BBVA Innovation Edge. Mobile Payments (English)


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The mobile payments trend, undoubtedly, is on its way of becoming a mainstream phenomenon. It will change how society thinks about monetary transactions. In this issue we sum up the best social business case study and we analyze future opportunities around it.

`BBVA InnovationEdge' is the first corporate multiplatform magazine focused on innovation. Each edition featuresarticles, analysis and huge information about a particular theme. The mainpurpose of the magazine is to express the new trends and the upcomingtechnologies that may impact to the financial industry.

Published in: Economy & Finance

BBVA Innovation Edge. Mobile Payments (English)

  1. 1. NOVEMBER 2012 4MobilePaymentsPaying with a mobile devicemPayments (quick overview)Elevator PitchSmartphonaticsCashing in on the opportunities also in this issue Trending issues Technology trends
  2. 2. contents mPayments.................................................................................................4 Elevator Pitch............................................................................................ 11 Global Snapshots................................................................................17 BBVA & Mobile Payments.......................................................22 SmartPhonatics....................................................................................24 Cashing in on the Opportunities....................................28 Innovation Forecast.........................................................................31 In Depth....................................................................................................... 34 Sections........................................................................................................36 Trending Issues.............................................................................36 Technology Trends.................................................................. 43 Mobile Payments & Banking event..............................47 BBVA Innovation Center Open Day............................48 Credits............................................................................................................50
  3. 3. mPaymentsquick overviewThe mobile payments trend, undoubtedly, is on its way ofbecoming a mainstream phenomenon. It will change howsociety thinks about monetary transactions. Let’s take alook into mPayments, meet the main actors and gain a basicunderstanding of this fast moving trend.04
  4. 4. Definition Mobile payments are payments made using a mobile device. Generally, there are two ways to pay by mobile: online payments and proximity payments. “mPayments will transform customers’ lives”. See video Online Payments Main Actors Mobile payments for digital or physical goods. Digital goods payments refer to products/services consumed on mobile de- vices, such as app purchases or digital content. Also, person to person (P2P) payments may be considered as online payments. Banks & Card Companies Physical goods payments refer to products/services delivered Incumbents who are currently dominating the general payment physically, but purchased via a mobile device. landscape; as the overall leaders, they are generally taking a wait & see approach, looking for the right product at the right time. Proximity Payments Mobile payments for products & services purchases on-site via a mobile device (short range radio technologies, such as NFC). Generally used at POS terminals, transit, etc.Example of wallets Mobile wallets VISA Mobile wallets are platforms that bundle together products and ISIS (AT&T, Deutsche services from several providers. In general, mobile wallets offer: Telecom & Verizon) Google ■■ A prepaid account (equiva- ■■ Loyalty programs & offers lent of cash in real wallets) (coupons) ■■ Credit, debit & charge cards ■■ Transit (public transportation) (payment instruments) ■■ Other (ID, electronic key, etc.)06 November 2012 | MOBILE PAYMENTS 07
  5. 5. Retail Companies New entrants who are disrupting the payments business with mobile technologies, such as Starbucks and Amazon . Technology companies The financial services market is a new area for growth for these aggressive players. Armed with the latest and greatest in technologies, they are very active in experimenting with new value bundles and business models. Companies include Google , Facebook , and PayPal (an eBay company). Also, the mobile device is being used to process transactions. Retail stores may now enable payments with a mobile device functioning as a POS, such as Square or PayPal Here . Mobile Operators (MOs) Looking for new avenues for growth, MOs are looking to mobile payments as a way to make their relationship with clients stickier by offering payment services, as a part of the overall voice & data portfolio.08 November 2012 | MOBILE PAYMENTS 09
