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

• Landscape
• Global Platform
Pilot Activities
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
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
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%*

Technology advancements Visa Public

Investment in mobile payment technology and services has increased rapidly
CANADA
W ireless P ayment S ervices
EUROPE (Italy) (Germany) (France) (Belgium) (UK) (UK) (Finland) (Netherlands) (Amsterdam)
ASIA PACIFIC
Taiwan Proximity Mobile Trans Alliance
TOM Online (China)
E-Tong (China) Q-Pay (Australia)
CEMEA
m-pesa (Kenya) (South Africa) (South Africa)
LATIN AMERICA
(Venezuela)
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
Establishes framework for an integrated consumer experience
Helps improves the business model through functionality combinations
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
Service Discovery/ Content Downloads
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

Allen Wright, Director, Chip Initiatives, Visa Canada

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Allen Wright, Director, Chip Initiatives, Visa Canada Presentation Transcript