say is mission critical to their business and we want to make sure we can also leverage merchant transactions data to provide adifferentiated experience in a way that others can’t. Core Goal Company

PayPal it is our job as a payments company to make sure that we enable payments in a way that is faster and easier, safer and more secure for both the merchant and aconsumer. Core Goal Consumer

PayPal

PayPal payments brand at the physical point of sale and has to hustle to make up lost ground.

Or, more intriguingly, PayPal is planning to disrupt it by using its assets to change where that game is played. Differentiation Company

PayPal At PayPal, our thinking has always been about enabling payments everywhere consumers and merchants want to shop. I Differentiation Consumer

PayPal“It has to be the experience you have online today. You’ll get what you want really fast, pay really fast and get out. And the merchant will know more stuff about you, andthat will make your experience better.” Differentiation Consumer

PayPal You have to help save the consumers time, and save them money. More than ever you have to keep them safe.” Security Consumer

PayPalfurthest along in digital payments. It has 157 million active buyers and sellers completing transactions via the Web. PayPal processed $215.6 billion in payments in the past12 months and has $7.58 billion in revenue. Stats Company

Reserve is consistent with a trend of worry-free payment flows Adoption Consumer

Reserve

this is about not having to pull out your phone at all. Imagine being able to walk into any kind of physical store selling goods or services, and paying merely by identifyingyourself to a sales associate. The store might be able to identify the presence of your phone, and then match up your name to the list of phones in the store. Any amountyou owe is then automatically charged to your phone-linked credit card Core Goal Consumer

Reserve all transactions in the real world moving towards this kind of payment process Core Goal Merchant

Reserve Reserve gets some fairly valuable data about consumer spending. Differentiation Merchant

Square Square has promised merchants that they’ll be able to accept payments based on Apple’s service. Adoption Consumer

Square Square is compatible with EMV cards and has the cheapest hardware to make it acceptable Adoption Merchant

Square Square is introducing Square Order, which lets people pay without having to pull out their phones Core Goal Consumer

Squaremobile application can detect when a user is approaching a coffee shop and signal a barista to start making a drink, which can then be picked up with the payment settledin the background. Core Goal Consumer

Square it has now become a high priority for the company to reach out to consumers again Core Goal Consumer

Square Square had largely deemphasized marketing its consumer products in recent months, focusing its website and public-relations efforts almost exclusively on reachingmerchants Differentiation Consumer

Square “Square really innovated the business model for the micro-merchant, but it doesn’t have consumers,” Differentiation Merchant

Square small and medium merchants remain Square’s core -- and satisfied -- customers. Differentiation Merchant

SquareSquare takes 2.75 percent of every transaction and has a stamp-sized card reader, keeping a portion of that after paying processing fees to Visa, MasterCard and othercard issuers that take on the task of protecting merchants and consumers against fraud. Revenue Company

Square it is likely that Square is bearing the cost of fees imposed by card processors and banks in the hopes of getting merchants to adopt Order. Revenue Company

Square A key challenge for all payment providers is to balance the need to serve customers quickly while complying with regulations and credit security. Security Company

SquareThe stiffening rivalry among Square, Apple, PayPal and other payment-technology providers -- all betting on a future when digital wallets replace cash and credit cards --reflects the rising stakes in a market that EMarketer Inc. estimates will be worth $118 billion by 2018, from $3.5 billion this year. Stats Company

Square Square, co-founded by Twitter Inc. Chairman Dorsey, was one of the first companies to introduce technology that turns smartphones and tablets into credit-card readers. Stats Company

Square Square has signed up more than 1 million businesses since debuting in 2009 Stats Company

Square San Francisco-based startup processes about $30 billion in merchant sales annually and fees have generated about $900 million in revenue this year Stats Company

SquareSquare was valued at $6 billion in its latest round of financing this month, up from about $5 billion in January. The company has been the subject of reports this year that ithas been in acquisition talks. Stats Company

Square Square customers could be lured away by rival services that offer lower fees, easier transactions and a deeper pool of buyers and sellers. Threats Company

Square “Reports that we tried to sell the company or of a delayed IPO? False,” Square said in the post. “We’re here for the long term.” - Jack Dorsey Threats Company

Starbucks Starbucks is introducing order-ahead functions to its own app, which it is currently testing in Portland, Oregon Differentiation Consumer

User Flows + Storyboards

Case 1: Vendor Side (see appendix F1 for journey with images)

Pat is opening up Bon Me for the day. In between his usual morning duties, he wants to use the Foursquare Pay for Vendors app to set a few promotions for the day. He sets the promotion during their slowest time of day -- coming out of the lunch rush and the few hours after.