  6. 6. Mobile Payments Mobile Payments mPayment & Value Bundles elevator pitch Let’s take visual journey through the mobile payment “The smartphone is simply an enabler space. We’ll look at the users and usage, deployment — not a driver — of changing behavior.” Ron Shevlin, Aite Group scenarios, business models, and take a peek into the future and the market. “Mobile payments on their own are not sufficient to drive consumer adoption but the value bundle — payments together with incentives and offers — has a higher chance of persuading consumers to change their behavior.” Advanced Payments Report 2012, Edgar, Dunn & Company Therefore, each actor is using or will use mobile payments to design and build the “best” value bundle for a given customer segment. Lots of collaborative models are emerging, such as ISIS and Boku which are collaborations between mobile operators and other entities. See video (Boku)10 November 2012 | MOBILE PAYMENTS 11
  7. 7. Mobile PaymentsUsers Deployment How is the mobile paymentWhat is happening industry shaping up?with mobile payments? 39% Millenials 18% Young (18-26) BoomersIn the next five years, insiders expect a majority of (40-50)brick-and-mortar retail transactions to take place onmobile devices. That is a big change-up for a $5.5trillion marketplace. Meanwhile, mobile devices userswho utilize mobile payments are expected to swell Mobile Financialfrom 6.8 percent in 2009 to 21.3 percent in 2012. 9% carriers Old institutions Merchants 31% Boomers Gen-xers (51-61) DEPLOYED 16% 17% 8% (27-39) Seniors (62+) READY TO DEPLOY 16% 13% 9% 3% TRIAL STAGE 39% 38% 28% Who is using mobile payments? PLANNING STAGE 25% 28% 36%Usage NO INTEREST SO FAR 5% 3% 19% FOCUS HIGH 53% 66% Handset Payment Application 43% MODERATE 70% 47% LOW manufacturers service providers DEPLOYED 10% 19% 22% 27% 20% READY TO DEPLOY 20% 24% 37% 37% 35% TRIAL STAGE 37% 45% 30% 22% 10% 12% 16% 18% PLANNING STAGE 29% 11% 10% 8% Retail Fast Mass Digital Online 3% 1% 1% NO INTEREST SO FAR purchase food transport downloads purchase12 November 2012 | MOBILE PAYMENTS 13
  8. 8. Mobile PaymentsBusiness models The market (1) What is the most Global E-payments: 20% 30.3 viable business model? 43% Third-party intermediation number of transactions Number of transactions 25.4 2.7 2.0 By 2014, an estimated 13 percent of all smartphones Mobile-financial institution partnership model (billion), 2009-2013F (Billion) 17.9 21.3 1.5 will have built-in NFC capabilities. Most payments are not mobile. Alternative pay- 15.1 1.2 *common platform shared by alliance of carriers ments, which includes mobile, will account about 0.9 and financial institution. for 8% and 9% in 2013 of e-payments transactions. 27.6 7% 23.4 Mobile carrier 19.8 16.8 going solo CAGR 14.2 26% Financial ‘09-’13F Open federation model* institution Total 19.1% going solo Alternative Payments 32.1% 4% Non-banking competition 2009 2010 2011F 2012F 2013F Debit, credit, prepaid cards 18.1% Source: Capgemini I World Payments Report 2011, September 2011The future The market (2) 14% Mobile carrier What will be the most Global M-payments: 15,284 27% going solo 1,223 NFC-enabled payments popular mobile payment number of transactions Number of transactions 13% Java-based app in the near future? (billion), 2009-2013F (Million) 9,814 785 payment As merchants, financial institutions, and mobile carriers Banks are still in charge, but the competition is grow- 6,756 application work together to figure out the future of the mobile ing faster. By 2013, the new entrants will have taken 473 14,062 4,587 19% 16% payment system. People should not be surprised if about 8% of the mPayment business, from a base of SMS-based Embedded their phone starts to replace the contents of their wallet 0.5% in 2009. 3,120 272 9,029 payments credit cards 156 10% over the next few years. 6,283 Other CAGR 4,315 2,964 USSD- ‘09-’13F based payments 1% Total 48.8% 2009 2010 2011F 2012F 2013F Non-bank providers 67.3%Percentage of respondents Source: Bank providers 27.6% Source: Capgemini I World Payments Report 2011, September 201114 November 2012 | MOBILE PAYMENTS 15
