The document discusses how mobile payments using near field communication (NFC) technology will revolutionize commerce. It argues that as more smartphones and point-of-sale systems become NFC-enabled, the number of mobile payment transactions in the US will surge. Within 6 months of the rumored NFC-capable iPhone 5 release, the author predicts there will be 250 million mobile payment transactions. This mobile payment movement will change how consumers buy things and require marketers to adapt their strategies to take advantage of new opportunities for location-based offers, mobile coupons, and loyalty programs.

1. Welcome
to a tap-and-Go World.
How mobile payments will revolutionize the way we buy.
Ben Gaddis
12/23/2010

2. today, everyone in the U.S. pays
Yvonne Lydick. Copyright All rights reserved by YvonneKnitsKnots

3. today, everyone in the U.S. pays
with cash

4. today, everyone in the U.S. pays
with cash
or credit.

5. today, everyone in the U.S. pays
with cash
or credit.
not by phone.

6. that’s going to change.

7. that’s going to change.
aBrUptly.

8. that’s going to change.
aBrUptly.
dramatically.

9. that’s going to change.
aBrUptly.
dramatically.
in ways we can’t even imagine.

10. Before you know it, everyone will be
paying with their mobile phone.

11. it sounds
like the
future, right?

12. it sounds
like the
future, right?
it’s not.

13. Using your mobile device to make payments
is closer than you think.

14. it’s already happening in
many parts of the world.

15. many point-of-
sale systems in
the U.S. already
work on similar
principles.

16. near Field communication (nFc) is the
wireless technology driving this revolution.

17. nFc redefines
what’s possible
by enabling
mobile ticketing,
mobile payments,
smart posters,
Bluetooth pairing,
e-keys and more.

18. to make paying for things
faster, easier and more
secure than ever before.

19. introdUcinG
tap-and-Go.

20. the mobile payment
movement in the U.S.
will be led by early
adopters
Copyright All rights reserved by duncandavidson

21. who are paSSionate and Vocal.
Copyright All rights reserved by tow_adam

22. they’ll start
ditching
their wallets
and using
their phones
instead.

23. For entertainment.

24. and romance.

25. For big stuff.

26. and small.

27. For the greater good.

28. and for the better left unsaid.

29. and they won’t be shy
about showing friends
how easy it is.
Photograph by hillary h

30. and they won’t be shy
about showing friends
how easy it is.
or how safe it is.

31. How safe?
Safer than credit cards ever
dreamed of being.
Photograph by Infidelic Thomas

32. Safer than cash.

33. Safer than cash.
pin number safe.

34. Safer than cash.
pin number safe.
remote lockdown safe.

35. Safer than cash.
pin number safe.
remote lockdown safe.
encryption safe.

36. So WHere iS tHe
tippinG point?
Photograph by Neeku

37. 10 years ago,

38. 10 years ago,
music looked like this.

39. enter the ipod.

40. enter the ipod.
now everyone and
their mom listens
to digital music.

41. 3 years ago,
Photograph by Dave White

42. 3 years ago,
this was an app.

43. enter the iphone.
Copyright All rights reserved by nickbilton

44. enter the iphone.
now, there’s an app
ow,
for everything.

45. today,

46. today,
practically no one
in the U.S. makes
mobile payments.

47. enter the iphone 5.

48. rumored to be nFc enabled.

49. my prediction

50. my prediction
Within 6 months of the nFc-capable
iphone 5’s release, there will be 250 million
mobile payment transactions in the U.S.

51. Here’s the math:

52. Here’s the math:
5 million iphone 5’s sold

53. Here’s the math:
5 million iphone 5’s sold
X 50 (transactions in 6 months)

54. Here’s the math:
5 million iphone 5’s sold
X 50 (transactions in 6 months)
250 million mobile payments

55. Here’s the math:
5 million iphone 5’s sold
X 50 (transactions in 6 months)
250 million mobile payments
(that’s a lot of mobile payments.)
Photograph by misterbisson

56. Sound
crazy?

57. Sound
crazy?
Are you
willing to
bet against
Apple
sparking
another
revolutionary
change?

58. the truth is

59. the truth is
mobile payments are going to happen
with or without an nFc-capable iphone 5.

