Don Kingsborough could have called it quits. The man who founded Worlds of Wonder Toys, famous for Teddy Ruxpin and helping lead the introduction of Nintendo in the U.S., and the former president of of consumer products at Atari, was just winding down his time last year at Blackhawk Network, a pre-paid card company that he had sold to supermarket Safeway. With his options expiring, he decided to sell and contemplated retirement.

But then PayPal came calling, and Kingsborough couldn’t resist the opportunity to make one more big stab at shaking up the retail world. Kingsborough joined PayPal in March 2011 as VP for retail and prepaid products, heading up PayPal’s efforts to launch an in-store payment system.

In his first extensive interview since joining PayPal, Kingsborough said he wasn’t just interested in extending his career; he saw a huge chance to fundamentally change the way people shopped in retail stores as digitalization moved payments beyond cash and credit. And he believes that PayPal is uniquely positioned to bring that vision to market.

“I thought someone would be able to change the way people shop, but I didn’t think it would be a startup because this will happen quickly and you also need brands that people trust. And PayPal is one of them. It takes the combination of a trusted payment company and the cooperation with great brands that people trust to change how people shop. I thought I would be able to convince all the major retailers all around the world because I have had  relationships with them for 30 years,” Kingsborough said.

Even with the departure of PayPal’s president Scott Thompson, who is now Yahoo’s new CEO, PayPal hasn’t missed a beat and is executing on its vision, Kingsborough said.

Solving consumer and merchants needs

Kingsborough came in and honed the in-store payment initiative, which was underway well before Kingborough arrived. He focused on appealing first to consumers and making it simple for them to grasp, before ensuring the merchants could be able to understand the value of the system. Then he went about getting the cooperation of merchants, criss-crossing the country to call upon retailers and payment infrastructure companies to get them on board. Along the way, he helped PayPal pick up necessary components like location-based service WHERE, whose CEO Walt Doyle was personally persuaded to sell by Kingsborough. The plan is now to start rolling out the payment system in the second quarter though the first U.S. trials have already begun with Home Depot.

Kingsborough said he was drawn to PayPal’s approach to payments because it was aimed at solving deep consumer and merchant needs. He said competitors who focus on near field communication and other alternative payment systems are too often preoccupied with the capabilities of their technology, but they’re not addressing the pressing needs of users.

“Competitors think they’ll solve how easy it is to pay at retail, but that’s not a consumer problem. Their problem is how do they become masters of shopping and use their money smartly and organize their efforts to shop online, in-store and on mobile,” said Kingsborough. “We have a holistic approach. We ask the consumers [what they] want to do. They want to save money, save time and feel important in stores.”

NFC: a feature, not a solution

That’s partly why he thinks NFC in particular isn’t ready for prime time. He said it’s going to take a while for it to proliferate in stores and on handsets. But more fundamentally, it doesn’t make consumer’s lives better.

“Do I think NFC will work someday? Maybe. But to me, NFC is a feature, not a solution that solves problems. If your strategy is NFC today, you need a new strategy,” Kingsborough.

Google and Isis, the carrier consortium including Verizon, AT&T and T-Mobile, are pushing hard on NFC and are angling to become the go-to mobile wallet for users, who will be able to pay at point-of-sale terminals with a tap of their phone. Many of the pieces for NFC fell into place for the technology in 2011, though there are still many hurdles ahead toward a broad rollout (subscription required) and mass consumer adoption.

PayPal’s approach bypasses many of the hardware constraints of NFC and pushes a two-pronged approach to in-store payments. Users can either use a PayPal Access card connected to their account, or more intriguingly, enter their phone number and PIN at a POS terminal and access their PayPal account. PayPal takes a user’s identification and turns it into a token, which is authenticated in the cloud, so no actual credit card numbers or financial data travels back and forth.

What it takes to win

Kingsborough said the companies that win will be comprehensive and ubiquitous, allowing consumers to conduct transactions wherever they want to. By going with a software-based approach, PayPal can address about 8.2 million of the 10 million point of sale terminals with its payment system, without forcing retailers to buy new hardware. Then it’s up to PayPal to convince retailers to jump on board. It’s doing some critical work by signing deals with payment infrastructure companies like AJB Software Designs, which helps connect the point of sale terminals at many tier-one retailers to payment processors and financial institutions. Merchants that use AJB will have an easy path in enabling PayPal payments in store. PayPal is talking to other point of sale companies such as Verifone.

