Out of Line: Can Pre-Ordering Work in Banking?

Wanting to stand in line is akin to wanting to get stabbed. In the eye.

That’s why it makes perfect sense that the next wave of functionality from mobile payments providers is centering on pre-ordering services and products –  and the developing innovation is even getting a thumbs up from financial institutions.

Today, Reuters reported that JPMorgan Chase & Co. will start testing a mobile payments service this spring from startup GoPago Inc, a company in which the bank has also invested an undisclosed amount. Because of the relationship, Chase’s customers will be able to pre-order local goods and services so that at the point of sale, they can show their merchant receipts on a mobile phone screen to collect their goods.

“Chase is committed to giving consumers and businesses a great shopping experience, leveraging the latest advances in mobile payment technologies,” said Jack Stephenson, director of mobile, e-commerce and payments at Chase, in a statement.

When was the last time a banker overtly talked about improving the “shopping experience”?

Chase is not alone, however. The notion of pre-ordering through mobile payments has been gaining some momentum in financial services in recent months, especially in the restaurant scene. Tabbedout and ProPay, not to mention chain-specific apps like Chipotle’s, are just a few of the companies that have recently attacked the pre-order restaurant market. Emerging digital wallets, like PayPal’s Wallet, try to answer the get-me-the-f***-out-of-the-line consumer cry for help. Last fall, when I toured PayPal’s showcase in New York, one of the demo-ers showed me how its technology lets a consumer pre-order a coffee to avoid a line, and I walked away from the imagined scenario feeling a little freer.

But this notion of pre-order services can extend well beyond shopping and actually apply to consumers who branch bank, too. In Bank Innovation’s recent contest, which asked members to suggest innovations within banking to win a registration to Bank Innovation 2012, a few members suggested ways to use pre-ordering within bank branching – and we applaud the thinking.

Tyler Williams, marketing director at Jeff Davis Bank, wrote:

A pre-order service would be a great addition to a mobile app. Customers could order ahead if they need cash, loan docs, to set up a meeting, etc. This would be integrated into employees’ calendars to show available times for appointments.

George, a founder of iMazuma, added a similar idea in our forum:

I’d like to see an appointment website for branch services. It would be very similar to making an appointment at an Apple Store online. You’d pick your branch, type of service you wanted (insurance, investments, checking, online banking, etc.) and time slot. Once your selection was made, an alert would be sent to the appropriate person at the branch and a confirmation to the customer. Also, commercial customers could set an appointment for someone to visit them at their business.

I’d like to order that.