Around the mobile payments
world
in 35 moves
By Tim Green
Mobile Money Revolution
What‟s happening in the explosive
world of m-commerce and payments?
Here are some interesting products,
service, stats and...
Hurray! Mobile payment
is massive 
Gartner says the market
will be worth
$235.4 billion this year.
Shit, mobile payment
is tiny 
Guess how much of US market retail payments came from
a mobile wallet in 2012?
0.01 per cen...
What gives?
People think mobile payments = mobile
wallets you use in a shop.
Wrong.
So what are mobile
payments?
Five things:
1.
2.
3.
4.
5.

Buying stuff from apps and sites
Transferring money to friends
U...
35 interesting things I’ve seen
Buying stuff
from apps and sites
1. People will buy bulldozers
from their mobile phones

Last year, PayPal‟s largest transaction via mobile app
was a $48,0...
2. There’s big business giving app
makers easy access to
card payments
Give merchants an API to embed card payments in mul...
3. Why fill out long checkout payment
forms when you
could snap a barcode?
Wrap up all the billing and delivery info in an...
4. Don’t bank a cheque or card payment.
Photograph it
Jumio PORT lets you photo a card to make an instant
payment on a mob...
5. Visa V.Me, MasterPass –
PayPal killers?

Visa and MasterCard have created wallets that require a
PIN only to complete a...
6. Pay With Amazon or Facebook

How to make payments quicker on mobile sites?
Use existing payments systems like Amazon.
O...
7. Maybe it’s better for your phone to be
your credit card than to store your credit
card
ARM‟s Trustzone wants to embed c...
Transferring money to
friends
8. ‘Pay by M-Pesa’ is coming to apps and
sites

M-Pesa – 15 million customers in Kenya, more than 165
million transactions...
9. Kenyans are doing
‘save by M-Pesa’ too
M-Shwari launched in November 2012 to add savings and loans.
Customers sign up f...
10. Mobile Money is scaling – kind of
GSMA: there are now 208 live „mobile money for the unbanked‟
services in 83 countrie...
11. Mobile Money for the unbanked could
work in the UK
1.25 million unbanked households in the UK – 4.5 million
unbanked i...
12. PingIt
Pingit started out as a banking app for paying your mates.
You only need to know their mobile number.

1.2m dow...
13. Pay by email

Attach money to your emails – like an image or word doc –
using Google Wallet/Gmail

Or use Square Cash ...
14. Pay by Twitter comment
What if you could just write „buy‟ as a Tweet or Facebook
update to order a product you like.
Y...
15. Social media payments #1:
Pay by BBM

IM apps are now sending payments.
Monitise, BlackBerry and Permatabank teamed up...
16. The P2P payments app – Venmo

Load it up with funds.

Pay other Venmo users.
Zero fees and lots of amusing comments.
Paying for things instore
17. ‘Easy’ – more important than cheap or
clever: Starbucks
Starbucks‟ single-purpose app is the most popular m-payments
s...
18. Bank of Wal-Mart: retailers
do their own thing in m-commerce

In 2012, 14 US retailers formed the Merchant Customer Ex...
19. Mobile vouchers are redeemed 20x
more than paper coupons

Sweden‟s Mobilabs says paper coupons generate an average
one...
20. Mobile NFC – Not Fecking Coming?
No Fecking Chance?
Berg Insight: 3 NFC mobile wallets have an addressable
market of m...
21. NFC m-payment – who owns the
secure element?
Operators want to charge to host the „secure element‟
inside the SIM.
Som...
22. You can put an NFC wallet
in the cloud

NFC tech needs to be embedded in your device, right?
Not necessarily.
A few fi...
23. Push message + loyalty + payment =
the Weve dream…

The UK operator JV wants to push you messages that are
stored auto...
24. Droplet/Wi-Py/Zync

Simple idea: top up a wallet and use the balance to pay a
registered merchant.
App uses GPS to pre...
25. PayPal – pay with your face
Check in with your app via hi-speed Bluetooth „beacons‟.
At the counter, they compare your...
26. Pay by squeal

You need a channel that can transmit data to make
payments.
So how about audio?
Alipay, Cinkle and Nara...
Operator billing
27. You can pay for parking, wi-fi and ebooks with
phone credit

Research has shown operator billing increases transaction...
28. You can buy digital goods
with phone credit – even when you’re on
a desktop site

Thanks to firms like Boku, Mopay, Zo...
29. You can use NFC to make a payment
from your phone bill

txtNation is using RapidNFC tags to do just this.
mPOS
30. Phones will replace cash tills before
they replace wallets
“Paying is not exciting; getting paid is”
This year, Square...
31. Chip and PIN is a problem for mPOS
in Europe
Vendors are using Bluetooth to get around it.
Expensive and unreliable.
Final random thoughts
32. Operators could forget about
payments and focus on identity
If payment details are stored on the cloud, then mobile
tr...
33. Apple won’t do payments.
It’s too risky

