Mobile Payment = M-payment Micro payment Mobile transfer M-commerce payment ….What is mobile payment ?
Just PaymentIdentity checked transaction initiated from a personal device to settle remotely orproximity based virtual and physical goods & services directly or indirectly via 3rd party billing provider, credit or financial institute.What is mobile payment ?
* Study DMA and IAB In 2010 6.1 trillion messages 4 billion individuals SMS is growing by nearly 30% each year SMS opening rates were above 92%. Versus <25% of brand emails*. 65% were read within 5 minutes and 85%<1hourWe did mobile payments
Operators take 35% Big driver of P2P in unbanked countries Multiple Bio € per annumWe did mobile payments
New Services: operatorbilling centric(Premium) SMS evolves
Services: credit or(operator billing) centricWe do mobile payments
Services: mobile banking Scashen byWe do mobile payments
Person 2 Person, person 2 merchantIntegration with CouponingLocation Based comparison / paymentWebpayments We will do much more
M-payment solutions basically are a combination of:Settlement : operator X bankaccountMethod : “pre-paid” X post-paidTechnology : SMS/Mobile data X NFC & QR Operator Bank account – post-paid Bank account – pre-paid SMS/Mobile Data NFCHow? Create new payment experience
Collaboration versus Competition: Between actors in same industry Between industries Local versus GlobalMobile Payments tomorrow
Profit decomposition ofpayments for European Banks: + 30,2 € Billion Huge benefits of cash displacement : • A 50% reduction of cash transactions will result in 10 € Bio annual savings for European banks -21,2 € Billion • And potentially billions in Cash payments Non-cash payments new revenue streams (credit/debit/transfer) Source: McKinsey Payment Practice What’s at stake?
Operator Centric Benefit Bank Centric Benefit Risk Risk Mobile Payment Provider Collaboration BenefitBenefit Risk Risk bank Telco Merchant Customer Mobile payment providerDifferent models in the world
ISIS group : mid 2012 focus proximity payment: AT&T Mobility, Verizon Wireless, and T-Mobile JV fomr 2012 : ABN Orange and MC, O2 and Amro, ING , Rabobank, Visa : launch mid 2011 KPN, Vodafone, T-Startups and major from 2012 olympics with Mobileinternet players : m- Oyster (2Mio users)commerce andproximity in 2011- Vodaphone, DT:2012 with NFC trials NFC, proximityembedded focus Different activities : Telecom Austria mainly Person 2 announced NFC trials at person remote GSMA. Sms parking and payments. Mio’s of ticketing omni-present users Trial NFC : Turkcell-YAPI Credi- VISA : 40k merchants 1/2011 Avea-Garanti= mastercard 12/10 : 35k merchants , target 100k users Consortium Buys Atos Agreement between : Orange, Origin, Bouygues Telefónica Movistar and Telecom, Orange and SFR ter Vodafone :m-commerce focus+ NFC trial No commercial joint actions . Atos Origin, Bouygues Telecom, Orange and SFR Different models in the world
Will it come?Will it be big?Will it impactthe business?
Square •Processes : $2 billion inWill it come? 2011 •Signs up 800k merchantsWill it be big? 45% UK smartphone users use mobile bankingWill it impact Sms parking has +300.000the business? in Belgium, 30% tickets of the Lijn are sms +60% transport tickets sms Everybody should decide for him/herself; I did.