Article

How iBeacon could increase in-store bill-pay transactions

Apple's iBeacon technology could lead to increased transactions at retail kiosks and walk-in bill-payment services.

February 19, 2014

By Jadienne Laneus

TIO Networks

What does Apple's location-sensing iBeacon technology mean for the world of retailers, consumers and service providers?

For one, it means a more targeted approach to communicating with your customer. But not just communicating — it's like pin-point targeting the exact information that would specifically be useful to them, based on their physical location at that precise moment.

More so, it is a potential shift over from the heavy focus that is currently placed on mobile and online services — targeting people in the "real world," but incorporating mobile to more effectively market and personalize their shopping experience. Essentially, this allows for a merging of mobile with bricks-and-mortar in a way that has never been done before.

The company InMarket recently announced plans to use this technology as it unveils its Mobile to Mortar iBeacon platform. The feature was made available for iPhone users in dozens of Giant Eagle and Safeway stores in Seattle, San Francisco and Cleveland, Ohio, with plans to quickly expand the service. It intends to deliver additional consumer benefits by customizing the retail experience, which will drive an increase of in-store sales — a supposed win-win for both consumers and retailers.

How does it work?

When shoppers enable the service, they will receive notifications to their Apple handset about discount coupons, loyalty rewards and item suggestions. The goal is to tailor marketing efforts and promotional offers to that specific shopper based on what is relevant to them and what is within their reach. For example, a shopper walking past the cleaning aisle would receive a reminder message to their phone that laundry detergent is on their shopping list, and indicate exactly where to locate it. While in that aisle, they might then receive a coupon for the fabric softener located to the right.

How is this possible?

Apple's iBeacon technology is described as "micro-location" technology that uses Bluetooth LE to connect to iPhones running iOS7 with small transmitters placed around a store.

BLE is already in iPhone 4S and 5, as well as iPads, Mac computers and many high-end Androids. The way iBeacon works is that the mobile device is both a sensor and a signal. A BLE-enabled iPhone running iOS7 will be able to receive location-specific messages based on its proximity to a local network of iBeacons. And that phone can act as an iBeacon itself, transmitting messages back to others.

What could this mean for the future of bill-payment kiosks and walk-in bill-payment services?

Growth opportunity! If successfully implemented, it is logical to predict that we will see an increase in the number of people who are making bill-payment transactions at these retail locations and an increase in the frequency of use.

For instance, as a customer waits in line to pay for their items and/or when they are in close proximity to a bill-payment kiosk, they could receive a push notification to their phone reminding them of upcoming bills that they need to pay. Such as, "Your utility bill is due tomorrow, pay at register now" or "Your wireless bill is due next week, pay it now at the pay station kiosk to your left."

It has the opportunity to take personalized convenience to a whole new level, which makes it even reasonable to assume that this will result in the capture of a larger part of the bill-payment market. Even those who usually pay bills at their bank or directly to the service provider may begin to utilize this service out of the sheer convenience factor. Being reminded of and presented with an option to pay a cable bill — at the same time that you're getting groceries — gives consumers the ability to easily cross off another menial task.

How does this translate to an increase in revenue for retailers?

If successfully implemented, this technology will offer an increase in in-store sales as a result of knowing what the customer needs and immediately directing them to where they can fulfill that need. Offering walk-in bill payment services and/or deploying bill-pay kiosks are great ways for retailers to add additional streams of revenue. For one, retailers earn a percentage on each bill-payment transaction. The additional service will also increase foot traffic, which can result in additional unplanned purchases.

InMarkets Mobile to Mortar is the latest to unveil their application of Apple's iBeacon technology, but it certainly won't be the last. Both Macy's and MLB have begun to apply and test out this technology, and we can only expect to see more new and innovative uses of this technology to soon follow.

Jadienne Laneus is the marketing coordinator for TIO Networks Corp., a cloud-based, multichannel bill-payment processor.