Review:First, Pat was able to use Foursquare’s location services to

notify Foursquare pay users in the area about a deal at his business, enticing more customers into the restaurant.

Pat knew exactly when Rachel walked into the store. This was only possible because of Foursquare’s ability to accurately pinpoint a user’s location.

Second, Pat was able to use Foursquare’s database of user-specific tastes to make a plausible recommendation to Rachel. Not only does he improve her experience at Bon Me, but it is also easier to sell Rachel something she will probably like.

To sum up, by using Foursquare Pay, Pat both increased traffic to his store, and improved his customer service.

1 Pat opens Bon Me for the day drawing 1

2 He sets a deal for the low point and saves the deal.

Appendix C1a, C1b

3 Customer walks in — It’s Rachel drawing 3

4 Pat recognizes Rachel by her photo and greets her by name.

Appendix C1c

5 Rachel is not sure what to order drawing 4

6 Pat sees Rachel’s “tastes” on her profile screen. Appendix C1c

7 Pat recommends the Spicy Chicken Bowl. Rachel agrees.

drawing 4

8 Pat then rings her up. Appendix C1d

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Vendor Main Screen

User Profile

Payment Confirmation

Deals Main Screen

Ender Order Number

Print Receipt Email Receipt

Ender Order Total

Taps a User Tab Taps "Deals"

Turn Deal On/Off

Create New Deal

Set $ or % Set Numerical Amount

User SIgns/Accepts

Set DateEnter Text to be pushed to users

Add Notes to user profile

Set Time

Delete Cancel Save

Edit Deal

Case 2: Customer Side (see appendix F2 for journey with images)

Rachel, is on her lunch break, walking by the Children’s Museum. She’s a recent transplant from a smaller town and she’s been using Foursquare to explore Boston and find great places to eat and drink.

Review:

First, Rachel got a push notification about a nearby restaurant deal. Because Foursquare knew her location and her tastes, it only sent her a notification from a place that she would like.

Second, because Rachel linked a credit card to her Foursquare profile, she was able to pay without pulling out a wallet or a phone.

1 Rachel passes near Bon Me in fort point. drawing 5

2 She’s looking at Foursquare to discover a place.

drawing 5

3 At that moment she gets a notification about the deal.

drawing 6

4 She decides to go. She walks in to Bon Me and pockets her phone.

5 She puts in her order with Pat and he proceeds to ring her up.

drawing 4

6 After Pat flips the tablet, she confirms her order total, tips and presses Accept.

drawing 7, Appendix C1d

7 Rachel moves down the line and gets her food.

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design studio

whiteboarding

Tablet + Mobile Solution

1. Pat opens Bon Me for the day.

2. He sets a deal for the low point and saves the deal.

3. Customer walks in — It’s Rachel

4. Pat recognizes Rachel by her photo and greets her by name.

5. Rachel is not sure what to order 6. Pat sees Rachel’s “tastes” on her profile screen. 7. Pat recommends the Spicy Chicken Bowl. Rachel agrees.

8. Pat then rings her up.

1. Rachel passes near Bon Me in fort point. She’s looking at Foursquare to discover a place.

2. At that moment she gets a notification about the deal.

3. She decides to go. She walks in to Bon Me and pockets her phone.4. She puts in her order with Pat and he proceeds to ring her up.

5. After Pat flips the tablet, she confirms her order total, tips and presses Accept.

6. Rachel moves down the line and gets her food.

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Select the date that the deal should be offered.

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Toggle existing deals on/off.

Add a new deal

Tab to GUESTS view.

Scrolling View of currently offered deals.

Description of the deal.

% of $ value off.

Slide deal offering times.

SAVE current deal.

7Notification that Foursquare Pay user entered.

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Change sorting of Foursquare customers.

FS User who has entered the restaurant.

Notes about Rachel.

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Rachel’s “tastes” — Collected from the Foursquare app.

FS User who has entered the restaurant.

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Add a tip to the total.

Sign your name.

Confirm payment.

1 Customize what notifications you are comfortable receiving.

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2 Search for restaurants.

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3 Filter by businesses accepting Foursquare Pay

4 Notification (with iconography) that this business accepts Foursquare Pay

5 Notification (on Detail Page) that this business accepts Foursquare Pay.

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Starting the onboarding process for new users

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2 Showing people how they can discover new places using Foursquare

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Showing people that they can connect a payment method to Foursquare to experience a hand-free payment

Push notification from places nearby that you love, and are offering a deal.

Push notification from places nearby offering deals4

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6 Person can upload a photo of themselves to help merchants identify them for hands-free payment

Connect a payment method to account

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Starting the onboarding process for new users

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2 People can add a payment method

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Once info is uploaded, user presses save to save it to their profile

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4 People can scan their CC to save time