Asa Mathat / AllThingsD.com

“We are building the Uber for delivery people,” Donahoe said this morning at the Goldman Sachs Technology and Internet Conference, following an appearance by Apple’s Tim Cook. “We think we can do it at scale. No one single retailer can do it on their own, so we are building it for the retail industry and using our technology capabilities to build it.”

His opinions differ drastically from Amazon’s last public statements on the topic. In July, Amazon CFO Tom Szkutak said the company was building more distribution centers to be closer to customers and to speed up delivery times, “but in terms of same-day delivery, we don’t see a way to do same-day on a broad scale at the moment.”

Donahoe said he believes that there is plenty of unused inventory in today’s delivery systems to make it work. The goal is to be able to bid out each order to the nearest driver, similar to the way Uber taps into a network of town cars looking for their next fare.

So far, eBay is experimenting on a small scale with pilot programs in San Francisco and parts of New York City. The eBay Now app allows you to look for local inventory at several stores, including Macy’s and Walgreens. After an order is placed, the products are delivered within two to four hours (right now, Donahoe said, times are averaging one to two hours).

He said the system doesn’t work for any one retailer on their own, but that it could work by providing the service to a network of companies with many locations. Still, that isn’t stopping other mega merchants, like Walmart, from also experimenting with same-day delivery. The benefit to eBay or Walmart, in general, is that they are relying on inventory located in stores near central locations, unlike Amazon, which owns massive distribution centers often based on the outskirts of town.

Is delivery something that could eventually make money? Donahoe thinks so.

“We are trying to build it, and over time, if we are building value, then the retailers will pay for those leads,” he said.

But Flurry, a mobile analytics company, is introducing the term “app & mortar” in a new report published today that explores the rise in smartphone shopping.

Clearly, the term is a play on the term “bricks and clicks,” which emerged in the late ’90s and became popular as e-commerce started to challenge physical retailers.

In some respects, this report confirms what we already knew about mobile commerce, but takes it a step further by figuring out who is benefiting the most right now from the trend. Surprisingly, it’s physical retailers.

In the report, Flurry analyzed the amount of time spent by consumers across more than 1,800 iOS and Android shopping apps in December 2012, compared to the same month a year earlier.

The biggest growth category by far was apps developed by retailers, such as Walmart, Macy’s and Gap.

Flurry said time spent in retail apps skyrocketed by 525 percent year over year. In contrast, online marketplaces, such as eBay and Amazon, increased by only 178 percent.

In terms of the share of shoppers’ time being spent inside the different apps, retailers also saw the biggest gains. In December 2012, shoppers spent 27 percent of their time inside of retail apps, up by 12 percentage points over the same month a year earlier.

The gain in share by retail apps came at the expense of online marketplace and daily deal apps, which declined year over year. The share of time being spent with online marketplaces decreased from 25 percent in December 2011 to 20 percent in December 2012. Daily deal providers, like Groupon and LivingSocial, fell to 13 percent from 20 percent.

Flurry did not offer a lot of analysis as to why this was occurring, but suggested that retailers were beginning to better respond to the move toward “online meeting offline shopping through mobile apps.” In general, 2012 was the first year that many online or physical retailers took mobile shopping seriously, so it was likely that the distribution of time spent would change with a huge surge in consumer interest and better options.

Interestingly, even though Flurry noted a decrease in time spent in online marketplace apps, eBay still easily beat its mobile revenue forecast (so it’s not clear if there’s a direct correlation between time spent and dollars spent). Last week, eBay said it recorded $13 billion in mobile revenue in 2012, exceeding its forecast of $10 billion. This year, the online retailer expects mobile revenue to hit $20 billion.

EBay is the most transparent of the larger e-commerce players when it comes to mobile’s contribution.

In contrast, an analyst’s best guess for Amazon is that about $3 billion to $5 billion of its annual sales are coming from mobile devices.

Nicolas Raymond / Freestock

According to comScore’s final tally for the November-December shopping season, spending for the two-month period totaled $42.3 billion, a 14 percent increase over 2011.

“This year’s growth rate is essentially on a par with last year’s,” said comScore Chairman Gian Fulgoni. “But despite many positives for the online sector, this year’s season did not quite perform up to our initial expectation for growth rates in excess of 16 percent as we fell a billion dollars short of our expected total of $43.4 billion.”

The research firm, which tracks online shopping habits over broadband connections in the U.S., said a slowdown occurred after Thanksgiving due to low consumer confidence.

“As it turns out, this December swoon coincided closely with a significant decline in the University of Michigan consumer sentiment index that was attributed in large part to consumers’ fiscal cliff concerns. You might say that had it not been for Congress, every other indicator suggested it would have been an even merrier Christmas for online retailers,” Fulgoni said.

This season’s high points included some particularly outstanding days for online retailers, including Cyber Monday, Nov. 26 ($1.5 billion); Monday, Dec. 17 (up 76 percent to $1.013 billion); and Christmas Day (up 36 percent to $288 million). But those good days could not make up for three solid weeks in which the growth rates failed to surpass 12 percent.

Here’s a week-by-week breakdown of spending this season. A noticeable lull is present during the middle weeks:

This softness may have been expected based on preliminary results that some retailers released this morning. The figures indicate that sales may have been soft for many in December, not just online retailers.

