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How are mobile devices                changing the face of                    payments?                                   ...
Agenda• Journey of Payments• Current Landscape• Emerging Trends in Mobile Payments
Journey of Payments
Livestock                       Warfare            Fruits and grains
Old Roman Empire Gold Coin      Ancient Indian Gold Coin    Ancient Greek Silver Coin
Kublai Khan issued paper money                                           known as ChaoEmperor Kublai Khan      Paper Money...
First Diners Club credit cards were given out in 1950                                                Curtsey Diners club
Founded in 1998, PayPal allows payments and money transfersthrough the Internet.
http://www.prlog.org
Logos!Worldwide mobile payment transaction values will surpass $171.5billion in 2012, a 61.9 % increase from 2011         ...
CurrentLandscape
Mobile Payments Ecosystem                                              S                                              e   ...
What are Mobile Payments?• Consumer uses a mobile device• Merchant uses a mobile device• Both consumer & merchant use a mo...
Remote Mobile Payments• Send and request money• SMS based payments• Mobile banking• Application/ Browser based payments• C...
Proximity Mobile Payments• Barcode Scanning• Point of Sale• NFC• Bluetooth• RFID• Accelerometer                           ...
Your Definition of Mobile PaymentsWhat does a Merchant want?        What does a Consumer want?• Quick, easy, hassle free  ...
eBay Inc.: Developer OfferingsConsumerProducts Merchant               Merchant Products               ProductsCapabilities...
Open Global Payments Platform
Why PayPal?113.2 million Active consumers190 markets25 currencies21 localized websites$118 billion TPV in 2011$4382 per se...
Collecting Payments: Express Checkout
Collecting Payments: Mobile ExpressCheckout
Collecting Payments: Adaptive Payments
Reports and Information  Transaction Search   Instant Payment       / Details         Notifications
PayPal Access: Your Commerce Identity      Sign-on Today                      •   23% - customers who abandon carts       ...
PayPal Access: Your Commerce Identity •   Single sign-on •   Enter and update billing and shipping     information once • ...
PayPal Access: Delivers ActionableConsumer Data    PayPal Informatics data         Informatics Data Examples   covers up t...
PayPal Here: Point of Sale Payments
Development Phases                 Design, build &                 test application                                       ...
Biggest Challenge?   Security
Diverse & Evolving Mobile Ecosystem S      OEMs                              OS Vendors e c u r i   Services &            ...
Security Issues• Device security• Privacy• Fraud & Risk• Client-merchant authentication• Client authorization• Evolving st...
PCI Standard Council• Independent organization• Develop common set of payment standards • PCI-DSS v2.0 • PCA-DSS • PCI-PTN...
PCI-DSS V2.0• Build and maintain a secure network• Protect cardholder data• Regularly test and monitor networks• Maintain ...
EmergingTrends….
Mobile Payments are Here to Stay"We expect global mobile transaction volume and value toaverage 42 percent annual growth b...
M-payments is a Global PhenomenonEastern Europe will see the highest user growth between2011 and 2016. Asia/Pacific will h...
M-payments is a Global Phenomenon• M-pesa in Kenya• Chipknip• GeldKarte• Royal Canadian Mint                        http:/...
Mobile brings New Use Cases          Location-based services         Self-scanning &                                      ...
Changing Form of Payments                • Money becomes more abstract                • Royal Canadian Mint               ...
Increased Collaboration among MobilePayment Stakeholders
Improvements in Payment Security• Consumer awareness• Improved device security• Biometric identification• Evolving securit...
Summary• Mobile payments are here to stay• Define what mobile means to your business• Think beyond the hype• Security, tru...
Pragati Ogal Rai                       @pragatiogalhttp://www.slideshare.net/pragatiogal
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How are mobile devices changing face of payments?

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This is the presentation at Mobile Developer Conference, Chennai, India on Dec 01, 2012

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How are mobile devices changing face of payments?

