The Future of Payments

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Earlier this month I had a chance to be on a panel discussing User Experience (UX) for payments. The panel was part of the Fintegrate Zone 2017 event located at the BSE Building in Bombay hosted by the Zone Startups.

The panel was moderated by Harsimran Julka @HarsimranJulka an editor for the Economic Times. The panel included:
Anurag Sinha, Co-Founder, Walnut App
Deepak Agarwal, CDO, Barclays Wealth
Sohini Rajola, @RajolaSohini, RVP, Western Union
Tina Singh, @tinasinghj, CDO, Mahindra Finance
Malcolm Anthony, Head of User Experience Design, PayPal
Nitin Vyakaranam, @vnitinb Founder & CEO, ArthaYantra

As with any recent discussion involving the Indian financial markets half the time was devoted to talking about Modi’s demonetization. It was more about who benefited from it and who struggled with it, as a whole most fintech startups all benefited from it.

Although we touched on the overall user experience of payments and had much to debate about, I still feel most of the world is struggling with a seamless payment experience. Part of the issue is that people are used to physical cash and it’s been around for ages. People are familiar with it and how to use it, kids from a very young age are taught about physical money and many have piggy banks with some of that loot! Basically, cash is convenient, intuitive and effortless.

But as with everything else, we need to move forward and electronic payments are the future and most governments are behind it as a way to tackle the black money and counterfeit money. Credit/debit cards are a hybrid instrument, although the card is physical in nature it connects to an electronic platform to authorize, clear and settle the payments. Credit cards are prone to fraud since someone can steal your card, go to an online store and enter your card details and buy stuff.

This is where a whole new generation of solutions are entering the marketplace under the banner of mobile proximity payments (MPP), this includes near field communications (NFC) and quick response (QR) codes. NFC is the technology behind Apply Pay, Google Pay, Visa payWave and MasterCard contactless,  it’s a communications protocol that works with devices that are within inches of each other. With Apple Pay when you are ready to checkout, the retailers point of sale (POS) system will “talk” to your phone and then you use Touch ID to authenticate and enable the payment. That really is the way to do it. The problem with NFC is that the phone has to have an NFC chip and so does the retailers POS system. I don’t see this gaining much traction in India as many of the phones are fairly inexpensive and won’t include an NFC chip for years.

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Surprisingly, because of India’s demonetization the use of QR codes has gone from a niche type of application to full mainstream usage. Demonetization was a stroke of luck for Paytm and they turned it into gold. Overnight people needed to send money and many people quickly downloaded the Paytm app and started to transact.

A couple weeks ago, I used the QR code functionality to pay for parking at Phoenix Mills and it was pretty seamless. Since all smartphones have a camera they can scan this QR code and submit a payment to an individual or retailer. I really see this taking off and becoming the standard in India, it’s a low tech solution but sometimes that’s required to get high (mass) adoption in India.

BharatQR, Another Payment Option?

It’s another day and yet another payment option/technology was launched in India. The newest one to the party is called BharatQR, it’s being launched by the Government of India. BharatQR is like Paytm except instead of using e-wallets, you just need a bank account. It’s pretty clear the Indian government is hell bent on getting most people to transact online. With the explosive growth of Paytm, I’m guessing the government decided it needed it’s own QR-code offering.

I think this is a great move but I think the average user will be even more confused now. Below is a list of electronic payment options that I have compiled in alphabetical order:

  1. Aadhar Enabled Payment Service (AEPS)
  2. BharatQR
  3. BHIM
  4. Apple Pay and Android Pay (coming soon…)
  5. Credit/debit card
  6. E-wallets – Paytm, Mobikwik, etc…
  7. IMPS
  8. NEFT
  9. RTGS
  10. RuPay
  11. UPI
  12. USSD

Yeah, even the most tech savvy person would get confused. I think the government should just wrap AEPS, BharatQR and BHIM into a single app and make that the defacto standard.