For instance, Target said sales in December were flat; and Wet Seal, Macy’s and Kohl’s either cut their fourth-quarter outlooks or said quarterly results will be at or near the low end of their previous guidance range, according to MarketWatch.

Online sales are still growing at a much faster clip than retail as a whole. For instance, overall, December same-store sales, excluding drug stores, rose 4.8 percent, according to data from Retail Metrics.

While comScore’s report may be disappointing to some, it won’t affect all online retailers evenly.

For one thing, comScore’s results don’t include purchases made over mobile phones. Mobile commerce, which includes orders placed on tablets and phones through mobile browsers or applications, were a highlight for many retailers this holiday season. Second, there will be some retailers that overperformed and others that lost share.

As an example, Baird Equity Research’s Colin Sebastian raised eBay’s price target earlier today to $60, up by $2, based on evidence that eBay and PayPal excelled during the holiday season. The company’s full results will be out on Jan. 16.

And the one to watch closely will be Amazon.

Many brick-and-mortar companies resolved to fight the giant e-tailer by guaranteeing to match online prices. Whether that had any impact is still not known. Additionally, there was some question earlier this holiday season if Amazon was performing as well as expected.

Wells Fargo Analyst Matt Nemer said that for the first time in years, Amazon was giving some customers coupons for 10 percent off their orders. But it was unclear whether Amazon was only trying to reactivate old customers or if it was doing it because sales were short. Another plausible reason was that customers were procrastinating. Amazon allowed some customers to order as late as Dec. 21 with the promise of delivery by Dec. 24, which may have delayed some purchases.

If so, you’re in luck. There are a handful of options for getting packages delivered in time for Christmas, especially if you live in one of the markets where retailers are testing same-day delivery services.

In case you didn’t already know, today was pretty much the deadline for consumers to place orders online and to reasonably expect their packages to arrive on time. For example, Sears, Nordstrom, Macy’s, Walmart and even Amazon stopped offering rush shipping this afternoon on most orders.

As I previously reported, last week was the peak for e-commerce spending, and this year that shouldn’t be any different. But there are a number of ways to still get deliveries sent to your home if you don’t feel like fighting the crowds at the mall.

Amazon is promising on-time deliveries for some orders placed on Saturday and Sunday for some items in select cities. But it won’t be free. For those with Amazon Prime, it will cost $4 and up — on top of the $79 you pay every year to be a member.

Then there’s same-day delivery. Though the services are being characterized as tests, these merchants are trying to see if it can be economical to deliver items that are kept locally at stores (and not at distant warehouses) to homes within a few hours. It’s clearly another strategy for brick-and-mortar retailers to try to compete with e-tailers that offer the convenience of delivery.

Two of the major trials are being conducted by eBay and Walmart.

EBay’s service is called eBay Now. Consumers can place orders from a mobile app that will deliver goods to you at your home, in a park, even at a bar, within about an hour. The company is working with a number of local retailers on the service, including Target, Best Buy, Nordstrom, Toys “R” Us and Bloomingdales.

According to an eBay spokeswoman, eBay Now will be available from 9 am to 6 pm (local time) on Christmas Eve, but closed on Christmas Day. The service is currently being tested in San Francisco and parts of New York City.

Walmart is another retailer that is testing same-day delivery. The “Walmart to Go” service allows customers in a handful of markets to buy and receive items on the same day for $10. Inventory is limited to popular items, including toys, electronics, sporting goods and other gifts. The service is in Northern Virginia, Philadelphia, Minneapolis, the San Jose-San Francisco Bay Area and Denver.

Walmart will be offering same-day delivery until Dec. 23, but will be closed on Dec. 24 and 25. It will resume on Dec. 26.

There are smaller alternatives, too.

For example, TaskRabbit is a marketplace where you can find people who are willing to complete small projects or services for a fee. The service operates in a number of major markets around the country, and due to its independent nature, a spokesman claims, “The Web site and iPhone app are never closed.”

In fact, once a “rabbit” has received a background check and activated, “they can work when they want, and not when they don’t.” Popular tasks this month include holiday shopping, which is averaging $57; gift wrapping, $38; and hanging lights, $85. If that sounds exorbitant, remember that consumers should expect to pay a premium on holidays.

Finally, another service in San Francisco is Postmates, which is offering same-day delivery by dispatching a nearby courier to run an errand. A spokeswoman confirmed that it is operating on Christmas Eve from 8 am to 6 pm, and on Christmas Day from 11 am to midnight.

Additionally, as part of the iPhone app, Postmates is creating a shopping guide that lists major retailers where last-minute purchases can be made, including the likes of Apple, Tiffany, Uniqlo and Nordstrom.

While there seem to be a lot of last-minute options, Forrester Research analyst Sucharita Mulpuru said that this year is no different from other years in at least one sense. Retailers, and especially e-commerce companies, are always trying to push the limits when it comes to how late orders can be placed.

“It does drive a spike in sales as you approach the shipping deadline. I’d estimate a 20 percent lift on that day over an average holiday day, but by no means would it eclipse the Thanksgiving weekend or Cyber Monday,” she said.

Of course, if you miss all of these options, there are always gift cards. And there’s still the local mall.

In what has become an annual holiday tradition, those who keep track of these things have started in on touting just how digital the holiday shopper has become, whipping out all manner of buzzwords to do so.

