Many brick-and-mortar merchants are enduring a sales free-fall and looking for ways to generate more foot traffic in their stores. Building on the positive consumer reaction to mobile order and pay apps, merchants are developing mobile self-checkout systems as a shopping enhancement for time-strapped customers. These systems enable shoppers to use their cellphones to scan merchandise as they shop and then have the cellphone tally the sales, make payment, and receive an e-receipt, so they can exit the store without waiting in a checkout line. Some merchants indicate that their customers are coming to their stores more frequently, knowing that they will not have to wait in checkout lines.
A new research report, Evolving Retail Concepts and Venues with Mobile Self-Checkout, describes different shopping approaches and integrated technology systems that are currently in use or in testing, including Amazon Go, Scan & Go from Walmart and Sam’s Club, as well as others including white-label versions and even smart vending machines. Mobile self-checkout will drive changes in the retail shopping process and lead to shifting consumer behavior in choosing where to shop. Merchants will be faced with decisions on new technology investment and store configuration revisions to meet the evolving preferences of their customers.
"In-store shopping needs to be more about the customer experience, and merchant mobile self-checkout apps add a new dimension to visiting stores and other retail venues, whether for a quick purchase or for extended shopping. Consumers love not standing in line-they just shop at their own pace, scan items, and leave whenever they are finished" commented Raymond Pucci, Associate Director of Research Services and author of the report.
Highlights of this report include:
- A review of the early merchant adopters of mobile self-checkout
- Types of technology systems in use or testing
- How self-checkout impacts consumer mobile use engagement
- Merchant categories most suitable to mobile self-checkout apps
- Implications for payments industry stakeholders.
1. Executive Summary
3. Keeping Pace with the Customer Experience
4. Self-Checkout Uses Familiar Technology
5. Integrated Sensors/Cameras/RFID
- A New Store Concept: Amazon Go
- Amazon Go’s Technology
- What Amazon Go Means to the Shopper
- What Amazon Go Means to Amazon
- Public Launch of Amazon Go Is Facing Delays
6. Mobile Apps with Bar Code Scanning
- Walmart’s Early Attempts at Mobile Checkout
- Sam’s Club Scan & Go Rolls Out Nationwide
- FutureProof Retail’s New Line Free Mobile Checkout
- Barclaycard Grab+Go
- Rambus Universal Pay Platform
7. Self-Contained Vending Machine Units Using Sensors, Biometrics, and Machine Learni
- Lisa and Vicki, the Smart Vending Machines from ViaTouch Media
8. Other Technologies
- A Hybrid Approach from Omnyway and Kohl’s Pay
9. Challenges and Opportunities Facing Mobile Self-Checkout
- For Merchants-Is the Technology Investment Worth It?
- For Consumers-Will Mobile Self-Checkout Become a Killer App?
10. Favorable Merchant Categories for Self-Checkout
11. Mobile Payment Methods: Conclusions and Implications
List of Figures and Tables
Figure 1: Examples of Self-Checkout Systems Currently in Operation or Testing
Figure 2: A Large Segment of U.S. Shoppers Use Mobile Phones in Stores
Figure 3: Mobile Payment App Evolution and Consumer Engagement
Figure 4: Favorable Merchant Categories and Characteristics for Mobile Self-Checkou
Table 1: Mobile App Self-Checkout Systems in Operation or Testing Phase