10 Years of the Mumbai Marathon


Yup, the first Mumbai Marathon I ran was in 2006. Back then it was really easy to register for a running bib and probably under 5,000 people ran the half-marathon. Now it’s tough to register and they have capped the number of runners at some 25,000 for the half-marathon. When I used to train 11 years ago, the streets were empty and people would look at me like I was some crazy person. Today, if you don’t pay attention you might “run” into another runner on a Saturday or Sunday morning run. It’s great to see the whole city get involved in the race and especially all the people who come out to cheer on Pedder Road and Marine Drive.

Below are my finishing times for the 10 years I’ve been running the Mumbai Marathon.

1. 2006 – 2:16
2007 – did not participate (some wedding, I think mine!)
2. 2008 – 2:16
3. 2009 – 2:07
2010 – got sick
4. 2011 – 2:01:26
5. 2012 – 1:57:01
6. 2013 – 2:02:59
7. 2014 – 2:08:37
8. 2015 – 2:04:18
9.  2016 – 1:58:31
10. 2017 – 2:08:47

Picture from the first Mumbai Marathon I ran in 2006.

Modi Marches On

We live in an era of limited attention span, super short news cycles and the upcoming President of the US who uses Twitter and it’s 140 characters to talk. When PM Modi announced on November 8th that all Rs. 500 and Rs. 1000 notes would stop being legal tender as of midnight that day, it was like an earthquake and here we are almost 46 days later still talking about it.

The demonetization topic has come up at almost every party or business meeting I have attended and it’s been great to hear the pros and cons of PM Modi’s actions. First, I think we Indians can adapt to any damn thing and this exercise clearly shows that. People that had stacks and stacks of black money figured out ways to deposit their money into the banks. It remains to be seen if they will be able to get their money back or how much of a penalty they will have to pay. On the other hand, the middle class waited patiently to deposit their money and waited even more patiently to get the new currency notes.

The poor ended up being pawns in a political game where the opposition party said the poor were suffering the most. Actually, the poor have been suffering long before demonetization. The per capita income in India is about $1,500…not per week or month that’s per year. The Chief Minister (think Governor of a US State) of West Bengal, Mamta Banerjee, was one of the harshest critics of the policy and was on TV almost every night to highlight how much the poor are suffering. Because of the lines that people had to stand in line to get cash their own cash. Uhhh, we Indians are used to lines. Go to VT or Churchgate train station at 6:30pm and tell me what you see. Come to Nariman Point at 6pm to catch a bus and tell me what you see. I’ve seen these lines in Nariman Point for the past 10 years and that hasn’t changed.

The opposition party even played some of their classic hits like ex-PM Manmohan Singh. Manmohan Singh is like a one-hit wonder, he might have been the chief architect of India’s entry into the global economy in 1991 but he also was the PM during one of the most corrupt periods in recent times and was absolutely silent about it. (The joke is when he visited the dentist, the dentist said “at least open your mouth in my office”.)

I hope Modi doubles down on his drive to make the country a digital currency nation. When people say, how can you expect a poor man to buy a smart phone to take part in this new digital economy I just lose it. Have the politicians scammed this country for so many years that they have not been able to lift people out of poverty? That’s the real tragedy, not demonetization.

24 Hours of Craziness With Modi and Trump

This past Tuesday around 8pm (Bombay 8pm, NYC 9:30am) I turned on CNN International to watch US voters goto the polls to elect either Trump or Clinton. It was clearly going to be the Hillary Clinton show based on all the media publications and polls who said Trump goes low and that Hillary goes high. As I was switching channels I saw that India’s Prime Minister Narendra Modi was giving a speech at the same time. I thought man, why is he trying to steal the limelight while the biggest elections in the world are happening and this guy must be talking about Swachh Bharat #2 (Swachh Bharat = Clean India). I continued to flip channels and settled back on watching CNN International.