Last year, it was Cyber Monday — this year, it’s turned out to be Mobile Thursday. What’s next? Social Network Saturday? Self-Driving Car Sunday? (We still have Black Friday, by the way, which is today.)

And, indeed, the Mobile Thursday phrase got some big laps around the track, with numerous online shopping surveys — coming out faster than you can buy that new tablet — using it in their flash reports yesterday and today.

This year’s anecdotal meme: Apple iPads go well with pumpkin pie.

What isn’t said so much is that it is still a very small number — though fast-growing — over the last few years, with overall sales reaching $500 million for Thursday, compared to about $1.2 billion on Monday, according to comScore.

Still, for now, no one seems to break out actual mobile sales figures, which are clearly still a fraction of the totals. But they are more than happy to tell you that people are certainly browsing on their mobile devices, which should come as a surprise to exactly no one who is tired of talking to the relatives about three hours into the day.

According to IBM’s Benchmark report, for example, online sales were up 17.4 percent over 2011 on Thanksgiving Day, noting that “big winners were retailers who connected customers with personalized deals across multiple screens including PCs, smartphones and tablets.”

Some stats from IBM about Thursday:

Mobile Traffic: The number of consumers using a mobile device to visit a retailer’s site reached 25.3 percent, up from 66.2 percent over 2011.

Mobile Shopping: The number of consumers using their mobile device to make a purchase increased to 18.3 percent, up 65.3 percent from 2011.

Mobile Email: Smartphone and tablet shoppers responded to email deals from retailers, with emails opened on mobile devices jumping 23 percent on Thanksgiving Day over 2011.

Couch Commerce: In the evening hours, consumers shifted from shopping through their smartphones at the dinner table to buying through their iPad on the couch. At the end of the day the iPad drove more retail traffic than any other device with traffic reaching 10.7 percent versus the iPhone at 9.1 percent and Android at 5.8 percent.

Social Shopping: Shoppers referred from Social Networks such as Facebook and Twitter increased in evening hours generating .63 percent of all online sales on Thanksgiving.

And today, Black Friday, IBM slightly upped those figures, noting that the iPhone was the preferred device to bring into a store to shop with — presumably irritating sales clerks everywhere.

Over at Fab, CEO Jason Goldberg was touting in a Betashop blog post that his mobile app sales were 40 percent of the retail site’s total for the day. It’s usually 33 percent, so it’s a small jump, which Goldberg attributed to a tweet by Apple promoting it. But how much did he sell? He’s not saying.

And eBay said it launched 20 mobile-only e-commerce promotions over its app, as did many other retailers.

Also, no surprise, the New York Times weighed in with the classic trend piece: “The Shrewd Shopper Carries a Smartphone.” Um, everyone carries a smartphone now, but it apparently gets more magical when you take it to Macy’s.

We’ll see if Mobile Thursday becomes Mobile Holiday Season, which would be a big deal — but it’s winning so far in the pundit stakes.

Until we get actual numbers, here’s a chart about the whole thing from eBay:

Last year, Amazon’s Q4 growth was double that of online retail overall. Competitors point to Amazon stealing share with offerings like Prime and the Kindle that lock up consumer spending in ways that few, if any, other retailers have the scale or resources to match. And “showrooming” is generally just another way of saying “Amazon.”

One often overlooked competitive advantage Amazon has is its non-retail revenue streams, which it can use to offset revenue lost to price-cutting. Amazon Web Services, Amazon Marketplace, and Amazon Product Ads all contribute serious revenues to Amazon’s coffers. Product Ads — where Amazon sells highly-targeted, competitive advertising across its internal search results and product pages — receives the least attention. But it poses the most serious competitive threat to retailers.

Why single out Product Ads? Because by supplementing product sales with ad revenues, Amazon is radically changing the terms of competition. It’s no longer bound to a model where you only keep score based on the percentage of visitors you convert to a sale. Instead, Amazon has the ability to monetize a far greater share of its traffic than the three percent who typically buy something. And with the WSJ citing the program at $400M last year — and Business Insider upping the number to $1B earlier this year — it has reached a scale at which retailers should take notice.

Why? Because Amazon generates more profit per visitor. And retailers who are not similarly monetizing their site visits are disadvantaged.

First, let’s remember that $1 of ad revenue equates to $5 to $10 of product sales. Unlike product revenue, ad revenue isn’t encumbered with a cost of goods, warehousing and fulfillment, or even marketing expenses.

That fundamentally changes Amazon’s math on customer acquisition. With the addition of advertising profit to the ROI equation, Amazon can outspend other retailers on a per-visitor basis, even if all other traditional retail metrics — conversion rate, product margin and cost to serve — are equal. This is a massive edge in performance marketing programs, where retailers spend up to a given percentage of attributed sales. Adding significant incremental profit per visitor means you can correspondingly spend significantly more on traffic acquisition.

Amazon can also plow media profits back into its shopping experience — and as noted, retail pricing. Wells Fargo research has shown, “Amazon prices are the lowest in retail by a significant margin, with or without the sales tax advantage.”

Interestingly, there is nothing stopping Amazon’s competitors from also safely monetizing their traffic with ad revenues. Walmart, for one, announced its intention to become an “experience platform” where brands not only sell to consumers, but also market to them, both online and off. Companies like Intent Media (where I work) are helping retailers to safely monetize their traffic with ad revenues. And the rapid spread of Google’s AdSense across retailers from Staples to Macy’s is a tentative acknowledgement of both the opportunity and the threat.

