Hackers stole customer credit cards in Newegg data breach

Hackers stole customer credit cards in Newegg data breach
Newegg is clearing up its website after a month-long data breach.
Hackers injected 15 lines of card skimming code on the online retailer’s payments page which remained for more than a month between August 14 and September 18, Yonathan Klijnsma, a threat researcher at RiskIQ, told TechCrunch. The code siphoned off credit card data from unsuspecting customers to a server controlled by the hackers with a similar domain name — likely to avoid detection. The server even used an HTTPS certificate to blend in.
The code also worked for both desktop and mobile customers — though it’s unclear if mobile customers are affected.
The online electronics retailer removed the code on Tuesday after it was contacted by incident response firm Volexity, which first discovered the card skimming malware and reported its findings.
Newegg is one of the largest retailers in the US, making $2.65 billion in revenue in 2016. The company touts more than 45 million monthly unique visitors, but it’s not known precisely how many customers completed transactions during the period.
In an email to customers, Newegg chief executive Danny Lee said the company has “not yet determined which customer accounts may have been affected.” When reached, a Newegg spokesperson did not immediately comment.
Klijnsma called the incident “another well-disguised attack” that looked near-identical to the recent British Airways credit card breach, and earlier, the Ticketmaster breach. Like that breach, RiskIQ attributed the Newegg credit card theft to the Magecart group, a collective of hackers that carry out targeted attacks against vulnerable websites.
The code used in both skimming attacks was near identical, according to the research.
“The breach of Newegg shows the true extent of Magecart operators’ reach,” said Klijnsma. “These attacks are not confined to certain geolocations or specific industries—any organization that processes payments online is a target.”
Like previous card skimming campaigns, he said that the hackers “integrated with the victim’s payment system and blended with the infrastructure and stayed there as long as possible.”
Anyone who entered their credit card data during the period should immediately contact their banks.

British Airways breach caused by credit card skimming malware, researchers say

Source: Gadgets – techcrunch

Instagram Shopping gets personalized Explore channel, Stories tags

Instagram Shopping gets personalized Explore channel, Stories tags

Instagram is embracing its true identity as a mail-order catalog. The question will be how much power merchants will give Instagram after seeing what its parent Facebook did to news outlets that relied on it. In a move that could pit it against Pinterest and Wish, Instagram is launching Shopping features across its app to let people discover and consider possible purchases before clicking through to check out on the merchant’s website.

Today, Instagram Explore is getting a personalized Shopping channel of items it thinks you’ll want most. And it’s expanding its Shopping tags for Instagram Stories to all viewers worldwide after a limited test in June, and it’s allowing brands in 46 countries to add the shopping bag icon to Stories that users can click through to buy what they saw.

Instagram clearly wants to graduate from where people get ideas for things to purchase to being a measurable gateway to their spending. 90 million people already tap its Shopping tags each month, it announced today. The new features could soak up more user attention and lead them to see more ads. But perhaps more importantly, demonstrating that Instagram can boost retail business’ sales for free through Stories and Explore could whet their appetite to buy Instagram ads to amplify their reach and juice the conversion channel. With 25 million businesses on Instagram but only 2 million advertisers, the app has room to massively increase its revenue.

For now Instagram is maintaining its “no comment” regarding whether it’s working on a standalone Instagram Shopping app as per a report from The Verge last month.  Instagram first launched its Shopping tags for feeds in 2016. It still points users out to merchant sites for the final payment step, though, in part because retailers want to control their relationships with customers. But long-term, allowing businesses to opt in to offering in-Instagram checkout could shorten the funnel and get more users actually buying.

Shopping joins the For You, Art, Beauty, Sports, Fashion and other topic channels that launched in Explore in June. The Explore algorithm will show you shopping-tagged posts from businesses you follow and ones you might like based on who you follow and what shopping content engages you. This marks the first time you can view a dedicated shopping space inside of Instagram, and it could become a bottomless well of browsing for those in need of some retail therapy.

With Shopping Stickers, brands can choose to add one per story and customize the color to match their photo or video. A tap opens the product details page, and another sends them to the merchant’s site. Businesses will be able to see the number of taps on their Shopping sticker, and how many people tapped through to their website. Partnerships with Shopify (500,000+ merchants) and BigCommerce (60,000+ merchants) will make it easy for retailers of all sizes to use Instagram’s Shopping Stickers. 

What about bringing Shopping to IGTV? A company spokesperson tells me, “IGTV and live video present interesting opportunities for brands to connect more closely with their customers, but we have no plans to bring shopping tools to those surfaces right now.”

