Corporate Transformational Innovation in Retail

Part
01
of two
Part
01

Corporate Transformational Innovation in Retail Part 1

Examples of corporate transformational retail innovations include Smartpesa's last mile delivery solutions, SAFARICOM'S MPESA in store mobile commerce, SoFi for personalized marketing and OyaPayGo's automated checkout.

smartpesa: last mile delivery solutions

  • SmartPesa is a fintech payments provider trying to solve the problem of last mile delivery in rural and emerging markets.
  • SmartPesa develops point-of-sale, including miniPOS, mPOS, Android POS, softPOS, and last mile delivery solutions to retailers mainly in emerging markets.
How it Works
  • Through the turnkey agency banking, the SmartPesa card and cardless payment solutions can turn regular card readers into a type of miniATM, which helps extend banking networks across the last mile.
  • It allows banks to quickly expand their network into rural areas at a very low cost.
  • A centrally-managed platform covers all aspects of acquiring new merchants to the network: from onboarding and eKYC to hardware and reporting.
  • Its agency banking creates network of merchants to provide banking services to previously underserved populations.
How it is Innovating the Market
  • SmartPesa directly addresses unbanked areas while reducing risk and cost to banks who then will not need to update their systems.
  • SmartPesa is deployed on-premises, is fully compliant and offers industry-leading security. It can integrate fully with any financial switch.
Big Players Implementing

SAFARICOM'S MPESA: in store mobile commerce

  • Through the M-PESA platform dubbed G2, it is possible to cover both disbursements (B2C) and service payments (C2B and B2B).
  • The platform provides secure APIs that allow for third party applications to integrate into M-PESA.
How it Works
  • While used for store commerce, M-PESA allows for automated payment receipt processing, automated payment disbursement and automated payment reversal when making a transaction.
  • It has a paybill mechanism and validation platform from which customers can pay for the retail goods through their mobiles.
  • It serves a chain of agents who include other retailers with a substantial distribution network like petrol stations, distributors, supermarkets and registered SMEs.
How it is Innovating the Market
  • The number of retail stores that M-PESA users can cash in and cash out now totals 16,900, of which nearly half are located in rural areas.
Big Players Implementing
  • Safaricom has a deal to use its M-PESA mobile payment service for online shopping on the Aliexpress.com site.
  • Use of Mpesa on Aliexpress targets microtraders in Kenya who source goods and other supplies from manufacturers in China.
  • Shell Petrol Stations
  • Carrefour Hypermarkets

OyaPayGo: Scan and Go/Automated Checkout

How it Works
  • The shopper will proceed to the OyaExit lane to verify their purchase with the QR generated after successfully paying for the items on their smartphone.
  • Store employees are equipped with an OyaCheckout app to help verify customer purchases. Once a customer is done shopping, they just scan their verification QR and they can leave.
How it is Innovating the Market
  • OyaPayGO is a mobile solution that allows customers to checkout and pay without ever standing in line.
  • The complete solution consists of a mobile app, a dedicated OyaPayGO lane inside the store, verification app for the employees and a dashboard for the store manager.
Big Players Implementing

SOFI-PERSONALIZED MARKETING

How it Works
  • It is a leader in the area of fintech personalized content marketing, as it has created a website that acts as a resource center offering useful how-to guides and custom calculators in different areas, including student loan refinancing to first-time home buying. SoFi’s website offers a lot of useful tools and tips to help people make better personalized financial decisions.
  • SoFi personalizes marketing to its digital customers by fusing event planning, career services and personal finance insights inside its mobile app and then marketing.
  • SoFi joins a group of financial institutions that are letting customers aggregate accounts to get a full financial picture — even if they’re not with the same institution.
How it is Innovative
  • SoFi is capable of meeting the needs of millennial SoFi customers who prefer to organize multiple aspects of their lives digitally, including having an overview of their financial situation at their fingertips through multiple personalized content marketing it offers.
Big Players Implementing

Part
02
of two
Part
02

Corporate Transformational Innovation in Retail Part 2

There were no examples of corporate transformational retail innovations on the public domain. Below is an overview of the information found.

The Store as online fulfillment center


Research Strategy

Initially, we searched for readily available lists with examples of corporate transformational retail innovations specifically focused on online fulfillment centers, innovations surrounding localization, visual search-driven e-commerce, and apps for salespeople. We looked into research papers and survey reports published by research firms (such as Deloitte, EY, Euromonitor, Forrester Research, among others). The information available centered around current trends driven by big retail chains, such as Walmart, Macy's, and Target, that are transforming their brick-and-mortar stores into online fulfillment centers, the impact that localization has on the retail industry, and the future outlook. However, these sources did not mention innovations related to financial technology.

Next, we searched for articles on news and business websites (such as Forbes, CNN, WSJ, Fortune, among others). Through this search, we found fintech innovations used by retailers in their brick-and-mortar stores, but the sources did not specify if the stores were online fulfillment centers. Furthermore, we found apps for salespeople, however, these apps were mostly used by financial institutions. We also found Alibaba's Pailitao showing the value of visual search in e-commerce and information discussing the importance and impact of localization on the industry. However, no information that was relevant to the subject matter was found.

Next, we searched through technology websites (such as TechCrunch, The Verge, Mashable, among others) to see if they mentioned any fintech innovations and identify any retailers. We found financial innovations that could only be applied to e-commerce websites or brick-and-mortar stores. Again we found apps for salespeople that were mostly used by financial institutions. Through this search, we were also unable to identify any examples.

Last, we searched through Crunchbase, because this site is a database of innovative startups in diverse industries. We searched for any information related to finance and retail. However, upon searching, we were only able to find mobile payment apps or manager apps. It was, however unclear whether they could be applied to online fulfillment centers.

Sources
Sources

From Part 02
Quotes
  • "In an effort to make checkout easier for customers, Macy’s plans to roll out mobile checkout in its brick-and-mortar stores. The technology, which is powered by the retailer’s mobile app, is expected to be deployed to all of Macy’s full-line stores by the end of the year, CNBC reported."
  • "Through the app, shoppers can scan an item’s barcode as they add it to their carts. As they do so, the app will apply discounts and rewards through the customer’s loyalty account. When it’s time to check out, customers go to a dedicated counter where the cashier makes sure they scanned the correct number of items and removes a security tag."
Quotes
  • "Two of the U.S.’s largest brick-and-mortar retailers, Walmart and Target, are launching new mobile checkout systems in their stores to accommodate the influx of shoppers expected during the 2018 holiday season. Walmart says it’s expanding its “Check Out With Me” service to every Supercenter by Black Friday, while Target’s recently launched “Skip the Line” mobile checkout service is available nationwide and will have extra staff throughout the store during the busier shopping days."