Who's taking an early lead in the mobile wallet marathon?

  • 844 views
Uploaded on

We evaluated the mobile wallet marketplace for customer experience and mobile payment capabilities, see who is coming out on top... but the race isn't over yet! Visit our website for more information …

We evaluated the mobile wallet marketplace for customer experience and mobile payment capabilities, see who is coming out on top... but the race isn't over yet! Visit our website for more information regarding our mobile wallet research: http://www.carlisleandgallagher.com/expertise/cg-insights

More in: Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
844
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
1
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Mobile Wallet Market AnalysisJanuary 28, 2012INSPIRED TO HELP YOU SUCCEED
  • 2. Today’s Mobile Wallet CG evaluated a representative sample of 20 Mobile Wallets covering a variety of sectors • Financial Institutions, Merchants, Tech Titans and Card Associations EVALUATION CRITERIA ■ Payment Capability ■ Merchant acceptance (depth and variety) ■ Payment options (types of card, single vs. multiple) ■ Checkout experience (purchase, receipt, returns) ■ Transaction range (P2P, online, POS) ■ User Experience ■ Device compatibility What is a Mobile Wallet? ■ Initial set-up ■ Shopping EnhancementsA mobile wallet is an “app” for your smart phone or ■ Additional functionality tablet that allows you to organize your payment cards, coupons, vouchers and identification to facilitate financial transactions.2 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 3. What Are Consumers Looking For in a Mobile Wallet?In 2012, CG conducted a nationwide survey to better understand the interest level, desired features /functionality, and preferred providers for mobile wallet services.48% of surveyed interest driven by consumers young consumers are interested in a & affluent MOBILE WALLET consumers 0% 20% 40% 60% Payment Choice Functionality Managing Receipts and Documentation Real-time Incentives Search & Shop Desired Ratings & Reviews Places to Go Create & Share Wish Lists Sharing Purchases Discover more about our research at http://bit.ly/CGinsights3 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 4. Consumer Segments IdentifiedCG’s Mobile Wallet study identified three distinct consumer segments, each likely to different typesof Mobile Wallets based on their general preferences. 27% Techno Shoppers Attracted to shopping and the social features of mobile wallets and effectively use their cards to make the best payment decisions. 52% Traditionalists 21% Not interested in mobile wallets, place a limited value on mobile wallet services, and Payment have security concerns. Optimizers Concerned with using their cards effectively to make payments based on their financial situation, loyalty benefits, and other offers.4 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 5. Mobile Wallet Landscape HIGH Front Runners as of Jan. 2013 EMERGING INNOVATING GOOGLE SQUARE LEVELUPMobile Payment Capabilities STILL Big Banks HAPPY APPLE DEVELOPING CONSUMER LOW HIGH Consumer Experience KEY: Financial Institutions Merchants Card Associations Tech Titans *ISIS & MCX are not plotted because it was too early in the development process to evaluate. 5 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 6. Provider Category: Financial Institutions Financial Institutions Merchants Tech Titans Card Associations Pros • Large financial customer base • Trusted security • Multiple payment integration options tied to a wallet (credit/debit cards) Cons • Wallet with POS capabilities not publicly available • Closed wallet (single FI) • Traditional financial institution look and feel6 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 7. Provider Category: Merchants Financial Institutions Merchants Tech Titans Card Associations Pros • Deep knowledge of consumer shopping habits • Loyal customer base • Significant tie to rewards and promotions Cons • Limited to individual merchant • Growth inhibited by future open wallet offerings7 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 8. Provider Category: Tech Titans Financial Institutions Merchants Tech Titans Card Associations Pros • Consumers open to a Tech Titan wallet* • 80% PayPal • 60% Google • 60% Apple • Lean towards open wallet integration SQUARE • Easy set-up and use GOOGLE Cons APPLE • Limited merchant acceptance • Low merchant knowledge • Inconsistent payment experience across merchants LEVELUP and consumers *Mobile Wallet Reality Check: How Will You Stay Top of Wallet? Carlisle & Gallagher Consulting Group, Copyright July 20128 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 9. Provider Category: Associations Financial Institutions Merchants Tech Titans Card Associations Pros • Easy set-up • Lean toward multiple payment integrations (single vs. multiple cards) • Brand awareness and loyalty Cons • Limited transaction capabilities (P2P, POS, online) • Wallet with POS capabilities not publicly available9 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 10. What Does the Future Mobile Wallet Look Like? Considerations for the evolution of the Mobile Wallet as consumers become more comfortable with their Mobile Wallet  Open wallets accepting multiple cards from multiple financial institutions  Full range of transaction availability (P2P, online, POS) with multiple transaction technologies (NFC, QR, Cloud)  Wide merchant acceptance footprint  Personalization and functional enhancements to ‘wow’ the shopping experience10 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 11. What Should Financial Institutions Consider to be Competitive?  