Overview and survey of mobile payments marketplace - players, potential winners and losers.

1. www.billingviews.com
The Payments Puzzle
Part One

2. Purpose of the Payments Puzzle
Through a campaign of surveys, interviews, analysis and
research, BillingViews aims to identify the winners
and losers in the mobile payments arena.
This will enable operators to:
• Refine the most effective business models
• Make the right partnership choices
• Invest in the right technology and infrastructure

3. Things we know
• Payments are going mobile
• Smartphones will be the battleground
• The eco-system is complicated
• The market is huge - $670bn by 2015

4. The new eco-system
• Banks
• Payments processors
• Telcos
• Google, Apple and friends
• Device manufacturers
vs
• Merchants
• Customers

5. Ecosystem:
Likely winners, losers and maybes
Credit Cards
Banks
Google, Et Devices Merchants Customers
c.
Telcos

6. Likely winners…and why
 Banks –financial strength, regulations & compliance
 Payments processors – trust, established base
? Telcos – reach, micro billing, customer relationships
 Google, PayPal and friends – internet innovation
× Device manufacturers – except Google, Apple
× Merchants – too many options and terminals, expense
? Customers – too many options, ease of
use, competition

7. Many flavors
 NFC
 Wallets
 ISIS and similar
 Carrier billing
 Credit cards – inc. contactless developments
 App store and in-app billing

8. Payment methods:
Likely winners, losers and maybes
ISIS
App Store
NFC Contactless
Carrier
Wallets

9. Take a bet!
? NFC – much loved (much hyped)
? Wallets – backed by Google
? ISIS – serious carrier support $100s of millions invested
? Carrier billing – easy and good for uptake
? Credit cards – trusted and quick
? App store and in-app billing – new, cool, but expensive
for product and content providers

10. So, follow
the smart
money!

11. But the smart money is hedging its bets:
• Carriers are supporting ISIS and other initiatives, while
hoping that carrier billing will win
• Credit cards are backing NFC and wallets while trialing
their own contactless solutions
• Everyone is supporting NFC (or pretending to), but why?
• App stores are cool but expensive –ultimately
merchants will not pay more than 3% and will not pay
more than one provider

12. So – it’s NFC, right?
 45 operators are backing it
The world could move
 Singapore is insisting on it on while we all get ready
 Google and PayPal are right there for NFC prime time.
 Tests are positive
BUT
× Hardly any handsets yet
× Hardly any terminals yet
× Hardly any infrastructure yet

13. So – to the Payments Puzzle
Question 1 is:
Which will be the most popular mobile payment method
in three years’ time (by the end of 2014):
a. Carrier billing
b. Google wallet
c. ISIS (or other JV between carriers)
d. Contactless credit cards
e. PayPal

14. So – to the Payments Puzzle
Question 2 is:
In three years’ time (by the end of 2014) NFC will be:
a. Ubiquitous
b. One of several contactless technologies
c. Be the only alternative to contactless credit cards
d. Have disappeared
e. Be part of the crowd in the mobile payment eco-
system

15. So – to the Payments Puzzle
Question 3 is:
Who will be the dominant players in payments in three
years’ time (by the end of 2014):
a. Banks
b. Telcos
c. Credit card companies
d. PayPal
e. Someone else

16. Let us know:
• Send us an email now with your choice for each
question in the text…
Question 1 Question 2 Question 2
Which will be the most popular By the end of 2014 NFC will be: Who will be the
mobile payment method in three dominant players in
years’ time (by the end of 2014): payments by 2014:
a. Ubiquitous a. Banks
a. Carrier billing
b. One of several contactless b. Telcos
b. Google wallet
technologies c. Credit Card
c. ISIS (or JV between carriers)
c. The only alternative to companies
d. Contactless credit cards
contactless credit cards d. PayPal
e. PayPal
d. Gone e. Other
e. Part of the crowd

17. When the results are in:
• We will publish these results, analyze them, share
them with the world, and take them to mainstream
media outlets.
That’s just the start of the campaign

18. Alex Leslie, Publisher
Part Two
– m-payments, lessons from emerging economies