1narcos-tmagarticleThen my phone went nuts with all the WhatsApp messages (yeah, India loves WhatsApp and not Facebook Messenger). I’m wondering if there was some announcement that CNN missed in regards to the US elections – nope. PM Modi dropped the equivalent of a nuclear bomb on the financial markets by banning the use of Rs. 500 (USD 7.40) and Rs. 1000 (USD 14.80) denomination notes in an effort to fight black money, corruption, fake currency notes and terror financing. This was not some ban that would go into effect in 1 week, 1 month or 1 year, it was going into effect in 4 hours – at the stroke of midnight Tuesday. The old notes could be redeemed at a bank over the next 2 months for new notes. Of course, if you have unaccounted wealth its going to be a very awkward conversation with the Income Tax officials to explain it. Which means most people will just burn it Pablo Escobar style like he did in Narcos. As of Wednesday morning the biggest legal tender was Rs. 100 (USD 1.48) until the new currency notes hit the market. It was a genius move by PM Modi and one that will go down as the biggest changes in the course of India’s financial markets. Yes, there is probably some hyperbole in that statement but it took real balls to pull this off by PM Modi. I guess in the end he really did launch Swachh Bharat #2 (Swachh Bharat = Clean India).

pollsAt this point, my TV remote was probably ready to retire since I was switching between 5 or 6 news channels to understand the implications of this massive announcement from PM Modi. All the while I was following the US elections on CNN and Nate Silver’s FiveThirtyEight website – which was still showing that Hillary was going to win. So, I went to bed at 1:30am in the morning (Bombay 1:30am Wednesday, NYC 3:00pm Tuesday). I got up at 5am in the morning to start watching the election results come in as the polls started to close across the country and all of a sudden the numbers for Clinton don’t look as awesome as they did just hours ago. I kept on checking FiveThirtyEight about Clinton’s chances of winning and it was like watching the stock price of a company that just announced it was being investigated by the FBI (wait, that actually did happen to Clinton). It seemed like Trump might win and the financial markets around the world were poised to open gap down.

Then it happened, Trump was able to cross the magic line of 270 electoral votes and win the US Presidential elections to be the 45th President of America. I’ll be honest, it’s still a funny thing to say, hear and type that Donald J. Trump is the next president of the United States of America. I didn’t vote for him and I really hope he only focuses on getting the economy back on track and fixing the broken political system with its special interest groups, lobbying groups and political action committees. It’s definitely wait and watch.

On another note, something that I’ve observed over the past few days is that people want to hear what they want to hear. Or in the case of online media, see or share things they have a strong viewpoint about. Of course, that’s the whole point of Facebook and Twitter to share, post or highlight content you agree with. Unfortunately, some of that content is either fake or written just to drive traffic to a page that is plastered with ads. Then there are the articles that are absolute puff pieces with zero fact checking and just published to cater to audience that likes or dislikes a particular point of view.

Below are a couple screenshots this past week from my Facebook wall.

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This article claims 3 people have died because they were standing in a line. Yet, they provide no information of the deceased or interviews with their next of kin. This piece definitely caters to people that are livid that PM Modi has screwed them of their hard earned black money.

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The narrative of this Facebook post I assume is that Trump is going to be President and the “shit has already started” in that minorities are being targeted. The problem is that this Saudi student died a week BEFORE the elections. Yet, people are sharing it and adding their two cents. I’m waiting for someone to share a story about Rosa Parks like it happened yesterday.

This past week both Modi and Trump did some historic things which might rub some people the wrong way. My advice is don’t blindly follow and do your own research and understand both sides of the coin.

Favorite lines comparing the US and India:
US counting votes, India counting notes.
In the US, black president leaving. In India, black money leaving.

Note: As if this blog post wasn’t long enough, I just realized this is my 500th blog post. I’m sure it’s Trump’s fault that I didn’t write 1,000 blog posts by now 😉

 

Google Takes A Run At The iPhone

667Over the past several weeks it was widely reported that Google would be launching a new phone, the images and specs were leaked online. However, when the Pixel and Pixel XL were launched this week many people stood up and took notice.

Why? Because the Pixel phones are the first serious attempt to dethrone the iPhone. Back in 2007, when Android and iOS were announced to the world both companies took a very different path in how they would market the operating system. Google decided to focus on the Android software and left the hardware to the contract manufacturers in China. As is typical of Apple, they wanted to control and own the entire experience of software and hardware. Here we are 9 years later and it looks like Google has also started to drink the same kool-aid that Apple has been drinking.

