THE 50,000’!
PRIMER ON !
MOBILE
PAYMENTS!
KRIS ZANULDIN!
@kzanul!
WHAT IS MOBILE
PAYMENTS?!

Mobile Payments means different things to different people but
it’s all rapidly converging!

On...
IN-STORE MOBILE PAYMENTS
IS A RAPIDLY EVOLVING BUT
FRAGMENTED SPACE!
Solutions have to balance customer disruption, mercha...
NFC!
Leveraging the same contactless technology as plastic cards,
NFC enables a mobile to emulate a plastic contactless ca...
NFC Example: ISIS
•  NFC wallet consortium
of AT&T, T-Mobile and
Verizon in the US.!
•  Secure Element on the
SIM.!
•  AME...
IN-STORE THROUGH
THE CLOUD!
Payments are initiated in-store through the mobile but payment credentials are stored
and retr...
IN-STORE CLOUD EXAMPLE: 

PAYPAL WALLET!
Customer “checks-in” to merchant via PayPal
app OR app automatically checks-in
Cu...
BEACONS + CLOUD =
INTERESTING OPPORTUNITY!
Bluetooth LE (Smart) beacons allow applications to create
rules and experiences...
MAKING MAG-STRIPE COOL!
Alternate payment methods are emerging that try to circumvent
the disruptions of newer technology ...
THE FUTURE VALUE OF MOBILE
PAYMENTS IS NOT THE PAYMENT
ITSELF (MY OPINION)!
Mobile payments needs to extend its reach to i...
THANK YOU!!
Upcoming SlideShare
Loading in …5
×

A 50k' Primer On Mobile Payments

720 views

Published on

There's a ton going on in Mobile Payments but it can get confusing very fast!

For those interested but not close to it all - I put together a little 50,000' primer that I've used to explain the different approaches to Mobile Payments.

Published in: Marketing, Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
720
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
39
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

A 50k' Primer On Mobile Payments

  1. 1. THE 50,000’! PRIMER ON ! MOBILE PAYMENTS! KRIS ZANULDIN! @kzanul!
  2. 2. WHAT IS MOBILE PAYMENTS?! Mobile Payments means different things to different people but it’s all rapidly converging! Online Payments! In-store Payments! What Is it?! Using your mobile to shop and pay online! What Is it?! Using your mobile to pay instore, usually at a physical point of sale! Key Capabilities! One-click checkouts ! 3-D secure! Key Capabilities! NFC / SE! QR / Bar Codes
 Check-in / Bluetooth! Why Is It Important?! Mobile is a rapidly growing share of online commerce traffic! CONVERGENCE! Why Is It Important?! Value add functionality can be added to the mobile experience vs. traditional plastic!
  3. 3. IN-STORE MOBILE PAYMENTS IS A RAPIDLY EVOLVING BUT FRAGMENTED SPACE! Solutions have to balance customer disruption, merchant disruption, security, convenience and cost. ! NFC Rails! In-Store Over Cloud! Magstripe with Mobile! Card present payments leveraging contactless technology and secure elements either through embedded, SIM/UICC Card or in the cloud.! Card not present payments that are processed in the cloud via an in-store initiation method (e.g. QR/Bar Code, Bluetooth/Checkin)
 Card present payments that leverage or emulate traditional mag-stripe technology on or in conjunction with mobile to take advantage of wide acceptance! ! Examples: Loop, Coin! 
 ! Examples: ISIS, RBC Secure Cloud, Suretap! 
 Examples: PayPal Wallet, Square Wallet, Starbucks!
  4. 4. NFC! Leveraging the same contactless technology as plastic cards, NFC enables a mobile to emulate a plastic contactless card.! Pros! Cons! Key Terms! •  Minimizes merchant disruption by leveraging existing contactless terminals! •  “Perso”-ing a mobile device or cloud with secure credentials for NFC is complicated and expensive.! •  TSM: Trusted Service Managers that help distribute secure data between the service providers and secure element owners.! •  Card Present EMV transaction with similar security to a Contactless Chip Card! •  Apple devices to-date do not have NFC. Requires a sleeve/MicroSD add-on.! •  •  Lifecycle management and maintenance of credentials on the device adds additional cost and complexity.! Secure Element: Tamper proof, standalone element on the phone (or cloud) that contains payment credentials. Can be owned by Mobile Operators, OEM Manufacturers or Issuers (Cloud)! •  “Tap to pay” is a familiar behavior that is easily explained to customers! 4!
  5. 5. NFC Example: ISIS •  NFC wallet consortium of AT&T, T-Mobile and Verizon in the US.! •  Secure Element on the SIM.! •  AMEX, Serve and Chase payment cards can be added to the wallet.! •  Allows offers and loyalty cards to also be loaded to the wallet.! 5
  6. 6. IN-STORE THROUGH THE CLOUD! Payments are initiated in-store through the mobile but payment credentials are stored and retrieved on the cloud which in turn will communicate with the merchant POS! Initiation Method! QR / Barcode! ! Bluetooth! /Check In! Pros! Cons! Key Terms! •  Easier lifecycle management and setup with credentials stored on the cloud vs. NFC.! •  Disruptive for merchants to adopt due to POS integration requirements.! •  Cloud Payments: Storing and accessing payment credentials in real time on the web.! •  Depending on the initiation method – can enable a “hands free” payment experience! •  Card not present payment which risks higher fraud rates.! •  •  Checkout experience can be less intuitive and more difficult to explain vs. “tap to pay”.! Bluetooth LE: Low power wireless technology that exists on most smartphones. Highly flexible when used in conjunction with applications for proximity detection and low size data transfer.! 6! •  Apple devices can utilize almost all of these initiation methods.!
  7. 7. IN-STORE CLOUD EXAMPLE: 
 PAYPAL WALLET! Customer “checks-in” to merchant via PayPal app OR app automatically checks-in Customer with PayPal Beacon proximity detection (requires customer opt-in)! At the POS, Merchant confirms Customer and confirms order. Payment is made over the cloud. ! Customer receives receipt over email or SMS.!
  8. 8. BEACONS + CLOUD = INTERESTING OPPORTUNITY! Bluetooth LE (Smart) beacons allow applications to create rules and experiences that are triggered based on highly accurate proximity detection. These use cases can be flexible and used for marketing, servicing and payments.!
  9. 9. MAKING MAG-STRIPE COOL! Alternate payment methods are emerging that try to circumvent the disruptions of newer technology be leveraging traditional mag-stripe. Big short-term benefits but long term questions. ! LOOP! COIN! (Initial) Pros! (Initial) Cons! •  Widescale acceptance of mag-stripe terminals and does not require any additional merchant-side investment or disruption.! •  Outside of the US – most markets are EMV. Terminal behavior when encountering a mag-swipe could lead to negative customer experiences.! •  Easy and intuitive customer experiences (swipe with Coin) or (tap with Loop).! •  Security concerns on mag-stripe as most of the industry has moved to EMV 9   and chip.!
  10. 10. THE FUTURE VALUE OF MOBILE PAYMENTS IS NOT THE PAYMENT ITSELF (MY OPINION)! Mobile payments needs to extend its reach to include pre-purchase, purchase and post-purchase use cases in a single experience.! PURCHASE! MARKETING & SERVICE! LOYALTY!
  11. 11. THANK YOU!!

×