Visa addresses the importance of mobile
The senior vice president of Visa’s global marketing platform, Kim Kadlec, recently spoke to marketing publication Adweek, and sought to clarify how the company is addressing the rise of mobile Ecommerce. There is little doubt, as smartphone ownership continues to advance, and mobile payment systems proliferate, that mobile is a huge part of Ecommerce’s future. If Visa has its way, in that future, a credit card has to become much more than a piece of plastic.
Visa’s share price has risen by 14% so far this year
SOURCE: Yahoo Finance
For Visa, mobile is a word with many meanings. The smartphones with which people are making payments today are just the tip of an iceberg – the iceberg itself is the internet of things: seamless internet connectivity between devices, homes, and more. According to Kadlec, the company has made a “big bet” on this trend. As an example, she cited a recent partnership with Honda to include its products with “in-vehicle payment technology”. Given that there are forecast to be 380 million cars by 2020, she says this presents “a big opportunity” for Visa and other payment providers.
Speaking about Visa’s own understanding of the “mobile” in mobile commerce, she said:
“Mobility has become a much broader concept. And I think at the end of the day, creativity in any of those formats is important, and certainly from a user’s perspective, enabling seamless payment technologies is our game. And that’s what we’re focused on. Through your appliances, through your Alexa (Amazon’s voice assistant), running shoes – those are all things we’re working on.”
Visa does not just enable consumers though, it also partners with brands as diverse as Honda and Apple to offer integrated services. This brings up a challenge: on the one hand, Visa wants to build its own brand with customers; on the other, it is beholden to support other brands too. Kadlec doesn’t have an answer to this problem yet, but she recognizes its existence:
“Our dilleman is that brand equity dilemma. When Visa is running behind the scenes – kind of the ‘Intel inside’ – and Apple Pay is marketing, there is an awareness play.”
Dominion holds Visa in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.