For now, the new shopping features feel like a gift to merchants hoping to boost sales. But so did the surge of referral traffic Facebook sent to news publishers a few years ago. Those outlets soon grew dependent on Facebook, changed their news room staffing and content strategies to chase this traffic, and now find themselves in dire straights after Facebook cut off the traffic fire hose as it refocuses on friends and family content.

Retail merchants shouldn’t take the same bait. Instagram Shopping might be a nice bonus, but just how much it prioritizes the feature and spotlights the Explore channel are entirely under its control. Merchants should still work to develop an unmediated relationship directly with their customers, encouraging them to bookmark their sites or sign up for newsletters. Instagram’s favor could disappear with a change to its algorithm, and retailers must always be ready to stand on their own two feet.

Source: Mobile – Techcruch

Snapchat adds new styles as Spectacles V2s get used 40% more than V1

Snapchat adds new styles as Spectacles V2s get used 40% more than V1
Snapchat isn’t revealing sales numbers of version 2 of its Spectacles camera sunglasses, but at least they’re not getting left in a drawer as much as the V1s. The company tells me V2 owners are capturing 40 percent more Snaps than people with V1s.
And today, Snapchat is launching two new black-rimmed hipster styles of Spectacles V2 — a Wayfarer-esque Nico model and a glamorous big-lensed Veronica model. Both come with a slimmer semi-soft black carrying case instead of the chunky old triangular yellow one, and are polarized for the first time. They look a lot more like normal sunglasses, compared to the jokey, bubbly V1s, so they could appeal to a more mature and fashionable audience. They go on sale today for $199 in the US and Europe and will be sold in Neiman Marcus and Nordstrom later this year, while the old styles remain $149.
 
The new Spectacles styles (from left): Veronica and Nico
Spectacles V2 original style (left) and V1 (right)
Snap is also trying to get users to actually post what they capture, so it’s planning an automatically curated Highlight Story feature that will help you turn your best Specs content into great things to share. That could address the problem common amongst GoPro users of shooting a ton of cool footage but never editing it for display.
The problem is that V1 were pretty exceedingly unpopular, and those that did buy them. Snap only shipped 220,000 pairs and reportedly had hundreds of thousands more gathering dust in a warehouse. It took a $40 million write-off and its hardware “camera company” strategy was called into question. Business Insider reported that less than 50 percent of buyers kept using them after a month and a “sizeable” percentage stopped after just a week.
The new styles come with a slimmer semi-soft carry case
That means the bar was pretty low from which to score a 40 percent increase in usage, especially given the V2s take photos, work underwater, come in a slimmer charging case, and lack the V1s’ bright yellow ring around the camera lens that announces you’re wearing a mini computer on your face. Snap was smart to finally let you export in non-circular formats which are useful for sharing beyond Snapchat, and let you automatically save Snaps to your camera roll and not just its app’s Memories feature.
I’ve certainly been using my V2s much more than the V1s since they’re more discrete and versatile. And I haven’t encountered as much fear or anxiety from people worried about being filmed as privacy norms around technology continue to relax.

Why Snapchat Spectacles failed

But even with the improved hardware, new styles, and upcoming features, Spectacles V2 don’t look like they’re moving the needle for Snapchat. After shrinking in user count last quarter, Snap’s share price has fallen to just a few cents above its all-time low. Given most of its users are cash-strapped teens who aren’t going to buy Spectacles even if they’re cool, the company needs to focus on how to make its app for everyone more useful and differentiated after the invasion of Instagram’s copy-cats of its Stories and ephemeral messaging.
Whether that means securing tentpole premium video content for Discover, redesigning Stories to ditch the interstitials for better lean-back viewing, or developing augmented reality games, Snap can’t stay the course. Despite its hardware ambitions, it’s fundamentally a software company. It has to figure out what makes that software special.

Snapchat launches Spectacles V2, camera glasses you’ll actually wear

Source: Gadgets – techcrunch

Weebly brings more e-commerce features to mobile

Weebly brings more e-commerce features to mobile

Weebly is part of Square now, but it continues to update as a standalone product. This week, for example, the company announced a number of new e-commerce features for the Weebly mobile app.

Those features include the ability to ship and print labels, to respond to customer questions (via Facebook Messenger, which can be embedded on Weebly sites), to approve customer reviews, to create branded coupon codes and to edit every aspect of your store, including product listing and pricing — all from the app.

