Learnings from Mobile
Pilots: London and
Beyond
Mary Carol Harris
Head of Mobile
Visa Europe
The Future of Payments
Le Meridien, London
8 July 2008

We have done this for cards…
Future of Payments – 3 July 2008

And now let’s go mobile…
Future of Payments – 3 July 2008

What the phone has that plastic doesn’t
• Connection to the rest of the world
• True mobility - goes wherever their owner goes
• Emotional connection to users (“I feel lost without my phone”)
• A screen, keypad and an Internet connection
• Has transformed from a communications device into an
invaluable tool for a mobile lifestyle
• 18-38 minutes: average time it takes for a mobile customer to
realise phone is lost or stolen
Future of Payments – 3 July 2008

Consumers cannot live without their mobile
• 60%*1 of mobile phone users take the phone to bed with them
• 72% *2 of phone owners use the phone as the alarm clock
• 73%*2 use phone in place of wristwatch
• 33% *2 would rather lose wallet than phone
*1 BDDO survey of 3,000 customers around the world
*2 A Nokia survey of 5,500 consumers
Future of Payments – 3 July 2008

Youth in particular love their mobile – they
have never known a life without one
Youth want to spend all their time with friends, ideally
• when they are not with friends, mobile phone/Internet enable them to keep in
touch
The main thing is to be
online. If it were cheaper
When I get up, come home, whatever, we’d all have PDAs
the first thing I do is put on the M21, Germany
computer because I do everything with
it: work, study, chat, watch films, listen
to music
M20, Germany My Space is a way to socialise – you can
chat with friends, arrange to go out. If
you meet someone at a party you ask if
they are on My Space
F16-17yrs UK
Technology means to be in touch with friends, to enjoy life
Extract from Visa youth consumer research
Future of Payments – 3 July 2008

… and, unprompted, youth want to use
their mobile for payment ...
Payment via mobile phone discussed spontaneously in France, Germany
and Poland as a future possibility
It would be interesting to have Like in some other countries
your card in your mobile phone: we could pay with our phone
you manage your account and you M17, France
can do everything from your
mobile
F21, France
My mobile phone is never
more than a metre away!
Fits with their lifestyle
Need some reassurance on security
Future of Payments – 3 July 2008

The purpose of O2’s trial: customers, not
technology
• What does an NFC lifestyle look like?
• 500 customers – cross section of O2 customer based, London-
based, Oyster users
• Payment application to 225 of 500 trialists - £200 credit given to
trialists
• All applications grouped into the O2 Wallet for ease of use
• Trial consortium – shared costs, shared learnings
• Comprehensive research program for each partner including focus
groups, surveys, in-depth interviews and “tasks”
• Results of trial to be released in June 08
Future of Payments – 3 July 2008

The trial consortium
Future of Payments – 3 July 2008

The O2 Wallet
Future of Payments – 3 July 2008

Future of Payments – 3 July 2008

London Waves Goodbye to Cash!
Future of Payments – 3 July 2008

What Visa on your phone looks like
Future of Payments – 3 July 2008

What consumers have said thus far…
“More is better” – payments
trialists like multiple applications
“I want more places to spend
on their phones so they have less
my money” – more outlets
to carry
where they can use Visa
payWave
“I want this in my normal phone
– the phone seems like a step
backwards” – NFC in higher-end
devices
“At first I was nervous about security,
with money on my phone, but it’s
actually safer than cash. My phone is
never more than a metre away” –
security concerns ease with time and
habit
Future of Payments – 3 July 2008

Other London learnings
• Make it easier for consumers to get their Visa on their phones
– OTA downloads, personalisation – consumer just want a card on their phone! Fast!
• Working together makes it happen – partnering delivers results
– Operators and banks working together is key!
• Security still a concern
– Consumer trust builds with time, but new mobile environment presents new
challenges for payments
• Full trial results to be announced this month with consortium
Future of Payments – 3 July 2008

Future of Payments – 3 July 2008