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Is there REALLY a market for mobile payments in the US?
 

Is there REALLY a market for mobile payments in the US?

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This is the presentation that was given on October 5, 2009 by mPay Connect at Google regarding the US market for mobile payments. The event is part of a Mobile Payments Series produced by mPay ...

This is the presentation that was given on October 5, 2009 by mPay Connect at Google regarding the US market for mobile payments. The event is part of a Mobile Payments Series produced by mPay Connect and co-hosted by Harvard Business School Tech Club and the Wharton Club of Northern California. To download the 1-hour event video, go to: www.mpayconnect.com

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    Is there REALLY a market for mobile payments in the US? Is there REALLY a market for mobile payments in the US? Presentation Transcript

    • Mobile Payments Series Event #2 TM Linked In Group: Mobile Payments Series – mPay Connect Is there REALLY a market for mobile payments in the US? Menekse Gencer Mail: mgencer@mpayconnect.com Mobile Payments Skype: meneks80 Event #2 @ Google Company: www.mpayconnect.com October 5, 2009
    • About the Mobile Payments Series Event #2 Objectives • To educate professionals on topics around mobile payments • To provide networking and a hub for business development • To spur innovation in this industry • To bridge the gap between the US with the rest of the world in this field Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 2 mgencer@mpayconnect.com
    • Background Menekse Gencer, Founder of mPay Connect • 16 years in Wireless, High Tech, and Financial Services • PayPal Mobile: Led Business Development. Closed PP’s first mobile deal (Sprint “Send Money”) • mPay Consulting: US prepaid mobile operator, SKTelecom, Citi, Wells Fargo, EARN • Board Member of Mobile Money Africa, Conference Speaker MMT Dubai, Philippines • Wharton MBA ‘98, Harvard BA Economics ’93 • Triathlete, Bay swimmer, Local singer, Dive Master, Avid traveler For more information mgencer@mpayconnect.com www.mpayconnect.com www.twitter.com/mpayconnect Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 3 mgencer@mpayconnect.com
    • Is there REALLY a market for mobile payments in the US? 1. Mobile Payments defined 2. What makes the U.S. different from other markets for mobile payments? 3. Panel discussion Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 4 mgencer@mpayconnect.com
    • Agenda 1. Mobile Payments defined 2. What makes the U.S. different from other markets for mobile payments? 3. Panel discussion Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 5 mgencer@mpayconnect.com
    • What is: Mobile Payments (as it relates to the US)? Mobile Financial Services Mobile Payments Mobile Microfinance Microfinance Mobile Banking Mobile Banking P2P C2B B2B Loans Transactional Informational • Mobile Money Transfer • Mobile online • Replace cash in • Disbursement • Mobile bill payment • Alerts • Domestic or International (e.g. eBay or ringtones) supply chain • Repayment • Brokerage • Account balance & Mobile remittances • At store • Savings history (proximity payments) • Insurance Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 6 mgencer@mpayconnect.com
    • Agenda 1. Mobile Payments defined 2. What makes the U.S. different from other markets for mobile payments? 3. Panel discussion Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 7 mgencer@mpayconnect.com
    • US has no significant commercial mobile payments deployments today as is found elsewhere Mobile Payments Systems 10 mil Japan Kenya Philippines 5 mil Active Users Philippines 1 mil S. Korea S. Africa Tanzania 2000 2005 2007 2008 Launch Date Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 8 mgencer@mpayconnect.com
    • US #1 in payments revenues …but has historically lagged in mobile penetration (due to high Internet/PC penetration) Payments Revenues $ Bill (2007) Mobile Penetration (2005) Mobile Penetration 2005 300 U.S. 70% 250 200 150 282 275 Italy 124% 237 100 50 60 60 Hong Kong 123% 0 US Europe Asia LatAm ROW Source: McKinsey Global Payments Map Source: ITU (LatAm data is for 2006) Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 9 mgencer@mpayconnect.com
    • The U.S.: #1 in credit and debit card usage …don’t cards work well enough already? • By 2010, US cardholders = 181 million (Source: Census Bureau) • Average American = 5.4 cards. 1:10 > 10 credit cards (Source: Experian marketing insight snapshot, March 2009) • In 15 years, debit card 1%  50% non-cash transactions (Source: Tower Group, August 2009) • 84% of students have credit cards (Source: Sallie Mae, April 2009) • Today, 50% of college undergraduates have 4 or more credit cards (Source: Sallie Mae, April 2009) Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 10 mgencer@mpayconnect.com
    • … but 70 million Americans are unbanked and under-banked and pay mostly in cash Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 11 mgencer@mpayconnect.com
    • …and many of the unbanked remit (and have mobile phones) US = #1 country in remittances sent U.S. 2006 Demographics Total in USA 34,860,000 Mexico 9,600,000 13% China 1,900,000 Philippines 1,700,000 India 1,610,000 87% Vietnam 1,200,000 Cuba 1,100,000 Source: World Bank Immigrants Source: United Nations, International Organization for Migration, US Census Only 25% of remitters to Mexico have a bank account! Source: Orozco, Manuel (2004) Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 12 mgencer@mpayconnect.com
    • Overall, cash and check are still used a LOT (although decreasing in usage) US Payment instrument growth rates – 2005-2010 Number of transactions Billions CAGR, 2005-2010 2005 2010 -5% Check* 32 24 73% 57% -2% Cash 132 116 Total 2% 225 244 Credit Card 4% 21 26 ACH 8% 13 19 Other** 12% 2 3 * Refers to checks paid and excludes checks converted to ACH for Sig. Debit 16% 15 31 clearing. Also includes travelers checks and money PIN Debit 17% 8 18 orders ** Includes EBT, EMT, book entry transfers Prepaid 19% 3 7 and wire transfers Source: McKinsey Payments Map Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 13 mgencer@mpayconnect.com
    • …for parking meters, coffees, and subways …but does that a market make? Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 14 mgencer@mpayconnect.com
    • In the U.S., is there a NEED… is there a MARKET for mobile payments? ? Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 15 mgencer@mpayconnect.com
    • Agenda 1. Mobile Payments defined 2. What makes the U.S. different from other markets for mobile payments? 3. Panel discussion Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 16 mgencer@mpayconnect.com
    • Today’s Panel Arjan Schutte Dion Lisle Dhidha Timona Associate Director, Executive VP President CFSI Citigroup Shaka Mobile Financial Services for Unbanked Growth Ventures & Innovation MVNO for Africans in US Scott Shaw Gabriel Torres Menekse Gencer, Moderator President Vice President, Bus. Dev. Founder Aliaswire Affinity Global Services mPay Connect Consulting Mobile payments platform Platform for mobile remittances Bus. Dev. & Product Strategy Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 17 mgencer@mpayconnect.com
    • Final Thoughts: U.S. = Collection of Segments Understand segment’s needs for alternative methods of payments Average U.S. Consumer Segmenting the U.S. Do they need mobile payments? population & their needs Retail iPhone Users credit card users Unbanked remitters Students Public Transit Users Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 18 mgencer@mpayconnect.com
    • Thank you! To be notified of future events, join Linked In Group: “Mobile Payments Series – mPay Connect” To download video of this event: http://mpayconnectevent2.eventbrite.com/ Menekse Gencer: mgencer@mpayconnect.com www.mpayconnect.com www.twitter.com/mpayconnect Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 19 mgencer@mpayconnect.com
    • To download the video of this presentation and panel event www.mpayconnect.com Mobile Payments Series, Event #2 mPay Connect, Inc. Oct. 5, 2009 20 mgencer@mpayconnect.com