  1. 1. How are mobile devices changing the face of payments? Pragati Ogal Rai Mobile Technology Evangelist, PayPal @pragatiogal github.com/pragatiogalMobile Developer Conference, Chennai, Dec 1, 2012
  2. 2. Agenda• Journey of Payments• Current Landscape• Emerging Trends in Mobile Payments
  3. 3. Journey of Payments
  4. 4. Livestock Warfare Fruits and grains
  5. 5. Old Roman Empire Gold Coin Ancient Indian Gold Coin Ancient Greek Silver Coin
  6. 6. Kublai Khan issued paper money known as ChaoEmperor Kublai Khan Paper MoneyYuan Dynasty 500 Cash 1269-1365 1215-1294 AD Marco Polo was a Venetian merchant traveler whose travels are recorded in II Milone. He introduced Europeans to Central Asia and China. Marco Polo 1254 – 1324 AD http://en.wikipedia.org
  7. 7. First Diners Club credit cards were given out in 1950 Curtsey Diners club
  8. 8. Founded in 1998, PayPal allows payments and money transfersthrough the Internet.
  9. 9. http://www.prlog.org
  10. 10. Logos!Worldwide mobile payment transaction values will surpass $171.5billion in 2012, a 61.9 % increase from 2011 Gartner, May 2012 1.8 billion consumers globally will buy digital goods via their mobile in 2011, this will rise to 2.5 billion in 2015. Juniper Research, 2011
  11. 11. CurrentLandscape
  12. 12. Mobile Payments Ecosystem S e c Clients Merchants u r i t y Infrastructure
  13. 13. What are Mobile Payments?• Consumer uses a mobile device• Merchant uses a mobile device• Both consumer & merchant use a mobile device How do you define mobile payments?
  14. 14. Remote Mobile Payments• Send and request money• SMS based payments• Mobile banking• Application/ Browser based payments• Carrier Billing Fahad.com
  15. 15. Proximity Mobile Payments• Barcode Scanning• Point of Sale• NFC• Bluetooth• RFID• Accelerometer Wikepedia.org
  16. 16. Your Definition of Mobile PaymentsWhat does a Merchant want? What does a Consumer want?• Quick, easy, hassle free • Fast• Security compliance • Secure• Fraud prevention systems • Easy• Current and up to date system • Choice of payment providers• Reliable• Pricing
  17. 17. eBay Inc.: Developer OfferingsConsumerProducts Merchant Merchant Products ProductsCapabilities  12/5/2012Community OVER 800,000 DEVELOPERS
  18. 18. Open Global Payments Platform
  19. 19. Why PayPal?113.2 million Active consumers190 markets25 currencies21 localized websites$118 billion TPV in 2011$4382 per sec6.2 million payments per day0.26% fraud rate
  20. 20. Collecting Payments: Express Checkout
  21. 21. Collecting Payments: Mobile ExpressCheckout
  22. 22. Collecting Payments: Adaptive Payments
  23. 23. Reports and Information Transaction Search Instant Payment / Details Notifications
  24. 24. PayPal Access: Your Commerce Identity Sign-on Today • 23% - customers who abandon carts when asked to register1 • 45% - leave website when they can’t remember their password2 • 25 - average number of online accounts per user1 1. Forrester Research 2. Blue Inc.
  25. 25. PayPal Access: Your Commerce Identity • Single sign-on • Enter and update billing and shipping information once • Commerce identity. PayPal is trusted by consumers to keep their information secure and respect their privacy
  26. 26. PayPal Access: Delivers ActionableConsumer Data PayPal Informatics data Informatics Data Examples covers up to 60% of online transactions*  Online activity: who customer is & how they purchase – Time of last purchase – Frequency of online purchase – Average amount per online purchase – More… PayPal Informatics  Category of purchase history – UPC code – eBay category (420K categories) i.e. womens clothing jeans, womens junior’s jeans, womens petites jeans All online transactions  Real-time data: Enables targeted offers, even on first visit
  27. 27. PayPal Here: Point of Sale Payments
  28. 28. Development Phases Design, build & test application GO LIVEGet API Submit forcredentials approval* Create Sandbox account * Only Adaptive Payments, Mobile Payment Library, and certain advanced APIs in Express Checkout require submission.
  29. 29. Biggest Challenge? Security
  30. 30. Diverse & Evolving Mobile Ecosystem S OEMs OS Vendors e c u r i Services & Developers t Infrastructure y Carriers Wireless Networks
  31. 31. Security Issues• Device security• Privacy• Fraud & Risk• Client-merchant authentication• Client authorization• Evolving standards
  32. 32. PCI Standard Council• Independent organization• Develop common set of payment standards • PCI-DSS v2.0 • PCA-DSS • PCI-PTN • PCI-P2PE
  33. 33. PCI-DSS V2.0• Build and maintain a secure network• Protect cardholder data• Regularly test and monitor networks• Maintain an InfoSec policy• Maintain vulnerability management program• Implement strong access control measures
  34. 34. EmergingTrends….
  35. 35. Mobile Payments are Here to Stay"We expect global mobile transaction volume and value toaverage 42 percent annual growth between 2011 and 2016, andwe are forecasting a market worth $617 billion with 448 millionusers by 2016," Sandy Shen, research director at Gartner, May 2012
  36. 36. M-payments is a Global PhenomenonEastern Europe will see the highest user growth between2011 and 2016. Asia/Pacific will have the most m-paymentusers, but Africa will account for the highest revenues. Gartner, May 2012
  37. 37. M-payments is a Global Phenomenon• M-pesa in Kenya• Chipknip• GeldKarte• Royal Canadian Mint http://pritamkabe.wordpress.com
  38. 38. Mobile brings New Use Cases Location-based services Self-scanning & self-checkout Online Commerce Promotions & Shopping Lists coupons Global Social Commerce In-store Mobile Wallet research Loyalty
  39. 39. Changing Form of Payments • Money becomes more abstract • Royal Canadian Mint • Digital goods • Anonymous payments: Bitcoin Less cash society Cashless society
  40. 40. Increased Collaboration among MobilePayment Stakeholders
  41. 41. Improvements in Payment Security• Consumer awareness• Improved device security• Biometric identification• Evolving security standards like PCI Security Standards
  42. 42. Summary• Mobile payments are here to stay• Define what mobile means to your business• Think beyond the hype• Security, trust, and safety is of paramount importance
  43. 43. Pragati Ogal Rai @pragatiogalhttp://www.slideshare.net/pragatiogal

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