Refunds, regulation, customer care, rev shares…
But it might let payments fir...
34. Banking apps could make you more
careful with your money
It‟s a long time since we knew at a moment‟s notice how much ...
35. Anonymity could be a USP – if
anyone bothered to offer it

Digital currency is great for keeping records of transactio...
Contact: Tim Green
tim@mobilemoneyrevolution.co.uk
@timgreen64
0780 373 0343
www.mobilemoneyrevolution.co.uk
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Around the mobile payments world in 35 moves

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A slightly amended version of my previous '35 insights' deck for the Apps World show in London

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Around the mobile payments world in 35 moves

  1. 1. Around the mobile payments world in 35 moves By Tim Green Mobile Money Revolution
  2. 2. What‟s happening in the explosive world of m-commerce and payments? Here are some interesting products, service, stats and innovations…
  3. 3. Hurray! Mobile payment is massive  Gartner says the market will be worth $235.4 billion this year.
  4. 4. Shit, mobile payment is tiny  Guess how much of US market retail payments came from a mobile wallet in 2012? 0.01 per cent.
  5. 5. What gives?
  6. 6. People think mobile payments = mobile wallets you use in a shop. Wrong.
  7. 7. So what are mobile payments? Five things: 1. 2. 3. 4. 5. Buying stuff from apps and sites Transferring money to friends Using a mobile wallet to buy stuff in shops Paying for things with your phone bill Plugging a card reader into your phone to take payments
  8. 8. 35 interesting things I’ve seen
  9. 9. Buying stuff from apps and sites
  10. 10. 1. People will buy bulldozers from their mobile phones Last year, PayPal‟s largest transaction via mobile app was a $48,000 bulldozer.
  11. 11. 2. There’s big business giving app makers easy access to card payments Give merchants an API to embed card payments in multiple currencies – in return a transaction fee. Examples: Zooz, Stripe, Judo, Braintree PayPal paid $800m for Braintree.
  12. 12. 3. Why fill out long checkout payment forms when you could snap a barcode? Wrap up all the billing and delivery info in an app. Snap a barcode on a compatible site and the payment is made. Examples: MPayMe, Paddle, Ensygnia, SEKURme
  13. 13. 4. Don’t bank a cheque or card payment. Photograph it Jumio PORT lets you photo a card to make an instant payment on a mobile site. Then stores it in Passbook, Samsung Wallet for next time. Also see PicturePay, Malauzai Software, Card.io
  14. 14. 5. Visa V.Me, MasterPass – PayPal killers? Visa and MasterCard have created wallets that require a PIN only to complete a online/mobile payment.
  15. 15. 6. Pay With Amazon or Facebook How to make payments quicker on mobile sites? Use existing payments systems like Amazon. Or „auto-fill with Facebook‟…
  16. 16. 7. Maybe it’s better for your phone to be your credit card than to store your credit card ARM‟s Trustzone wants to embed card details into the chipset of your phone. That way, your phone would not access your card, it would be your card.
  17. 17. Transferring money to friends
  18. 18. 8. ‘Pay by M-Pesa’ is coming to apps and sites M-Pesa – 15 million customers in Kenya, more than 165 million transactions per month. Now, Safaricom will open up its API to see how developers can integrate M-Pesa into their own apps and sites.
  19. 19. 9. Kenyans are doing ‘save by M-Pesa’ too M-Shwari launched in November 2012 to add savings and loans. Customers sign up for a savings account directly through the M-Pesa menu. No forms to complete and no need to visit a bank branch. In two months, the scheme banked $11.6m.
  20. 20. 10. Mobile Money is scaling – kind of GSMA: there are now 208 live „mobile money for the unbanked‟ services in 83 countries. But card makers and governments are resisting. Mexico‟s Transfer – América Móvil Banamex, Banco Inbursa and Gemalto link bank accounts to phones.
  21. 21. 11. Mobile Money for the unbanked could work in the UK 1.25 million unbanked households in the UK – 4.5 million unbanked individuals. Mobile money distributes credit faster and more cost-effectively. Government is working on pilots.
  22. 22. 12. PingIt Pingit started out as a banking app for paying your mates. You only need to know their mobile number. 1.2m downloads. Now it‟s also Buy It – for buying retail products.
  23. 23. 13. Pay by email Attach money to your emails – like an image or word doc – using Google Wallet/Gmail Or use Square Cash – CC @Square.com in the email menu
  24. 24. 14. Pay by Twitter comment What if you could just write „buy‟ as a Tweet or Facebook update to order a product you like. You can. Examples: Chirpify, Soldsie, Yandex.
  25. 25. 15. Social media payments #1: Pay by BBM IM apps are now sending payments. Monitise, BlackBerry and Permatabank teamed up, so Indonesian users can now pay by BBM
