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Neu pai mobile pay 2011

Neu pai mobile pay 2011






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    Neu pai mobile pay 2011 Neu pai mobile pay 2011 Presentation Transcript

    • Developing the nextgeneration of payments Dion Lisle Mobile Payments Advisor dion.lisle@gmail.com NeuPai Confidential
    • 3 Simple Ideas1. Payments is a business worth defending2. Mobile is the platform that will decide the winners but the competitors come from all fields3. Silicon Valley is the HQ of the future of mobile payments
    • Payments Business Pressure Technology Advances Basel III AML Payments Growth of ATF Increased Non-Bank Processors Regulatory PaymentsUnbanked Oversight Banks 29% CAGR Growth Networks MobileRegulations Customer Demands New Companies
    • PayPal Owns Payments ?  Are Banks Ready to accept that PayPal is the center of the mobile and internet payment universe  Note: Banks are now a footnote in the PayPal view Paypal plans to own:  Payments - Platform  Payments - Innovation  Payments – X-Border  Payments - THE DIGITAL WALLET
    • PayPal Mobile  PayPal mobile transactions show dramatic growth, increasing nearly six-fold, from $25 million in 2008 to $141 million in 2009.  Paypal closed out 2010 with over $750 million in mobile payment volume, and more than 5 million members regularly using PayPal from mobile devices.  Paypal predicts over $3 billion in mobile payments for 2012 $3,000 200% CAGR $2,500Millions of $ $2,000 $1,500 $1,000 $500 $0 2008 2009 2010 2011 2012
    • Payments is Big Business What How Much RETAIL IN PERSON Annual Retail Credit Card Charges $ 3.2 trillion Annual Cash and Check Spend $ 1.2 trillion Total # of US Cards – Debit and Credit 1 billion ON-LINE RETAIL On-Line Retail - 2009 $348 billion On-Line Retail – 2014 $778 billion MOBILE RETAIL Mobile Payments Actual in 2009 $ 68 billion Mobile Payments Projected in 2014 $ 633 billion Source: CapGemini • Mobile is more Important than On-Line • Mobile can replace In Person - On-Line Can’t.
    • Non Bank Players Grow  PayPal facilitated $92 billion in total payments volume in 2010  PayPal had revenue of $4.2 billion in 2010  Amazon’s payments business is now growing strong with a set of 10 different payment products and an entire team dedicated to dominating payments  Apple is recruiting a SV based payments team frequently sites their 100 million plus credit cards in iTunes as a differential advantage.  Apple has filed a bevy of patents on NFC  Google has hired Osama Biedier from PayPal to lead their fledgling payment efforts focused on mobile.  Google is working with a major US bank to dominate payments.  Facebook announces the only payment method on FB will be FB. Non-bank Payments are growing at 30% per year
    • Mobile Money Market Mobile Commerce Mobile Banking Mobile Mobile Bank Account BillPay By M-CouponsAdvertising Payments Services Phone Proximity Remote Payments Payments NFC or Barcode Transit P2M P2P P2MMost likely to disrupt retail payments Money Transfers
    • Google Gets It• On-Line commerce • Location • Lessons applied• Swing and a miss • Places matter • The right partners• Good design • NFC based • User experience effort• No consumer uptake • No charge to consumers Google’s Goals Outcomes
    • Groupon Doesn’t 12 Months 11
    • VISA VISA is acquiring innovation in the areas of payments Just Added VISA is in a weak position as they go to consumers through intermediaries – the issuing banks VISA like all players in payments needs to figure out a new model VISA have great assets:  Real-time payment network  Global brand
    • MasterCard MasterCard smartly connected with Google for their NFC Wallet MasterCard has a variety of mobile products on the market  None of the products have been market changing • MasterCard is a clear #2 behind VISA in Debit and Credit • MOTAPS - Mobile Over-the-Air Provisioning Service - NFC provisioning system for card payments
    • New Players - Square  Started as a “Person as Merchant” play with an iPhone dongle into the audio port on an iPhone  Added a consumer wallet called Card Case in May of 2011  Processing $3 million per day in payments at razor thin margins  Took in VISA investment when their market cap climbed to $220 million – now at $1 billion market cap Square Device Square Card Case Card Swipe for Digital Wallet and Micro-Merchants Receipts Square Device sold by Apple in store or on-line
    • Payments - EMV EMV = Europay | Mastercard | Visa  A standard for a chip+pin smartcard that has shown drastic reduction in fraud rates  Widely deployed around the world  the US being the one glaring exception Region EMV Cards Adoption Rate EMV Adoption Rate Terminals Canada, LatAm + 207,715,356 31.2% 3,900,000 76.5% Caribe Asia Pacific 336,602,681 27.9% 3,480,000 43.0% Africa and Middle East 23,003,747 17.6% 345,000 60.7% Europe Zone (Western) 645,472,323 73.9% 10,500,000 89.0% Europe Zone 2 (Eastern) 27,516,286 12.7% 513,600 65.4% USA 0 0 0 0 Totals 1,240,310,3 40.1% 18,738,600 71.1% 93
    • Digital Wallets Google Square Isis Visa ServeNFC Yes No Yes Yes NoMerchants Large Small Large NoPartners Citi/MC Apple ? Carriers + Small Banks American ExpressNetwork Mastercard MC/VISA Discover + VisaNet American ExpressOpen Yes No Maybe Sort of NoAll Smartphones No Yes No Yes YesAll Phones No No No No YesCredit Yes Yes Yes Yes NoDebit TBD Yes Yes Yes YesLoyalty Yes Yes Yes Yes NoOTA Provisioning Yes No Yes No NoSIM Control Yes No Yes no NoStrength Partners Easy to use Carrier Reach Bank Channel Prepaid SmallWeakness Limited phones Merchants Limited phones Bank Channel Reach/BrandReality from 1-10 8 9 5 5 7 16
    • Mobile Invests in Mobile Money  Nokia partners with Obopay to offer Nokia Money  Including a $35 million investment in Obopay  Nokia just opened a new Silicon Valley center with 156,000 square feet and a SV based CTO  Ericsson’s infrastructure team adds a mobile payments business.  In flight for the past 12 months  “To take a driving role in mobile P2P.”  Ericsson owns over 200,000 square feet in development in Silicon Valley  ISIS is officially launched by AT&T and Verizon with Discover and Barclays.  ISIS is investing billions in re-inventing payments with a non-VISA / MC network.  Nokia Siemens Networks and MoreMagic Solutions Partner to Deliver Mobile Commerce and Financial Services
    • Silicon Valley Startups  Carrier Billing companies such as Boku and Zong have billed hundreds of millions of dollars in virtual goods and have plans for real goods.  Both companies have deals with Verizon  Zong has a deal with Facebook for Facebook credits  Square is processing tens of millions in payments for small merchants with big plans to tap into social money.  Shopkick is a startup focused on connecting merchants to their customers for offers and loyalty. Company Valuations 2009 2011 Square $20 million $220 million Shopkick $10 million $80 million 5X increase Zong $25 million $115 million in 2 years Boku $25 million $100 million * Valuations are estimates based on knowledge and rumor
    • Its Commerce Not Payments On-Line Retail and Identity Brand Preference Transaction Personal UX Data Data Brand Preferences experience Location Affinity Data Consumer Chooses Service Device/OS Providers Contextual Relevance Physical Retail