European mobile payments - What is the next killer feature?


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Business models and end user experience will determine success on the market

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European mobile payments - What is the next killer feature?

  1. 1. European Mobile Payments: What’s the Next Killer Feature? Mario Fernandez, Research Analyst Information and Communication Technologies 21 March 2012© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property ofFrost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
  2. 2. Today’s Presenter Mario Fernandez, Research Analyst Frost & Sullivan Monitoring and analyzing emerging trends, technologies and dynamics in the mobile telecommunications, non-cash payment and smart card markets in Europe. Leveraging long-standing working relationships with leading industry participants. • Areas of expertise: bank cards’ technologies, mobile payments, machine-to-machine communications, and smart card solutions for the telecom industry. 2
  3. 3. Focus Points• Market Overview• Market Challenges• Competitive Landscape• Business Models• End user Experience 3
  4. 4. Poll QuestionWhen do you think NFC technology will be mass-commercialized?• 2012• 2013• 2014-2015• 2016-2017• 2018 or after? 4
  5. 5. The Mobile Payments Market is poised to grow M-Payments: Value Transaction over Mobile Banking Mobile Devices, Europe, 2011-2018 90.0 80.0 Mobile Financial Services Mobile Payments 70.0 Value Transaction (billion €) Remote: 60.0 -SMS - USSD 50.0 - Internet-based 40.0 Proximity: 30.0 - NFC 20.0 10.0 M-money transfer 0.0 2011 2012 2013 2014 2015 2016 2017 2018 Year Source: Frost & Sullivan 5
  6. 6. Market participants should overcome significantchallenges Interoperability Acceptance of end users Business models Source: Frost & Sullivan 6
  7. 7. JVs and partnerships appear as the first step towards the mass commercialization of m-payments Financial Services Bank Telecom Payment partnerships scheme MNO Transport Handset Serv. End users vendorRetailers Telecom OS Merchant vendor Cross-industrial partnerships Online SP Online Services Source: Frost & Sullivan 7
  8. 8. Successful partnerships will have a business modelbased on… Scalability Flexibility Business Open Model Security Source: Frost & Sullivan 8
  9. 9. The end-user experience is key – The question is not‘what’ technology will be supported but ‘how many’• Adaptation to the local requirements will be key: The underlying technology SMS Internet- based ? ? NFC ? ?• M-payments application alone will not drive adoption. Other applications, different than payments, may drive it: • Access control • M-ticketing • Loyalty and couponing • Social networking Source: Frost & Sullivan 9
  10. 10. Key Takeaways M-payments offer significant opportunities for market Opportunities participants of the telecom and online payments industry. The market is expected to consolidate, finding the right Competitive partner is key to ensure the long term success of the m- landscape payment strategy. The business model should be future-proof. Only scalable Business model and ‘open’ business models will prevail in the long term. End user M-payment offerings should be as ‘horizontal’ as possible. experience Payment applications alone will not drive adoption. Source: Frost & Sullivan 10
  11. 11. Next StepsDevelop Your Visionary and Innovative Skills Growth Partnership Service Share your growth thought leadership and ideas or join our GIL Global Community Join our GIL Community Newsletter Keep abreast of innovative growth opportunities 11
  12. 12. Your Feedback is Important to Us What would you like to see from Frost & Sullivan?Growth Forecasts?Competitive Structure?Emerging Trends?Strategic Recommendations?Other? Please inform us by “Rating” this presentation. 12
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  14. 14. For Additional InformationJoanna Lewandowska Mario FernandezCorporate Communications Research AnalystICT ICT(+48) 22 481 62 20 (+33) 493 00 61 mario.fernandez@frost.comJean-Noel Georges Cyril CromierResearch Manager Sales ManagerICT ICT(+33) 493 00 61 87 (+33) 1 4281 22 14