Amazon’s ad revenues may not be padding its bottom line, but those dollars are funding ongoing investments and innovation, which might be even worse for the competition. Amazon’s competitors need to successfully monetize the value of their site traffic — or continue to play on the non-level playing field Amazon has created.

Prior to co-founding Intent Media in 2009, Richard Harris was Senior Vice President, Strategy and Distribution at Travelocity. Earlier in his career, Mr. Harris worked at the Boston Consulting Group and Orion Consultants. He holds a BA from Harvard University and an MBA from INSEAD.

Shopkick is one of the leading rewards programs, enabling shoppers to earn points using their phones by walking into stores and interacting with products.

But that system also costs retailers money because it requires them to install transmitters that emit signals that are then heard by a shopper’s smartphone.

Starting today, that’s changing thanks to a new partnership that will enable store owners to replay the same noise over a retailer’s existing music system.

“The speaker solution is cheaper to install for the retailers,” said Doug Galen, Shopkick’s chief revenue officer. “In fact, many retailers manage their music centrally at the music provider headquarters so installation work is done only once. Additionally, the music system is traditionally a cost center. Now, we are using that existing cost and investment to drive revenue.”

To make this possible, Shopkick has partnered with Mood Media Corporation, a leading in-store media solutions provider that is used by Macy’s and other major retailers.

In a statement, Mood Media’s Chief Business Development Officer Mark Elfenbein said rolling out Shopkick in one of its 580,000 commercial locations will require “little more than approval from the retailer and then it can be live with Shopkick in no time.”

Speed to market and affordability are obviously two major selling points as Shopkick pitches its service to more merchants.

With the Macy’s integration now nationwide, Shopkick is in more than 7,000 stores and 250 U.S. malls. Other retailers using Shopkick include Target, American Eagle Outfitters, Best Buy and Crate & Barrel. Shoppers who take the time to use the app are rewarded with “Kicks,” which are points that can be redeemed for in-store gift cards, song downloads, movie tickets and other offers.

“There’s an excellent growth opportunity for U.S. retailers outside the U.S.,” said Michael DeSimone, CEO of FiftyOne, a logistics company. “E-commerce is much more nascent [outside the U.S.], but our merchants are seeing extraordinary growth by building their brand with a new customer base.”

As it turns out, however, shipping and selling goods internationally is extremely complex.

First, there’s currency translation, then there’s the complexity of dealing with customs. And there are other considerations: For instance, a down pillow or a snakeskin purse may have to be cleared by the U.S. Department of Fish and Wildlife or require a permit if the animal is on an endangered list.

“The opportunity for a bad customer experience is very high, unless you have a repeatable process in place,” DeSimone said.

In other words, done well and executed efficiently, it can be a moneymaker, but if done poorly, you can hurt the brand.

FiftyOne helps U.S. retailers ship products to 106 countries worldwide, by assisting retailers with currency conversion and global shipping logistics, including customs and returns. It manages a central distribution in Columbus, Ohio, where all the packages exit and enter the U.S.

The New York company works with dozens of online retailers, including Macy’s, J.Crew, Overstock.com, Saks Fifth Avenue, Nordstrom, Pottery Barn, Gilt Groupe and Wet Seal. Since FiftyOne started focusing on international logistics, back in 2008, it has seen e-commerce start to take off internationally, DeSimone said.

Last year, the company’s gross merchandise volume, accounting for the total amount of all international purchases made, was $136 million, almost up twice from the year before, when it recorded $78 million. In 2009, its business totaled $26 million.

The biggest international markets for U.S. retailers today, FiftyOne said, are English-speaking countries such as Canada, Australia and the U.K. But South Korea, Brazil and Mexico are also all growing close to 50 percent year over year.

In addition, DeSimone said, the average order size increased to $265 in 2011, up from $237 the year earlier.

Here’s a graphic detailing some of the challenges in shipping internationally:

In an interview, Doug Bergeron explained to AllThingsD the reasoning behind the spending spree, saying that the company is undertaking a major transformation that requires selling software and services — not just hardware.

Only two weeks ago, VeriFone agreed to acquire Point, a major retail payment provider in Europe, for $817 million (not including $230 million in debt). Two weeks before that, it picked up Global Bay, a smaller company that helps retailers connect their e-commerce assets to physical stores through the use of iPads. Terms of the deal were not disclosed.

Additionally, a year ago, it agreed to buy payment security provider Hypercom in an all-stock transaction valued at about $485 million, including debt.

The three acquisitions easily push the company’s investment above $1 billion. A bet of this kind represents a substantial risk, but Bergeron believes the decision to turn into a services company was a no-brainer, even calling it “obvious.”

The San Jose company, which has about 3,000 employees globally, has a history of growing through acquisitions stretching back to 2005, so maybe it can pull it off. In its fiscal 2012, the publicly-held company is projecting it will make a profit of up to $2.50 a share on revenues of up to $1.72 billion before the Point merger is taken into account.

Earlier this year, VeriFone appeared on the defensive, after Bergeron attacked San Francisco-based Square for not providing encryption in its mobile card readers. Since then, Square has promised to add another layer of protection, although the rollout is still pending.