  26. 26. 16. The P2P payments app – Venmo Load it up with funds. Pay other Venmo users. Zero fees and lots of amusing comments.
  27. 27. Paying for things instore
  28. 28. 17. ‘Easy’ – more important than cheap or clever: Starbucks Starbucks‟ single-purpose app is the most popular m-payments service in the US. 4m mobile transactions a week from 10m users – 10 per cent of all US revs. Why? Because it‟s simple. It just works.
  29. 29. 18. Bank of Wal-Mart: retailers do their own thing in m-commerce In 2012, 14 US retailers formed the Merchant Customer Exchange a single QR code based wallet MCX represents merchants with more than $1 trillion in annual sales across nearly every merchant vertical.
  30. 30. 19. Mobile vouchers are redeemed 20x more than paper coupons Sweden‟s Mobilabs says paper coupons generate an average one or two per cent redemption rate, while mobile does 33 per cent. And when the offer is free, mobile can hit 66 per cent.
  31. 31. 20. Mobile NFC – Not Fecking Coming? No Fecking Chance? Berg Insight: 3 NFC mobile wallets have an addressable market of more than 100,000 people. Still, big hitters committed to it: Isis, Google, Weve, Samsung, Vodafone…
  32. 32. 21. NFC m-payment – who owns the secure element? Operators want to charge to host the „secure element‟ inside the SIM. Some banks prefer to work with OEMs: “Because by having deals with Samsung, BlackBerry, Nokia and Apple you‟ve covered the world.”
  33. 33. 22. You can put an NFC wallet in the cloud NFC tech needs to be embedded in your device, right? Not necessarily. A few firms – RBC, Bankinter – have launched platforms that put the security features of NFC in the cloud. It‟s NFC by app.
  34. 34. 23. Push message + loyalty + payment = the Weve dream… The UK operator JV wants to push you messages that are stored automatically in your loyalty wallet and can be paid for instantly via NFC.
  35. 35. 24. Droplet/Wi-Py/Zync Simple idea: top up a wallet and use the balance to pay a registered merchant. App uses GPS to present you with payment screen. Tap in amount – and „pay‟. No fees for anyone.
  36. 36. 25. PayPal – pay with your face Check in with your app via hi-speed Bluetooth „beacons‟. At the counter, they compare your face with your PayPal profile. If it matches, you‟re done.
  37. 37. 26. Pay by squeal You need a channel that can transmit data to make payments. So how about audio? Alipay, Cinkle and Naratte are all using inaudible sound to send payment information.
  38. 38. Operator billing
  39. 39. 27. You can pay for parking, wi-fi and ebooks with phone credit Research has shown operator billing increases transactions by up to 13 times. Used to be for ringtones… now wi-fi access, parking, premium access to flat sharing schemes, console gaming „points‟ and more.
  40. 40. 28. You can buy digital goods with phone credit – even when you’re on a desktop site Thanks to firms like Boku, Mopay, Zong, OneBip, Payvia, Bango, BillToMobile and Payone. Typing your phone number into a box is much faster than filling out a card payment form.
  41. 41. 29. You can use NFC to make a payment from your phone bill txtNation is using RapidNFC tags to do just this.
  42. 42. mPOS
  43. 43. 30. Phones will replace cash tills before they replace wallets “Paying is not exciting; getting paid is” This year, Square expects to transact $15bn across its network. Urban Outfitters doesn‟t have any tills. It has iPads.
  44. 44. 31. Chip and PIN is a problem for mPOS in Europe Vendors are using Bluetooth to get around it. Expensive and unreliable.
  45. 45. Final random thoughts
  46. 46. 32. Operators could forget about payments and focus on identity If payment details are stored on the cloud, then mobile transaction equals authentication. Your phone contains your SIM ID, photos, a certain amount of memory use, songs, texts. All these elements combined with PIN create a single unique identifier of YOU.
  47. 47. 33. Apple won’t do payments. It’s too risky Refunds, regulation, customer care, rev shares… But it might let payments firms use its fingerprint APIs.
  48. 48. 34. Banking apps could make you more careful with your money It‟s a long time since we knew at a moment‟s notice how much money we had left till payday. Mobile banking apps cab use graphs to illustrate how much we have in our accounts, where the money has gone, how our spending compares with last month/year… It could change the way we behave.
  49. 49. 35. Anonymity could be a USP – if anyone bothered to offer it Digital currency is great for keeping records of transactions. But what about when people don‟t want a record kept? Amazon may be aware if this. It filed a patent filing for an anonymous mobile payments system that supports transactions with no name, email address, or other personal details.
  50. 50. Contact: Tim Green tim@mobilemoneyrevolution.co.uk @timgreen64 0780 373 0343 www.mobilemoneyrevolution.co.uk
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