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.

Has Anyone Asked a Customer?


Published on

Short talk on NFC, payments and mobile applications @ the ModUX Conference ( in Amsterdam.

Published in: Business, Economy & Finance
  • Be the first to like this

Has Anyone Asked a Customer?

  1. 1. Has Anyone Asked a Customer? ModUX Conference 2013 (20 September 2013) Dan Armstrong (
  2. 2. marketplaceMCI (1994-96)
  3. 3. marketplaceMCI (1994-96)
  4. 4. 1-800-MUSiC-NOW (1996)
  5. 5. How shall we define “transaction”? Bank Account Value Transfer, Payments Value Depletion, Prepaid, Wallets, Transportation Loyalty, Points, Coupons, Transformation Moments Eyeballs, Trust, Engagement, Action <?>
  6. 6.  50% of consumers will pay more for products they trust  78% of consumers will look first to trusted brands when in need of products or services  78% of consumers are willing to give trusted brands a chance, even if unsure of what value the product or service will bring to them  82% of consumers will choose to use a trusted brand’s products or services frequently, rather than move between brands  83% of consumers will recommend a trusted brand to others, often un-prompted Trust? Concerto Marketing Group, Vancouver BC, Canada / Ontrack Advisory, Singapore (April 2013)
  7. 7. Focusing on “transactions” Transactions are the Channel ”I have a pipe and/or network and I want to monetise the investments I made in creating it.” ”I want as much to get through that pipe and the (mobile) phones accessing it as possible.” Transactions via the Channel ”I have stuff I want to do via channels. Enable my consumers to control their bank account, make a payment, get a ticket, see an ad, save or use loyalty points, etc.” ”I need as many (cost effective) channels and pipes to do it.”
  8. 8. Mobile Proximity Payments: A Fundamental Divide Card Emulation Bypass Card Emulation  Phone takes the place of a physical card to transact at a physical merchant location  Consumers are comfortable with card operating models  Standardisation and ubiquity of acceptance points a must for economies of scale  Requires compatible card/mobile acceptance infrastructure  Trigger remote payment with phone (apps, other manner)  Confirmation can be pushed to merchant, but how to localise the payment location without NFC?  Receipt can be printed at POS  Latency in making payment this way vs. cards  EMV / secure PIN keypad  Card acceptance still required
  9. 9. Card Emulation vs. Bypassing Card Emulation CounterEnables Payment value on the card value in “the cloud’ Mobile Authentication EnablesPayment card-emulationbypasscard-emulation Card Authentication EnablesPayment
  10. 10. Mobile NFC PIN Emulation Trial @ C1000 (2007-08)
  11. 11. Mobile NFC for Low-Value Payments in Vending (2007-08)
  12. 12. NFC Mobile as Retail Shopping Tool, Issued Device & Acceptance Point @ AH To-Go (2008)
  13. 13. Mobile phones accepting cards, leverages existing card bases UseaPhoneto AcceptaCard Payment UseaPhoneto AcceptaNon- CardPayment
  14. 14. Will BLE fill the gaps? (last week’s announcements) PayPal Beacon Estimote iBeacon PayPal Beacon and iBeacon aren’t really about the “transaction” in the traditional sense. They focus on the “customer journey” – and seek to address the next- generation merchant’s priorities.
  15. 15. What do we expect from a wallet?  A place to store cash?  A place to store payment tokens?  A place to store other tokens?  A personal object?  A private object?  Something small enough to be portable/mobile?  … but … do we need a physical object?
  16. 16. Then, what do we expect from a transaction device?  Identification of myself, my rights and capabilities, memberships.  Identification of myself, an authentication tool for payment.  Secure, multi-factor  Tamper-resistant/evident  Personal and private  Easy to use  … but … do we need a
  17. 17.  Consumers seem to love and trust it • But who will pay for it’s implementation … merchants, banks, mobile operators, handset manufacturers?  Given the “app revolution” in so many of our markets, what value does NFC bring to payments? • Convenience? • Put all cards in one apparatus? The phone-shaped wallet .. • Addiction to mobile phones, but not to our wallets? • Leave cards at home? • Add value to transactions? The Consumer’s Perspective on NFC?
  18. 18.  Cards seem to be entrenched in many markets, and are likely to remain in play for the foreseeable future, simply increasing the issuer and acquirer costs.  But, is NFC is fundamentally different from previous steps forward in functionality .. ? The Consumer’s Perspective on NFC? SMS Mobile Data Apps Online Shopping & Payment
  19. 19. Virtualisation benefits are clear, from the bank’s POV .. 0 50 100 150 200 250 300 350 400 450 500 1980 1985 1990 1995 2000 2005 2010 *1million Contacts via devices (e.g. web browser/internet, mo bile phone, IVR) Total Customer Contacts Contact via a bank advisor, bank branch
  20. 20. For your consideration .. impulse purchase / spam
  21. 21. For your consideration ..
  22. 22. Thank You! Dan Armstrong Takashi Mobile | Financial Services Rapenburgerplein 81 1011 VJ Amsterdam The Netherlands +31 652 085 071 skype: dd.armstrong