Much of this functionality already existed on desktop, so the announcement is about moving these capabilities onto smartphones. In a blog post, the company outlined a vision for the mobile phone to become “the new back office.”

Weebly CEO David Rusenko told me that as his team has been adding more features for merchants, he wants people to think of Weebly “increasingly as an e-commerce platform,” not just a simple website builder. And support for mobile was an important part of that.

“This is what our customers were requesting,” Rusenko said. “Basically, people are taking their entrepreneurial lifestyle and having the freedom to work on things wherever you are.”

And apparently mobile usage is already up significantly, with a 75 percent increase over the past year in customers using the Weebly mobile app to manage orders, as well as a 120 percent increase in mobile usage to manage product listings.

Source: Mobile – Techcruch

Autonomous retail startup Inokyo’s first store feels like stealing

Autonomous retail startup Inokyo’s first store feels like stealing

Inokyo wants to be the indie Amazon Go. It’s just launched its prototype cashierless autonomous retail store. Cameras track what you grab from shelves, and with a single QR scan of its app on your way in and out of the store, you’re charged for what you got.

Inokyo‘s first store is now open on Mountain View’s Castro Street selling an array of bougie kombuchas, snacks, protein powders and bath products. It’s sparse and a bit confusing, but offers a glimpse of what might be a commonplace shopping experience five years from now. You can get a glimpse yourself in our demo video below:

“Cashierless stores will have the same level of impact on retail as self-driving cars will have on transportation,” Inokyo co-founder Tony Francis tells me. “This is the future of retail. It’s inevitable that stores will become increasingly autonomous.”

Inokyo (rhymes with Tokyo) is now accepting signups for beta customers who want early access to its Mountain View store. The goal is to collect enough data to dictate the future product array and business model. Inokyo is deciding whether it wants to sell its technology as a service to other retail stores, run its own stores or work with brands to improve their product’s positioning based on in-store sensor data on custom behavior.

We knew that building this technology in a lab somewhere wouldn’t yield a successful product,” says Francis. “Our hypothesis here is that whoever ships first, learns in the real world and iterates the fastest on this technology will be the ones to make these stores ubiquitous.” Inokyo might never rise into a retail giant ready to compete with Amazon and Whole Foods. But its tech could even the playing field, equipping smaller businesses with the tools to keep tech giants from having a monopoly on autonomous shopping experiences.

It’s about what cashiers do instead

Amazon isn’t as ahead as we assumed,” Francis remarks. He and his co-founder Rameez Remsudeen took a trip to Seattle to see the Amazon Go store that first traded cashiers for cameras in the U.S. Still, they realized, “This experience can be magical.” The two met at Carnegie Mellon through machine learning classes before they went on to apply that knowledge at Instagram and Uber. The two decided that if they jumped into autonomous retail soon enough, they could still have a say in shaping its direction.

Next week, Inokyo will graduate from Y Combinator’s accelerator that provided its initial seed funding. In six weeks during the program, they found a retail space on Mountain View’s main drag, studied customer behaviors in traditional stores, built an initial product line and developed the technology to track what users are taking off the shelves.

Here’s how the Inokyo store works. You download its app and connect a payment method, and you get a QR code that you wave in front of a little sensor as you stroll into the shop. Overhead cameras will scan your body shape and clothing without facial recognition in order to track you as you move around the store. Meanwhile, on-shelf cameras track when products are picked up or put back. Combined, knowing who’s where and what’s grabbed lets it assign the items to your cart. You scan again on your way out, and later you get a receipt detailing the charges.

Originally, Inokyo actually didn’t make you scan on the way out, but it got the feedback that customers were scared they were actually stealing. The scan-out is more about peace of mind than engineering necessity. There is a subversive pleasure to feeling like, “well, if Inokyo didn’t catch all the stuff I chose, that’s not my problem.” And if you’re overcharged, there’s an in-app support button for getting a refund.

Inokyo co-founders (from left): Tony Francis and Rameez Remsudeen

Inokyo was accurate in what it charged me despite me doing a few switcharoos with products I nabbed. But there were only about three people in the room at the time. The real test for these kinds of systems are when a rush of customers floods in and cameras have to differentiate between multiple similar-looking people. Inokyo will likely need to be more than 99 percent accurate to be more of a help than a headache. An autonomous store that constantly over- or undercharges would be more trouble than it’s worth, and patrons would just go to the nearest classic shop.

