Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

No excuse: Mobile payments don't need to suck anymore

1,802 views

Published on

The slides for the talk Matias Pietilä gave at IxDA Helsinki meetup, hosted by Qvik.

The UX of mobile payments tends to be lacklustre but it doesn't have to be this way. This presentation gives tips you can implement right now and shares some insight on what might happen soon due to changing regulation.

Published in: Design
  • Be the first to comment

No excuse: Mobile payments don't need to suck anymore

  1. 1. IxDA Helsinki @ Qvik 15.6.2017 Future of mobile payment NO EXCUSE: MOBILE PAYMENTS DON’T NEED TO SUCK ANYMORE MATIAS PIETILÄ, HEAD OF DESIGN, QVIK
  2. 2. NOW WE’RE SO MUCH MORE WE WERE MOBILE FIRST @QVIK@MPIETILA#ixdahel TALLINK SILJAWHIM YLE UUTISVAHTI MUSTI JA MIRRIAURINKOMATKAT
  3. 3. @QVIK@MPIETILA#ixdahel MONETISE
 THE CONSUMER’S POCKET DATA-DRIVEN DESIGN DELICIOUS UX FAST TIME-TO- MARKET BLEEDING EDGE TECHNOLOGY BEYOND 
 OMNI-CHANNEL HARNESS ARTIFICIAL INTELLIGENCE EXCELLENCESENABLERS NOW WE’RE SO MUCH MORE WE WERE MOBILE FIRST TOPIC TODAY
  4. 4. @QVIK@MPIETILA#ixdahel SWAP.COM 3X CONVERSION +60% CONVERSION 4X MOBILE SALES AURINKOMATKAT TALLINK SILJA MONETISING CONSUMER’S POCKET compared to web compared to old version after 1st year
  5. 5. MOBILE PAYMENTS DON’T NEED TO SUCK ANYMORE MA JOR FORCES BEHIND THE DISRUPTION PSD2: CREATING A LEVEL FIELD PAY ATTENTION TO THESE SERVICES 1 2 3 @QVIK@MPIETILA#ixdahel
  6. 6. TIMELINE @QVIK@MPIETILA#ixdahel TOKENISATION PRESENT 2018 MIF/IFR KLARNA, PIVO MOBILE PAY, 
 SIIRTO, 
 MASTERPASS ETC. APPLE PAY PSD 2 BLOCKCHAIN PISP & AISP XS2A DISAPPEARING CASH DISAPPEARING CARDS FUTURE DISAPPEARING DISPOSABLE TUPAS CODES ANDROID PAY
  7. 7. PAYMENT TRENDS MOBILE IS RAPIDLY REPLACING WALLET Cash and ATMs expected to disappear in 15 years ON DEMAND AND HIDDEN PAYMENTS market growth will accelerate, new solutions emerge CONTROLLING CUSTOMER INTERFACE 
 is becoming a competitive factor @QVIK EU-LEVEL REGULATION RENEWALS to foster payment innovation and competition
  8. 8. TOKENISATION WHAT IS IS ABOUT? ‣ Enabling one-click pay to by credit card by storing the card information ‣ Tokenisation is a way of externalising storing the actual credit card information to an authorised third party ‣ Also enables recurring payments WHAT SHOULD YOU DO? ‣ There’s no reason to put off implementing this, the technology is mature and there are several 3rd parties available for storing the credit card data ‣ In addition to commission levels, pay attention to the fact if the supplier provides native SDKs and dynamic scoring @QVIK@MPIETILA#ixdahel
  9. 9. TOKENISATION, PROVIDERS @QVIK Commission Dynamic scoring Customisable UX Geographic availability POS support Role (acquirer / prosessor) Settlement time Who owns the customer? Adyen Verifone Nets Solinor Etc. A LOT OF VARIATION BETWEEN DIFFERENT SERVICE PROVIDERS
