Mobile wallet presentation

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  • 1. Mobile Wallets Current Trends and Future Prospects October 24, 2013 Wednesday, October 23, 13
  • 2. What Exactly is a Mobile Wallet? ‣ ‣ ‣ ‣ An application on the mobile phone that processes electronic payments. A mobile device that has a secure element associated with it that allows important financial and personal data to be stored on the phone. A service that lets users integrate payment, loyalty, account history, and financial instruments all in one application. A service that is usually targeted to cardholders, although some offers do focus on merchants. Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 2 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 3. Currently over 150 mobile wallet initiatives in the world! Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 3 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 4. Let’s Simplify it a Bit... Merchant focus Holistic focus Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 4 Cardholder focus www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 5. Agenda ‣ Recent Announcements and Their Implications ‣ Consumer Attitudes and Apathy ‣ The Mobile Wallet Simple Matrix ‣ Trends for the Future Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 5 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 6. Agenda ‣ Recent Announcements and Their Implications ‣ Consumer Attitudes and Apathy ‣ The Mobile Wallet Simple Matrix ‣ Trends for the Future Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 6 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 7. Recent Announcements ‣ ‣ ‣ ‣ ‣ Loop rolling out mobile wallet that works at 90% of retailers ‣ Boston Business Journal, October 21, 2013 How Will the Isis Mobile Wallet Stand Out? ‣ All Things D, October 16, 2013 Central Bank approval awaited for mobile wallet ‣ GulfNews.com, October 22, 2013 Mobile wallet progress stalled in 2013, but could heat up in 2014 ‣ American Banking Journal, October 15, 2013 Google Wallet Gets an Update ‣ The Street, October 17, 2013 Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 7 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 8. Agenda ‣ Recent Announcements and Their Implications ‣ Consumer Attitudes and Apathy ‣ The Mobile Wallet Simple Matrix ‣ Trends for the Future Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 8 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 9. Consumer Attitudes ‣ 79% of consumers remain concerned with security of payment information stored on wallet Identification of Drivers - 34% of overall respondents would use a mobile wallet to originate payments First Data Universal Commerce Tracker Study, 2013 ‣ UK Study FC Business Intelligence LTD, 2013 ‣ ‣ 49% for 25-34 year olds ‣ 55% for 18-24 year olds ‣ ‣ 46% for smart phone users 51% when incentive is offered However, studies in the US indicate that over 60% of consumers are not interested in a mobile wallet. Why the apathy? Consult Hyperion, 2013 Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 9 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 10. Why the Mobile Wallet Apathy? We have established that security is one key reason for low interest in mobile wallets...but maybe a stronger reason is in front of us in plain sight....could it be that 100% of smart phones already have a mobile wallet on them? The simple answer is YES! Beyond safety issues, consumer apathy is due to two reasons: ✓ Mobile wallet offers are too many and too fragmented ✓ Value offering is not yet strong enough Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 10 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 11. Agenda ‣ Recent Announcements and Their Implications ‣ Consumer Attitudes and Apathy ‣ The Mobile Wallet Simple Matrix ‣ Trends for the Future Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 11 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 12. Mobile Wallet Simple Matrix Alternative (Cash or other method) Cimbal Western Union Dwolla MCX YeCel PayPal P2P Cardholders Merchants PayPal Here GoPago Square Register MocaPay Tabbed Out Square Cash PayPal Prepaid Paydiant KuaPay Level Up Roam X4 Google Wallet Corduro Isis Square Reader Mobile Pay Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 Square Wallet Corduro Traditional (Visa / MC) 12 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 13. Mobile Wallet Simple Matrix Alternative (Cash or other method) Cimbal Western Union Dwolla MCX YeCel Legend Competition Clusters PayPal Here PayPal P2P Niche Solutions GoPago Omnicommerce Players Cardholders Merchants Square Cash Solutions on Y axis are P2P focused Square Register Tabbed Out MocaPay Square Cash PayPal Prepaid Paydiant KuaPay Level Up Roam X4 Google Wallet Corduro Isis Square Reader Mobile Pay Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 Square Wallet Corduro Traditional (Visa / MC) 13 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 14. Agenda ‣ Recent Announcements and Their Implications ‣ Consumer Attitudes and Apathy ‣ The Mobile Wallet Simple Matrix ‣ Trends for the Future Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 14 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 15. Future Trend # 1 Alternative (Cash or other method) Cimbal Western Union Dwolla MCX YeCel Legend Competition Clusters PayPal Here PayPal P2P Niche Solutions GoPago Omnicommerce Players Cardholders Merchants Square Cash Solutions on Y axis are P2P focused Square Register Tabbed Out MocaPay Square Cash PayPal Prepaid Paydiant KuaPay Level Up Roam X4 Google Wallet Corduro Isis Square Reader Mobile