Mobile payment - next generation

997 views

Published on

Published in: Technology, Business
0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
997
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide

Mobile payment - next generation

  1. 1. Payments Market Trends 2012Tell me and I’ll forgetShow me and I may remember STKIInvolve me and I’ll understand Galit Fein & Shahar Maor VP & Senior Analysts
  2. 2. Mobile Outsourcing Social Trade Fun Tools Pics Gesture Touch CalendarMail Location Ⅱ Δ Voice Video Content Access Search Galit Fein’s work Copyright 2012 @STKI 2 Do not remove source or attribution from any graphic or portion of graphic
  3. 3. Mobile Forcast That’s like almost Every Cow on the planet getting a smartphone Galit Fein’s work Copyright 2012 @STKI 3 Do not remove source or attribution from any graphic or portion of graphic
  4. 4. Israel (expected end 2012): Wintel: Q42011 compared to Q42010 Desktop PCs: -25% Notebooks: -35% Galit Fein’s work Copyright 2012 @STKI 4 Do not remove source or attribution from any graphic or portion of graphic
  5. 5. Experience Economy > Age of the Customer• From 1900 to 1960, Age of Manufacturing , if you owned a factory, you owned the market.• From 1960 to 2000, Age of Distribution, if you owned the distribution channels, you owned the market.• From 2000 to 2011, Age of Information, if you owned the information, you owned the market.• From 2011, Age of the Customer, if you engage the customer, you own the market Galit Fein’s work Copyright 2012 @STKI 5 Do not remove source or attribution from any graphic or portion of graphic
  6. 6. “the NEW experience economy” Starbucks Frappuccino or not? Why not? Galit Fein’s work Copyright 2012 @STKI 6 Do not remove source or attribution from any graphic or portion of graphic
  7. 7. It’s a Buyer Market Galit Fein’s work Copyright 2012 @STKI 7 Do not remove source or attribution from any graphic or portion of graphic
  8. 8. From mobile devices to mobile users …… IT will support it ALL Galit Fein’s work Copyright 2012 @STKI 8 Do not remove source or attribution from any graphic or portion of graphic
  9. 9. This is what a device knows about you……1. Activity based context: What are you doing?2. Social context: With whom are you?3. Spatial-Temporal context: Where are you? What time is it?4. Physiological context: Heart rate, movement, temperature5. Environmental context: In what environment are you?6. Mental context: How are you feeling?7. Virtual context: What is happening with you in the virtual space?8. My context: Who are you? Galit Fein’s work Copyright 2012 @STKI 9 Do not remove source or attribution from any graphic or portion of graphic
  10. 10. The value of mobile is in the apps … "specialized local services running in conjunction with cloud-based services (private/public) that mostly do A2P messagingmessages between a user and an automated application in location aware devices processing to figure out the context and state of the user”- Galit Fein’s work Copyright 2012 @STKI 10 Do not remove source or attribution from any graphic or portion of graphic
  11. 11. NBA – Next Best Action Galit Fein’s work Copyright 2012 @STKI 11 Do not remove source or attribution from any graphic or portion of graphic
  12. 12. Design Thinking: to create experiences Galit Fein’s work Copyright 2012 @STKI 12 Do not remove source or attribution from any graphic or portion of graphic
  13. 13. Decision-making in the Digital World Seeking Intelligence, Not Content - Real time 60% of purchase decisions being made before the consumer stepped into the store!!! Galit Fein’s work Copyright 2012 @STKI 13 Do not remove source or attribution from any graphic or portion of graphic
  14. 14. What is a QR Code Reader? Galit Fein’s work Copyright 2012 @STKI 14 Do not remove source or attribution from any graphic or portion of graphic
  15. 15. The Rise of Mobile Retail half using their phone to perform retail research while inside a store On-screen In-storeVirtual SupermarketSimply clicking andimmediatelydelivered Galit Fein’s work Copyright 2012 @STKI 15 Do not remove source or attribution from any graphic or portion of graphic
