Thanks for the opportunity to share some thoughts and ideas on the many fantastic opportunities that mobility and the digital economy offers.
Every day the headlines SCREAM and overwhelm us with information about innovations in mobile technology. So where is it heading and how will it change the way do business and interact with each other? Will Payments drive adoption? OR will other applications like transport ticketing drive it? OR will it be driven from elsewhere? My view is that its probably going to be driven from a range of service providers. And I will cover my reasons for that soon. BUT, whomever drives the adoption, there is absolutely no doubt that it will significantly change our lives. So today I would like to cover some of those changes BUT importantly offer my thoughts and ideas on how we can be ready …AND enjoy the opportunities this revolution will bring.
All the research suggests that 2012/2013 will be a HUGE year for the uptake of NFC mobile devices and mobile transactions GO THROUGH TABLE Gartner expects the NFC mobile market to exceed one billion devices in 2015. To me this means FANTASTIC opportunity for you to take advantage and drive the consumer benefits of mobile technology Juniper expect half a billion banking users by 2013
Lets focus on the predicted growth in Mobile Payment Transactions. Although many of these will be traditional payment transactions. Expect that emerging players will find innovative ways to provide secure payments. WOW – the growth is going to be HUGE over the next five years. Payment Transactions will Reach 9.9 Billion in 2016 up from 1.1 billion in 2012. So… if transactions quadruple from today's numbers. What does it mean for the industry? How will it meet the growth? Will new players and start-ups emerge to take a slice of the action? The certainty is the shape of the existing market WILL change. AND that will impact on all of us.
NFC trials and rollouts are also gaining pace. This chart shows that there have been already 562 rollouts since 2008 And more than 60 countries have participated
So what’s defining the mobile market now? The mobile transaction market is not just about payments there’s a lot of diversity which means opportunity Currently no single model that's been adopted by the entire market. Indeed - different markets may have different solutions In-Stat predicts that Asia Pacific will dominate proximity mobile transactions. Providing great opportunities in this region
The Payment Applications Model is well defined GO THROUGH THE QUADRANTS In my view this model may well be the launch pad for a host of other vertical markets to follow. AND its not only payment that will require security and trust around transactions There are an enormous range of other “TRUST” transactions that will be deployed in the digital economy
My view is – You can expect to see requirements for security and trusted transactions in many markets. Here’s some examples Healthcare – Controlling and accessing private health information Event Booking – Book, pay and attend events such as Grand Prix, Football, Concerts and Theatre. AGAIN this will require security to control fraud. Building & Network access – How convenient would it be not to have that irritating ID badge hanging around your neck. Simply access via your mobile device. Product & People ID - Will we need a passport booklet in future? What about a plastic driver licence or citizen ID card? It can ALL be securely managed to a mobile device via a Trusted Manager. Building Services and Supply Chain Tracking – Legislated testing of essential building services can be managed via a Trust Centre, Improving accuracy, safety and productivity. Visit YouTube NFC forum to discover other mobility applications
Will ANYONE dominate in this new environment? Banks – No Dominant Player. Limited direct access to other Sectors. Looking at new technologies but they tend live in Payment world. Government - Dominant Player but segmented by Jurisdictions . Limited access to many sectors. Transport & Transit – No consolidation of Transit. Generally focussed on a city wide basis. Not much interoperability. But the sector is innovative and looking at new technologies to improve customer experience . Others – These include non traditional and emerging technology companies that could become service providers. Suffer from a lack of brand presence and trust. Telco - Strong presence and digital infrastructure . As such have access to wider markets. BUT will they get general acceptance as a Trusted Servicer Provider? Internet Search Engines .
I did some analysis to look at the various clusters that could exist in the mobile economy My view, as represented by those various coloured arrows is that many potential service providers will be chasing the same, or at least similar markets So – who will be the winners and losers out of this?