  9. 9. Mobile PaymentsThe market (3) Mobile Payments is a dynamic trend; and, as such, is drawing a lot of attention from around the world. This section takes a look at selected banks & card companies, retailers, mobile operators and The market technology companies and see what they are up to. In 2010, the total volume of global credit The number of mobile We are forecasting card payments totaled payment users will reach a market with $6.2 212.2 448 Global million in 2012, million users trillion dollars up from by 2016 160.5 million in 2011 snapshots Source: Gartner, May 201216 November 2012 | MOBILE PAYMENTS 17
  10. 10. AT&T, T-mobile and Veri- zon Wireless: Isis The Mobile Operators led consortium is offering a mobile wallet platform. The Isis mobile commerce network will be available to all merchants, banks, pay- ment networks and mobile carriers. Fuente: Pay with Isis Mobile Telia, Tele2, Telenor and 3 (the Swedish Big 4 MOs): WyWalletBanks & Card Operators WyWallet, the mobile wallet joint venture from Telia,Companies Telefonica: O2 Wallet Tele2, Telenor and 3 has been launched with support for person-to-person money transfers, SMS transit A deal with Facebook, Google, Microsoft, and RIM and ticketing payments, and online shopping. LiveBarclays: PingitUsers can send and receive money by using just a Retail allows a Telefonica subsidiary customers (O2) to pay for digital goods and services directly through the tests of POS payments using NFC are set to start in July, with full-scale roll-out scheduled for phone number. mobile phone bill. Fuente: WyWalletSee video See video Starbucks: announcesCommonwealth Bank: Kaching deal with SquareAllows customers to make payments to email, to The coffee giant chooses Square to process pay-Facebook, to mobile, and to PayPass (MasterCard) ments in all of its stores and also takes an equitycontactless terminals. investment. “The focus is on the experience, andSee video putting that above everything else,’ says Square founder Jack Dorsey about Starbucks’s stores.”Chase: Investments & Partnerships FastCompany added, “Square treats payments a■■ Square, GoPago (investor) lot like Starbucks treats coffee: by focusing on the■■ ISIS (partner) experience around a product that is more or less aSource: GoPago commodity.” Source: StarbucksChase: QuickPayAllows customers to make P2P payments to emails Amazon MPSor mobile phone. Amazon allows its merchant partners to accept mo-Source: Chase bile payment with its Amazon Mobile Payment Ser- vice (Amazon MPS). On the other end, Amazon offersMasterCard: PayPass Wallet its customers to make payments via mobile devices.It’s a digital wallet service that makes online shopping Additionally, Amazon facilitates P2P, sending moneysafe and easy by storing payment and shipping to an email or a mobile number.information in one convenient and secure place. With Source: Payments. AmazonPayPass Wallet, customers simply shop, click andcheckout faster online.Source: PayPass18 November 2012 | MOBILE PAYMENTS 19
  11. 11. amount of buzz as Facebook continues to grow and the company is uniquely positioned to completely revolutionize commerce. Other notable Source: Thedailybeast l June 2012 companies Square With Square, small business owners and merchants Banks & Card Companies Technology Companies can accept card payment using an Android phone, (Technology providers to banks) iPhone, or iPad. Also, the company offers “pay with ■■ Telepin Software Pos solutions Square,” allowing customers to pay with their mobile ■■ Customer Engagement ■■ Charge Anywhere device at the POS. ■■ Corfire ■■ VeriFone Source: Squareup ■■ MChek ■■ InTuiTGoPaymentTechnology PayPal Here ■■ FirstData ■■ Braintree ■■ Roam Data ■■ RedFin networkCompanies Keeping up with its competitor, PayPal recently launched PayPal Here, allowing customers to accept ■■ JMango ■■ Moneris Solutions ■■ Corduro cards and also checks. Also allows users to invoice Mobile Operators ■■ HandpointGoogle Wallet and track cash payments. Of course, PayPal contin- (in App purchases, bill toFast and easy payments, with any card. Google Wallet ues to win mindshare as it facilitates payments, in- mobile companies) Loyalty Programsnow supports all major credit and debit cards, from cluding mobile devices. Recently, a survey revealed ■■ Bango ■■ FoursquareVisa, MasterCard, American Express, and Discover. that 8 of 10 consumers would use PayPal’s wallet, if it ■■ PayOne ■■ MogleyGoogle Wallet stores cards online so they’re available were to be available. ■■ Mopay ■■ Swaggwherever customers go in the real or virtual worlds. Source: