We are in the midst of a great revolution in the payments space: anyone with a phone can now accept credit cards; online-to-offline commerce is allowing online payment for offline purchase and significant friction is being removed from the consumer purchase experience thanks to mobile. All of this innovation (read: competition), combined with government intervention, means that payment fees are falling, threatening revenue streams for incumbents and startups alike in the payments space. But a broader opportunity exists: using the data of payments to build a more valuable, more defensible business model, one not dependent on fees. The result will revolutionize offline commerce and online advertising.
Editor’s note: Derek Andersen is the founder of Startup Grind, a 20-city event series hosted around the world to help educate, inspire, and connect entrepreneurs. He’s an ex-Electronic Arts employee, as well as the founder of Commonred and Vaporware Labs.
Until a few weeks ago I’d never met Dave McClure. Like many of you I have read all about him, casually Twitter followed him, and personally censored many of his YouTube videos over the past few years. After attending 500 Startups Demo Day earlier this month I was really impressed by the founders and their products which were as good or better than any I’ve seen. The person I shook hands with at the end of that day was a soft spoken, humble guy who seems to be in full grind mode pushing 500 Startups to a new level. Last week I interviewed him at Startup Grind in Palo Alto.
Last week Wikileaks–remember them?–released a sheaf of documents about the Trapwire security system, which, depending on who you believe, is either a network of cameras being used to spy on everyone everywhere, or an ineffective bust more notable for shady business practices than any successful surveillance.
Is it being used for “monitoring every single person via facial recognition“? Probably not. Doesn’t matter. Let’s not kid ourselves: the point is that as cameras get cheaper and more connected and more ubiquitous, facial recognition gets more accurate, and data-mining software gets better, something like conspiracy theorists’ worst nightmarish fantasies of Trapwire will come to pass. I’ve said it before, I’ll say it again: this is only a matter of time, and not all that much of it.
Little pieces of the panopticon are already being built all around you.« go back — keep looking »