Just because autonomous retail stores will be cashier-less doesn’t mean they’ll have no staff. To maximize cost-cutting, they could just trust that people won’t loot it. However, Inokyo plans to have someone minding the shop to make sure people scan in the first place and to answer questions about the process. But there’s also an opportunity in reassigning labor from being cashiers to concierges that can recommend the best products or find what’s the right fit for the customer. These stores will be judged by the convenience of the holistic experience, not just the tech. At the very least, a single employee might be able to handle restocking, customer support and store maintenance once freed from cashier duties.

The Amazon Go autonomous retail store in Seattle is equipped with tons of overhead cameras

While Amazon Go uses cameras in a similar way to Inokyo, it also relies on weight sensors to track items. There are plenty of other companies chasing the cashierless dream. China’s BingoBox has nearly $100 million in funding and has more than 300 stores, though they use less sophisticated RFID tags. Fellow Y Combinator startup Standard Cognition has raised $5 million to equip old-school stores with autonomous camera-tech. AiFi does the same, but touts that its cameras can detect abnormal behavior that might signal someone is a shoplifter.

The store of the future seems like more and more of a sure thing. The race’s winner will be determined by who builds the most accurate tracking software, easy-to-install hardware and pleasant overall shopping flow. If this modular technology can cut costs and lines without alienating customers, we could see our local brick-and-mortars adapt quickly. The bigger question than if or even when this future arrives is what it will mean for the millions of workers who make their living running the checkout lane.

Source: Mobile – Techcruch

Surprise, no one buys things via Alexa

Surprise, no one buys things via Alexa
Some numbers published in a report from The Information reveal that very few owners of Alexa-powered devices use them for shopping. Of about 50 million Alexa users, only about 100,000 reportedly bought something via voice interface more than once. It’s not exactly surprising, but it may still harm the narrative of conversational commerce that Amazon and others are trying to advance.
The Amazon Echo and its brethren are mostly used for the expected everyday purposes of listening to music, asking what the weather will be like tomorrow and setting timers. All of these things are obviously things that phones do as well, but there’s something to be said for having a stationary hub for the more domestic tasks.
But part of the expectation of seeding the home with these devices has been that users would also make purchases using them: “Alexa, order more Oreos,” or “Alexa, buy a pair of Bose noise-cancelling headphones.” This always seemed rather odd, as people tend to want to look at items before buying them, to check reviews, to shop around for better prices and so on. Who would just buy something by telling their Echo that they want to?

Amazon opens up in-skill purchases to all Alexa developers

Hardly anyone, it seems. That said, it would be a bit disingenuous to pretend that conversational commerce is anything other than one point in a litany of proposed uses for the likes of Alexa, running the gamut of credibility.
As a hub for increasingly common smart home devices, Alexa is a great choice and a common one. And although groceries and impulse purchases may not be something people do via voice, an Echo is a great seller of subscriptions like Spotify and Audible, not to mention future possibilities from queries like “Alexa, call me a plumber.” And of course there’s the whole behind-the-scenes industry of ads, promotions and clever use of voice data.
Why would anyone use these devices to shop? It’s like using a laptop as a hammer. Possible, but not recommended. The other stat The Information mentions is that a million people have tried buying stuff but only 100,000 continued. It may be that this side of e-commerce is merely not “mature,” that catch-all term that could mean so many things. But it may also just be that it’s not something people want to do.

Source: Gadgets – techcrunch

Facebook taps banks, but for chatbots not purchase data like Google

Facebook taps banks, but for chatbots not purchase data like Google

Backlash swelled this morning after Facebook’s aspirations in financial services were blown out of proportion by a Wall Street Journal report that neglected how the social network already works with banks. Facebook spokesperson Elisabeth Diana tells TechCrunch it’s not asking for credit card transaction data from banks and it’s not interested in building a dedicated banking feature where you could interact with your accounts. It also says its work with banks isn’t to gather data to power ad targeting, or even personalize content such as which Marketplace products you see based on what you buy elsewhere.

Instead, Facebook already lets Citibank customers in Singapore connect their accounts so they can ping their bank’s Messenger chatbot to check their balance, report fraud or get customer service’s help if they’re locked out of their account without having to wait on hold on the phone. That chatbot integration, which has no humans on the other end to limit privacy risks, was announced last year and launched this March. Facebook works with PayPal in more than 40 countries to let users get receipts via Messenger for their purchases.