PayPal ■■ DimocoSee video ■■ BilltoMobile NFC LevelUp ■■ DeviceFidelityApple: Passbook A new mobile payment network, LevelUp provides a Mobile Wallets ■■ Giesecke & DevrientWith the iOS 6, Apple introduced the “Passbook,” a QR code pay-by-phone application for consumers and ■■ Serve ■■ Ingenicomobile app which manages boarding passes, tickets, a terminal system for merchants. Recently it raised $21 ■■ Magtek ■■ Oberthur Tecnologiesstore cards, and coupons. The leading mobile tech- million ($9 million coming from the venture capital ■■ MasterCard ■■ Vivotechnology company is expected to further pursue its arm of Deutsche Telekom) in a 2nd round funding. ■■ MobilePay ■■ Xius Innovate Lead“iWallet” strategy. The company launched Passbook See video ■■ Cimbalwith it newest OS, the iOS 6. “Apple controls the hard- ■■ Tabbedoutware and the mobile OS, and now with Passbook, it iZettle ■■ NoMoreCardsprovides brand app developers the ability to link their Europe’s answer to Square, iZettle allows businessesproducts to a centralized and easy management.” to take card payments using an iPhone or iPad.Source: Forbes | What CIOs Need to Understand about Apple’s Pass- See videobook Service, October 2012. DwollaFacebook The company’s product allows anyone with an in-Facebook has scrapped its Facebook Credits and ternet connection to safely send money to friendshas everyone wondering what they will do in the or payments arena. There is a tremendous See video20 November 2012 | MOBILE PAYMENTS 21
  12. 12. BBVA &Mobile The Channel Director ofPayments BBVA Bancomer, Mauricio Pallares, highlighted during the presentation that the company is turning to electronic banking to lead it’s strategy to bank the unbanked and promote financialBBVA Bancomer recently inclusion. With ‘Mobile Money,’launched ‘Mobile Money’, a new the group intends to extend banking services to 1.5 millionservice that allows customers customers and reach a volumeto send money anywhere in of 19.5 million transactions inthe country using a mobile the first year of This service will BBVA Bancomer Mobileprovide access to banking Money results from an interestto 1.5 million users, in developing a modern and innovative bank that offerscontributing to their alternatives that facilitates accessfinancial inclusion. to low-cost, financial services while ensuring safety, proximity, availability, time savings, and convenience. The new service launched by BBVA Bancomer is also available in Spain under the name, “dinero móvil.”22 November 2012 | MOBILE PAYMENTS 23
  13. 13. Smartphonatics Are a group of consumers who are driving the demand for mobile payments. They aggressively change the way they shop and pay for products and services. Importance of mPayments smarphonatics! Very important 4% 24% Less 41% 31%“smartPhonatics” important The rise of the mobile class Interest in Low High mPayments ussage Customer surveys always seems to facilitate understanding. In this section, we’ll take a look at the Based on a global survey of 4,200 consumers (realized in Q1 2012), Aite Group’s research reveals leading mobile payment consumers, the Smartphonatics. recent survey results related to mobile payments and Source: Aite | The Global Rise of Smartphonatics: Driving Mobile Payment and Banking Adop- tion in the Americas, EMEA, and Asia-Pacific, May 2012. some insights they reveal.24 November 2012 | MOBILE PAYMENTS 25
  14. 14. Where are they? Smartphonatics / Key Findings 11% Sweden 16% UK 10% Germany 31% China 7% Canada 8% France 27% Italy 20% U.S 34% U.A.E 60% India 24% Singapore 37% Brazil 16% Australia Are twice as likely than non-Smartphonatics to adopt 42% South Africa mobile payments. Are driving mobile payment adoption around the world . Offer clues to creating and meeting demands for mobile payments (albeit at different rates across the globe).Who are they? Mobile payment usage Represent a country’s mobile maturity level. 36% 32% Smartphonatics Do not necessary use smartphones (it’s all about the behavior). Will continue to use a myriad of payment options, 18% including mobile. 70% Others consumers 6% 23% 23% Has used mobilephone to make Senior Boomer Gen X Gen Y a payment in the last six months.Source: Aite | The Global Rise of Smartphonatics: Driving Mobile Payment and Banking Adoptionin the Americas, EMEA, and Asia-Pacific, May 201226 November 2012 | MOBILE PAYMENTS 27
