Software Hamilton

As a professional speaker, I enjoy networking with conference attendees after I deliver a presentation. This often takes place in an exhibit area or trade show where sponsors aim to promote (and sell) their products and services. I will often autograph copies of my book for anyone interested in having a chat with me.

Recently, I have noticed that these “back of the room” book sales require customers to pay in cash. But in many cases, some people want to pay by credit card. Unfortunately, credit card processing is just too technically difficult to administer in such a short-term (small volume) business setting. Clearly, I’m not the only one to have experienced this.

It was summer 2011 and my former MBA student Lorne Lantz was visiting a friend selling jewellery at an artist show. The friend was upset that she had just lost a $300 sale because she couldn’t accept the customer’s (preferred) payment by credit card.

As Lorne walked around the show he noticed that other vendors were also selling expensive items and had no way to accept credit cards either.

Paying by cash seemed to be the only option. After more research Lorne learned that the ability to accept credit card payments through a point of sale machine was out of reach for many small merchants.

Most often, to get a credit card processing machine required at least a $2,000 commitment with the bank and several weeks to get approved.

Fast forward to a few months ago in New York City, the financial capital of the world.

Lorne was about to pitch his hot new mobile payments application, Snappay, to a room full of venture capitalists and banking executives from around the world. To understand why he was chosen out of hundreds of other startups you have to know the tough road Lorne travelled to get there (you can actually see a video of Lorne’s pitch here at www.LorneCanPitch.com).

With 18 years of programming experience, a computer engineering degree and an MBA from the DeGroote School of Business, Lorne felt confident he could build a mobile app that would allow anyone to accept credit card payments … in a Snap.

With guidance from his advisers from Innovation Factory, Lorne went out into the field for weeks and lived the problem with merchants to really understand what’s important to them when accepting money.

A key discovery was that merchants wanted to take their customer’s money as quickly as possible and typing 20 numbers from a credit card into a smart phone was tedious.

So Lorne created a credit card scanning technology that would automatically scan in the credit card number for the merchant.

All a person had to do was hold the credit card in front of the iPhone or iPad. When he put this feature in the hands of merchants, they absolutely loved it.

Trust is a big issue in the mobile payments world, and Snappay found two ways to earn the trust of merchants. First, they ensured that all the money was handled by PayPal, which according to research firm GfK is the most trusted name in the world for mobile payments.

Second, they adjusted their pricing structure so the first month was free. This allowed merchants to try using Snappay with no risk.

Since Lorne’s trip to New York, he’s focused his efforts on constantly improving the product.

With each technological innovation, Snappay becomes an even more attractive solution for mobile merchants around the world. Go ahead and try it yourself by registering at www.snap-pay.com and you can start accepting transactions in minutes.

As Snappay continues to make inroads in the world of mobile credit card processing, I’m sure it (and Lorne) will become another Hamilton success story.

I received a note from Chris K. recently and he asked me for a list of recommended business books. I thought about it for awhile because business books have dozens and dozens of subcategories including finance, self-help, biographies, sales and marketing among others. Here is a list of three of my favourites.

If you only have 45 minutes to spare (and that includes most of us) give Who Moved My Cheese? a try. Spencer Johnson has one very simple but important message: You better embrace change because it’s inevitable. The story features two mice and two little people and they all live in a maze. The main thrust of the message is that when the cheese finally runs out, the proactive seekers of new opportunities will continue to thrive while the unprepared and lethargic will remain cheeseless. The book is an easy read with a compelling message. Most importantly, it’s easy to share with colleagues and primes the pump for organizational change. You won’t find any innovative frameworks or complex formulas in this text so don’t expect advanced conceptualizations. It’s a simple message in a simple format. That’s it. But it also happens to be the bestselling business book of all time with 20 million copies sold.

One of the most influential books of my management research career is The Fifth Discipline by Peter Senge. Although the book was written 22 years ago, it still resonates with the complex and fast-paced environment we find ourselves in today. Senge presents five essential disciplines of a learning organization. These organizations are quick to learn and therefore fast to adapt. By improving a firm’s processes and learning faster than the competition, Senge argues that organizations will maintain their competitive edge. The five disciplines he describes in the book are: developing individual focus, using mental models, building a shared vision, communicating as a team and systems thinking, which integrates them all. The field of organizational learning is quite rich and spans several decades. Although the book’s popularity was at its peak in the early 1990s, it has resurfaced as a useful framework in a world of fast-paced technological obsolescence.

My third recommendation is from an old friend of mine whom I originally met more than 20 years ago when I worked in the banking industry. David Chilton wrote one of Canada’s most popular books of all time, The Wealthy Barber, back in 1989. The book is about Roy (the barber) who is visited by three people. During the course of their visits, Roy provides financial planning expertise in simple terms. If you’ve never read a financial book in your life, this one is a good place to start. Chilton provides easy to understand commentary on common topics including the 10 per cent solution, wills, life insurance, RSPs, and much more. Fast forward to 2012 and Chilton returns with a so-called wiser update to his bestseller, The Wealthy Barber Returns. The new book is witty and fun. Chilton uses a conversational style to discuss topics such as reverse mortgages, TFSAs and inheritance. The book has a different style from the first one and it is not a sequel, so you can read one or read both.

Another tidbit of related news is that Chilton was recently selected as the newest judge on the CBC show the Dragon’s Den. I look forward to his off-the-cuff commentary. His financial expertise will create another roadblock for any entrepreneurs who hope to hose the Dragons with poorly prepared financials.