THE MOBILE CONSUMER:Mobile Payments and Security
SESSION HIGHLIGHTS • Overview and History • Trends in Mobile Sales & Payments • Mobile Payments • Mobile Payment Security • Mobile Payment Trends
OVERVIEW• Who Am I? • Involvedwith emerging internet technologies since 1993. Wrote college thesis on Internet Banking in 1998. Website designer and ﬁlmmaker from 2004-2012. Created Bazookapps in 2012.
ABOUT BAZOOKAPPS Bazookapps was created with the small to mid-size business in mind. We enhance current websites for use on mobile devices and develop mobile applications for companies that are looking to increase customer retention, increase sales and most importantly, increase their proﬁts. Developing amobile website for your business shouldn’t be a scary or incredibly expensive proposition. Our beliefis that by delivering an extraordinary customer service experience by getting to know your company and its needs we can deliver the BEST mobile enhanced website to you at the BEST price.Lets face it, in today’s economy not every company has 10′s to 100′s of thousands of dollars to giveto a big software ﬁrm. This is where Bazookapps comes in. We created our company to meet andexceed the needs and expectations of main street business; to give you a leg up on your competitors and offer you a custom application and/or enhanced website that not only doesn’t break your bank but also does something even more important, it makes you money. Contact Us Michael McCleary email: firstname.lastname@example.org web: www.bazookapps.com phone: 303-817-0694
OVERVIEW• What is Mobile Technology? • Deﬁnition: “Mobile technology is the technology used for cellular communication.”• Two Primary methods of Mobile Content Delivery Today: • Applications (App’s) • Mobile Web
A MOBILE HISTORY LESSON...• First Pager - 1962• First Cellphone - 1973• First Digital Cellphone - 1990• Text Messaging Introduced - 1993• Blackberry Email Pager - 1999• iPhone Introduced - 2007• Android Introduced - 2008
THE PLAYERS• Operating Systems • Android (68.3%) • Apple iOS (18.8%) • Blackberry OS (4.7%) • Windows Phone (2.6%)
MOBILE SALES TRENDS• According to CNET: • Shopping via Mobile Devices increased 81% in 2012 nearly doubling over 2011 • Shoppers used their smartphones and tablets to make $25 billion in purchases last year • Mobile devices accounted for 11% of e-commerce sales last year to increase to 15% this year.
THE MOBILE GOLDRUSH• eMarketerexpects consumers to make nearly $87 billion in mobile purchases by 2016, more than 27 percent of all e- commerce transactions.• Useof mobile devices for holiday shopping doubled in 2012 with 16.3% of Black Friday online sales completed on a mobile device.• In2012 28% of consumers used a mobile device to visit a retailers site.
THE MOBILE GOLDRUSH• According to mobile solutions provider Payvia:• In 2012, 1 in 5 holiday sales came from a mobile device.• 27% of gift shoppers purchased a digital good.• 2012 top gifts included: • 30% - digital goods • 25% - consumer electronics, watches and jewelry
MOBILE PAYMENT TYPES• Mobile Web Payments (WAP)• Direct Operating Billing• Direct Mobile Billing• Online Wallets (Paypal, Amazon Payments, Google Wallet)• Near Field Communication (NFC)
MOBILE WEB PAYMENTS• The consumer uses a web page to make a payment through the browser on their mobile device.• Beneﬁts include: • Follow-on sales where the mobile web payment can lead back to a store or to other goods the consumer may like. These pages have a URL and can be bookmarked making it easy to re-visit or share. • High customer satisfaction from quick and predictable payments • Ease of use from a familiar set of online payment pages
ONLINE WALLET• First payment: • User registers, inputs their phone number, and the provider sends them an SMS with a PIN. • User enters the received PIN, authenticating the number • User inputs their credit card info or another payment method if necessary (not necessary if the account has already been added) and validates payment• Subsequent payments: • The user re enters their PIN to authenticate and validates payment
CONTACTLESS NFC• Near Field Communication (NFC) is used mostly in paying for purchases made in physical stores or transportation services. A consumer using a special mobile phone equipped with a smartcard waves his/her phone near a reader module. Most transactions do not require authentication, but some require authentication using PIN, before transaction is completed. The payment could be deducted from a pre-paid account or charged to a mobile or bank account directly.
MOBILE PAYMENT FEES• NFC: Hardware cost ($150) + Fees (Vary: 2% - 5%)• Direct Mobile Billing: 10% to 20%• Mobile Web Payments (Varies according to merchant account)• Wallet: Varies (e.g. Google is 5% or 1.9% plus ﬁxed rate)• Mobile swipe: 2.7% - 5%
PAYMENT SYSTEM SECURITY• Isit secure for the consumer?• Is it secure for the retailer?• Just where does all this data thats ﬂoating around in the air go and can it be intercepted?
PAYMENT SYSTEM SECURITY• The answer is yes...• Many cloud based wallets store ﬁnancial data off the phone, the same with NFC.• Mobilecredit card payments are encrypted.
MOBILE SWIPE DEVICES• Swipe devices such as Paypal Here and Square scramble and encrypt the credit card information after it is swiped before it is transmitted across the airwaves.
MOBILE PAYMENTS TRENDS• Trends we saw in 2012 • Mobile Shopping, Mobile Brand Experience, 4G• Trends we will see in 2013 •7 inch tablets, Mobile Payment Growth, Contactless Service, Mobile Loyalty
MOBILE WEB, APPS & PAYMENTSThank you for joining Michael McCleary for his presentations: Going Mobile: The Future is Now & The Mobile Consumer: Mobile Payments and Security To access the presentations you saw today, please visit our Slideshare pages on your computer or mobile device at: http://www.slideshare.net/bazookapps/going-mobile-1661057 http://www.slideshare.net/bazookapps/mobile-consumer-16610498 Special Mobile Website Event Pricing! Visit our table following Mike’s presentation and have Bazookapps create your custom mobile website at a special low price - only available at the Denver Gift, Home, Jewelry and Resort Show! www.bazookapps.com FLIP OVER FOR MORE INFORMATION