Will Bluetooth Smart change the in-store experience?

With this in mind, consumers should expect their in-store experience to look and feel completely different by the end of 2014.

Retailers and brands alike have been experimenting with push marketing for years, but the technology and support from major phone manufacturers was lacking. Bluetooth Smart brings three essential features to the beacon experience: an intelligent wireless connection that can authenticate and manage interactions; an extremely power-efficient connection that doesn’t drain the user’s phone battery; and ubiquitous support from phone manufacturers and mobile operating systems. Beacons powered by Bluetooth Smart just work with the devices consumers already have, making it a reliable and cost-effective solution for stores and brands.

“In 2014, Parks Associates expects Bluetooth to play a much larger role in the mobile wallet ecosystem,” said Jennifer Kent, Senior Analyst, Parks Associates. “Not only does Bluetooth Smart have support from major players like PayPal and Apple, but it also enables three crucial mobile wallet functions: payment from mobile phone to point-of-sale terminal, passive transmission of marketing messages and the ability to detect consumers’ location in-store.”

Suke Jawanda, CMO, Bluetooth SIG, comments: “Retail is going to be the first market to really pop using beacons, but that’s just the beginning for Bluetooth Smart powered beacons. Bluetooth Smart is making scenarios just dreamed about a reality - like driving down a crowded city street and having an available parking spot ping your phone, or your grocery store knowing when you last purchased milk and sending a reminder that you are running low when you’re in the dairy aisle. The foundation of Bluetooth Smart for retail scenarios is going to set the stage for an explosion of beacon technology in the coming years.”

“Bluetooth Smart has made it possible for PayPal to create compelling location-based payment solutions and shopping experiences. With PayPal Beacon, shoppers can do hands-free payments and get relevant in-store offers and notifications. We are excited to work with merchants and developers to reinvent the in-store shopping experience. We are piloting PayPal Beacon in a few stores in the US and Australia with plans to expand to the UK, Canada, France and Germany," comments Hasty Granbery, Lead Engineer, PayPal Beacon.