Mobile Payments: Ringing the changes

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Mobile Payments: Ringing the changes

  1. 1. Mobile Payments: Ringing the changesReport Details:Published:September 2012No. of Pages: 58Price: Single User License – US$4495The mobile payments market has expanded substantially in recent years, and after muchspeculation the sector is finally beginning to take shape. This report provides an overview of thedifferent types of mobile payment now emerging, the challenges they face, and key player casestudies on some of the most high profile service launched to date.Features and benefits•Gain a better understanding of where your company fits into the mobile payments ecosystem through detailed market mapping and definitions.•Plan effectively through up to date case studies of mobile payment developments globally•Understand where the market may be heading with Datamonitors analysis of the latest key trends in mobile payments•Form your companys strategy using Datamonitors roadmap of mobile payments.HighlightsThe mobile payment space has branched into remote mobile payments, where handheld devicesare used to enact online purchases, and proximity mobile payments, where a handheld device isused to enact a purchase in person at the POS. A third branch is now emerging involving mobilePOS acceptance, with significant implications for the industry.Despite expectations stretching back to the late 90s, NFC has yet to materialise in any substantialway in developed markets. The slow path to market maturity with the need for expensiveinfrastructure has led to some speculation that cloud enabled payments, which can be rolled out toexisting hardware quickly may be the next stage of development.The number of mobile payment developments increased by 500% between 2007 and 2012. Therate of development shows no sign of slowing down in the near term. Most developments arefocused on advanced economies, even as demand for mobile payments remains significantlyhigher in emerging economies.Your key questions answered•What are the different types of mobile payments on the market today? What are the strengths, weaknesses and implications of each of them?•Are there any alternatives to NFC? What are cloud payments?•How have consumers reacted to mobile payments? What is the global situation like? Is demand the same everywhere?
  2. 2. •What mobile products have already launched? What do they demonstrate about the mobile payments market?Get your copy of this report @http://www.reportsnreports.com/reports/195673-mobile-payments-ringing-the-changes.htmlMajor points covered in Table of Contents of this report includeTable of ContentsOVERVIEWCatalystSummaryEXECUTIVE SUMMARYMobile Devices are Opening New Opportunities in PaymentsMobile technology is changing consumer behaviorConsumers react positively to the use of mobiles in the financial services sectorRemote and proximity payments: defining the two distinct types of mobile paymentsThere is No Standard Business Model for Mobile PaymentsService-driven vs revenue-driven model: retailers play an important role in the revenue value chainSingle-led vs collaborative-led model: maximizing share benefits through collaborationThe Road to Mobile Payments is Becoming BusierMobile payment developments have intensified in 20122012: a year of implementation for mobile paymentsCloud-based payments are set to disrupt the mobile payments industry by providing alternatives toNFCWhile the market continues to take shape its overall form remains unsettledMOBILE DEVICES ARE OPENING NEW OPPORTUNITIES IN PAYMENTSMobile technology is changing consumer behaviorMobile phones are the enablers of the new payment revolutionThe possibilities are endless as new smartphone features open up unique paths to the paymentindustryConsumers react positively to the use of mobiles in the financial services sectorThe majority of consumers like the idea of using mobile devices for their banking and paymentsMobile payments show strong potential in the emerging countriesRemote and proximity payments: defining the two distinct types of mobile paymentsMobile remote payments: mobiles as a tool to transfer funds to a third partyMobile proximity payments: displacing plastic cards at the POS is not an easy taskMobile as a payment acceptance tool offers new business cases for the payment industryDigital wallets act as a payment hub for both remote and proximity paymentsTHERE IS NO STANDARD BUSINESS MODEL FOR MOBILE PAYMENTSService-driven vs revenue-driven model: retailers play an important role in the revenue value chainService-driven model: in the absence of retailers, a reduction on payment costs is the focusMobile P2P apps provide convenience for customers and potential cost reductions for banks as a
  3. 3. result of reduced cash handlingRevenue-driven model: retailers are currently paying fees to accept payment cards, and this mayhave a positive view toward accepting mobile paymentsSingle-led vs collaborative-led model: maximizing share benefits through collaborationWhen there is no potential direct revenue as part of the payment process, there is no businesscase to collaborateThe Singapore government hosted a call for collaboration to fast-track the formation ofinteroperable NFC infrastructureTHE ROAD TO MOBILE PAYMENTS IS BECOMING BUSIERMobile payment developments have intensified in 2012The mobile payment industry is focusing on developed countries, leveraging advanced paymentinfrastructuresMobile payment developments in 2012 have shifted toward global scale activitiesThe global payment industry is choosing advance payment infrastructure over consumer demand2012: a year of implementation for mobile paymentsThe industry faces three stages of developments in mobile paymentsAs NFC payments are progressing slowly, others are exploring new options without NFCMobile banking is evolving beyond just a payment channelIssuers are exploring growth in P2P mobile payments in developed countriesThe industry is trying to formulate a sustainable commercial business model for NFC, while someexplore other non-NFC payment optionsFour NFC payment launches in 2012 break the barriers, converting plans into implementationCloud-based payments are set to disrupt the mobile payments industry by providing alternatives toNFCPayPal has chosen to move forward by providing instore payment apps that work with existingbarcode scannersDeals may provide an incentive to cloud-based paymentsNew entrants are trying to address the weakest link in the future of mobile proximity payments:converting merchant POS registers into smart registersSquare, GoPago, and Tabbedout try to recreate the POS payment ecosystem by controlling boththe consumer payment tool and the store registerPoor execution and a lack of maturity in terms of technology caused poor experiences on the firstround of mobile payment launchesWhile the market continues to take shape its overall form remains unsettledAPPENDIXSupplementary dataDefinitions(Untitled sub-section)MethodologyFurther readingAsk the analystDisclaimer
  4. 4. List of TablesTable: NFC payment launches, 2012Table: Mobile phone usage statisticsTable: Consumer interest in the ability to pay for things in shops with their mobile phoneTable: Proportion of mobile payment developments by region, 2011List of FiguresFigure: Consumers react positively to the use of smartphones in the financial services sectorFigure: Retailers play an important role in the revenue value chainFigure: In terms of mobile proximity payments, collaboration may open up new opportunities andshared benefits to the stakeholdersFigure: Mobile payments developments have grown substantially in recent yearsFigure: New mobile phone features open up new possibilities for the payment industryFigure: Consumers react positively to the use of smartphones in the financial services sectorFigure: Consumer demand for mobile payments differs significantly across countriesFigure: New services such as Square, Sail, and PayPal Here turn mobiles into POS terminalsFigure: Retailers play an important role in the revenue value chainFigure: CBA launched Kaching mobile app to pay without the recipients bank account detailsFigure: In terms of mobile proximity payments, collaboration may open up new opportunities andshared benefits to the stakeholdersFigure: Singapores vision is to grow innovative NFC services in a sustainable NFC ecosystemFigure: Mobile payments developments have grown substantially in recent yearsFigure: In 2011, NFC payments dominated mobile payment activities in the developed countriesFigure: There is strong demand for mobile payments among consumers in emerging countriesFigure: The industry faces three stages of developments in mobile paymentsFigure: Mobile banking evolves in three different stagesFigure: ANZ goMoney allows payment to a mobile phone numberFigure: PayPals inStore app facilitates mobile payments by using barcodes to verify thetransactionFigure: Square bypassed the complexity of the NFC ecosystem by creating its own paymentecosystem for mobile POS paymentsFigure: Google Wallets recent upgrade means that it now supports all credit and debit cardsContact: sales@reportsandreports.com for more information.

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