  15. 15. Cashing in on theopportunitiesWhoever creates the most meaningful financial New business modelsvalue bundle for a given customer segment willwin marketshare. The walls between industries B e part of someone else’s value bundle! Banks can collabo- rate with platform providers for value delivery. For example, Chase, CapitalOne and Barclays are part of ISIS mobile wallet, aare beginning to breakdown and the market consortium of mobile turning into a free for all. Can the banks becompetitive? November 2012 | MOBILE PAYMENTS 29
  16. 16. MeaningfulValue BundleFor banks, mobile payments are not an end to it- trust and confidence, such as offering value addedself. In a world of customer experience as the new financial products/services; such as helping custom-value proposition, products by themselves do not ers to save, to invest, and to borrow. In other words,offer a competitive advantage. Together with other banks are positioned to provide a meaningful expe-building blocks of the business model, banks can rience to customers when it comes to addressingleverage mobile banking and put together a value their financial needs/wants, including the ability tobundle that can delight customers and regain their pay for purchases via mobile devices. Innovation Mobile G BANKIN + Mobile T PAYMEN forecast + Mobile S WALLET GFUL + d financial Value-adde/SERVICES PRODUCTS = MEANIN VALUE E BUNDL Mobile Payments is a trend that is gaining a lot of momentum and, as such, banks and other financial services companies are watching it closely. In this section, we’ll take a quick look how banks should understand mobile payments and how to approach it.30 November 2012 | MOBILE PAYMENTS 31
  17. 17. Insights SuggestionsTake the Long View The Long ViewB etween the seemingly imminent domination of mobile payments as seen in the news andknowing that they represent a small percentage of Group in their recent article, How Banks Can Take the Lead in Mobile Payments, offers some in- sights for banks: The article also offers suggestions for banks on how to seize the moment:total payments lies the true relevance this trend. ■■ Invest to gain experience.Mobile payment is a business opportunity for ■■ The value will be in deals and offers, not in pay- ■■ Form a “house view” on the m-wallet.banks... it’s just a matter of timing. ments. ■■ Preserve the attractiveness of cards. ■■ Cards will not disappear anytime soon. ■■ Establish security protocols.For now, most banks are dipping their toes to see ■■ mPayments are not yet superior to traditional pay-how the water is... and don’t seem to be in a hurry ment methods. Sources: BCG | How Banks Can Taketo dive in. In this context, the Boston Consulting ■■ Banks are the masters of their own destiny. the Lead in Mobile Payments, June 201232 November 2012 | MOBILE PAYMENTS 33
  18. 18. In depth On the Web Amazon | Amazon Mobile Payment Service Barclays | Pingit Brandon McGee | Mobile Banking Blog (covers mo- bile payments as well)A list of sources to other useful tools and Mobile Money Boku | Introducing Boku Accounts. Smarter phone,resources that you may find useful as a smarter payments (Vimeo), February 2012. Mobile Payments Todaysupplement to the information offered on Boston Consulting Group | How Banks Can Take the New York TImes, Technology | PayPal Here is Morethe ‘Mobile Payments’ report. Lead in Mobile Payments, June 2012. Than a Square Imitator, July 2012 Business2Community | Facebook Credit Card As NFC WorldBooks & Your New Universal Payment Solution?, July 2012 Payments News Chase | QuickPay What’s next in paymentsPublications Commonwealth Bank | Kaching Daily Beast | Universal Wallet: Facebook’s Very PayPal Here PayPal | PayPal’s Global Mobile Solution Unveiled: Bright Future Merchants Around the Globe (YouTube), May 2012.Aite | The Global Rise of Smartphonatics: Driv- EFMA | EFMA Global Yearbook 2012, May 2012. Dwolla PayPal | PayPal Here: How It Works (YouTube),ing Mobile Payment and Banking Adoption in the Ernst & Young | Global Banking 2020: Foresight & March 2012.Americas, EMEA, and Asia-Pacific, May 2012. FinExtra InsightsCapgemini | World Payments Report 2011, Septem- Google | Google Wallet SapientNitro | The Future of Money and Mobile Pay- Gartner | Forecast: Mobile Payment, Worldwide, ments (YouTube), June 2012.ber 2011. 2009-2016, May 2012. Google | Introducting Google Wallet (YouTube), Au-Capgemini & EFMA | 2012 World Retail Banking Re- gust 2011. Square | Boccalone Gets Paid with Square (Vimeo), IDC Financial Insights | Consumer Payments Survey, December 2011.port, April 2012, May 2012. July 2012. GoPagoCelent | Preserving Merchant Relationships When Square | Pay with Square Juniper Research | NFC Mobile Payments — No Con- Intuit | The Marketplace in Your Hand, 2012Mobile Comes to the Retail POS, January 2012 Starbucks | Mobile Apps tact Required, June 2012.presentation ISIS KPMG | 2011 KPMG Mobile Payments Outlook, July Starbucks | New! Starbucks iPhone Apps (YouTube),Deloitte | Cell me the money: Unlocking the Value in ISIS (PayWithIsis) | The Isis Vision (YouTube), September 2009. 