Pay Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 Square Wallet Corduro Traditional (Visa / MC) 15 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 16. Future Trend # 1 Consolidation of vendors in competition clusters Cimbal Dwolla P2P cluster GoPago Big retailer cluster Google Wallet Square Register Isis Tabbed Out Square Wallet Corduro Cardholder cluster Paydiant Small retailer cluster KuaPay Level Up Roam X4 Corduro Square Reader Mobile Pay Activities and Comments Square to strengthen market position via increased acquisition of vendors / vendors run out of money and fall out / one or two key competing players by cluster / fewer new mobile wallet offerings / PayPal absent in clusters Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 15 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 17. Future Trend # 2 Alternative (Cash or other method) YeCel Merchants Cardholders Traditional (Visa / MC) Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 16 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 18. Future Trend # 2 Alternative (Cash or other method) Strongest opportunity for new mobile wallet development lies in this quadrant YeCel Merchants Cardholders Traditional (Visa / MC) Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 16 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 19. Future Trend # 2 Expect new solutions that focus on the consumer but that offer alternative means of payment outside of traditional card products. Strongest opportunity for new mobile wallet development lies in this quadrant Activities & Comments Mobile wallets focused on direct carrier billing / non-payment mobile wallets offering payment wallets / cross offering of non-payment wallets with mobile payment wallets / barriers to entry are lowest in this quadrant Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 16 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 20. Future Trends # 3 Alternative (Cash or other method) Cimbal Western Union Dwolla MCX YeCel Legend Competition Clusters PayPal Here PayPal P2P Niche Solutions GoPago Omnicommerce Players Cardholders Merchants Square Cash Solutions on Y axis are P2P focused Square Register Tabbed Out MocaPay Square Cash PayPal Prepaid Paydiant KuaPay Level Up Roam X4 Google Wallet Corduro Isis Square Reader Mobile Pay Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 Corduro Square Wallet Traditional (Visa / MC) 17 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 21. Future Trends # 3 PayPal and Square battle it out to become the de facto mobile wallet of choice for merchants, however there may be room for other players in certain merchant categories PayPal Here Square Cash PayPal P2P Square Register Corduro PayPal Prepaid Square Reader Corduro Square Wallet Activities and Comments Both companies continue to expand their offering / solutions increasingly technology agnostic / Square issues a prepaid card / PayPal looks to gain strength via differentiation from other solutions / Square purchases clones in emerging and mature markets / PayPal most likely to become dominant over Square Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 17 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 22. Future Trend # 4 Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 18 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 23. Future Trend # 4 From an end consumer perspective, mobile wallets will not exist as stand alone, payment only services. Activities and Comments Financial institutions extend mobile banking services to include mobile payments / partnerships between FI’s and non-FI’s increase / Apple Passbook integrates payment / exception with P2P services Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 18 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 24. Future Trend # 5 Alternative (Cash or other method) Cimbal Western Union Dwolla MCX YeCel Legend Competition Clusters PayPal Here PayPal P2P Niche Solutions GoPago Omnicommerce Players Cardholders Merchants Square Cash Solutions on Y axis are P2P focused Square Register Tabbed Out MocaPay Square Cash PayPal Prepaid Paydiant KuaPay Level Up Roam X4 Google Wallet Corduro Isis Square Reader Mobile Pay Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 Square Wallet Corduro Traditional (Visa / MC) 19 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 25. Future Trend # 5 A few solutions will establish themselves in niches MocaPay MCX Western Union PayPal P2P PayPal Here YeCel Square Cash PayPal Prepaid Activities and Comments Solutions mostly targeted to end users and not merchants / heavy focus on alternative forms of payment outside of Visa, MasterCard, and American Express / tied to prepaid cards or gift cards Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 19 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 26. Emerging Markets Focus ‣ ‣ Emerging markets are laggards in mobile wallet adoption Key Drivers: ‣ Smart phone availability (currently at less than 40%) ‣ 3G availability ‣ WiFi availability ‣ Sound regulation by government entities - ex: Brazil ‣ ‣ ‣ Solutions will be driven by mobile operators and merchants Secure element most likely on SIM Card or Cloud Based Expect these markets to catch up to mature markets in 3 to 5 years Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved Wednesday, October 23, 13 20 www.paytroniks.com I info@paytromiks.com I 469-271-4774
  • 27. Thank&you!&&¡Gracias!&&Obrigado!& Follow us on Linkedin! Scan the QR code of go to www.linkedin.com/company/ paytroniks and click on the “Follow” button Mobile Wallets Current Trends and Future Prospects October 24, 2013 Wednesday, October 23, 13