In 2010, Google launched the Nexus line of phones and tablets but that product line is very different from the Pixel. The Nexus phones were running stock Android and Google gave the contract manufacturers some guidelines on the technical specifications but were very hands off. The Pixel line takes a page from the Apple playbook and Google has complete control of both hardware and software. Based on the technical specs the Pixel is a worthy competitor to the iPhone 7 and both are priced identically. The Pixel 32GB and the iPhone 7 32GB are both priced at $649…very ballsy of Google if you ask me.

Apple may have the hardware and software integration down to a science but Google has a couple more tricks up its sleeve. The Pixel line has 4 things it can tightly integrate:

  1. Hardware
  2. Software
  3. Project Fi – Google’s own wireless carrier. (technically it’s a mobile virtual network operator – MVNO)
  4. Cloud services like Gmail, Photos, Drive, Maps, etc…

Over the next 6 months, we’ll see how the Pixel performs and if Google can finally get their hardware story in order. Because so far it has been a complete disaster with fragmented products, no clear vision and group in-fighting. Which means it didn’t have time to innovate or release product quickly enough.

Below is a list of the hardware they sell and there is NO single website that lists everything that Google sells which just seems stupid to me. But, that just shows how fragmented the various hardware groups are within Google.

  • Chromebooks – laptops that run Google Chrome as the operating system
  • Chromecast – device to stream content to your TV or speakers
  • Google Daydream – virtual reality viewer (announced this week)
  • Google Home – voice-activated assistant, similar to Amazon Echo and Apple’s Siri (announced this week)
  • Google Wifi – wireless mesh network routers (announced this week)
  • OnHub – a router made by Asus and TP-Link
  • Nest – thermostat, smoke alarm, indoor camera (Dropcam) and outdoor camera
  • Nexus – a line of phones and tablets
  • Pixel Phone (announced this week)

The good news is that six months ago they hired Rick Osterloh away from Motorola/Lenovo. At Google he is the goto guy for anything related to hardware and supposed to get their hardware house in order. I believe the Pixel phone might be a turning point for Google and potentially turn them into a hardware powerhouse as well.

I've Been Designing Apps All Wrong

ola-luxFor the past several years I’ve been advising many startups on their technology vision and strategy. Invariably, I would get pulled into their design meetings for their apps and would happily give my thoughts on the interface, flow and usability of the app. I would spend countless hours with the team on the consumer facing app and then I had an incident with an Ola driver and realized I was going about it all wrong.

A month ago I got into an Ola cab and when the driver tried to start the trip he couldn’t. Apparently, the language on the app had changed from English to Marathi and he couldn’t proceed further. The Ola driver handed me his phone to see if I could fix the language setting and I couldn’t. Instead, I some how started the trip and ended the trip in a span of two minutes.

The driver called Ola customer service for assistance but the guy on the other end was very rude to the driver. I took the phone and said it was not the drivers fault as the language setting had changed and there was no way to get to the menu option he was talking about. The call center agent was very nice to me and told me to hand the phone back to the driver. Again, the call center agent got very angry with the driver and asked him why he hit the buttons and instead should have called customer service first.

I’ve seen this scenario played out so many times and I’m not sure why I didn’t pick up on it earlier. I can’t tell you how many times I’ve heard people complain about the Flipkart and Snapdeal seller panel. While their consumer facing website and apps are fine, the sellers that spend the most time on their websites are left using a sub-par product. On the other hand, I’ve heard rave reviews of Amazon’s seller panel which is expected since they have had 20 years of experience to perfect it.

Before my Ola experience I would rank in the order of importance the interfaces as 1. Consumer 2. field services agent (cleaner, driver, delivery person, beauticians, etc…) 3. call center agent. Now, I’ve completely flipped my thinking and reversed the order.

That Ola interaction made me realize that a lot of time is spent on the consumer facing app and very little time or thought on the call center agent interface or the field services app. Of course, the customer is king but if you don’t empower your employees and make their lives easier it makes it very tough for them to deliver the customer delight and 5 star rating that everyone is chasing.