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Mass market payments need identity infrastruture

Euro Banking Association closed Working Group on Alternative Payments

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Mass market payments need identity infrastruture

  1. 1. Mass-Market Payments The battle for retail payments in the mass market is about identity, not money. Dave Birch Global Ambassador, Consult Hyperion Euro Banking Association Brussels, September 2014 1 Version 1, 10-Sep-14 Attribution-ShareAlike 3.0
  2. 2. Who are Consult Hyperion? Practical and independent expertise TfL Future Ticketing Strategy Enabling open-loop payments in London transport Mobile payments Deep involvement in mobile payment programmes around the world Payment schemes Technical authoring and consultancy on EMV payment specifications, strategy, training & certification requirements. Mobile POS Enabling card payment acceptance within a new category of Merchants . Please copy and distribute
  3. 3. The Banks in the ARC Technology the three As ■ Authentication ■ APIs ■ Apps Business the three Rs ■ Recognition ■ Relationships ■ Reputation Market the three Cs ■ Conversion ■ Convenience ■ Communication 3 Version 1, 9/10/2014 Please copy and distribute
  4. 4. Technology: The Three As You can pay for things with your phone. Now what? (Note: product shown has been canned) 4 Version 1, 9/10/2014 Please copy and distribute Mobile phones will replace cards before they will replace cash Anthony Jenkins, CEO Barclays (2008)
  5. 5. Technology: Apps The wallet as an API, not an app 5 Version 1, 10-Sep-14 In commercial confidence
  6. 6. Technology: Authentication The mobile phone and the social network The first company to fully execute on embedding your identity into your phone wins the next decade Rebekah Cox, Product Design, Quora, ex-Facebook (2012)
  7. 7. Technology: APIs APIs for everything 7 Version 1, 9/10/2014 Please copy and distribute
  8. 8. Business: The Three Rs 40% of Americans, on average, carry less than $20 in their wallets… 30% of women have less than $10 in cash (compared with 16% of men) . Fast Company (2013) There is no path, but there is a need to facilitate effective co-ordination 8 Version 1, 9/10/2014 Please copy and distribute
  9. 9. Business: Recognition “It’s not about payment. It’s about identity” Jack Dorsey, Founder of Square and Twitter (New York Times, 22nd December 2013) 9 Version 1, 9/10/2014 Please copy and distribute
  10. 10. Business: Recognition builds Relationships MCX and the next generation 10 Version 1, 10-Sep-14 In commercial confidence
  11. 11. Business: Relationships build Reputation “The real opportunity is not big data, but small data. Not centralised big iron, but decentralised data wrangling” Rufus Pollock, Open Knowledge Foundation (April 2013) 1111 Version 1, 9/10/2014 Please copy and distribute
  12. 12. Market: The Three Cs Economic avatars as an improvement on the forgetfulness of cash Jaron Lanier (2013) We used to think that cards will replace cash, but actually it’s phones (because phones are terminals)
  13. 13. Market: Conversion Recognition plus relationship plus reputation at point-of-sale… and payments 13 Version 1, 9/10/2014 Please copy and distribute
  14. 14. Market: Convenience “The mag stripe will become functionally obsolete… Mobile will take over” Ellen Richey, Visa’s chief legal officer, quoted in New York Times (1st April 2014) 14 Version 1, 9/10/2014 Please copy and distribute
  15. 15. Market: Communication The mobile wallet has to do things that the leather one cannot and this is all about connectivity 15 Version 1, 9/10/2014 Please copy and distribute
  16. 16. Thank You Consult Hyperion has helped some of the world’s leading organisations to make the right technical and commercial choices within and around smart, mobile, contactless transactions, including retail payments, identity management and transit ticketing. Consult Hyperion is a trusted advisor adding product strategy, technical, regulatory, compliance and information security expertise into project teams within organisations considering deploying innovative new payment or identity services. In January 2013, David Birch was ranked Europe’s most influential commentator on emerging payments and in August 2013 Wired magazine named him one of their global top 15 sources of finance and business information. Tomorrow’s Transactions: thought leadership from Consult Hyperion Read Listen Visit Contact Follow @chyppings 16 Version 1, 10-Sep-14 Please copy and distribute
  17. 17. One more thing… “An outstanding piece of work which may well define our journey moving forward.” Brett King, Founder and CEO of “a bold, forward thinking book that grapples with weighty issues in a concise and accessible way” Retail Systems (May 2014). “this short book is densely packed with argument; written, praise be, in English of a straightforward and intelligible sort; has every technical concept explained, and has a breezy and enjoyable good humour that typifies the author himself” David Worlock (June 2014). ISBN 978-1-907994-12-8 £7.99 at all good bookstores