VeriFone now seems to be on the offensive, having figured out what role it will inhabit as mobile payments come increasingly into play. And despite Bergeron’s earlier outcry about Square, he says the company will play “the role of Switzerland,” and will be neutral about which technology will win.

In particular, VeriFone wants to be the software developer that makes all the new innovations — including Google Wallet, PayPal, ISIS, the carrier-led initiative and others – work with a retailer’s existing systems. Since retailers have limited resources for technology, he believes this will be an important role.

Here are excerpts from my interview with Bergeron, who is not modest in calculating the opportunity in front of VeriFone.

What was the thought process behind the acquisitions?

Broadly speaking, VeriFone has a very impressive market share at the point of sale, and now worldwide with Point. We see the most signficant dynamic shift taking place is the new complexity that’s hitting the point of sale as a result of all the innovation that’s taking place.

It means transforming VeriFone from a focus on the best in products to both products and services. We will be delivering payments as a service. Retailers want to take advantage of Google Wallet and the iPad, and brick-and-mortar stores want to connect with online stores through multichannel integration. But these retailers don’t have 100 people on staff capable of integrating. They can either be left behind and not participate, or they can reach out to a partner to co-manage the increasing complexity at the point of sale.

Global Bay is providing software for tablets that basically allows for integration with inventory systems and e-commerce solutions and other types of services that the market is going to demand. At the end of the day, the retailers don’t want to lose a sale, and if they have someone ready to buy something, like women’s apparel or jewelry or apparel of any type or home repairs, where there’s a dialogue in the store with the customer, they want to upsell or make sure they leave with more than they would otherwise.

Otherwise, it’s hard to compete with Amazon, which has massive distribution centers across the country. But if small or large retailers can leverage their corporate distribution centers, then they have an advantage over Amazon. They have the touch factor with the person [in the store]. It’s a new age that has arrived for multichannel retail, where brick-and-mortar meets e-commerce. That’s what Global Bay is doing so well.

So you are evolving from a hardware company to a services company?

I’m going to edit your question.

We don’t produce hardware. It’s manufactured by third partners, and our product comes out of a $130 million R&D budget, of which $110 million is software.

For VeriFone, 90 to 95 percent of revenue has been product, but over the past two years, we’ve stepped up our services business with encryption and content at the point of sale.

In the fourth quarter, the quarter we are about to report on, we are projecting that services will be 22 percent of our business, and that’s on top of the total business growing dramatically. By the end of 2015, we think we can get it to 50 percent.

With the Point acquisition, which is all services — or close to it, at 88 percent — we’ll now be in the low-30s percentage.

I’m pretty sure, but for the most simple requirements, we’ll say [to the retailer], here’s the products, here’s all the boxes, and then check all the boxes for things you want, like Google Wallet, encryption; or do you want to support gift cards, or multichannel sales through the Global Bay capability?

You have a good perspective on the wide range of mobile payments that are rolling out. How many of these technologies will make it?

What I don’t know is what are the next types of innovations coming out of the Valley or other places.

Everything looks good on YouTube, or in a standalone trial, but if you have to roll it out to thousands of stores — and 50 lanes in each store — whatever new that’s out there has to coexist with the old stuff.

Who’s going to do that and the integration, and who’s going to manage the software updates? It certainly can’t be the two guys in IT, because they don’t have the resources.

How slowly will these rollouts occur? When you put it that way, it seems impossible for retailers to adopt it very quickly.

I think things move deliberately, not slowly.

That’s a bit of a wake-up call to those who come out of the online world and think they can put some code up in the cloud and it works. But when you talk to Costco, Macy’s or McDonald’s, which are all our accounts, they are innovative. They’ve rolled out pin debit or cash back, but it goes through a process of quality assurance, and they have labs where they test all this stuff, and then methodically move it out.

National retailers will have to get on board. They are the ones that move mindshare. They want the same experience in every store in every city in every state, and to mass deploy that, it takes a fair amount of planning.

How many new providers will make it?

There’s no question there will be a few, but it’s not limitless.

There’s a limit to the amount of change and chaos that the important retailers are willing to deal with at any given time. I’m describing a situation why VeriFone is so important. They [the retailers] love the meetings with PayPal and Google and ISIS, but all of this stuff has to coexist together.

In a lot of ways, we are playing the role of Switzerland. We are supportive and encouraging of all the innovation. We are the systems-agnostic guys that are operating on behalf of the retailers.

But all of these things would require software. The things that Google is trying to accomplish integrates with back-office systems at the SKU level. If it was just throwing hardware at the problem, it’s one thing, but it’s software.

You’ve talked about the importance of Global Bay, but now let’s talk a little more about the Point. Why was that acquisition important?

The data is out there. It’s a company that has grown fivefold over the last eight years, and is precisely located in the geographies in Europe that are A) healthy, and B) prone to be the first movers of mobile payments.

That’s where the Point lives and breathes. They have massive market share using VeriFone solutions, and more than half a million merchants in Northern Europe and the U.K. are using them to manage services that are largely around keeping EMV, which stands for Europay, MasterCard and Visa, up to date. EMV uses chip technology instead of swipe technology like we do here in the U.S.

