Alternative Finances

The Downside of Beacon Technology

Like many emerging mobile-based products today, beacon technology, which enables merchants to identify specific customers in or near their stores, has potential to greatly improve customer relations. But it’s highly untested, and improper execution could do more harm than good.

Because beacons, which uses Bluetooth Low-Energy technology, have caught the interest of many in the industry, Fidelity National Information Services, or FIS, is seeking to stay at least on par with the market to identify beacon’s viability, Troy Land, the company’s vice president of emerging commerce, told PYMNTS.com in a recent podcast interview.

(Jump To: 0:55) “Beacon really kind of caught our attention lately, one of many potential disruptors in the marketplace,” he said during the interview. “It’s still very new and very limited as far as the offerings, but it’s driving a lot of interest nonetheless.”

Because beacon technology, such as Apple iBeacon or PayPal Beacon, is so new, the “$1 million question” is how consumers will respond, Land said. (Jump To 1:38) As he sees it, beacons border “on the edge of cool and creepy.”

“It has the potential to be very cool, very innovative. But in the same regard, if it’s not executed properly, it could be interpreted as a violation of privacy,” he said. “So it’s really going to be a matter of how merchants, or organizations of any type for that matter, look to deploy it.”

If deployed properly by leveraging the full view of the customer, and the merchant is able to present targeted offers that are attractive and have a high perceived value and that are specific to specific individuals, consumers will have an appetite for that type of service, Land said.

In a recent blog commentary, Land suggested that beacon technology is so new, people still are guessing what the marketing and payments industry impact will be. “Many seem to think it will revolutionize consumerism,” he wrote. “On the other hand, others predict big headaches along the way. But one thing is certain, mobile ads (or targeted offers and communications) are effective.”

To learn more Land’s views on beacon technology and where FIS sees itself in supporting the technology, listen to the full podcast by clicking below.

 

 

*If you have trouble with the audio player above, click here.

 


Troy Land, Vice President of Emerging Commerce, FIS

Troy Land is vice president of emerging commerce with FIS. In this role, Troy has full P&L responsibility for the Emerging Commerce/Loyalty Product line and roadmap strategy. His key responsibilities include managing and supporting the overall emerging commerce/loyalty product strategy.

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NEW PYMNTS STUDY: LEVERAGING THE DIGITAL BANKING SHIFT – SEPTEMBER 2020  

The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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