Introduction to mobile payment. A presentation of Toon Coppens of Alcatel-Lucent for the IBBT Nocturne, October 25th, Ghent.

1. Mobile Payment and Marketing Toon Coppens Alcatel-Lucent Mobile Wallet Service November 2010 Twitter: @me_toon [email_address]

2. Contactless ski pass mobile sticker and mobile top-up Proximity retail loyalty Person to Person money transfer via mobile Mobile phone sticker as Intelligent student card for library and presence Person to business money transfer via mobile SMS ticketing for boat ride Courtesy of:

3. Consumer appeal? Every card becomes a mobile application Real time Balance Business expense Transaction history P2P transactions Personal coupons On the fly subscription

6. Technical solution Proximity payment, loyalty & marketing Person to person money transfer Remote ticketing Online micro-payment Transport Parking Vending Gifting Retail fidelity Mobile Application Contactless SMS USSD WEB Payment gateway Mobile Wallet Service Portfolio of payment and marketing applications E-store … . MNO

7. Merchant readiness? Source: Retail Info Systems – March 2010 Source: Retail Info Systems – March 2010 Advertising & direct marketing Customer Communication Sales Customer identification, Reporting & Analytics

8. Use case: Sanoma Who? European publisher active in 13 countries, market leader in Finland, Netherlands, Belgium.. Flair Mobile: MVNO Goals Sales and sales frequency increase Identify PoS consumer for further sales activation Application Loyalty for Flair Magazine: 4 + product plus Prepaid program for Humo Magazine: pay for 10 and get 12 Channels Contactless stickers, POS GPRS reader , website Model Closed loop, not integrated into PoS, targeted, limited in time Services website, SMS self registration, activation

9. Mobile operators as financial service providers Mobile Operators Issuing credit cards Getting bank license / payment institution license / e-money license Voice Commerce and Alcatel-Lucent Mobile Wallet Service team up to accelerate adoption of mobile money E-Money license Mastercard/Visa acquiring license Mastercard/Visa issuing license

10. The Stakeholders Conclusion: exciting times ahead! Mobile Operators (alone or together) Mobile Operators + Banks Banks Internet & hardware players

12. | NAR Business Development | November 2009 www.alcatel-lucent.com http://www.alcatel-lucent.com/mws