Merchants won’t just be getting a potentially cheaper alternative to credit cards. In PayPal’s vision, they’ll also be getting a way to push out offers to consumers, both in-store and nearby. Kingsborough said PayPal is working through its mobile app to address a variety of needs of merchants, from helping them manage online, mobile and in-store sales to improving loyalty and offering targeted discounts to users. Those additional tools will be rolled out over time in the next year or two. Google has outlined early plans to also provide coupons and offers to consumers using Google Offers in conjunction with Google Wallet.

Providing value

But the other important winning determinant will be providing valuable, relevant and easy-to-use services to consumers, becoming the one mobile wallet they turn to, said Kingsborough. He said using tools like WHERE’s targeting and location technology will allow merchants to not just push out deals but deliver very context-aware content. For example, he said a clothes retailers might be able to message a nearby customer, letting them know they’ll earn in their PayPal account that day if they buy jeans that they’ve purchased in the past. And, with the right permissions, the merchant may also be able to know the customer is with two friends and offer a group discount.

“It’s not just the capabilities of location-based services or understanding what a person just did; but it’s about being highly relevant to the person using the services,” Kingsborough said.

He said in the battle to become the preferred digital wallet, PayPal will be the simplest for people to use, allowing people to link their credit, debit and loyalty cards, even potentially their drivers license. Just as people stick primarily to one browser, he said consumers will want to rely on primarily one wallet and he believes that PayPal will be that provider.

“Ours to lose”

Kingsborough said it’s the whole offering that makes PayPal’s approach a winner. It’s a trusted name with more than 100 million users worldwide and it’s focused on providing value to both consumers and merchants with an easy path to ubiquity.

“This is ours to lose,” he said. “I’m very confident about that. Otherwise, I’d be golfing right now in Hawaii.”

Related research and analysis from GigaOM Pro:
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These are supposed to be tough times for the defense budget. But the U.S. Special Operations Command hasn’t gotten the memo. It recently proposed spending nearly 0,000 per hour on a retreat to teach its elite commandos how to be better dads.

Wired Top Stories

Since launching in May, Samsung’s Galaxy S II has been the company’s fastest selling smartphone, even without availability in the smartphone-crazed U.S. That situation is changing as Samsung announced a version for Sprint, AT&T and T-Mobile earlier this month. Sprint’s edition is already for sale while T-Mobile hasn’t yet announced availability and AT&T is launching the Galaxy S II on Oct. 2.

I nabbed an early review unit of AT&T’s Galaxy S II yesterday afternoon and immediately gave the handset a once over with a photo gallery. My general first impression: If you like Google Android and have or want an AT&T account, this smartphone should be at the top of your list.

The 4.3-inch display is so vibrant that I tweeted this last night: “Super AMOLED Plus gives new life to old “Cheers” episodes on Netflix.” Samsung’s dual-core processor makes this phone one of the fastest Android devices I’ve ever used. And even in my rural area where mobile broadband coverage is sketchy, I saw HSPA+ download speeds nearing 5 Mbps. I’ll have a full review forthcoming, but so far, I’m very impressed.

Also forthcoming is Amazon’s tablet entry, which will be based on Google Android. Amazon is expected to launch the device in the fourth quarter and it’s likely that next week will see the tablet introduced, due to a planned press event for an unknown product. Amazon has reportedly ordered monthly production of 800,000 such tablets; if true, the company should have plenty on hand after launch, even if the Kindle tablet proves extremely popular.

Based on an early hands-on look at a prototype, it’s pretty much a given that those familiar with Android won’t see a trace of it on Amazon’s tablet. The slate will use a heavily customized user interface that may limit what the device can, and can’t, do as compared to other tablets on the market. Surely it will support Amazon media offerings such as Kindle books, Amazon’s MP3 store, and likely Amazon’s Unbox video service. One open question I have is if Amazon’s AppStore will be supported for third-party Android software; my suspicion is yes, either at launch or through a future software update.

One app that received an update this week was Hulu Plus. The video subscription client was previously supported on just a handful of Android smartphones, but the list of compatible devices was updated this week. The HTC Flyer tablet in addition to the LG’s GX2 and Revolution, plus Motorola’s Bionic, Droid X2 and Droid 3 have all been added to the support list. The software is free but requires a monthly service fee of .99 to watch television programming on your Android smartphone or tablet.