2011.the Mobile Payment Ecosystem, 2011. February 2012. KMPG | KPMG Banking Outlook Survey, June 2012. TechCrunch | Apple Announces New Passbook AppForrester | 2012 US Mobile Banking Functionality iZettle To Store Movie Tickets, Retail Cards, And Board-Rankings, April 2012. KPMG | Monetizing Mobile: How banks are preserv- ing Passes, June 2012 Lafferty | QR code to boost mobile payments dra- ing their place in the value chain, July 2011.Forrester | Consumers Bankers Association Survey, matically, September 2011 (subcription article). Telefonica (O2) | Mobile WalletJune 2012. MasterCard | The Mobile Payments Readiness In- LevelUp Visa | Visa Digital Wallet (YouTube), May 2011. dex, May 2012.Deloitte | Mobile Payments: a Deloitte Analysis -- MasterCard | PayPass WyWallet (Telia, Tele2, Telenor and 3 - the SwedishManaging change in the “mobi-payscape.” Pew Internet & American Life Project | The future Big 4) of money: Smartphone swiping in the mobile age,Edgar, Dunn & Company | Advanced Payments Re- April 2012.port, March 2012.34 November 2012 | MOBILE PAYMENTS 35
  19. 19. Trending issuesIn this section, readers will find summaries of the most relevant news of selectedtopics that have been published over the course of the month based on its relevance Mobile bankingto the Banking industry. The summaries were prepared by the editorial board. Furtherinformation is made available for each given topic. Which Way to Go?Core banking platform Most mobile banking apps in the market today are native apps. That is to say, the kind of apps you purchase from anHave the need to better app store for a particular mobile platform, such as Apple’sunderstand customers App Store, Google’s Play, etc. These apps currently provide the best experiences for customers as it integrates theand the value bundle? functionalities of the smart devices into the mobile bankingGo back into the core. app, such as camera or GPS. However, keeping the mobile banking up to date for each platform can quickly run up“Banks need to seriously consider core renovation. the costs. With the coming of html5, banks can “write once,Core renovation allows modern architecture to publish in many platforms;” not only html5 can save money,deliver new functionality like dynamic pricing and but also decrease time to market. Banks will have moreproduct and pricing simulations which help banks choices regarding mobile banking applications in the postto understand, at an enterprise level, the value of PC era. Which way to go?customer relationships and the potential of any Source: Finextra | Apps, a continuing debate: html5 vs. native, 12 August 2012given product offer or bundle.”Source: Finextra New formats Enterprise 2.0 The future of bank channels, The Knowledge Economy would not be happy, but as seen by Cisco is coming would keep the30% same deposits Cisco Internet Business Solutions Group Global “The knowledge workers’ revolution will come from a re- would switch Research reveals new ways for banks to prosper in the newed workstation, and it will live in the cloud, whether 25% banks omnichannel world: the future of the branch. it is public, private or hybrid,” fueled by Desktop as a20% ■■ The old branch is dead; long live the Service, Social Desktop or whatever it may be called. 25% would not be omnichannel branch Currently, the challenges enterprises face include: 15% happy and 22% would reduce ■■ Mobile: The promise of embedded 10% deposits ■■ Growing number of communication channels: email, banking in consumers’ lives Facebook, Twitter, Skype, RSS, etc. ■■ Social: The potential is here—when will 5% ■■ Dispersed knowledge (internal and external) 7% banks be ready? 0% ■■ Short-term vision of social integration ■■ Video: Seeing is believing virtual banking Source: Cisco Source: Forbes | July36 November 2012 | MOBILE PAYMENTS 37
