Osama Bedier: Hi there.
Osama Bedier.
I'm Google's VP of Payments.
And I wanna talk to you a little bit about commerce on the web
and what we can expect to see over the next few years.
The internet has come a long way since its early days in '95-'96.
It was very static.
It was all about pointing your browser.
It was about clicking on links,
but we've made a lot of progress.
In commerce though,
it feels like nothing's really happened.
It's almost the same as it was 15 years ago.
You browse a few pages.
You add items to your cart.
You go to that shopping cart and checkout.
You enter a ton of information
and then you wait for the stuff to get to your home.
Hasn't changed very much.
Over the next couple of years though,
I think we're at an inflection point.
We're about to see some major change in this space.
And a lot of it will depend on what people in this room do.
I wanna talk to you a little bit about the trends that I see making a difference here,
as well as the challenges that I think we need to overcome.
Starting with mobile.
The web is increasingly mobile.
I said the web's come a long way.
A lot of this is in this space.
Globally, there's now 1 out of 5 phones is a smartphone.
And That in Q4, smartphones outpaced PC sales.
And in fact, broadband on smartphones also outpaced broadband on PCs.
At Google, we've seen search queries increase significantly,
--about 4x in the last year on smartphones.
And the web is also increasingly local.
It seems like everything is becoming local these days,
but at Google Maps,
40% of usage is now mobile and it's about a local query.
And the web is personal.
The web, in general, has seen a lot of progress in this space.
YouTube, a hundred million users shared links and comments every week.
But in terms of shopping,
this hasn't progressed very much.
75% of users say they often get ads for something they have already bought.
But they also say that they're twenty 20 times more likely to buy something
a friend or a family member has recommended.
So, there's clearly demand in this space.
But the amazing thing here is the convergence of these trends,
--local, mobile, and personal.
It's coming together on the iconic device of our time.
It's bridging the gap between online and offline in a really big way.
It has the promise to bring the best of both worlds.
Online, you get unlimited inventory and the best prices.
Offline, you get to touch and feel the product
and you get to take it home immediately with you.
And some merchants are already starting to take advantage of this.
For example, Domino's in the UK,
already gets a third of their delivery orders online.
And Tesco has the fifth top most downloaded app on iTunes.
It allows you to scan grocery items in the store
and put it on an online grocery cart for immediate one-click checkout.
So, consumers obviously have demand in this space.
Some people are taking it a little bit too far.
For example, this hotel in Dubai is made completely out of QR codes.
Bridging online and offline.
But for commerce to really change,
for commerce to take a big leap forward,
there are some challenges,
some big challenges we have to solve.
And these are things that I wanted to share with you
because we've got it together to move this space forward.
First, payments need to go digital.
All of my cards,
whether they're credit cards, debit cards, gift cards, private label cards,
they all need to move into the cloud.
They all need to move digital
and they need to be available to me at any store I wanna use them.
They need to be able to be used with my choice,
not what the merchant wants to accept.
And the things like currency and geography shouldn't stand in the way,
whether remote or local.
Inventory needs to live in the cloud.
Today, a merchant used to sell in a physical store.
And then the web came along
and they created a copy of their inventory to put it on the web.
Now mobile's coming along and that model won't scale anymore.
Inventory needs to move and live in the cloud.
It needs to be available to all channels.
And consumers should be able to find that item in real time at any store,
online or offline, to be able to pick it up and buy it right there.
And identity needs to be interoperable.
This whole idea of me having to go to store by store by store and sign up,
having to sign up for gift cards and credit cards,
all of this signing up identity in this day and age
where you have so many profiles all over the place
needs to work seamlessly across sites,
across merchants, across use cases.
Interoperable identity.
And so, what does that future of commerce look like?
Well, in an odd way,
I think it begins to look like it did 50 years ago.
And in this case, for me,
it's like when I go back home to my country of Egypt
and I go shop at the local store.
It actually still feels this way.
I go to Ali's Store.
When I was there last time,
I needed to go get some milk.
I walked in.
Ali greets me by name.
He says, "Hi, Osama.
How are you?"
And he makes me feel good.
He tells me,
"Hey, the new cheese just got shipped in.
It's really fresh.
You gotta try it."
He also tells me,
"Your dad's favorite bread is on sale.
You buy one get one free."
And I go to checkout.
I ask him for, "Hey, the Spanish olives, do you have them?"
He says, "No, I don't have them, but the store down the street has them."
Or, "I'm getting a shipment on Thursday.
I'll deliver it to your house."
I go to pull out my wallet and I forgot it.
He says, "Don't worry about it.
I'll put it on the tab."
You know what?
Why would I buy anywhere else?
This is the kind of experience we you used to get.
And as the world scales, as big-box scaled,
we started losing that type of experience.
And what technology can do,
solving these major challenges that I pointed out,
can actually bring back that world.
A world where using these technologies coming together.
I should be able to walk in that store and the store greets me.
I've decided to share that I, --.
I've decided to share my identity.
I've decided to share my location.
I walk into the store and it greets me by name.
It tells me that that cheese is fresh and it's available.
The fridge maybe already looked at what I'm out of,
created a shopping list for me.
Or, it also includes ingredients from recipes I like on Epicurious.
And that shopping list turns into an in-store map
where I navigate my way in the most efficient way possible.
I get to an item that's out.
I can scan the barcode
and it tells me where else I can buy it or have it delivered to my house.
And when I go to checkout,
I walk with that shopping cart directly out of the store
and my phone pays for the items.
And NFC stickers on all the items
can actually tell whether the item was paid for or not
and the sensor lets it go through.
So, technology is actually there.
It's the interoperability.
It's overcoming these challenges
and us creating these solutions for the world to bring it to the fold.
And so, this is not about any one app.
It's not about any one site.
It's not about any one company.
It's about us working together to overcome these challenges
to pull these technologies together and bring commerce,
not just e-commerce,
or m-commerce,
but bring commerce to the fold.
And we have that opportunity.
Together, that's what I hope we all do.
Thank you very much.
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