Apple, Google and Big Data
Recently we sat down with Professor Viktor Mayer-Schönberger, big data expert and author of the best-selling Big Data: A Revolution That Will Transform How We Live, Work, and Think. Specifically, we wanted to pick his brain to discuss the role of big data in the ever exciting world of payments.
We talk a lot about companies that are ‘disrupting’ the payments industries. What we wanted to know from Viktor was the following: what in your opinion constitutes a brave brand in the age of big data?
Viktor: “I believe we are just now seeing the showdown between two disruptive approaches in digital payment, that of Google and that of Apple.
Apple has beautifully focused on re-imagining the payment process from the consumer point of view with its new iPhone and Apple Watch products. This is significantly reducing the cost and improving consumer benefit compared to existing digital payment options. They have thoughtfully reimagined every step of the way, from entering credit card information to ensuring security and privacy to the actual payment transaction. But as a consequence of security and privacy (and acceptance of payment partners I assume), they had to drastically limit the data that they are “seeing”. That means Apple can extract value from payment data that is flowing through its ecosystem, and thus must ask participants to pay them a fee.
In contrast, Google understands the importance of data, and has created a system that is less restrictive when it comes to data use. In return, they can gain some value from reusing the data they “see” and thus have more flexibility on the fee side. The more payment data can be used – not necessarily on an individual level and not necessarily for marketing purposes alone – the more value it will produce, and the more disruptive it will turn out to be.”
To read the rest of the interview with Viktor and hear from other global experts, look out for the Cards & Payments Middle East Keynote eBook to be released in November.
To join Viktor at the Big Data Workshop and hear his keynote presentation at Cards & Payments Middle East 2015, register here for the largest payments and commerce event across the Middle East, Asia and Africa!
[Image: Tom Woodward- Flikr]