  20. 20. Trending issues Social Media Crowd finance Put your money where your mouth isSOCL (Global X Social Media Index Fund) Nasdaq GM. 2 - Aug - 2012 SOCL (Daily) 11.93 The social bubbleOpen 12.07 High 12.10 Low 11.84 Close 11.93 Volume 125.4K Chg -0.15 (-1.24 %) 15.8 15.6 Crowd-sourcing is used to fund innova- seems to 15.4 15.2 tive farm and food projects. ThreeRevo- 15.0 offers food and farm enter- be bursting 14.8 14.6 14.4 prises an opportunity to raise funds from 14.2 14.0 appreciative consumers who are eager to 13.8 A quick look at the Global X Social support and connect with their favorite 13.6 13.4 Media Index Fund pretty much tells businesses and really put their money 13.2 13.0 the whole story. The fairy-tale story is where their mouths are ... 12.8 12.6 ending and it’s time for social media Source: Marketwatch | July 12.4 12.2 companies to begin delivering real 11.93 value to consumers and businesses. Sep Oct Nov Dec 2012 Feb Mar Apr May Jun Jul Aug Source: SeekingalphaMobile payments Digital Marketing20 % of Europeans Interesting digital marketing stats:already make payments people use tablets in the eveningwith mobile & interactivity is best in tabletsAccording a recent report from Forrester, 1/5th Taken from weekly stat monitoring by Econsul-of european consumers. “Banks need mobile tancy, a digital marketing firm:payments to protect their retail payments ■■ Between 7.30pm and 9pm more people click onbusinesses from digital disruption.” tablet ads than on mobile ads ■■ A quarter (25%) of respondents said they would beSource: Internetretailing | July likely to click interactive ads Source: Econsultancy38 November 2012 | MOBILE PAYMENTS 39
  21. 21. Trending issues New Gizmo era New banking concepts It’s not a bank; it’s 3D printers to go a banking store: The Couple of MIT students developed Virgin Money Store the first truly portable 3D printer The first Virgin Money Store opened its doors in that fits inside a metal briefcase, a July, with plans to open some 70 plus more stores “personal fabrication machine.” In a in the future. The “stores” feature free WiFi, iPads and short period of time, consumers will iMacs, and a “no hard-sell policy” adopted by staff. become mobile manufacturers. What “Customers can simply come in, take the weight could that enable? Time will tell. off their feet, enjoy a cup of tea and use our free Source: Arstechnica facilities.” Source: ThefinancialbrandApp ecosystem Join & enjoy They’re finally here: “Only” 1.6% of Facebook enterprise app stores users spent money on Now big software vendors hope to stream- virtual goods line the searching and buying process by In percentages, it’s pretty paltry. But ... when following in Apple’s footsteps. SAP and other expressed in dollars, that becomes over 1 billion enterprise software companies are opening dollars. Uh, that would be nine zeros. “The newly app stores and hoping that they can monetize launched Facebook App Center will spur pay- the app ecosystem, such as The SAP Store. ments usage. In addition to in-app purchase, app Sources: PC Advisor / EcoHub. developers (not only social games developers) now have the flexibility to charge users one-off flat fee and/or subscription.” Source: Forbes | August 201240 November 2012 | MOBILE PAYMENTS 41
  22. 22. Trending issues Technology trends The following section outlines the upcoming technologies that will change Smart cities + urban mobility everything, with predictions on what may come of them in financial industry. According to Daimler AG, it’s the best 3D Printing way to get from A to B 3D printing is a process of making three dimensional solid objects from a digital file. 3D printing is achieved using additive processes, “Moovel,” brings together entirely different means of travel and presents the options so that they can be where an object is created by laying down successive layers of seen at a glance – transparently, in a user-friendly way material. In other words, 3D printing turns bits into atoms. and on an equal footing. The recommendations are based on the offers of the mobility service providers. A “3D printing makes it as cheap to create single items pilot program is launched in Stuttgart and another one is planned in Berlin. As of July, the app is available for as it is to produce thousands and thus undermines download in Apple’s App Store. economies of scale. It may have a profound impact Source: Media Daimler on the world as the coming of the factory did. … Just as nobody could have predicted the impact ofHealth the steam engine in 1750 —or the printing press in 1450, or the transistorIs there a doctor in the phone? in 1950— it is impossibleThere is an explosion of mobile medical Diabetes monitoringapps, beyond the diet and exercise kind. ■■ to foresee the longterm ■■ Heart EKG monitoringThe president of the American Academy ■■ Blood pressure monitor (wrists) impact of 3D printing.of Physicians, Glen Stream states, “People ■■ Electrocardiogram device But the technologywant to be empowered to take care of their ■■ E. coli sensorhealth” and are asking for apps for help. ■■ Ear infection checker is coming, and it isCurrent apps include: likely to disrupt every Source: USAtoday l August 2012 field it touches.” Source: The Economist42 November 2012 | MOBILE PAYMENTS 43