Related research and analysis from GigaOM Pro:
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Ever since Google started to roll out its Google+ project on Tuesday, many of its users have been particularly excited about its group video chat service Hangouts. I agree, but not just because it’s fun and easy to use. The real kicker is the technology that powers the service. Even in its infancy, Hangouts is an interesting cloud service. But in the not-so-distant future, it could evolve into a standards-based video conferencing solution that runs natively in many browsers and on a whole range of devices.

Google has been quiet about its plans for Hangouts, and hasn’t revealed all that much about some of the components powering the service either. However, there have been some key developments in recent months that indicate what makes Hangouts work and where things are going:

The cloud

Making video chat work at scale can require a lot of resources, which is why there has been a movement towards peer-to-peer (P2P) solutions to offload video and signaling traffic between the clients involved. Skype makes use of P2P for that very reason, as does Chatroulette. However, P2P can introduce latency, which can be especially bothersome if you chat with 10 people at a time. That’s why Google went down a different route for Hangout.

“To support Hangouts, we built an all-new standards-based cloud video conferencing platform,” explained Google Real-time Communications Tech Lead Justin Uberti in a blog post on Tuesday. He added that Hangouts uses a client-server model which “leverages the power of Google’s infrastructure.”

Browser integration

Hangouts currently requires you to download the same plugin that also powers video chat within Google Talk. However, Google is working on making both Hangouts and Google Talk itself work in the browser, without the need for any plugins. This will be done in part through a new framework for realtime communications (read: text, voice and video chat) dubbed WebRTC that the company open sourced in May. WebRTC is supported by Mozilla and Opera, and Google started to integrate the framework into its Chrome browser earlier this month. “Work has started to move Google Talk completely to WebRTC,” it says on the project’s web site.

At that point, users won’t need a plugin anymore to use Google Talk, and the same should eventually be true for Hangouts. Here’s what a Google spokesperson told me via email about the connection bewteen the Google+ video chat service and the framework: “A lot of the technology in Hangouts feeds into the WebRTC, and we contribute a lot of feedback to help shape the WebRTC interface. At this point though, our plug-in and the protocol are different efforts.” He refused to reveal any future plans, but trust me, the writing is on the wall…

Open codecs

Google Talk and Hangouts currently use technology Google is licensing from Vidyo to facilitate video chats. Video is transmitted in H.264/SVC, with H.264/AVC and H.263 being used as fallback solutions. However, there are strong sings that Google will eventually switch to open codecs.

Google open sourced its VP8 video codec last year as part of the new WebM video format, and real-time communications were one of the big issues that VP8’s programmers wanted to improve with the codec from the onset. In fact, VP8 is already being used by Skype for its group video calling feature, and Google’s WebM project manager John Luther wrote in February that VP8 is an “exceptionally good codec for real-time applications like videoconferencing.”

So when will Hangouts be switching from H.264 to WebM? Google+ Project Lead Bradley Horowitz indicated on This Week in Google on Wednesday that his team is already testing alternatives to the current codec. A Google spokesperson didn’t want to discuss any future plans for Hangouts when I asked about the codec issue, but here’s a clue: WebRTC is based on the VP8 codec, which means that H.264 could get displaced as the default codec for Hangouts as soon as the video chat service rolls out its native browser integration.

Device integration

This is where things get really interesting: Hangout’s cloud-based architecture and its upcoming browser integration will eventually make it possible to deliver an optimized group video chat experience to a whole range of devices. Desktop users will get to view full HD video, users on mobile devices will receive optimized streams to deal with bandwidth issues. And Google TV users could see Hangouts appear on their TV sets sooner than they think, thanks to the fact that Google TV in fact comes with a full-blown Chrome browser.

A few companies have started to bring multi-person video chat to mobile devices, but cross-device video conferencing is still in its infancy, and Google could have a good chance here to capture the market early on. Of course, the company didn’t want to comment on the specifics of bringing Hangouts to mobile devices, but what Google’s spokesperson told me wasn’t exactly a denial either:

“Again, we can’t comment on future product plans. However, Google Plus heavily invests in mobile products as we believe you should be able to share and communicate, whether you are on the web, tablet, or phone.”

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It’s been four years since CBS paid 0 million to buy London-based Last.fm, the much-vaunted online radio service. Since then, so much has changed — the founders have left, other big social music sites like Myspace are slowly dying off, and a new breed of young online music services like Rdio and Spotify have arisen.

And yet at the same time, so little has changed. On the surface, Last.fm today doesn’t look drastically different from the product CBS bought. The site has continued to grow slowly and has a fervent user base — but it is fair to say that it hasn’t set the world on fire.

