If a government initiates National E-Markets, will their electorate embrace it? Comparison with other official schemes suggests they will. Britain’s National Lottery for instance attracted 72% of the population to play in its first month.
There are reasons to spurn NEMs: it entails unfamiliar processes and it has to store data on your transactions (to protect counterparties). But reasons to be an adopter include: it’s likely to be a faster, cheaper, safer way to purchase a lot of services and it can turn spare time or unused assets into cash.
Past government schemes
National E-Markets relies on government. See our Is there another way? section for more on this. It’s worth looking at takeup of some comparable official projects. Here are three key examples from the UK:
All were spectacularly successful. For privacy campaigners, the Oyster Card caused most concern. A swipe card for ticketless travel on London’s buses and trains, it informs the syndicate of firms running the project of every journey made by a user. Registration for an Oyster costs £3 and requires full name and address, however it makes travelling cheaper. Four years after its introduction 10 million cards had been issued and 80% of London’s public transport journeys were stored in the Oyster database.
Campaigners against the “socialised medicine” of Britain’s National Health Service made much of the centralised record keeping it would require. That didn’t stop 75% of the population registering in its first five weeks. It is hard to find a non-coercive, government backed scheme, with a clear value proposition that has been resisted by the populace.
Embraced gingerly
There could be a tidal wave of interest in NEMs. But it’s equally likely users will start this new form of activity warily. A typical user may register at his local Post Office prompted by media coverage of the forthcoming launch. He may browse but not buy for a while and then, tentatively, book a low risk purchase such as someone to cut his childrens' hair at home.
Assuming the home trim is a success, he might one evening forgo the Domino’s Pizza website to book a takeaway meal cooked by a neighbour in their kitchen and delivered to his door by a local. If the user experience continues to be good he may
risk selling, perhaps putting his electric drill into the market on evenings he’s at home but specifying it’s only to be displayed to potential buyers with a track record of reliable hires and returns behind them.
User vigilance
At this point our skeptical user may want to investigate his potential relationship with the NEMs system itself. There’s complex technology behind the website, how is he protected from potential abuses? As detailed in our legal framework section, he will find the system only knows about him what he chooses to tell it (it will demand proof if required), it’s not trawling any other databases for data about him. Nor is it permitted to “upsell”, introduce stealth pricing or intrude into his usage experience, something that makes it virtually unique in web marketplaces.
NEMs is a utility: there to serve him impartially to the extent he wishes to use it. If worried about who operates the service, his investigations could show that there is no powerbase behind NEMs . Operations are split between deep pocketed companies funding the system core and a knowledgeable franchisee running each sector.
(One self-employed person operates the NEMs market for car breakdown services, another is in charge of the catering staff sector, and so on.)
Our concerned user may also be relieved to see that, although government initiates the service and defines some basic rules, there is legally mandated separation from the state thereafter. Finally, NEMs is available in many forms. Anyone can repackage the service in any way they wish and add their own charges to the system's own markup. It is a dynamic, evolving, network not one monolithic system.