  10. 10. PSD2 & XS2A WHAT IS IS ABOUT? ‣ An EU initiative that aims to create more competition and innovation ‣ Banks required to open APIS for payment access on customers consent XS2A (access to account) ‣ Increased consumer protection and minimum two factor authentication for online payments WHY IS IT RELEVANT? ‣ For big merchants, this makes it possible to cut the middleman and act as a bank by yourself ‣ New players likely to emerge, traditional banks at risk of losing their share ‣ Lower transaction costs and better services for end-users @QVIK@MPIETILA#ixdahel
  11. 11. KEY LISTS DISAPPEARING WHAT IS IS ABOUT? ‣ The Finnish KYC (know your customer process) has been based on clumsy printed code lists ‣ These are used to both logging in to online banks and confirming credit card payments whenever 3D secure is enabled ‣ Now this is about to change: major banks promise to launch digital authentication services during 2017 WHY IS IT RELEVANT? ‣ The payment friction related to both credit card payments and online bank payments will reduce @QVIK@MPIETILA#ixdahel http://yle.fi/uutiset/3-9240095
  12. 12. MOBILE PAYMENTS DON’T NEED TO SUCK ANYMORE MA JOR FORCES BEHIND THE DISRUPTION PSD2: CREATING A LEVEL FIELD PAY ATTENTION TO THESE SERVICES 1 2 3 @QVIK@MPIETILA#ixdahel
  13. 13. COMPETING ON A LEVEL FIELD @QVIK@MPIETILA#ixdahel
  14. 14. COMPETING ON A LEVEL FIELD @QVIK@MPIETILA#ixdahel
  15. 15. “WHO WILL BE THE UBER OF BANKING WORLD?” @QVIK@MPIETILA#ixdahel TEKNIIKKA & TALOUS 12.6.2017 Sami Heikkilä, Nordea Miikka Pakkanen, Boogie Software Kristian Luoma, OP Juho Isola, Taviq Heikki Ailisto,VTT Link to the article
  16. 16. @QVIK@MPIETILA#ixdahel
  17. 17. @QVIK@MPIETILA#ixdahel
  18. 18. @QVIK@MPIETILA#ixdahel
  19. 19. @QVIK@MPIETILA#ixdahel
  20. 20. PSD2: CONSUMER PROTECTION WHAT IS IS ABOUT? ‣ PSD 2 will require two-factor authentication for online payments ‣ Unconditional chargeback right for direct debits is introduced to consumers (details still unclear) WHY IS IT RELEVANT? ‣ Payment process will become more complex than currently ‣ It becomes essential to provide the users with effortless two-factor authentication services @QVIK@MPIETILA#ixdahel
  21. 21. PSD2: PISP/AISP @QVIK@MPIETILA#ixdahel WHAT IS IS ABOUT? ‣ PISP = payment initiation service provider ‣ Can automatically select the funding source that’s best for you (e.g. Moni) ‣ AISP = account information service provider ‣ Can combine your account balance from several banks (like Balancion used to do) WHY IS IT RELEVANT? ‣ Some PSP (payment service provider) will convert/extend to PISP role ‣ New operators likely to emerge as PISP and AISP ‣ More competition will benefit both the customer and the merchant PISP
  22. 22. MOBILE PAYMENTS DON’T NEED TO SUCK ANYMORE MA JOR FORCES BEHIND THE DISRUPTION PSD2: CREATING A LEVEL FIELD PAY ATTENTION TO THESE SERVICES 1 2 3 @QVIK@MPIETILA#ixdahel
  23. 23. MOBILE PAY WHAT IS IS ABOUT? ‣ A payment solution by Danske Bank ‣ Started as peer to peer, added support for POS payment and online/mobile pay in 2016 ‣ The app has 370000 users in Finland (9/2016) ‣ Simple UX for payment confirmation ‣ Payments are charged from a credit card, stored in the service WHY IS IT RELEVANT? ‣ Early mover in the P2P payment scene ‣ PISP kind of service, build on the existing credit card infrastructure to secure market position before 2018 ‣ The online payment is compatible with several payment gateways with no extra integration needed ‣ The POS payment is supported by Verifone & Winpos payment terminals, iOS over Bluetooth @QVIK@MPIETILA#ixdahel
