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29. März 2024

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What does innovation mean?

What does innovation mean?© Wirecard

The catchword innovation is nowadays used to lightly for newly developed solutions or services. An expert comment by Roland Toch, Managing Director Wirecard CEE.

But just because something is new on the market, it does not have to be innovative. A product or a solution is only an innovation if it offers a notable added value, for example for consumers.

Methods from childhood
In the area of the cashless payment transactions, it is for example not sufficient to just bring innovative solutions onto the market. A mission is needed to convince people that these solutions will revolutionise actually known payment methods. Especially with payment transactions, many consumers still trust those methods that they know from childhood, for example the use of cash or payment of an invoice.
Lifestyles have also changed on the basis of innovations, the use of a car with more comfort, the type of communication via the internet or even also online payment services with diverse possibilities. Changes thus take place and are accepted, as soon as an added value is secured. Each innovation additionally needs time. A good example is the smartphone. Who would have thought 15 years ago that the clumsy device, with which you can make phone calls without interruptions to a certain extent, would at one time combine a music box, a camera, street map, media kiosk and news machine, all in real time, and cannot be lived without in the daily routine of each person?

Payment via mobile devices
In addition to all of these usage possibilities, the payment via mobile devices will also play a a marked key role. So-called digital wallets already enable the secure payment on-site in a shop as well as in an online shop and loyalty programmes can also be used via the same device. The smartphone is our digital purse and technologies such as Bluetooth and NFC will reinforce this. A discount for my favourite coffee or actions tailored individually for me thus land directly on my display, in order to be redeemed immediat
Even if this is still difficult for long-established trade businesses: In order to remain successful in business life, one has to remain willing to learn, use innovations in a profitable manner and trust people who have long-term and mainly tried and tested experience.

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translation by economy; red/czaak, Economy Ausgabe Webartikel, 13.01.2017