Speeding up payments is a reoccurring theme for innovation in shopping. The checkout stand often feels like a massive headache for retail customers. New innovations like self-scanning, paying by mobile phone and improved checkout lanes are examples of innovations (Wells, 2017). Last year, Amazon made the headlines by introducing a store where customers purchase products without being checked out by a cashier or using a self-scan station. On the 29^th of September 2020, Amazon introduced their latest effort to speed up shopping by introducing Amazon One. This innovation lets you pay with the palm of your hand!

The first time a customer comes to a store, the credit card is linked to a scan of your hand. After the first time, customers can pay for products by placing their hand about 10 centimetres above the scanning device. The camera takes multiple images of fine lines and ridges, as well as veins. Amazon specifically chose hand palm recognition because it can be accurately matched. Amazon claims it is more accurate then using face recognition or fingerprints (Andriotis, 2020). Amazon has introduced it in two Amazon Go stores in Seattle, and is planning to expand in the upcoming months. It pleases many customers, as contact-free payments and convenience are highly appealing for a lot of customers today.

Although the technology sounds appealing, I personally do have my doubts. First of all, the advantage over using your phone are small. With your phone, paying is already convenient without direct contact to the system. Second and most importantly, concerns regarding privacy should be taken into account. Handing over biometric data to one of the largest retailers might not be the smartest idea. Although Amazon is claiming that the data will not be stored locally, but saved in an extreme save and encrypted environment, they still own this data. Especially since Amazon has received claims from multiple privacy advocates who are concerned about facial recognition in other products. Finally, I would have my concerns about the potential for fraud. People can easily link stolen credit cards to their hands, making other people pay for the products. As the hand is not linked to a particular person but just to the card, fraud could be a major problem.

Paying for your groceries just by scanning your hand would be functional, but I do not think that the limited increase in convenience weighs up to the potential fraud and privacy concerns raised by the innovation. Do you agree, or should this be ‘the new way’ of paying?

References:

Andriotis, A. (2020). Cash, Plastic or Hand? Amazon Envisions Paying With a Wave. WSJ. https://www.wsj.com/articles/cash-plastic-or-hand-amazon-envisions-paying-with-a-wave-11579352401

Wells, J. (2017). Faster front ends: How supermarkets are speeding up checkout. Grocery Dive. https://www.grocerydive.com/news/grocery–faster-front-ends-how-supermarkets-are-speeding-up-checkout/534852/

Facebook Campus launch

This week, Facebook launched the plans for a new section on their platform, by going back to their roots as a college-focused networking platform. This space is specifically designed to connect with fellow classmates. The section is designed for people from the same university. Users will only be accepted when entering with the e-mail of their universities. With the use of this platform, people with similar interests will be able to find each other.

The Student’s Perspective

Student Nick de Werd at the Rotterdam School of Management reacts to the new platform: ‘I really feel this adds value to their platform. Nowadays, I am a member of multiple university related Facebook groups, like ‘RSM MSc Masters’, ‘Erasmus University Rotterdam Bedrijfskunde’ and ‘RSM MSc Business Information Management’. These university related pages have a different intention than my normal timeline. My normal timeline gives information about the news, funny video’s or posts from friends. The university groups are really separated from this feed, so Facebook Campus could play that role.’

This is an interesting insight, which I agree on. Especially in current times, the pandemic is causing student groups to operate more digitally. Students are generally interested to meet each other, so groups are already formed. Facebook is streamlining this process, to assist people in finding each other.

The Business Perspective

Facebook benefits from more interactions and more users, which could come from the new section. A 2018 report from the Pew Research Center showed that YouTube, Instragram and Snapchat are becoming more popular with teens compared to Facebook. This section could be an opportunity for Facebook to add following and interaction of relatively younger users.

If Facebook Campus will be a success, this will add considerate business value to Facebook. The main income for Facebook comes from digital advertising. As Facebook Canvas has more data on the early professional aspect of users’ lives, it could add to the effectiveness of the Facebook ads. Students of different groups can specifically be targeted. This can be another huge way of generating income for Facebook.

The technology is now piloted with 30 universities in the United States. It might take months before it will be introduced in Europe, if introduced at all. I think it will be a success, as it streamlines the process of normal group formations in Facebook, which is already regularly used. It will definitely be interesting to see if students will actively post and discuss on Facebook Campus, instead of using platforms set up by universities themselves, like Canvas Student. Do you think Facebook Campus will be a success? And would you use this section of the app if it was available?

References

Eadicicco, L. (2020). Facebook announces a new college-only social network called Facebook Campus, 16 years after launching as a student-only social network. Retrieved from: https://www.businessinsider.com/facebook-campus-launches-college-only-social-network-2020-9?international=true&r=US&IR=T

Hung, C. (2020). Introducing Facebook Campus. Retrieved from: https://about.fb.com/news/2020/09/introducing-facebook-campus/#:~:text=Today%2C%20we%20are%20launching%20Facebook,conversations%20within%20your%20college%20community.

Carman, A. (2020). Facebook reinvents Facebook with the launch of Campus for college students. Retrieved from: https://www.theverge.com/2020/9/10/21429159/facebook-campus-app-college-students