Adaptability: The requirements for mobile wallets are not fully developed. FIs should update their people, processes and systems to optimize flexibility and adaptability.  Partnerships: The winning solution will optimize strengths from multiple organizations. FIs should work to improve their ability to start new partnerships and manage partnership with the right companies.  Customer Experience: The right experience is critical to gaining and keeping customers. FIs should work to enable consumers to get the information they need, when they need it, how they want it. “Mobile wallet is not a replacement for plastic, but a way to enhance the shopping experience for consumers.” - Peter Olynick, Card & Payments practice lead11 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 12. AppendixINSPIRED TO HELP YOU SUCCEED
  • 13. Evaluation Criteria Definitions and Scoring Levels CUSTOMER EXPERIENCE Device Compatibility Wallet Set-Up Consumer Shopper Additional Experience Functionality Ability to work on multiple devices Customer set-up/Management Features designed to improve the Other “WOW” features. (e.g., types: iPhone, Android, BlackBerry, Experience - Easy of use setup and overall shopping experience. (e.g., rewards, coupons) Windows Intuitive management of the app. merchant locate, product information, shopping lists, posting to social media). App not compatible with any major Unable to set-up app. Does not have added features to No additional features available.0 mobile device. enhance shopper experience Compatible with only 1 specific Difficult app set-up and/or vendor1 phone contact required to complete set- 1 consumer enhancing feature 1-2 features up. Compatible with multiple specific Multiple steps for app install, not a 2 features2 phones within a single type (but user-friendly app management 3-4 features not most). experience. Compatible with most phones Minimal set-up, app management 3 features3 within a major type (e.g., most somewhat intuitive but could be 5-7 features Androids, or most iPhones). streamlined. Compatible with most phones on 2 Single step app set-up, intuitive 4 features4 major types and user friendly management 8-10 features experience. 5+ features Compatible with most phones on Best in class. 11+ features5 3+ major types.13 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 14. Evaluation Criteria Definitions and Scoring Levels PAYMENT CAPABILITIES Merchant Payment Options Check-Out Experience Transaction range Acceptance Number of merchants The breadth of available payment options Ease of making a purchase transaction Range of transaction types that that accept mobile available at the point of sale to a and resulting activities including refund can be facilitated with the wallet as a payment consumer through his or her mobile and transaction history wallet device at POS. device • Peer-to-Peer (P2P) • Online purchase through Mobile App • Point of Sale (POS)0 n/a None None None Check-out experience is complicated. Online only Single closed loop gift card payment Lengthy posting process 1 transaction type (either P2P or1 option Merchant clerks were not aware how to Online) conduct transaction Easy transaction process but Limited Multiple closed loop gift card payment Merchant Experience with using the2 0 – 2,499 options Mobile Wallet Both P2P and Online . Receipts / History available with delay Return process is complicated Different “card” types can be leveraged Seamless transaction3 2,500 – 4,999 (e.g., a prepaid card, or Debit or credit Receipts / History quickly available POS card) all from the same institution Return process is complicated Seamless transaction,4 5,000 – 9,999 Multiple cards from multiple institutions Receipts / History quickly available POS + 1 more type Return process is easy Multiple cards from multiple institutions.5 10,000+ App provides guidance on which options is Best in class POS + Online + P2P best for this particular transaction14 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 15. Mobile Wallet Rankings – Tech Titans Wallet Summary Compatibility Functionality Overall Rank Transaction Capabilities Acceptance Experience Experience Experience Additional provider Customer Shopping Checkout Merchant Payment Payment Options Overall Overall Device Set-up