  24. 24. PIVO WHAT IS IS ABOUT? ‣ A mobile payment solution, available for OP bank clients ‣ Payments are based on virtual Visa Debit/ Credit cards ‣ Also a tool for following and planning your consumption WHY IS IT RELEVANT? ‣ Works at any cash register that supports near field payments ‣ Could become a PISP/AISP kind of platform @QVIK@MPIETILA#ixdahel
  25. 25. KLARNA WHAT IS IS ABOUT? ‣ A Swedish startup that provides the users with two major benefits: ‣ Easy, mobile-optimised payment flow ‣ Possibility to pay later or with an instalment plan ‣ Traditional credit card payment available, too WHY IS IT RELEVANT? ‣ The average order value of Klarna customers tends to be significantly larger than traditional credit card (up to 200%) ‣ The conversion of Klarna users tends to be higher (Adlibris has reported 80% higher) ‣ Because Klarna makes their profit on instalment plans, the transaction costs tend to be minimal (even zero- commission deals) @QVIK@MPIETILA#ixdahel
  26. 26. SIIRTO WHAT IS IS ABOUT? ‣ The official peer to peer money transfer in Finland, operated by Automatia ‣ Currently supported by Nordea, OP and S-pankki ‣ Not yet as polished as Mobile Pay WHY IS IT RELEVANT? ‣ Instant, no middleman ‣ Online payments coming later @QVIK@MPIETILA#ixdahel
  27. 27. AKTIA WALLET WHAT IS IS ABOUT? ‣ Former Elisa Lompakko, developed further by Aktia ‣ A collection of multiple services, like virtual credit cards, P2P payments etc. WHY IS IT RELEVANT? ‣ Available for customers of any bank ‣ Could be on its way towards more generic PISP role @QVIK@MPIETILA#ixdahel
  28. 28. MASTERPASS WHAT IS IS ABOUT? ‣ Mobile wallet by MasterCard ‣ Stores your credit card and shipping info to simplify payment WHY IS IT RELEVANT? ‣ Easy to integrate, will be pushed heavily by MC ‣ Will be operated by banks ‣ Provides more value than just payments @QVIK@MPIETILA#ixdahel
  29. 29. MOBIILIMAKSU WHAT IS IS ABOUT? ‣ A mobile payment solution, offered by Finnish telcos ‣ Billing automatically as a part of mobile phone subscription WHY IS IT RELEVANT? ‣ No friction, no registrations: may be useful for the first transaction ‣ Suitable for sums smaller than 1€ ‣ High commissions (list price 15%) ‣ Max payment value 60 € ‣ Won’t work with people who have company subscriptions (20% of the market) @QVIK@MPIETILA#ixdahel
  30. 30. APPLE PAY WHAT IS IS ABOUT? ‣ A payment solution by Apple ‣ Started as POS payment, online/mobile pay in 2016 ‣ Only works in Apple universe: iPhone, Apple Watch, Safari browser (!) ‣ Not available in Finland yet, exact schedule not revealed WHY IS IT RELEVANT? ‣ Deeply integrated and great UX for affluent iOS users @QVIK@MPIETILA#ixdahel
  31. 31. SUMMARY TOKENISATION WILL LET YOU MAKE PAYMENTS EASY TODAY CREDIT CARD PAYMENTS WILL BECOME EASIER EVEN IF YOU DON’T DO ANYTHING THANKS TO IMPROVED 2FA AND WALLET SERVICES NEW SERVICES ABOUND AND PSD2 WILL CREATE TOTALLY NEW ROLES IN 2018 1 2 3 @QVIK@MPIETILA#ixdahel
  32. 32. LET’S CREATE IT TOGETHER qvik.com @QVIK @MPIETILA KEEP AN EYE ON THESE TO FIND THE SLIDES!

×