  16. 16. SuperPharm example Smart Shopping Self Service Relevant discounts No line Guide and direct in context of what you need Galit Fein’s work Copyright 2012 @STKI 16 Do not remove source or attribution from any graphic or portion of graphic
  17. 17. How to influence in-store, online and mobile shopping ?• SHOPKICK automatically recognizes when someone walks into a store.• “kickbucks” to the user for:walking into a retail storetrying on clothesscanning a barcodeother actions• “kickbucks” redeemed across all partner stores forgift card rewardsFacebook creditsspecial discounts• SHOPKICK expects to pass 1 billion product views this year Galit Fein’s work Copyright 2012 @STKI 17 Do not remove source or attribution from any graphic or portion of graphic
  18. 18. Social Shopping InteractiveRestaurant “INAMO” mirror Soho, NY City Galit Fein’s work Copyright 2012 @STKI 18 Do not remove source or attribution from any graphic or portion of graphic
  19. 19. “follow us on Facebook” has replaced the website, what will be next?  People will have a simple payment credential attached to their account  With one click they will be able to complete a transaction  Facebook credits and payments could be the airline miles of the next decade • consumers will be rewarded with Facebook Credits for brand loyalty Galit Fein’s work Copyright 2012 @STKI 19 Do not remove source or attribution from any graphic or portion of graphic
  20. 20. 2012/3: Social Media will enter in context/A2P/payments Galit Fein’s work Copyright 2012 @STKI 20 Do not remove source or attribution from any graphic or portion of graphic EC
  21. 21. The Evolution of Trade Credit Lydian coins Mobile Barter Payment Galit Fein’s work Copyright 2012 @STKI 21 Do not remove source or attribution from any graphic or portion of graphic
  22. 22. 4 Types of Mobile Payment Smartphone is a cashMobile at the point of sale Store mobile credit card register It‘s paying for things at a This is merchants using a If a company doesnt want store with a smart phone mobile device to process to wait for someone else to using NFC or "tap and go“ credit cards payments. build a wallet or a platform, Square – 1M merchants it can always build its own. (1/8th of all US card Is it expensive? You bet. Is ‘Put it on my bill’ retailers) Do not confuse it worth it? Ask starbucks. this with mobile wallets. 25% of all in-storeConsumers buying ringtones or They are not the same payments are made via agames or digital content by thing. mobile phoneputting the charges on theircellphone account Galit Fein’s work Copyright 2012 @STKI any graphic or portion of graphic 22 Do not remove source or attribution from
  23. 23. mWallets & Payments in ActionGoogle PayPal ISISWallet Nexus S 4G Android Mobile peer-to-peer HTC, LG, Motorola, devices for Citi payments in its RIM, Samsung and Master or Visa iPhone and Android Sony Ericsson cards holders apps “bump style” SingleTap Transactions for experience, “One-stop shop” for physical products at retailers retail locations, Open platform redeem coupons, store merchant loyalty cards via the Payments from any mobile phones Google Offers -save portable device. coupons directly on Google Wallet Flexibility and CRM to customers after they have checked out Source: http://nikosdrak.wordpress.com/2012/03/01/mwallets-nfc/# Galit Fein’s work Copyright 2012 @STKI 23 Do not remove source or attribution from any graphic or portion of graphic
  24. 24. Payment Chase are Growing Demand by Consumers VS Dozens of retailers working together to turn cellphones into payment devices Galit Fein’s work Copyright 2012 @STKI 24 Do not remove source or attribution from any graphic or portion of graphic
  25. 25. What are Big Banks Afraid of? Galit Fein’s work Copyright 2012 @STKI 25 Do not remove source or attribution from any graphic or portion of graphic
