Scanning the Future: International Payment Systems

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the future of retail payments in europe
THE FUTURE OF PAYMENTS!
A EUROPEAN PERSPECTIVE!
DAVE BIRCH, CONSULT HYPERION!
the future of retail payments in europe
the future of payments
David G.W. Birch
co-founder consult hyperion
chair digital money forum
research fellow centre for the study of financial innovation

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the future of retail payments in europe
what is going to change?
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the future of retail payments in europe
what is going to change?
Only a small proportion of M0 supports the needs of
commerce
About a third for the eurozone as a whole
Down to 15% for Austria, 10% for Germany because they deliver
banknotes outside the eurozone
The rest represents a tax on the people who hold cash
The poor, the corrupt, the criminal
khkhkh

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the future of retail payments in europe
Technology
magnetic stripes and smart cards are already old technologies,
we now have the internet, mobile phones, biometrics, virtual worlds…
the future of retail payments in europe
contactless
all of the evidence from around the world suggests that people like “touch and go” because
convenience always wins

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the future of retail payments in europe
mobile
there is no doubt that the most important technology to most people in most of the world most of
the time is the mobile phone
the future of retail payments in europe
nfc
combining contactless and mobile together delivers on a promise of innovation and tells a story that
people are expecting to hear

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the future of retail payments in europe
Business
it’s a time of change and as consultants always tell us,
change means opportunity
the future of retail payments in europe
new opportunities
electronic cheques, remittance and invoicing, mobile, conditional anonymity, real-time A2A, pre-
paid, dispute and error handling…

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the future of retail payments in europe
infrastructure
we’ve got a stable infrastructure that works, and this may be holding businesses back, leaving us
open to disruptive innovation
the future of retail payments in europe
non-banks
the opportunities are available to non-banks as well as banks, and there are retailers, transit
systems, mobile operators who can play

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the future of retail payments in europe
Social
as technology push and business pull align for launch,
it could be the social factors that light the blue touchpaper
the future of retail payments in europe
inclusion
around the world, the “next billion” need access to financial services, starting with payment
systems

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the future of retail payments in europe
locality
the definition of local is changing in a networked world,
so “think global, act local” means something different
the future of retail payments in europe
regeneration
there are people who think it is time for some new thinking
about the role of money in society

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the future of retail payments in europe
Predictions
with a loss of faith in “money”, people will be more open to new and different means of exchange,
perhaps not involving £$!
the future of retail payments in europe
cash is a stealth tax
it isn’t just about technology or business, but reducing the social costs of cash, and this is a good
thing to do

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the future of retail payments in europe
‘3g” networks
it used to be girls, games and gambling that drove new requirements,
what if now it’s social networking? Facebook credits will be a $1 billion business within a year
the future of retail payments in europe
commodity or community?
but will the new “local” groups want to use
commodities (eg, gold or mobile minutes) or communities (eg, reputation or platinum pieces)?

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the future of retail payments in europe
THANK YOU"
! consult hyperion www.chyp.com
! digital money forum www.digitalmoneyforum.com/blog
! csfi www.digitaldebateblogs.typepad.com/vrf
! iTunes “consult hyperion” or www.chyp.com/podcasts.php
! david g.w. birch www.dgwbirch.com