Expansions of these partnerships to more financial services providers could boost usage of Messenger by increasing its convenience — and make it more of a centralized utility akin to China’s WeChat. But Facebook’s relationships with banks in the current form aren’t likely to produce a steep change in ad targeting power that warrants significant heightening of its earning expectations. The reality of today’s news is out of step with the 3.5 percent share price climb triggered by the WSJ’s report.

“A recent Wall Street Journal story implies incorrectly that we are actively asking financial services companies for financial transaction data – this is not true. Like many online companies with commerce businesses, we partner with banks and credit card companies to offer services like customer chat or account management. Account linking enables people to receive real-time updates in Facebook Messenger where people can keep track of their transaction data like account balances, receipts, and shipping updates,” Diana told TechCrunch. “The idea is that messaging with a bank can be better than waiting on hold over the phone – and it’s completely opt-in. We’re not using this information beyond enabling these types of experiences – not for advertising or anything else. A critical part of these partnerships is keeping people’s information safe and secure.”

Diana says banks and credit card companies have also approached it about potential partnerships, not just the other way around as the WSJ reports. She says any features that come from those talks would be opt-in, rather than happening behind users’ backs. The spokesperson stressed these integrations would only be built if they could be privacy safe. For example, signing up to use the Citibank Messenger chatbot requires two-factor authentication through your phone.

But renewed interest in Facebook’s dealings with banks comes at a time when many are pointing to its poor track record with privacy following the Cambridge Analytica scandal, where people were duped into volunteering the personal info of them and their friends. Facebook hasn’t had a big traditional data breach where data was outright stolen, as has befallen LinkedIn, eBay, Yahoo [part of TechCrunch’s parent company] and others. But users are rightfully reluctant to see Facebook ingest any more of their sensitive data for fear it could leak or be misused.

Facebook has recently cracked down on the use of data brokers that suck in public and purchased data sets for ad targeting. It no longer lets data brokers upload Managed Custom Audience lists of user contact info or power Partner Categories for targeting ads based on interests. It also more adamantly demands that advertisers have the consent of users whose email addresses or phone numbers they upload for Custom Audience targeting, though Facebook does little to verify that consent and advertisers could still buy data sets from brokers and upload them themselves

Facebook’s statement today shows more scruples than Google, which last year struck ad measurement data deals with data brokers that have access to 70 percent of credit and debit card transactions in the U.S. That led to a formal complaint to the FTC from the Electronic Privacy Information Center. [Correction: Google tells us the deals are for ad measurement data, not ad targeting as we originally published. It only learns the annonymous aggregate purchase value, not what the items were bought, and the data is encrypted.]

Cambridge Analytica has brought on an overdue era of scrutiny regarding privacy and how internet giants use our data. Practices that were overlooked, accepted as industry standard or seen as just the way business gets done are coming under fire. Internet users aren’t likely to escape ads, and some would rather have those they see be relevant thanks to deep targeting data. But the combination of our offline purchase behavior with our online identities seems to trigger uproar absent from sites using cookies to track our web browsing and buying.

Facebook’s probably better off backing away from anything that involves sensitive data like checking account balances until Cambridge Analytica blows over and it’s proven its newfound sense of responsibility translates into a safer social networking. But at least for now, it’s not slurping up our banking data wholesale.

Source: Mobile – Techcruch

The greedy ways Apple got to $1 trillion

The greedy ways Apple got to trillion
For being the richest company ever with $243 billion in cash, Apple sure cuts corners in the stingiest ways. The hardware giant became the first trillion-dollar company week. Yet it’s tough to reconcile Apple earning $11 billion in profit per quarter with it still screwing us over on cords and keyboards. The “it just works” philosophy has slipped through the cracks of the money-printing machine. It’s not that Apple couldn’t afford to fix the problems, it’s just ensnared in hubris such that it doesn’t see them as important.
We still turn to Apple because it makes the best core products. But the edges of the customer experience have frayed like the wires of a Lightning cable. The key to Apple’s fortune is obviously selling high margin iPhones, not these ways it nickels and dimes us. But the company has an opportunity to raise its standards after this milestone, and win back the faith that could push it to a $2 trillion market cap.
1. Frayed Charging Cables
Apple gives you that tingly feeling in the worst way. Can it not build Lightning cables and MacBook chargers a little sturdier? If you avoid losing one long enough to put in some serious use, it inevitably ends up splittling where the cord meets your iPhone or exits the laptop power supply. Whether it’s wrapping them in electrical tape or the spring of a retractable pen, people have come up with all sorts of Macgyver methods to make their Apple chargers last. It got so bad that Apple was sued into offering a MacBook charger replacement program, but that expired years ago. If these are what allow us to play with the fancy devices it invents, shouldn’t they get the same quality of industrial design?
Image via Sophia Cannon
2. Buried iTunes Subscriptions Cancellation
Want to cancel your Apple Music subscription or some other service you got roped into with a free trial? It’s SUPER easy. First, click the totally unlabeled and generic circle with a blotch in it that’s supposed to be a profile picture icon. You should see a “Manage Subscriptions” option…but you don’t. Instead, you’ll have to know to tap “View Apple ID”. Once you auth in with the same face or thumbprint that opened your phone in the first place you’ll find the option to cut them off. And as thank you for this convenience, you’ll get to pay 30 percent extra on some subscriptions if you pay through Apple. It’s clearly exploitative dark pattern design.

