MOBILE
where they use their mobile device to make a payment. “Workers’ councils and unions have a point of view on this,” says David Smith, head of travel and expense product management for Barclaycard. “Corporate mobile phones don’t always have GPS switched on as a default.” Rene Stynen, head of corporate payment solutions at Mastercard Worldwide, shares this concern. “I can see a big debate opening up on the use of mobile phone-generated card data,” he says. “Should my employer be allowed to use data to see where I am?”
CRITICAL MASS Another question mark over mobile payment is whether NFC technology will become sufficiently widespread to give it critical mass. It is mandatory for phones operating on the MS Windows Phone 8 platform to be NFC-enabled, and it is also available on Samsung and Sony
“I can see a big debate opening up – should my employer be allowed to use data to see where I am?”
smartphones. The big stumbling block has been a refusal by Apple to adopt the technology. On the merchant side, Boots, McDonald’s and Pret a Manger have all deployed NFC readers, but the big breakthrough as far as the corporate market is concerned will come when hotels and restaurants also introduce them. As a result, experts like Zorn
believe corporate customers will lag behind the consumer market when it comes to adopting mobile payment technology. Visa’s Harrison says there are signs of small businesses moving ahead of their larger counterparts in this respect. “In practice, we are seeing it more at the small end,” he says. “The good news is more people are seeing mobile payment is not in the ‘scary’ box. When they use it for the first time, they realise it is
In association with
SIX ADVANTAGES OF MOBILE PAYMENT FOR CORPORATE TRAVEL
1. LINKING TO THE EXPENSE MANAGEMENT SYSTEM – TRAVELLER BENEFITS On-the-spot compliance checking The expense tool can indicate at point-of-sale if a transaction is within or outside policy. More flexible expense reporting Mobile payment transactions appear in the traveller’s reporting tool real- time, meaning they can manage the transactions immediately. More comprehensive expense reporting The expense tool can take pre-populated feeds from more payment methods – for example, a stored-value cash card used to buy coffee.
2. LINKING TO THE EXPENSE MANAGEMENT SYSTEM – TRAVEL MANAGER BENEFITS Pocket-sized compliance manager Policy management at point-of-sale is more effective but less intrusive. Faster data capture Real-time payment data capture enables faster decision-making. Greater visibility More electronically captured payment methods means more – and more accurate – visibility of spend.
Greater policy sophistication Mobile payment and expense reporting apps can link with GPS for policy refinement based on location.
3. OTHER DATA IMPROVEMENTS Employee data Details such as project code or cost centre can be appended to on-trip payments. Reconciliation of pre-trip booking data and on-trip payment data Match can be made through GPS positioning. Level 3 data Hotel invoices, in theory, can be uploaded to the traveller’s phone. Hotel, restaurant and filling station identification Accurate identification of the merchant through GPS positioning.
4. SMARTER PAYMENT CHOICES Replacing cash More use of stored-value cards means fewer inefficiencies and security risks surrounding cash. Adequate funds Ability for the traveller to switch to a different card in the mobile wallet if close to funding limit. Multiple limited-use cards Ability to use different virtual card numbers for different projects.
Different currencies Easier to pay in different currencies, reducing interchange and conversion fees. One bill, different payment methods The traveller could pay for the in-policy items on their bill with a virtual corporate card (for example, standard room rate) and non-policy items with a virtual personal card (such as room upgrade).
5. NEW AREAS OF SPEND Out-of-pocket payments Leads to improved spend visibility of smaller items. Public transportation Easier to pay and reclaim, leading to cost and environmental savings. Airline ancillary fees By linking through a mobile itinerary, the ancillary fee can be tied to the original ticket purchase. Meeting room payment Using a phone as payment method and ‘room key’ for meeting rooms generates accurate data about meetings durations.
6. TRAVELLER TRACKING Real-time logging of transaction data in expense reporting systems This makes it faster to track travellers by their payment history.
Source: Mobile Payment – How It Will Transform Corporate Travel and Expense Management, Airplus International/ACTE
a lot easier than they thought it was going to be.” Following the lead of the
consumer and small business markets, Harrison predicts larger corporate clients will start to use mobile payment for their corporate cards within the next 12 months and that the technology “will become the norm within two to three years”. Zorn is less bullish. “Four to five years is realistic,” he says. “We
assume that mobile payments will reach critical mass in the consumer world in the next two to three years. The immediate benefit for corporate payments will be a more efficient booking and reconciliation process; but to get all the benefits of having your payment mechanism attached to a computer you carry around with you, instead of a plastic card, may take more time.” n
2013 Buying Business Travel • 23
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