The document discusses consumer trust in brands, noting that a significant majority of consumers prefer and are willing to pay more for trusted products and services. It further explores the evolving landscape of mobile payments, emphasizing the importance of transaction technology, consumer control, and the integration of mobile devices as payment tools. The document also raises questions about the future relevance of physical wallets versus digital alternatives and the potential impact of NFC technology on consumer behavior and transactions.

1. Has Anyone Asked a Customer?
ModUX Conference 2013 (20 September 2013)
Dan Armstrong (dan.armstrong@takashimobile.com)

2. marketplaceMCI (1994-96)

3. marketplaceMCI (1994-96)

4. 1-800-MUSiC-NOW (1996)

6. How shall we define “transaction”?
Bank Account Value
Transfer, Payments
Value Depletion, Prepaid,
Wallets, Transportation
Loyalty, Points, Coupons,
Transformation Moments
Eyeballs, Trust,
Engagement, Action <?>

7.  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)

8. 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.”

9. 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

10. 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

11. Mobile NFC PIN Emulation Trial @ C1000 (2007-08)

12. Mobile NFC for Low-Value Payments in Vending (2007-08)

13. NFC Mobile as Retail Shopping Tool, Issued Device & Acceptance
Point @ AH To-Go (2008)

14. Mobile phones accepting cards, leverages existing card
bases
UseaPhoneto
AcceptaCard
Payment
UseaPhoneto
AcceptaNon-
CardPayment

15. 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.

16. 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?

17. 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

18.  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?

19.  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

20. 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

21. For your consideration .. impulse purchase / spam

22. For your consideration ..

23. Thank You!
Dan Armstrong
Takashi Mobile | Financial Services
Rapenburgerplein 81
1011 VJ Amsterdam
The Netherlands
www.takashimobile.com
dan.armstrong@takashimobile.com
+31 652 085 071
skype: dd.armstrong