  26. 26. We are Ready! But what about NFC?• Great mass is ready for mobile payments NOW• Dozens of millions of NFC devices will arrive this year• However, a poor experience, the lack of consumer education, lack of real standards and complex NFC infrastructure will inhibit use in 2012 Galit Fein’s work Copyright 2012 @STKI 26 Do not remove source or attribution from any graphic or portion of graphic
  27. 27. What’s In a Mobile Wallet? Secure Element (SE), which holds: One or more payment, mass transit, Mobile Phone and/or offer applications RF Modem Each application emulates a particular “card” in the wallet SIM Chip Baseband Near Field Communications (NFC) Processor Secure Element chip • Payment Applications NFC Two-way communication with the Controller • Transit Application point of sale • Offer Application Compatible with existing contactless Proximity Antenna payment standards Three options for hosting the SE: On the SIM chip (shown here) Elsewhere in the handset Point of Sale On a MicroSD card Galit Fein’s work Copyright 2012 @STKI Source: GSMA 27 Do not remove source or attribution from any graphic or portion of graphic
  28. 28. Okay, So What’s the Catch?Lots of unresolved questions:– Who controls the secure element?– How much does it cost to rent space in the wallet?– Who gets to provide the offered application(s)?– What if the merchant doesn’t support contactless cards? Galit Fein’s work Copyright 2012 @STKI 28 Do not remove source or attribution from any graphic or portion of graphic
  29. 29. NFC is Great, BUTit’s not being any faster or easier than your credit card M-Payment is nice, but it’s not enough VALUE to sway all consumers Galit Fein’s work Copyright 2012 @STKI 29 Do not remove source or attribution from any graphic or portion of graphic
  30. 30. Mobile Payment v1: Money Credit Cards M-Payments NFC Leumi Card –PayPass Galit Fein’s work Copyright 2012 @STKI 30 Do not remove source or attribution from any graphic or portion of graphic
  31. 31. Payments – the new generation Mobile Payment v2: • Manage your expenses on a variety of cards • Manage your club/ gift cards • Link between coupon and credit card • Social commerce • Pay bills/ save receipts • Boarding passes/ Movie e-tickets • LBS offerings Galit Fein’s work Copyright 2012 @STKI 31 Do not remove source or attribution from any graphic or portion of graphic
  32. 32. Example of new payment technologies: Build apps for cards Galit Fein’s work Copyright 2012 @STKI 32 Do not remove source or attribution from any graphic or portion of graphic
  33. 33. Wallaby Card The WALLABY CARD is: 1. advanced cloud-based digital wallet 2. stores the information about each of existing credit cards 3. automatically picks the best card to charge in each transaction Decisions based on user preferences and A2P communications Galit Fein’s work Copyright 2012 @STKI 33 Do not remove source or attribution from any graphic or portion of graphic
  34. 34. Expect more. Pay Less.Galit Fein’s work Copyright 2012 @STKI Target App for iPhone 34Do not remove source or attribution from any graphic or portion of graphic
  35. 35. Apple: already a Payment ProviderApple has 400 M iTunes accountsPayPal – 100 M active accounts Galit Fein’s work Copyright 2012 @STKI 35 Do not remove source or attribution from any graphic or portion of graphic
  36. 36. By Using Passbook you can:• call up bar codes on the screen to check in for a flight• get into a movie or redeem a coupon• see when coupons expire• pinpoint where their concert seats are• check the balance of a coffee loyalty card The app uses LBS Galit Fein’s work Copyright 2012 @STKI 36 Do not remove source or attribution from any graphic or portion of graphic
  37. 37. BUT it’s not the kind of game changer that everyone is looking for from AppleToday’s consumers want more capabilities:• make charges to a variety of cards• monitor their account balances• pay bills• make returns and save receipts• manage coupons based on a person’s interests Apple charges companies 30 % each time they sell anything on iTunes Galit Fein’s work Copyright 2012 @STKI 37 Do not remove source or attribution from any graphic or portion of graphic
