Everywhere Mobile is re-writing all the rules Bob Egan – CEO, Sepharim Group firstname.lastname@example.org +1 508-289-1001
Sepharim Group Connected Intelligence Sepharim Group is a boutique research and advisory that firm that is focused on mobility and its related eco-system. Mobility is creating seismic shifts about how consumers interact and transact with each other, their banks and retailers and how people live, work and play. Our team helps executives gain the needed insights to make critical product and business decisions with the objective of creating tomorrow’s advantage, today. WWW.SEPHARIMGROUP.COM
People on the planet 6.8 Billion
77% of the population with mobile devices 5.3 billion
The heartbeat of everything is accelerating 5
Business model Tensions and Disruptions
5 billion consumers X 10 connections = 50 Billion connections by 2020
Near Free Platforms Low Cost Components High Speed, Ubiquitous Access = Perfect Storm?
As digital economy migrates from the web to mobile, the next major growth hormone will be driven by anticipating the needs of the consumer. mobile first web first Deterministic Anticipative
How Credible Are You? Available Connected
On-Demand Business Anywhere Seismic Shift
The jungle of connectivity options must be made transparent to the consumer but visible to the supplier What should I do? Who should care? How can I monetize? Source: NFC Forum
Yesterday’s richest mobile companies have become the poorest … while unknowns become the new rich Will incumbent FSI’s suffer a similar fate?
Important dynamics of the global payments industry
Protracted Recession Creates Uncertainty
Expect further consolidation in 2011
Extreme pressure to control costs
Significant Shift in Credit & Debit Card Industry
Tighter lending standards
Battered card issuers
Focus on regulatory compliance
Prepaid Products Growing Faster than Credit & Debit
Limited barriers for use
What should concern banks?
Satisfying regulators, stockholders, and other overseers
Risk & Legal have banks paralyzed
Innovation going in circles trying to satisfy risk
Newness of mobile, alternative payments terrifying
Uncertainty of risk rules with new types of partners
Trust and perception issues among customers
The Business Drivers of Mobility
Proliferation of Devices
Ubiquity of Broadband
Business Asset Risk
It’s 10pm- Do you know where your assets are?
Mobile Payments are an Attack on Cash and Checks Mobile has the potential to impact $163 billion of the cash market Mobile has the potential to impact $55 billion of the check market $1.1 Trillion $1.5 Trillion $3 Trillion
20 CAGR= 50% CAGR = 18% CAGR = 9% Cash-to-Card Migration in the General Consumer Population While New Consumers Bypass Cash Global Payments Transaction Volume (In billions of transactions)
High Bank Involvement High Carrier Involvement Carrier’s Involvement High Low Low
Through 2015, the bulk of NFC use will be for Connections, not Transactions due to an immature payment biz model
Set up wireless homeoffice connections
Access buildings and events
Touch your camera to a printer to print
Read smart posters
Share business cards
Pay for goods and Services
Buy transit tickets, and access trains, planes, etc.
3 NFC Connect NFC Access NFC Transactions 22
In 2011 mobile commerce will be big on noise yet tiny on transaction volumes. Source: mFoundry, industry sources, Sepharim Group
24 Mobile Payments Pave the Way for Niche to Mainstream Play Cost to upgrade vs. revenue boost and lower cash handling costs ConvenienceCostSafetyAccess Merchant Consumer Increased ARPU from fees and lower churn Mobile Payments Mobile Operator Handset Manufacturer Need-based handset sales Card Association Financial Institution Additional interchange revenue and maintaining brand relevance New customer acquisition and protection of payments business
Will ownership and control be at odds? Location Video Search Intelligence Cloud Voice Photo Text Micro-blogging Connectivity eMerchants Distribution Cloud Banks Transaction Cloud Mobile Operators Retailers “the new network”
Bob@Sepharim.com +1 508-289-1001
Thank you !! Bob EganCEO – Sepharim Group+1 508-289-1001
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