They took out all the complexity of managing EMV and provided them [retailers] a monthly managed service. It’s precisely that framework and model that will allow us to turn the lights on for PayPal and Google Wallet and other services. The Point has been very much ahead of the pack, rolling out NFC capabilities before retailers have asked for it. This can be very exciting for Google and others, because it can enable a rapid deployment capability for any of them.

Are you going to make any more acquisitions? 

We are busy integrating right now. I don’t think you’ll see anything sizable for quite some time. For the most part, we are done with Hypercom, and waiting to do integration in January for the Point. For the most part, it will be independent. I think we have a lot of tools in the shed to help to find a new VeriFone.

Google Maps 6.0, available to Android users, will provide access to indoor layouts for a few dozen locations, so shoppers and travelers can find their way around without having to ask for directions.

Google’s Product Management Director Steve Lee told All Things D that — just as with outdoor Google maps — a person’s location will be highlighted by a flashing blue dot surrounded by points of interest.

In an airport, that means you’ll be able to find a particular gate or ATM, or if you are in a mall, you’ll be able to find the Gap or the kids’ play area. For Ikea, the home furnishings store known for its sprawling layout and chaotic atmosphere, it means finding the bathroom or the smorgasbord before a state of emergency is reached. Better yet, it could even mean figuring out where to park, based on which mall entrance is closest to the store you want to visit.

The announcement was made today on Google’s blog.

To make it all work, Lee says, they’ve been able to fine tune the location-based services Google uses for the outdoor locations, including cellphone towers, Wi-Fi hotspots and GPS — without requiring the retailer to install any new hardware. He claims it’s so accurate that the phone can pick up on the fact that a shopper is taking the escalator up or down and automatically changes the display of the store’s floor layout accordingly.

Bellevue, Wash.-based Point Inside has been working on this very problem for the past few years and has teamed up with several malls, retailers and other app developers to provide the indoor-mapping technology. Its technology works across iPhone and Android devices, but of course, Google’s advantage is that it will be able to leverage its install base of millions of Google Maps users, who will likely start using the new feature without having to change behavior or download a separate application.

Google said all the technology was built in-house by its own engineers.

For Google, the key will be accuracy. Getting location information even with the help of GPS can be challenging, even outdoors. Adding multiple floors, thick cement walls and getting up-to-date data from the retailer, mall or airport, adds to the complexity.

Starting today, there will be indoor maps for several hundred million square feet, including 17 airports, several department stores, including Macy’s and Bloomingdale’s; big-box retailers like Home Depot and Ikea; and major malls, such as the Mall of America in Minneapolis.

Lee said that for now the team’s focus is on adding more locations, not on monetizing the feature, but it’s easy to see how Google could present an advertisement to someone as they walk by a merchant in the mall. With the search provider already dabbling in daily deals and mobile payments, it’s not a stretch at all.

Here’s Google demonstrating how it works:

(Restroom photo credit: Pictonym.)

How did I miss this fantastic holiday commercial for Macy’s, featuring teen heartthrob and singing sensation Justin Bieber?

Called “Screamers,” it’s a very sly take on the proclivity of people to emit high-pitched utterances around the Biebs.

But this time, it works.

Adorkable all around:

Best Buy Co. is joining the list of big store chains opening at midnight after Thanksgiving this year in hopes of getting a jump on the competition, following recent announcements by Target Corp., Macy’s Inc. and Kohl’s Corp.

Best Buy Chief Executive Brian Dunn, said he felt forced to “make a very difficult decision” and open at midnight because rival retailers were doing so, though the decision was controversial inside the company.

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BoomTown was looking over Victoria Harbour in Hong Kong as I blogged the conference call after Yahoo released its fourth-quarter earnings after markets closed today.

It’s pretty! But Yahoo’s revenue growth–still, not so much.

Let’s begin:

2:02 pm PT: Yahoo turned in earnings that were slightly better than expected, although no big shakes either, so the call was likely to sound exactly like the last several quarterly calls.

Bingo! We’re trying! It’s encouraging! You’ll see!

In fact, “encouraging” was just the word that CEO Carol Bartz used as she tried to focus on a doubling of operating income, operating margin and earnings per share.

Impressive, the revenue at Yahoo is still stubbornly not moving, which the company continued to attribute to the new search and online advertising partnership with Microsoft.

“This is all part of our plan to turn Yahoo around,” said Bartz, who added a new buzzword, “personalized content,” to its offerings.

She turned the call over to Yahoo CFO Tim Morse, who ran through the numbers, which pretty much came down to this: Display advertising up 16 percent from last year, while search revenue dropped 18 percent.

As in previous quarters, Morse talked about how “headwinds” will soon lessen and it will be smooth sailing for Yahoo ahead.

After the stormy seas of recent years, that would be nice, since investors have gotten pretty seasick owning Yahoo shares.

Morse offered that, “while there is still much to do, we are still executing well against our plan” and went on about how good things are.

Finally, we have a “unified purpose,” which he characterized as personalized content too.

It’s a nice new catchword for Yahoo, and I liked Morse’s strong tone and gumption, which for an accountant was like hollering.

His big Achilles’ heel: The revenues projections ahead remain soft.

2:24 pm: Back to Bartz, who focused on the future success of the Microsoft advertising alliance and also Yahoo’s leadership in display advertising.

