Passbook Rivalry: Lemon and Belly

The days are numbered. Passbook will soon be released to the public, and as a native app for iOS6, many are wondering whether Passbook will be the go to mobile commerce solution.  Apple is introducing something entirely new with Passbook, primarily being a digitalized wallet that stores tickets, loyalty cards, coupons and other passes.  It doesn't store credit card information, so it's not a fully fledged mobile payment system yet.

Already, there are many apps in the market that appear very similar to Passbook.  The apps worth mentioning, or the ones that most resemble Passbook are Lemon and Belly.  Both host a multitude of features that are very Passbook-esche.

The Lemon App

The Lemon app appears to contains more components compared to that of Passbook.  On top of Lemon's storage capabilities of membership cards, tickets, and loyalty cards, it even allows users to store copies of credit and debit cards, ID cards, and various forms of receipts.  Individuals only need to take a picture of their cards or whatever item is in their wallet, and immediately the images are converted into digitalized copies inside Lemon.  Each copy is then stacked neatly in that app, with a very similar user interface as Passbook's.

When it comes to variation, Lemon has the advantage as it can store more than what Passbook can.  It basically stores everything in your wallet, including credit and debit cards.  The cool function of storing receipts allows users to engage Lemon as a financial tool to track spending behavior and managing finances.  From this, reports or statements can be generated and exported into other 3rd party applications, like Excel or Numbers.

However, the largest downside to Lemon is that all the cards within the app cannot actually be used for transactions.  The app is basically a backup wallet, providing only copies of cards, but not the actual card itself.  It stores everything digitally so that users who forget to bring their wallet can have something to refer to, but the cards canot actually be used to pay for items.

The Belly App

If we look at the strategies used by Google Offers and Groupon, it's highly dependent on large volumes of short term, discounted prices.  This business model is merely for a quick business boost, and certainly not sustainable in the long run.  This is where Belly comes in.

The people behind the Belly app have one goal in mind: revolutionizing customer loyalty platforms.  It hosts functions that are more similar to Passbook's as it not only focuses on the retailer but also the user.  The app enables users to redeem loyalty points or rewards every time they visit an outlet or purchase an item.  Belly is the app that allows for the transition from paper to digital means, through substituting away from the traditional stamp cards.  In effect, membership plans for Belly even include supplying iPads at retailers to help make this customer loyalty scheme a success.

And Belly is not only for the benefit of smartphone users.  Merchants can provide paper versions of cards that contain QR codes on them so that they can be scanned at the point-of-sale.  This allows people without smartphones or devices to benefit from customer loyalty schemes too.  Belly caters to both smartphone and non-smartphone users in this regard, so as to not leave anyone out of this program.

The great thing about Belly is that customers only need to have their cards or digital cards scanned at the outlet, and are automatically given points or rewards to be accumulated.  This incentive is what could drive more customers into various stores.  And the best feature is that only one universal loyalty card is needed, and there doesn't have to be a different card for different stores.  Outlets signing up with Belly will essentially be adding their brand to the Belly app card.

The biggest downside for Belly is that outlets or merchants must be on board with what they provide.  They need to sign up for the membership plan, get the relevant equipment, and transition from old loyalty methods to new ones.  In order for Belly to be successful, merchants must see a need for this.

The Showdown

The Lemon and Belly apps are already widely being used throughout the United States.  Both have features that mirror Passbook's, with Lemon contributing as a backup digitalized wallet, and Belly focusing more on customer loyalty.  At this point in time, it's difficult to see just whether Passbook could entirely dominate the mobile commerce sector, but there is no doubt that it could eventually transform mobile payments indefinitely.

To learn more about Passbook features and even download sample Passbook passes, I encourage all of you to check out this website.  PassK.it will have a PassKit Pass Creator that allows everyone to create and design Passbook passes.  Check it out!