To try to gestimate… I think the winners will offer the “WOW” factor by using the mobile technology as a Customer Experience Differentiator. Here’s an interesting example of this from Budweiser Budweiser purchasers download a free app “Track Your Bud” You can enter the Born On Date and get a guided tour of the creation of that individual carton or bottle. “ Track Your Bud” will give visibility into the source and selection of ingredients, Budweiser’s seven-step brewing process. QUOTE FROM ROB MCCARTHY VP AT BUDWEISER “People respect Budweiser for its heritage, full flavour and legendary consistency,” ……. “Budweiser has a great story, and we want to tell it in a new way It’s a real demonstration of the customer experience demonstrating the pride, passion and craftsmanship”. So if Customer Experience is the Differentiator then what is The Enabler?
This is the TSM Eco System It is proven technology The infrastructure is already there Its the enabler for each of these opportunities discussed this morning
Reis and Trouts first law of marketing States – “Its better to be FIRST than to be BETTER To get on board you need to ACT NOW So whether you are looking at an: Offence marketing opportunity to pick up new customers . OR Defence strategy– to protect current markets and customers Learn all you can Start working on Aliances and Partnerships Talk to Experts and leverage their capabilities
If you have any questions or like further discussion Meet me or any of our team of experts at Stand 44.
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The Digital Economy Is Here! Mobile & NFC a digital economy enabler• Mobile device ownership2006 = 41 of 100• Mobile device ownership NFC Enabled Phones2011 = 86.7 of 100 800 2014• By end 2012 NFC handsets 650 2013more than 65% in Europe 450 2012 year 350• Ave Lifecycle for handset = 201111 months 240 2010• Mobile banking users to 0 100 200 300 400 500 600 700 800 900 Units (Millions)reach half a billion by 2013 Source: ITU & Juniper Source: Gartner
Growth in Mobile Transactions PROXIMITY MOBILE PAYMENT TRANSACTIONS 9.9 10 9 7.6 8 7 6 4.9Transactions (billion) 5 3.7 4 3 2 2 1.1 1 0 2011 2012 2013 2014 2015 2016 Year
NFC Trials and RolloutsGlobal NFC Trials and Commercial Rollouts since 2008
What’s Shaping the Mobile Market? The mobile transaction market is diverse There is no single model yet adopted Expected domination in Asia Pacific region
Payment Applications ModelNFC terminal In reader mode, NFC device Two NFC devices: becomes a POS terminal “peer-to-peer” modeContactless terminal Classic contactless card Cardholder uses NFC phone at point-of-sale instead of contactless card Contactless card NFC card mode
Other Trust ApplicationsHealthCare Event Booking Physical & Logical & Admission Access Product and people Building Services ID Supply Chain Tracking
Will Anyone Dominate? Online Retail Event Access Loyalty Transit Health Internet S.E. Government ID Payment Telco Carriers Traditional Retail Transport Event Access TransitPayment Banks Payment Transit Others Internet S.E. Government ID Emerging Tech Health Transit Online Retail Gov ID
Will Anyone Dominate? Traditional Retail Online Retail Event Access Loyalty Transit Health Internet S.E. Government ID Payment Telco Carriers Traditional Retail Transport Event Access Transit Online RetailPayment Banks Payment Transit Traditional Retail Others Internet S.E. Government ID Emerging Tech Health Transit Loyalty Online Retail Gov ID
Customer Experience As Differentiator Where Was My Bud Born?TrackYourBud.com
TSM As A Trust Enabler Event/Access Payment LoyaltyTransport Transportation ID Payment Application Issuers Event tickets Over-the-Air Services Service Provider OTA NFC M-Health USIM/SE - Management - Appl. downloads Physical Access Trusted Service Manager Identity Management
Steps to Success Who are my partners? What’s my strategy? What are the success factors?What and how to deploy?
Questions & Discussions? Please visit G&D at Stand 44Kenn MoulynoxSenior Account ManagerGiesecke & Devrient Australasia Pty Ltd0410 584 716