3. Keyboard Claptrap
The MacBook keyboard is the on-ramp to the information superhighway, yet a single grain of sand can cause a pile up. Renowned Apple pundit John Gruber called it “one of the biggest design screwups in Apple history”. The new butterfly key design Apple rolled out in 2016 can get jammed by dust, requiring a lengthy disassembly process often requiring a professional to fix. Suddenly your work grinds to a halt. Apple wouldn’t always cover this repair, even under warranty. It took a lawsuit and tons of public backlash for Apple to offer free fixes, and that still typically leaves you without a laptop for a few days. I’m typing this article on a cracked-screen 2013 MacBook Pro because I refuse to upgrade until they make the keyboard design more resilient.

4. Killing Affiliate Fees Blogs Rely On
Apple benefits from a legion of blogs obsessing over its hardware and software, hyping up everything it sells. Just this week it returned that favor by announcing it will cut off one of their core sources of revenue. Websites would previously earn a 7 percent commission from Apple in exchange for affiliate link clicks leading to purchases on the App Store. But over the past few years, Apple has begun to sell ads inside the App Store too, competing for advertisers with those external blogs. It’s also built up its own editorial team that curates what’s featured, and apparently doesn’t want competition in being a king-maker. So in October Apple is shutting down the affiliate program that app review sites like TouchArcade and AppShopper depend on, potentially spelling their doom.

5. Dongle Hell
What’s the opposite of “it just works”? Paying extra to lug around a slew of gangly cord connectors you need just to plug things into your laptop or phone. Dongles are the emblem of Apple’s abandonment of the user experience. A Thunderbolt 2 to Thunderbolt 3 dongle runs $50 while it will cost you $9 to plug in any pair of headphones from the past half-century once you’ve inevitably lost the Lightning dongle you’re allocated. Apple loves pushing us towards its vision of tomorrow, like Bluetooth headphones (that it sells) and USB-C fast-chargers (that it sells). But ditching headphone jacks and old school USB ports makes Apple’s latest devices incompatible with sanity. Even its own commercial shows musician Grimes struggling with her dongles. Sorry you can’t pass me the aux cord. I’m from the future.
Image via Notebookcheck
[Featured Image via Instructibles]

Source: Gadgets – techcrunch

UK report highlights changing gadget habits — and our need for an online fix

UK report highlights changing gadget habits — and our need for an online fix
A look back at the past decade of consumer technology use in the UK has shone a light on changing gadget habits, underlining how Brits have gone from being smartphone dabblers back in 2008 when a top-of-the-range smartphone cost ~£500 to true addicts in today’s £1k+ premium smartphone era.
The report also highlights what seems to be, at times, a conflicted relationship between Brits and the Internet.
While nine in ten people in the UK have home access to the Internet, here in 2018, some web users report feeling being online is a time-sink or a constraint on their freedom.
But even more said they feel lost or bored without it.
Over the past decade the Internet looks to have consolidated its grip on the spacetime that boredom occupied for the less connected generations that came before.
The overview comes via regulator Ofcom’s 2018 Communications Market report. The full report commenting on key market developments in the country’s communications sector is a meaty, stat and chart-filled read.
The regulator has also produced a 30-slide interactive version this year.
Commenting on the report findings in a statement, Ian Macrae, Ofcom’s director of market intelligence, said: “Over the last decade, people’s lives have been transformed by the rise of the smartphone, together with better access to the Internet and new services. Whether it’s working flexibly, keeping up with current affairs or shopping online, we can do more on the move than ever before.
“But while people appreciate their smartphone as their constant companion, some are finding themselves feeling overloaded when online, or frustrated when they’re not.”
We’ve pulled out some highlights from the report below…

