Understanding PCI DSS and Payment Card Security

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Google recently announced that it is ending both its development and support of QR (Quick Response) codes. QR or 2-D barcodes as they are sometimes called, were originated by a subsidiary of Toyota over 15 years ago and gained popularity in Japan. More recently, they have been employed by marketers to append additional content to print and digital media. By scanning a QR code with a smart phone, consumers can access web-based video, documents and other forms of digital content. What makes Google's announcement particularly interesting is that until now QR codes have been a cornerstone of their Places program.

Instead, Google has opted to pursue work on near field communication (NFC) technology. Developed in 2002, near field communication uses low frequency signals to allow devices to communicate once they come into a specific range of one another. NFC is currently being tested by hundreds of companies globally.

QR was doomed from the beginning

In a world where two clicks is one click too many, QR codes seem conspicuously clunky. First, marketers have to print a unique QR code for the content they wish to share. Then, depending on the user's hand held device, they may have to download an app to allow them to scan the QR code. It's not uncommon to have to scan the code more than once to get a clear enough image to decode. Also, the ability to navigate to the content is directly dependent on the strength of your handheld signal, which ruled out effective use of QR codes in certain locations (like subways). Finally, QR codes often lead us to content that was hardly worth the effort or anticipation (which can't be blamed on the technology itself) but nonetheless makes it seem even more a waste of time.

Although NFC applications may vary, it essentially involves bringing an "initiator" device and a "target" device into proximity to enable an exchange of information. It's not only easier to use than QR codes but you can expect most hand held devices to come "NFC ready" from the manufacturer by next year.

Follow the Dollars

The most compelling argument for NFC is its potential as a secure payment method. Several banks and retailers are already experimenting with "tap to pay" programs. Once consumers become comfortable using NFC as a payment method, it will tip its usage across all other potential applications as well.

I doubt that Google's decision or the momentum around NFC will necessarily be the death of QR technology entirely, but I do think its potential as anything more than a promotional toy has been forever diminished by NFC. I can't help feeling that QR codes are a little like the 3-D TV of the marketing world — a cool thing that no one really cared about.

Above all else, what is particularly evident from the premature demise of QR codes, is that technology in general is now moving at far too fast a pace for companies to maintain a wait-and-see strategy. Despite the inherent risks associated with jumping on new technology early, the cost of waiting may be missing the adoption curve entirely.

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  • Richard Longworth
    about 13 months ago
    Well this might have been written by google themselves. My take on this I see many businesses adopting QR coding and simply enhancing the customer experience. I see retailers looking to build a link between bricks and mortar and on line activity.

    Most importantly I see google finding it difficult to control and monetise the essentially open source nature of QR coding. Follow the money.

    I'm sure Qr coding is not the ultimate marketing device as what ever is. It will be developed and may be super-ceded. But it will improve as qr apps become standard and the education level improves.

    As always success will depend on the exchange between the effort and the reward. So content is still king.

    Richard

    http://twitter.com/#!/MarketingSages
  • Doug Stephens
    about 13 months ago
    Hi Richard,
    You'll have to take my word for it when I say, I have no particular affinity or affiliation with Google. I do feel however that they have significant influence on things directionally and would say the same of Apple, Amazon and Facebook. When any of these players make bold technological decisions, there have to be downstream ripples.

    I also recognize that we may be some time away from NFC becoming ubiquitous for payment applications but when it does, I think that we'll see the "tappification" of things spill over into territory that QR is currently playing in, like in-store displays, digital out of home installations and other venue based applications. If QR gets marginalized to the point of being a print only medium, then it's only logical to question it's long term viability, just as we are now questioning the viability of other print media.

    This isn't a vote for Google. It's just an extrapolation of what seems like a logical series of events.
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Retail futurist, Doug Stephens is an in-demand speaker for private and public sector audiences across North America on the mega-trends shaping a new era of retailing and consumerism. His thinking has influenced many of North America's best-known brands. Doug is a regular guest expert on the CTV television series App Central TV and media contact on trends in the retail landscape.
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