She listed some big offline brands, such as Wal-Mart and Macy’s, noting when looking for online ads, “That’s right, they all came to Yahoo.”

Bartz moved on to its stake in China’s Alibaba Group and noted it was a “great investment with a bright future.” Translation: We are not selling for now.

But noting its investment in Yahoo! Japan, Bartz had a slightly different take, mentioning talks to “unlock” the value of the stake. Translation: Maybe we’ll sell if we can figure out how not to pay all those taxes.

Bartz did the same with all of Yahoo properties, putting a sunny spin on what is still a turnaround situation.

It’s a good strategy, but it is one that is starting to sound like a broken record, especially when Google, Facebook and others seem to be like a house on fire.

2:35 pm: Now on to Q&A, in which Wall Street analysts ask softball questions of executives.

And so they do, asking queries that include small details about its operating margin, questions on tiny changes in numbers due to accounting changes. And very little about larger strategy.

You can read about this stuff in the press release, but whatever.

I am thinking of starting an investment bank, so I can jump in on these calls and ask some questions that have actual substance.

The United Bank of Swisher? Goldman Sucks?

Ooh, I was wrong, because one analyst asked a good one about possible future layoffs.

Bartz noted the company would be adding people, um, after laying some employees off.

It’s all about “re-allocating” staff, which Yahoo did earlier today by laying off one percent of its workforce, after an earlier four-percent cut.

Next, a question about search share, with Morse noting there will be search volume growth in the future.

Big message: We are in this to grow the share.

Except it has not been growing, as the last several months of surveys of search share have shown.

But Bartz firmly declared: “We’ll be up” in 2011.

A question focused in on mobile, and Bartz pointed out that Yahoo had the disadvantage of not having a mobile operating system such as Google does with Android.

Good point!

2:59 pm: Another terrific analyst comment about the disconnect between the execs encouraging comments and the actual financials, which show a downturn in, yes, revenue.

It is exactly the point here, which Yahoo has been trying to spin. Morse went through the list of excuses, from bumpiness of the search transition to weakness in affiliate sales to whatever.

Bartz jumped in and blamed the search alliance again, noting that moving advertisers over to the new platform was hard to do.

“I will not back down on the fact that we are gaining momentum,” said Bartz about search. “There is a lot going on here.”

Morse chimed in, noting he was the one using “gaining momentum” in his script. “I really believe that,” he said, going through the terrific plans.

“You’re correct the top line is not showing that yet,” said Morse in an increasingly loud voice. “There’s an awful lot there to be optimistic about.”

The accountant that roared.

Encouraging.

But then came the last question about the growth of Facebook, the Silicon Valley social networking phenom that is clearly going to be Yahoo’s biggest rival over the next years.

Bartz acknowledged Facebook’s explosive growth, but declared the company more compatible than competitive.

“There’s room for everybody here,” she said.

Presumably, that’s the hope for Yahoo.

(Also, you can see a slide deck of the financials here.)

Being the largest e-commerce company is an obvious barrier to entry, but there are at least two opportunities in 2011 that will drive even more traffic to its site and others: Social and mobile.

A 78-page presentation by J.P. Morgan on the Internet Sector Outlook of 2011, which focuses a lot on the e-commerce market, predicts that the big losers will be physical retailers as more spending shifts online.

If you’ve been reading eMoney, you already knew this. Last month, we referred to these trends as the so-lo-mo trifecta, referencing the impact of social, local and mobile on e-commerce.

In 2010, J.P. Morgan found that nearly 8 percent of Amazon’s traffic was coming from Facebook, compared to 20 percent coming from Google, and that e-commerce revenues are expected to grow by 13.2 percent in 2011.

But as more consumers discover products and services through social networks, like Facebook, and compare prices on their smartphones in stores, traditional brick-and-mortars will lose market share and face bankruptcy, J.P. Morgan concludes. (It’s a small coincidence that Macy’s said it expects to add about 725 new positions over the next two years to beef up its Macy’s and Bloomingdale’s Web sites).

Here’s how J.P. Morgan makes the case for the future of e-commerce:

–U.S. e-commerce revenues totaled $28 billion in 2000, soaring to $166 billion in 2010. Revenues are expected to grow by 13.2 percent in the U.S. this year alone.

–In 2010, 36 percent of people said they bought something online at least once a month. Slightly less, or 32 percent of people, said they purchased one to two items online a month. However, less than 2 percent of folks bought more than 10 items a month.

–Traffic to Amazon’s sites is increasingly coming from Facebook, jumping 328 percent over the past year to almost 8 percent. That compares to almost 20 percent of referrals coming from Google.

–Facebook is driving less traffic to eBay than to Amazon, or roughly 4.7 percent, compared to 11.4 percent from Google.

–E-Commerce 2011 Top Picks: Amazon, Priceline and Latin American e-commerce provider MercadoLibre.

One particular highly accessible kind of flash mob, in which local singing groups perform Handel’s “Hallelujah” chorus at shopping malls, has been replicated all over the U.S. and Canada in the last month or so.

Quickly: Flash mobs are traditionally secretly orchestrated performances that play out in public places while bringing a little bit of magic to unsuspecting people in the right place at the right time. If you’ve ever seen those videos of a person breaking into song or dance in a public place, then being joined by hordes of interlopers who somehow know the full routine, you’ve seen a flash mob. (There are also less choreographed variations, like public pillow fights.)