Less than a fifth (17%) of UK citizens owned a smartphone a decade ago; the figure now stands at 78% — and a full 95% of 16-24 year-olds. So, yeah, kids don’t get called digital natives for nothin’
People in the UK check their smartphones, on average, every 12 minutes of the waking day. (‘Digital wellbeing’ tools clearly have their work cut out to kick against this grain… )
Ofcom found that two in five adults (40%) first look at their phone within five minutes of waking up (rising to 65% of the under 35s). While around a third (37%) of adults check their phones five minutes before lights out (again rising to 60% of under-35s). Shame it didn’t also ask how well people are sleeping
Contrary to a decade ago, most UK citizens say they need and expect a constant Internet connection wherever they go. Two thirds of adults (64%) say it’s an essential part of their life. One in five adults (19%) say they spend more than 40 hours a week online, up from 5% just over ten years ago
Three quarters (74%) of people say being online keeps them close to friends and family. Two fifths (41%) say it enables them to work more flexibly

Smartphone screen addicts, much?

Seventy-two per cent of adults say their smartphone is their most important device for accessing the Internet; 71% say they never turn off their phone; and 78% say they could not live without it
Ofcom found the amount of time Brits spend making phone calls from mobiles has fallen for the first time — using a mobile for phone calls is only considered important by 75% of smartphone users vs 92% who consider web browsing on a smartphone to be important (and indeed the proportion of people accessing the Internet on their mobile has increased from 20% almost a decade ago to 72% in 2018)
The average amount of time spent online on a smartphone is 2 hours 28 minutes per day. This rises to 3 hours 14 minutes among 18-24s

Social and emotional friction, plus the generation gap…

On the irritation front, three quarters of people (76%) find it annoying when someone is listening to music, watching videos or playing games loudly on public transport; while an impressive 81% object to people using their phone during meal times
TV is another matter though. The majority (53%) of adults say they are usually on their phone while watching TV with others. There’s a generation gap related to social acceptance of this though: With a majority (62%) of people over the age of 55 thinking it’s unacceptable — dropping to just two in ten (21%) among those aged 18-34
Ofcom also found that significant numbers of people saying the online experience has negative effects. Fifteen per cent agree it makes them feel they are always at work, and more than half (54%) admit that connected devices interrupt face-to-face conversations with friends and family — which does offer a useful counterpoint to social media giant’s shiny marketing claims that their platforms ‘connect people’ (the truth is more they both connect & disconnect). While more than two in five (43%) also admit to spending too much time online
Around a third of people say they feel either cut off (34%) or lost (29%) without the Internet, and if they can’t get online, 17% say they find it stressful. Half of all UK adults (50%) say their life would be boring if they could not access the Internet 
On the flip side, a smaller proportion of UK citizens view a lack of Internet access in a positive light. One in ten says they feel more productive offline (interestingly this rises to 15% for 18-34 year-olds); while 10% say they find it liberating; and 16% feel less distracted

The impact of (multifaceted and increasingly powerful and capable) smartphones can also be seen on some other types of gadgets. Though TV screens continue to compel Brits (possibly because they feel it’s okay to keep using their smartphones while sitting in front of a bigger screen… )

Ofcom says ownership of tablets (58% of UK households) and games consoles (44% of UK adults) has plateaued in the last three years
Desktop PC ownership has declined majorly over the past decade — from a large majority (69%) of households with access in 2008 to less than a third (28%) in 2018
As of 2017, smart TVs were in 42% of households — up from just 5% in 2012
Smart speakers weren’t around in 2008 but they’ve now carved out a space in 13% of UK households
One in five households (20%) report having some wearable tech (smart watches, fitness trackers). So smart speakers look to be fast catching up with fitness bands

BBC mightier than Amazon …

BBC website visitor numbers overtook those of Amazon in the UK in 2018. Ofcom found the BBC had the third-highest number of users after Google and Facebook
Ofcom also found that six in ten people have used next-day delivery for online purchases, but only three in ten have used same-day delivery in 2018. So most Brits are, seemingly, content to wait until tomorrow for ecommerce purchases — rather than demanding their stuff right now

What else are UK citizens getting up to online? More of a spread of stuff than ever, it would appear…