Range Limited merchant footprint but the most functionally rich mobile wallet. Mixed LevelUp 1 15 4 5 2 4 14 4 4 2 4 results a “checkout” based on limited testing. No merchant charge for terminal or interchange Square allows users to accept credit cards through mobile phones. Limited Square 2 10 4 4 1 1 14 5 3 3 3 merchant footprint but earns high marks for ease of use, simplicity - merchant and consumer. Can transfer money through multiple options and maintain online consumer PayPal 3 12 4 2 1 3 13 2 4 3 4 experience, but limited merchant acceptance and no rewards ties. Has power of Google brand and Google Wallet 4 9 2 1 3 3 15 5 4 3 3 funding, but challenged by limited NFC acceptance and compatibility Passbook is an application in iOS that Apple allows users to store coupons, boarding Passbook 5 7 1 4 1 1 0 - - - - passes, tickets, store cards and other forms of mobile redemption Unable to test at this time due to Isis* -- - - - - - - - - - - market/carrier constraints15 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 16. Mobile Wallet Rankings – Merchants Wallet Summary Compatibility Functionality Overall Rank Transaction Capabilities Acceptance Experience Experience Experience Additional provider Customer Shopping Checkout Merchant Payment Payment Options Overall Overall Device Set-up Range Functionally rich on closed loop network and now accepts Square. However, Starbucks 1 14 4 5 3 2 15 4 2 5 4 square not connected to Starbucks rewards. Tie in with Square for Open Loop transactions. Online only. Easy to download, connect, get information, set-up. Tied to account Amazon 2 14 4 4 3 3 6 1 0 4 1 purchase history. Recurring purchases, wish list Absent is a rewards function or ability to Dunkin transfer funds between accounts. Donuts 3 12 4 4 3 1 12 4 2 3 3 Similar to Facebook in terms of closed loop payment. Loyalty based approach – wallet enhances shopping experience. Heavy Target 4 10 2 2 4 2 11 2 1 5 4 on coupons, deals and “list” management. Closed loop GC can be loaded and used at target stores. Lacking mobile payment. Loyalty based approach. Provide consumer enhanced Wal-Mart 5 11 3 3 4 1 7 3 0 3* 1 shopping experience. Increasing the brand loyalty. Heavy on coupons and deals.16 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 17. Mobile Wallet Rankings – Card Associations Wallet Summary Compatibility Functionality Overall Rank Transaction Capabilities Acceptance Experience Experience Experience Additional provider Customer Shopping Checkout Merchant Payment Payment Options Overall Overall Device Set-up Range Master PayPass Wallet Services, a platform Card PayPass 1 6 1 2 1 2 16 5 4 4 3 that supports NFC. Limited yet emerging merchant footprint. Wallet Online application only. Simple set-up & management. Only in 18 online Visa V.Me 2 6 0 4 0 2 6 1 0 4 1 merchants. Can set detailed notifications. Multiple payment options. Online only at this point. Account to pay bills, split bill, transfer funds – Amex branded card (open loop where ever Amex is accepted) Reloadable pre-paid card through Debit or Credit. Limits can be set with Sub AMEX Serve 3 10 4 4 0 2 1 0 0 0 1 accounts – Family Feature. Only brick and mortar purchases can be made through the Amex Serve Card (Online Only).American Express currently offers a Passbook-enabled app – no rewards capabilities17 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.
  • 18. Mobile Wallet Rankings – Financial Institutions Wallet Summary Compatibility Functionality Overall Rank Transaction Capabilities Acceptance Experience Experience Experience Additional provider Customer Shopping Checkout Merchant Payment Payment Options Overall Overall Device Set-up Range Testing open loop app using QR code as payment device. (Mobile Pay On- Demand) Manage account from mobile *Bank 1 -- 12 5 4 0 3 1 0 0 0 1 app, check balances, transfer funds, similar to online banking capabilities. Security is very good. Google Wallet and new wallet in development. Online only. Transfer money between bank accounts . Pay bills and credit cards with Online Bill Bank 2 -- 12 5 4 0 3 1 0 0 0 1 PayTransfer money to others with popmoney feature. Track your rewards points, etc. Thank You points from your different cards. Mobile app to manage funds, check balances, transfer funds, view Bank 3 -- 12 5 4 0 3 1 0 0 0 1 transaction history similar to online banking capabilities. Online tool that allows you to manage your purchases. You can add and map Bank 4 -- 12 5 4 0 3 1 0 0 0 1 a number of cards and payments. Quickpay to transfer funds. Mobile Banking app that allows the customer to view account balances, bill Bank 5 -- 12 5 4 0 3 1 0 0 0 1 pay through mobile device, view and redeem credit card rewards. Access Digital Deals. *Because of the confidentiality agreements CG holds with its clients we are unable to disclose the names of the financial institutions reviewed in this study.18 INSPIRED TO HELP YOU SUCCEED © 2013 Carlisle & Gallagher Consulting Group. Proprietary and Confidential.