Visa USA participated in the first, large-scale NFC mobile payment pilot at Philips Arena in Atlanta during the 2005/2006 hockey season. Partnered with industry leaders like Nokia, Cingular, NXP, and Chase to test mobile proximity payment and value-added applications in the Philips Arena in Atlanta. Atlanta Thrashers and Hawks season ticket holders enjoyed using their mobile phones to pay for concessions and download digital content from “smart” posters embedded with NFC tags What did Visa learn from the mobile trial in Atlanta? Consumers liked to use their phone to make payments. Loved the speed and convenience and told us they would be interested in using their phone across a range of locations and transaction sizes. Majority of participants would make purchases of $50 or more using their phone as well as use their device to make smaller ticket purchases at gas stations, grocery stores, and fast food restaurants We also learned that collaboration between financial services and wireless companies like carriers and handset providers is critical and commercial solutions require value to be delivered across all stakeholders
Visa is also testing mobile coupons delivery and redemption at our headquarters in California The pilot is testing the delivery of mobile offers sent directly to employees mobile devices in the form of text messages, graphics, and bar codes coupons Employees can present coupons for redemption at on-site cafeterias. In the case of the bar code, the cashier will scan your phone. For text message only or a graphic coupons, the cashier would key enter the coupon number. We think it’s important to test all three types of coupon to allow for merchant infrastructure and consumer handset differences. The pilot includes about 500 employees and in the future, will move to public trials and integrate with Visa’s loyalty platforms. Through the test and learn process, we’ll be engaging with key stakeholders, ensuring that the solutions we bring to market have a positive business case, deliver value to all players in the value chain, scalable and sustainable.
Allen Wright, Director, Chip Initiatives, Visa Canada
Allen Wright, Director, Chip Initiatives, Visa Canada The Sixth International Conference on Mobile Business July 11, 2007 Visa Mobile Visa Public
<ul><li>• Landscape </li></ul><ul><li>• Global Platform </li></ul><ul><li>Pilot Activities </li></ul>Overview Visa Public
Mobile Momentum Numerous developments are driving momentum for mobile payments • Consumer demand increasing for multi-application mobile devices • Technology emerging – Contactless acceptance infrastructure – NFC-enabled handsets • Wireless and financial services stakeholders – Pilots and trial activities – Technology and business models Visa Public
Why is now the time for m-Commerce? Source: GSMA, Morgan Stanley Research, 2006 Current Mobile Subscribers : 2.5 B <ul><li>Sources: Juniper Research 'Mobile Commerce Strategies', 2005; Informa Telecoms & Media/data published by eMarketer, 2006; Celent 'Mobile Commerce: Dealing with the Devil in the Details', 2005 </li></ul>140 120 100 80 60 40 20 Source: Gartner Inc 2001 Durlacher Research 1999 Past m-Commerce Predictions (Hype Curve Circa 2001) Trigger Hype Disillusion Maturation Growth E-Commerce Mobile PDAs Bandwidth Coverage Edge Technology Geo-location Visa Public
The world has changed, creating new opportunities Source: Visa International, Innovation Visa Public Then Now ARPU reduction “ Opening Gardens” Contactless Deployments Local Search/ Advertisement Telecom bubble Banking consolidation Stakeholders Online Banking, Bill Pay Content Download SMS/MMS Sharing Communicating Consumer Behavior Games Customer Care Email Mobile Internet Pervasive coverage 3G HSDPA USIM Smart Phones Feature Phones Java, Ajax XHTML Voice Messaging Limited data 2G Phones PDAs WAP Applications Infrastructure Technology
Consumer research* Consumers are increasingly interested in purchasing phones with payment capabilities *Source: Fabrizio, McLaughlin & Associates, March 2007 of consumers 18-42 would consider switching banks Visa Public 58%* consumers prefer mobile payments to appear on card statement, rather than wireless bill 5:1* of consumers 18-42 would consider switching carriers 64%* of those interested would pay more for a device with payment capability 90%* are interested in mobile payments 57%*
Investment in mobile payment technology and services has increased rapidly <ul><li>CANADA </li></ul><ul><li>W ireless P ayment S ervices </li></ul>EUROPE (Italy) (Germany) (France) (Belgium) (UK) (UK) (Finland) (Netherlands) (Amsterdam) <ul><li>ASIA PACIFIC </li></ul><ul><li>Taiwan Proximity Mobile Trans Alliance </li></ul><ul><li>TOM Online (China) </li></ul>E-Tong (China) Q-Pay (Australia) <ul><li>CEMEA </li></ul>m-pesa (Kenya) (South Africa) (South Africa) <ul><li>LATIN AMERICA </li></ul><ul><li>(Venezuela) </li></ul>USA
Visa Public Visa Mobile Platform Capabilities The flexible design of the Visa mobile platform allows for stand-alone and integrated payment and service offerings • Mobile payments in stores • Mobile Internet purchases • Person-to-Person payments • Mobile coupons, rewards • Account management • Security alerts • Authentication
Non- Payment Information Purchase Information Purchase Enhancement Payment Management Account Management Dynamic User Interface Proximity Remote Visa Mobile Platform Visa’s mobile platform provides secure access to payment and information applications Visa Public Applications Payment Secure Access
Visa announced a mobile platform for engaging in market trials and identifying areas of interest <ul><li>Establishes framework for an integrated consumer experience </li></ul><ul><li>Helps improves the business model through functionality combinations </li></ul>Visa Payment Services Directory Services Provisioning / Activation Message Gateways Remote Payments Proximity Payments P2P Payments Alerts Offers & Loyalty Account Management Top Up Tickets
Payments The mobile device delivers ability to initiate proximity, e-commerce, and person-to-person payments Person to Person Payments SMS initiated payments Visa Public Proximity Contactless payments E-commerce Via web-enabled phone
Payment-Related Services Delivery of information via SMS and NFC can help increase customer engagement and loyalty Account Management Integrated user interface Coupons Delivery of discounts Alerts/Notifications Customer set parameters Two-Factor Authentication Real time authentication for online purchases Visa Public SMS NFC
U.S. Pilots – Philips Arena Pilot Several industry leaders collaborated in a pilot to test mobile contactless payment and other NFC applications Visa Public Mobile Contactless Payments <ul><ul><li>Service Discovery/ Content Downloads </li></ul></ul>December 2005 to May 2006
U.S. Pilots – Coupon Pilot Visa USA engaged 500 employees to test mobile coupon delivery and redemption Visa Public Graphic Text Barcode Coupon Types • Graphic • Text • Bar code Considerations • Business case • New stakeholder engagement • Security • Scalability Scope • Participation: 500 employees • Location: Visa headquarters
Visa/SK Telecom Pilot In February 2007, SK Telecom announced that its commercial mobile payment program will be supported by the Visa Global Platform • Launching Visa payWave ™ on SK Telecom 3G USIM card • OTA (Over-the-Air) provisioning • Combines acceptance base of Visa Wave and Mobile Touch merchants • Part of SK Telecom’s rollout of advanced 3G services • Supported by Visa Global Mobile Payment Platform Visa Public
Visa Public Commercial Mobile Momentum Wireless and financial services industries in a new technology atmosphere: • Pilots and product development • Standards development for security and message sets
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