Less general browsing/surfing than last year, though it’s still the most popular reported use for Internet activity (69% saying they’ve done this in the past week vs 80% who reported the same in 2017)
Sending and receiving email is also still a big deal — but also on the slide (66% reporting doing this in the past week vs 76% in 2017)
Social media use is another popular but slightly less so use-case than last year (50% in 2017 down to 45% in 2018). (Though Twitter bucks the trend with a percentage point usage bump (13% -> 14%) though it’s far less popular overall)
Instant messaging frequency also dropped a bit (46% -> 41%)
As did TV/video viewing online (40% -> 36%), including for watching short video clips (31% to 28%)
Online shopping has also dropped a bit in frequency (48% -> 44%)
But accessing news has remained constant (36%)
Finding health information has seen marginal slight growth (22% -> 23%); ditto has finding/downloading information for work/college (32% -> 33%); using local council/government services (21% -> 23%); and playing games online/interactively (17% -> 18%)
Streaming audio services have got a bit more popular (podcasts, we must presume), with 15% reporting using them in the past week in 2017 up to 19% in 2018. Listening to the radio online is also up (13% -> 15%)
However uploading/adding content to the Internet has got a bit less popular, though (17% to 15%)

One more thing: Women in the UK are bigger Internet fans than men.
Perhaps contrary to some people’s expectations, women in the UK spend more time online on average than men across almost all age groups, with the sole exception being the over 55s (where the time difference is pretty marginal)…

Source: Gadgets – techcrunch

WhatsApp finally earns money by charging businesses for slow replies

WhatsApp finally earns money by charging businesses for slow replies

Today WhatsApp launches its first revenue-generating enterprise product and the only way it currently makes money directly from its app. The WhatsApp Business API is launching to let businesses respond to messages from users for free for up to 24 hours, but will charge them a fixed rate by country per message sent after that.

Businesses will still only be able to message people who contacted them first, but the API will help them programatically send shipping confirmations, appointment reminders or event tickets. Clients also can use it to manually respond to customer service inquiries through their own tool or apps like Zendesk, MessageBird or Twilio. And small businesses that are one of the 3 million users of the WhatsApp For Business app can still use it to send late replies one-by-one for free.

After getting acquired by Facebook for $19 billion in 2014, it’s finally time for the 1.5 billion-user WhatsApp to pull its weight and contribute some revenue. If Facebook can pitch the WhatsApp Business API as a cheaper alternative to customer service call centers, the convenience of asynchronous chat could compel users to message companies instead of phoning.

Only charging for slow replies after 24 hours since a user’s last message is a genius way to create a growth feedback loop. If users get quick answers via WhatsApp, they’ll prefer it to other channels. Once businesses and their customers get addicted to it, WhatsApp could eventually charge for all replies or any that exceed a volume threshold, or cut down the free window. Meanwhile, businesses might be too optimistic about their response times and end up paying more often than they expect, especially when messages come in on weekends or holidays.

WhatsApp first announced it would eventually charge for enterprise service last September when it launched its free WhatsApp For Business app that now has 3 million users and remains free for all replies, even late ones.

Importantly, WhatsApp stresses that all messaging between users and businesses, even through the API, will be end-to-end encrypted. That contrasts with The Washington Post’s report that Facebook pushing to weaken encryption for WhatsApp For Business messages is partly what drove former CEO Jan Koum to quit WhatsApp and Facebook’s board in April. His co-founder, Brian Acton, had ditched Facebook back in September and donated $50 million to the foundation of encrypted messaging app Signal.

Today WhatsApp is also formally launching its new display ads product worldwide. But don’t worry, they won’t be crammed into your chat inbox like with Facebook Messenger. Instead, businesses will be able to buy ads on Facebook’s News Feed that launch WhatsApp conversations with them… thereby allowing them to use the new Business API to reply. TechCrunch scooped that this was coming last September, when code in Facebook’s ad manager revealed the click-to-WhatsApp ads option and the company confirmed the ads were in testing. Facebook launched similar click-to-Messenger ads back in 2015.

Finally, WhatsApp also tells TechCrunch it’s planning to run ads in its 450 million daily user Snapchat Stories clone called Status. “WhatsApp does not currently run ads in Status though this represents a future goal for us, starting in 2019. We will move slowly and carefully and provide more details before we place any Ads in Status,” a spokesperson told us. Given WhatsApp Status is more than twice the size of Snapchat, it could earn a ton on ads between Stories, especially if it’s willing to make some unskippable.

Together, the ads and API will replace the $1 per year subscription fee WhatsApp used to charge in some countries but dropped in 2016. With Facebook’s own revenue decelerating, triggering a 20 percent, $120 billion market cap drop in its share price, it needs to show it has new ways to make money — now more than ever.

Source: Mobile – Techcruch