60. Google is already in.

61. Google is already in.

62. nokia is in.

63. nokia is in.

64. Android + Nokia = 62% smartphone share
Worldwide Smartphone Sales
by Operating Systems in 3Q10 (Thousands of Units)
3Q10 Market Share 3Q09 Market Share
Company Units (%) Units (%)
Nokia 29.480.1 36.6 18,314.8 44.6
Android 20,500.0 25.5 1,424.5 3.5
Apple 13,484.4 16.7 7,040.4 17.1
Blackberry 11,908.3 14.8 8,522.7 20.7
Microsoft Windows 2,247.9 2.8 3,259.9 7.9
Linux 1,697.1 2.1 1,918.5 4.7
Other OS 1,214.8 1.5 612.5 1.5
Total 80,532.6 100 41.093.3 100
Source: Gartner (November 2010)

65. carriers never do
anything together.

66. carriers never do
anything together.
yet 3 of the top 4 have formed a joint
venture called iSiS to—you guessed it—
build out a nationwide nFc system.

67. in the U.S., we’re way behind.

68. in Kenya,
people can
use their
mobile
phones
to buy
livestock.

69. In Japan, people have
been using their mobile
devices to pay for
goods and services.

70. In Japan, people have
been using their mobile
devices to pay for
goods and services.
For years.

71. Worldwide, there are fewer than 1 billion
bank accounts. and 4 billion cell phones.
Copyright All rights reserved by liane.ng

72. Worldwide, there are fewer than 1 billion
bank accounts. and 4 billion cell phones.
clearly, change is coming.

73. Worldwide, there are fewer than 1 billion
bank accounts. and 4 billion cell phones.
clearly, change is coming.
count on it.

74. Worldwide, there are fewer than 1 billion
bank accounts. and 4 billion cell phones.
clearly, change is coming.
count on it.
plan for it.

75. So, WHy SHoUld
marKeterS care?

76. Because mobile payments will revolutionize
how people buy things.

77. and how you market to people
must change accordingly.

78. First things first.
nFc isn’t just
about people
leaving their
credit cards
behind.

79. it marks the
beginning
of a complete
marketing
ecosystem.

80. it means location-based offers
are always on the table.

81. it means customers
can see an ad,
download a coupon
and redeem it.

82. it means customers
can see an ad,
download a coupon
and redeem it.
all on one device.

83. anytime.

84. anywhere.

85. it means loyalty programs
can be built into the
purchase path.

86. it means customers can be rewarded
and motivated to buy as they’re shopping.

87. in more
relevant
ways than
ever.

88. tHe FUtUre iS

89. The fuTure is
Thisclose.

90. once upon a time,

91. once upon a time,
shopping was
just shopping.

92. then came online shopping.

93. then price-comparison
apps made it easy to
find the best deals.

94. then amazon
one-upped that
approach with
price check and
1-click mobile
payments.

95. What’s happening now will pale in
comparison to what’s possible with nFc.

96. consider how the internet has changed
our society in the last decade or two.

97. multiply
those
changes
by 100
Copyright Eric IsselÈe

98. multiply
those
changes
by 100
500

99. multiply
those
changes
by 100
500
1,000

100. changes powerful
enough to make
personalized
one-to-one
marketing
a reality.

101. powerful
enough
to tie in
location,
browsing
history and
verified
check-ins.

102. powerful enough
to change the way
we buy things.

103. powerful enough
to change the way
we buy things.
Forever.

104. ready to
talK nFc?
Ben Gaddis
Vp – Growth and innovation
ben.gaddis@t-3.com