  38. 38. Google - Were building a better wallet Give your smartphone some credit Tap your phone to pay with the virtual credit cards stored on your Google Wallet. Google Wallet supports two kinds of cards: • Citi® MasterCard® credit cards, and • the Google Prepaid Card Galit Fein’s work Copyright 2012 @STKI 38 Do not remove source or attribution from any graphic or portion of graphic
  39. 39. Google Wallet• Google has faced several setbacks with its Wallet app• Especially when it comes to partnering with the carriers, banks, retailers• NFC has been slow to get off the ground, and carriers (Verizon, T-Mobile, AT&T) have blocked Google’s Wallet from appearing on Android phones!!! Galit Fein’s work Copyright 2012 @STKI 39 Do not remove source or attribution from any graphic or portion of graphic
  40. 40. Google Wallet PIN Vulnerability Galit Fein’s work Copyright 2012 @STKI 40 Do not remove source or attribution from any graphic or portion of graphic
  41. 41. Square Hardware Vulnerability Galit Fein’s work Copyright 2012 @STKI 41 Do not remove source or attribution from any graphic or portion of graphic
  42. 42. The Real Issue With Credit Card Payments http://techcrunch.com/2011/03/09/dont-believe-the-fud-square-is- 42 Galit Fein’s work Copyright 2012 @STKI only-as-insecure-as-you-let-it-be/ Do not remove source or attribution from any graphic or portion of graphic
  43. 43. PCI DSS P2PE –Vital For Mobile PaymentsPCI DSS was set up by the major credit card companies to try and improve the InformationSecurity of financial transactions related to credit and debit cards. It essentially pushes theresponsibility of looking after card data onto merchants who may store, process and transmitthis type of data. Protect Cardholder Data Implement Strong Access Control Measures Regularly Monitor and Test Networks Maintain an Information Security Policy Maintain a Vulnerability Management Program http://phoenix-consultancy.com/pci_dss.html Galit Fein’s work Copyright 2012 @STKI 43 Do not remove source or attribution from any graphic or portion of graphic
  44. 44. Final InsightsToo crowded is not good… Galit Fein’s work Copyright 2012 @STKI 44 Do not remove source or attribution from any graphic or portion of graphic
  45. 45. Don’t lose the mainland! Galit Fein’s work Copyright 2012 @STKI 45 Do not remove source or attribution from any graphic or portion of graphic
  46. 46. M-Payment faces a chicken-and-egg problem• Retailers reluctant to suffer the cost for terminals without clear shopper demand• Consumers entrenched in their ways Lower Power to track retailer fees customer purchasing Loyalty decisions rewards without the Customers Retailers need to ask them to Mobile subscribe to a coupons service or provide additional info. DID YOU KNOW? E Galit Fein’s work Copyright 2012 @STKI 46 Do not remove source or attribution from any graphic or portion of graphic
  47. 47. An Updated Presentation can be downloaded Here: Galit Fein’s work Copyright 2012 @STKI Do not remove source or attribution from any graphic or portion of graphic
  48. 48. Backup Slides… Galit Fein’s work Copyright 2012 @STKI 48 Do not remove source or attribution from any graphic or portion of graphic
  49. 49. Israeli Smartphone Marketshare in 2011 Operating System Market Share Android 39.39% iOS 36.62% BlackBerry OS 9.48% Symbian 9.00% Other 5.52% Source: IDC 1.5 M smartphones sold in 2011 in Israel (Out of a total of 2.4 M cellphones) Galit Fein’s work Copyright 2012 @STKI 49 Do not remove source or attribution from any graphic or portion of graphic
  50. 50. What the Market thinks… Galit Fein’s work Copyright 2012 @STKI 50 Do not remove source or attribution from any graphic or portion of graphic
  51. 51. Apple VS MicrosoftThe Consumer is the King The Employee is the King Galit Fein’s work Copyright 2012 @STKI 51 Do not remove source or attribution from any graphic or portion of graphic
  52. 52. Productivity Software (office)? Office 15 ARM/Intel iOS6, Android, W8,MacOS BUT Vision VS Execution??? Galit Fein’s work Copyright 2012 @STKI 52 Do not remove source or attribution from any graphic or portion of graphic

×