  23. 23. Technology trendsT he market for 3D printing and related products and services are expected to grow because ad- ■■ The material base is expanding. Plastics, metal alloys, ceramics, food, etc. Technology as marketingditive manufacturing essentially makes the cost ofcomplexity free (or almost free). Massive personali- ■■ 3Dmodel creation is being democratized. Whatzation doesn’t mean massive costs. In terms of man- was a complex & expensive is now simple & af-ufacturing, personalization becomes essentially free. fordable; and readily accessible. When technology boosts marketing campaigns■■ The cost of 3d printers is dropping dramatically. 3D printing comes in all shapes and sizes. For ex- Building a product is just the beginning. Once in The cost of basic home 3D printer is dropping to about ample, they can go big or go small and everything $1,000 and a industrial 3D printer to about $10,000. else in between. the market, users will evaluate if the application Source: Forbes developers have been working on during the last months is good enough or not. It is true that this evaluation depends on a never-ending 3D printed passenger planes number of variables - customer satisfaction, needs covered, look and feel, expectations, overall experience - which makes the success almost impossible to predict. Printing Houses E ven the most simple solution needs a marketing campaign accompanying the launch —it may not be mandatory but it really helps!— Spreading the word can be done in many different ways, but surprising the final users is becoming Fat, even at nano-scale harder and harder. Google has detected the opportunity and their teams are creat- ing amazing examples about how to take their products to the limit. In other words, Google uses the technology beyond their product as the marketing campaign. Let’s enjoy with a few examples.44 November 2012 | MOBILE PAYMENTS 45
  24. 24. Technology trends EventsPlay the Cube Mobile Payments Mobile payments are on their way to become a mass phe-PlayMapsCube is a tilt-to-roll marble game using 3D nomenon. Analysts believe that on the next five years mostand the Google Maps API. The game is a tutorial for of the transactions done in physical commerce will be ex-Google Maps but it includes some features that make ecuted through mobile an addictive game. Is it really needed to explain howGoogle Maps works? For most of the people probably This payments will shape the way monetary transactionsnot, but it is cool and it will be useful during the maps are seen in the future by the society as a whole, and willwar for sure. surely transform the clients’ lives. The Mobile Payments event will be held on November 29th.Chaos to perfection World Wonders Project From 9.30 to 2.00 pm. BBVA Innovation CenterThe Google Cultural Institute has created an amazing Another example created by the Google Cultural Plaza de Santa Bárbara, 2, 28004. madrid3D virtual tour of the Palace of Versailles. This Institute to show how Google Street View works.example shows the true power of Google Chrome Google makes world heritage sites availablenavigator working with WebGL for rendering to users across the globe by using the Streetinteractive 3D graphics without the use of plug-ins. View technology including videos, photos and in-depth information. Users can now explore Other events the world wonders just as if they were there. Videos, pictures and ■ INICIADOR
 Iniciador Madrid with Enrique Burgos “Keys to developing all the info your personal Brand”. Iniciador Madrid dismissed the 2012 season with an interview More info to Enrique Burgos (Chief Marketing Officer at QDQ Media) to discuss the main keys to creating a personal brand. Date: December 12th, 18.00 in BBVA Innovation Center ■ KNOWSQUARE
 Know Square Workshop: “Creating an optimal present”. The crisis has led to a further weakness in the already difficult world of channeling emotions. This workshop aims to fami- Check out the videos and photos liarize and empower main mindfulness, from the standpoint of the event in our web of both theoretical and practical. Date: December 18th at 18:30 BBVA Innovation Center46 November 2012 | MOBILE PAYMENTS 47