That’s precisely what Matthew Hawn wants to change. At the turn of the year, the former record label executive — a longtime user, former journalist and music junkie — was brought in after a decade working with Universal Music and Sony as head of product.

Now he’s a few months into his role, he has been doing the rounds and explaining his vision for the future of Last.fm. So what is it?

I caught up with him earlier this week to find out — and heard a pretty straightforward message: There’s nothing wrong with our service, but there’s a lot we can do with it.

The way Hawn outlined it, there are several things that Last.fm wants to do.

Be easier

Right now, the site is pretty confusing for new users. There are things that everybody understands (charts, for example) but the idea of the service — that it learns what you like and plays you more of it — isn’t particularly well explained. Great web apps feel like magic, and Last.fm needs to recapture some of that.

Better social

Hawn admits that Last.fm has, in the past, been confused about its identity. A few years ago, before Facebook really cemented itself as the benchmark for social interaction online, the site introduced a number of features such as journals and groups. Now, he says, those elements look pretty crusty, and it’s time to focus. Some of these elements are likely to be shuttered over time in favor of smarter, leaner social links.

“We’re not a social network,” he says. “We’re a service with great social features.” His watchwords revolve around pushing the idea of the “interest graph”: his argument is that the things you like are not the same as the people you know (your social graph). So that, in turn, means Facebook can’t replicate the same taste-making and discovery around music of a site like Last.fm. There’s a gap that can still be exploited. But although he’s prepared to work with Facebook, he’s also cautious.

“Facebook is the Walmart of the Web,” suggests Hawn. Its size gives you distribution that you require; but you have to watch out that you don’t get “chewed up” along the way.

Focus on music

When CBS first purchased the site, it became part of the company’s broad interactive division. The hint seemed to be that the “scrobbling” feature — the mechanism that tracks what you listen to across many different devices — could be converted across other media, such as TV. That dream, which never really felt like the right move for Last.fm’s music-mad team, seems to have been pushed aside. Now CBS owns online video search service Clicker and has moved Last into CBS Radio.

It’s a better fit, but that doesn’t mean it’s a service aimed purely at music obsessives.

Broader

“We cannot just be for music geeks,” says Hawn. So the site is going to combine ease-of-use with improved recommendations and data crunching to make it more than just a haven for the hardcore. There will be more emphasis on live music, more recommendations for festivals and gigs, more ways to encourage people to use the service easily. Although he admits that Last.fm already concentrates on too many things, a broader approach is one that he hopes can help it grow.

Sometimes that can come from surprising directions: the Xbox implementation is now, he says, the biggest source of streaming radio usage for the site. That’s opening up new directions, and new audiences.

Focus on data

Ultimately, Hawn suggests, he’s torn between whether Last.fm is a music service that does data or a data service that does music. Whatever side of the fence he eventually falls, it’s clear that data is a hugely important part of what Last.fm has to work with. It is now able to record listening data from more than 600 different devices and software clients — something that has built up a vast database of listening habits, some 50 billion scrobbles.

The answer, he suggests, may be to see the site not as a competitor to Spotify, Rdio, MOG, Pandora or others — but as the connective tissue that brings them together. It can collect data no matter what service you use, it can feed that data back to make your listening more enjoyable. Tim O’Reilly has long argued that Web 2.0’s real power was data — that “Data is the Intel Inside”, and perhaps now we’re at a point where that is mainstream enough for people to reap the benefits.

These are still early days in the company’s attempt to find a second act. Is this the right way to go?

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Today is the day in BlackBerry land. The wait for a dual-core device with an up-to-date operating system and that stylized BB logo is now over, and a vast array of stores in the US and Canada are now ready to sell you your PlayBook. Whether you’ll actually want to buy one is less clear-cut, however, as basic productivity apps like native email and calendar aren’t yet available, Android app compatibility hasn’t yet been rolled out, and the PlayBook has an unfavorable dependency on having a BlackBerry smartphone nearby in order to be the best tablet it can be. Still, if you believe in RIM’s ability to overcome those early software hurdles, the PlayBook’s ready for ownership in exchange for 0 for the 16GB model, 0 for the 32GB version, or 0 for the 64GB-equipped top option (prices are the same in both US and Canadian dollars).

BlackBerry PlayBook now on sale in the US and Canada, starting at 0 with 16GB of storage originally appeared on Engadget on Tue, 19 Apr 2011 02:34:00 EDT. Please see our terms for use of feeds.

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