Since flash mobs seem so fun, organic and full of life, they’ve of course been co-opted by marketers who mimic the style right down to camera shots of the surprised and confused onlookers capturing videos of the moment with their own camera phones. But they’ve also recently been adopted by wholesome community groups wanting to spread a little holiday joy. And in many cases, both the performers and the audience know about the event in advance (element of surprise be damned).

One flash mob performance of “Hallelujah” in a Canadian shopping mall, posted on YouTube on Nov. 17, has been seen more than 25 million times. YouTube’s Trends blog recently called it “by far, the most popular video of the season.”

YouTube’s Kevin Allocca also highlighted some 20 other flash mob performances, also of “Hallelujah” and mostly in shopping malls, from Orlando, Cleveland, Chattanooga, Juneau and Winnipeg. Allocca says the meme may actually have been kicked off by the Opera Company of Philadelphia performing “Hallelujah” in a Macy’s as part of the Knight Foundation’s Random Acts of Culture. That video was posted Nov. 1 and has more than six million views.

It’s gotten so bad that on Monday night a mall near Sacramento had to be evacuated after crowds overwhelmed it and the fire department feared for its structural integrity. A planned flash mob by the Sacramento Choral Society and Orchestra and other local congregations had been endorsed by the mall and promoted for weeks, drawing thousands to watch and sing along with their printed-out sheet music.

Would-be flash mobbers broke into impromptu singalongs as they were escorted out of the building and into the parking lot (with their video cameras recording all the while, of course). So apparently spontaneity isn’t dead yet.

The retail industry coined the phrase “Cyber Monday” to represent the Monday immediately following Black Friday (the day after Thanksgiving). Presumably everyone was returning to work and continuing their shopping online.

However, the term ended up a misnomer because there was always a day closer to Christmas that exceeded it in sales, as procrastinators waited until the last minute to shop online.

Well, that may change this year, says comScore, which measures such stuff.

“At this late juncture in the online holiday season, we have likely already witnessed the peak spending day of the year, which means that Cyber Monday should emerge as the season’s heaviest online spending day for the first time in history,” said comScore chairman Gian Fulgoni in a release.

That’s not to say other days didn’t come close.

Overall, online spending this year is up 12 percent, when looking at the 47 days between Nov. 1 and Dec. 17, and this past week’s numbers were even higher. Online shopping reached $5.15 billion in the week ended Dec. 17, jumping 14 percent compared to the same period a year ago.

Both Monday and Friday were abnormally strong, coming in at $943 million and $942 million, respectively.

But for the first time ever, neither of those day was able to outperform Cyber Monday, which hit an all-time record of $1.03 billion.

Historically, two days in the past week have particularly stood out. Monday is named “Green Monday” after the color of money, and Friday is called “Free Shipping Day,” because a number of physical and e-commerce retailers teamed up to promote online shopping by giving away free postage for a 24-hour period. Monday was up 12 percent over last year, and Friday was up 61 percent.

Based on historical patterns, comScore had reasoned that one or more days would exceed $1 billion in the past week. Now with Christmas six days away, it’s likely too late to see that kind of volume again. Although Amazon’s cutoff for fee shipping ends tonight, and Wal-Mart’s free shipping (with guaranteed arrival by Dec. 24) ends tomorrow night, and department stores like Macy’s is offering free shipping until Monday for items $99 or more.

In all, the shopping season to date stands at $27.46 billion.

Happy holidays, indeed.

The idea of being rewarded for being a consumer is getting a lot of heat of late, as retailers seek to take advantage of the fast-moving social phenom among consumers, especially young ones.

Thus, a wide range of efforts to combine location-based mobile apps with purchasing, both online and offline.

Earlier this week, BoomTown posted on a funding for one such start-up, Topguest, which links check-ins with airline and hotel loyalty programs.

Today, another company in the space, shopkick, announced it had added another store–Minneapolis-based Target–to its list of retailers deploying its platform and mobile app.

As with customers of Macy’s, Best Buy and others, users of the shopkick app will receive points and other rewards, as well as instant mobile coupons, just for walking in the store.

The point being: Retailers need to reward foot traffic and not just purchases.

The Target partnership is limited now to 242 stores in the Chicago, Dallas, Los Angeles, Miami, Minneapolis, New York City and the San Francisco area.

Target will also offer scannable mobile coupons to customers for redemption at checkout.

It will be interesting to see how effective apps such as shopkick are as they roll out, as consumers test them.

Unlike others that offer quick deals–from Foursquare to Facebook to, now, Yahoo–shopkick uses its “kickbucks” as an enticement simply for being present in a store or scanning certain barcodes.

It’s certainly easy enough–my son, Louie, did it with ease and definite enjoyment–although a user does need to remember to fire up the app when entering a participating store.

There is also a small device retailers need to install need to make the shopkick ecosystem work.

CEO Cyriac Roeding, a former EVP for CBS’ mobile unit, created the concept for the Menlo Park, Calif.-based start-up while an entrepreneur-in-residence at Kleiner Perkins.

The company has raised $20 million in venture funding from Kleiner’s iFund, longtime Silicon Valley investor Reid Hoffman, as well as Hoffman’s home at Greylock Partners.

Here is a video interview I did with Roeding about where shopkick is going next: