Has Anyone Asked a Customer?
Mobile Convention Brussels (05 November 2013)
Dan Armstrong (email@example.com)
How shall we define “transaction”?
Bank Account Value
Value Depletion, Prepaid,
Loyalty, Points, Coupons,
Engagement, Action <?>
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
83% of consumers will recommend a trusted brand to
others, often un-prompted
Concerto Marketing Group, Vancouver BC, Canada / Ontrack Advisory, Singapore (April 2013)
Focusing on “transactions”
Transactions via the Channel
Transactions are 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 have a pipe and/or network and I want to monetise the
investments I made in creating it.”
”I need as many (cost effective) channels and pipes to do it.”
”I want as much to get through that pipe and the (mobile)
phones accessing it as possible.”
Mobile Proximity Payments: A Fundamental Divide
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
Bypass Card Emulation
Trigger remote payment with
phone (apps, other manner)
Confirmation can be pushed to
merchant, but how to localise
the payment location without
Receipt can be printed at POS
Latency in making payment
this way vs. cards
EMV / secure PIN keypad
Card acceptance still required
Card Emulation vs. Bypassing Card Emulation
value on the card
value in “the cloud’
Mobile NFC PIN Emulation Trial @ C1000 (2007-08)
Mobile NFC for Low-Value Payments in Vending (2007-08)
NFC Mobile as Retail Shopping Tool, Issued Device & Acceptance
Point @ AH To-Go (2008)
Use a Phone to
Accept a NonCard Payment
Use a Phone to
Accept a Card
Mobile phones accepting cards, leverages existing card
Will BLE fill the gaps?
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 nextgeneration merchant’s priorities.
What do we expect from a wallet?
A place to store cash?
A place to store payment
A place to store other tokens?
A personal object?
A private object?
Something small enough to
… but … do we need a
Then, what do we expect from a transaction device?
Identification of myself, my
rights and capabilities,
Identification of myself, an
authentication tool for
Personal and private
Easy to use
… but … do we need a
The Consumer’s Perspective on NFC?
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?
• 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?
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 .. ?
Virtualisation benefits are clear, from the bank’s POV ..
Total Customer Contacts
* 1 million
Contacts via devices
mobile phone, IVR)
Contact via a
For your consideration .. impulse purchase / spam
For your consideration ..
Takashi Mobile | Financial Services
1011 VJ Amsterdam
+31 652 085 071
ContentsSome thoughts on paradigm shiftsRe-thinking the nature of transactions and transaction actorsProximity mobile payments: card emulation or not? 3 case studies from The Netherlands to validate consumer acceptance of NFCRebooting the conversation from a consumer point-of-viewWhat do we expect from a wallet, or a payment instrument?Is NFC a “tech-push’ or a “consumer pull’?How to differentiate with NFC?
So I was thinking about some of the old conceptions of “e-commerce” and the “e-wallet” that we used to have at Netscape and MCI (1994-1996), when we were first deploying HTTPS.
Speed & efficiencyGlobal marketsProducts & choicesComparison, reviewsThe long tailSocial mediaViral movements & newsMonetising clicksSpamPorn
MNOs tend to generate their revenues from “transaction-based business” (sale of SMS, data, voice calls), whereas margins on actual “transactions” for banks are thinning in most markets, and in some cases unprofitable in general.For banks, the question about the value of payments services is a burning one these days – especially for developed world banks, but also for the developing world as well.Deposit-taking and lending are major differentiating business lines of banks, although some MNOs and other parties are starting to make moves in this direction.
Hard to ignore card’s ubiquity for retail payments in developed markets.However, for online payments – will this apply in the same manner? Especially for the younger generation ..
“Pinnen met je mobiel” retail shopping and payments trial using contactless PIN (NL direct debit) from Aug 2007- Feb 2008 Payment with a secure application on the mobile phone (Samsung x700)Also featured storage of value for recycled bottles on the phone – save your value, cash it in or donate it.Highly successful trial, proven consumer acceptance/trust a mobile as secure debit card replacement.
Proof-of-concept programme for NFC payment for soft drinks using MiniTixPartners: Capgemini, Coca-Cola, Rabo Mobiel, Yoonison, MiniTixBeginning in Apr 2007, 30 locations nation-wideProof-of-concept ‘Kroketjeuit de muur’ met je telefoon, Oct-Nov 2007 Capgemini, FEBO and Mertens GroupMiniTix NFC trial in Amsterdam (NFC mobile phones, cards)Proof-of-concept programme to explore cash management, saves coin traffic, fraud management
Major Dutch retailer Albert Heijn wanted to trial a new retail formula in their “To Go” storesNFC shelf-level tag shopping, as customer filled her basketCustomer built up a list of what they were buying, and performed self-checkout without queuing at busy store countersDiscounts and specials applied automaticallyReceipt can be printed upon existOccasional control checks to validate purchases
The case is clear for our creativity to make virtualised ecosystems work.But it will take a lot more creativity, usability and value to become a real business driver.And for banks, they also need to achieve this without sacrificing trust, security, longer-term relationships, and (a certain degree of) transparency.The case is clear for our creativity to make virtualised ecosystems work.But it will take a lot more creativity, usability and value to become a real business driver.
Although item-level NFC/RFID tags are too expensive right now. Maybe we can print them soon ..And you could do the same thing with image recognition software presumably in the future .. And you could still (more easily?) pay with a card when you get to the POS …