Uploaded byEY Belgium
M payments mobile_business_20120327
This document discusses mobile payments and the mobile commerce ecosystem. It outlines different types of mobile payments such as mobile money, mobile banking, mobile ticketing, and mobile shopping that can be enabled through technologies like NFC, electronic wallets, SMS/USSD, and mobile apps. A variety of players are involved including mobile operators, handset manufacturers, payment networks, banks, credit card companies, technology innovators, and application vendors. While the technology is still developing, factors like standardization, interoperability, handset availability, and customer awareness will influence when mobile payments see widespread adoption.
More Related Content
Similar to M payments mobile_business_20120327
M payments mobile_business_20120327
- 1. Mobile payments Mobile Business 27March 2012
- 2.
- 3. Mobile Money Mobile banking Mobile ticketing Mobile Mobile payment remittance Mobile shopping Mobile Mobile advertising presence Mobile Commerce
- 4. Different flavors andcombinations Front end technology Back-end settlement Proximity payment Electronic wallet (e.g. via NFC) Mobile phone as POS Bank account SMS / USSD Credit card Mobile internet / apps Telecom bill
- 5. mPayment: just oneadditional mobile step Marketing Ordering Distribution Payment Go / e-mail / fax / Traditional Go to shop Traditional phone to shop “Normal” web “Normal” web Mobile = POS Traditional + QR Physical delivery QR scan or NFC NFC Mobile presence NFC Digital to PC SMS / USSD mAdvertising SMS / USSD mCoupons Mobile web / app Digital to phone Mobile web / app
- 6. Do we needit? Some of the potential gains: Consumers Merchants ► Phone always at hand ► Lower transaction cost (even more than wallet) ► Reduced transaction ► Convenience processing time ► Usability ► Reduced labor costs ► Facilitates micro ► Ubiquitous channel to payments accept customer ► More secure payments ► Lower transaction cost ► Avoid churn, attract new customers ► Increase of electronic payments
- 7. Who’s involved? A wholeeco system Regulator Card Technology association/ innovators network Clearing Application house / vendor Hub Customer NFC chip Integrator Mobile manufacturer operator Payment Handset network manufacturer Government
- 8. Banks, credit cardcompanies and operators very active Regulator Card Technology association/ innovators network Clearing Application house / vendor Hub Customer NFC chip Integrator Mobile manufacturer operator Payment Handset network manufacturer Government
- 9. But also manynewcomers Regulator Card Technology association/ innovators network Clearing Application house / vendor Hub Customer NFC chip Integrator Mobile manufacturer operator Payment Handset network manufacturer Government
- 10.
- 11. Is the technologythere yet?
- 12. What do weneed for mobile payments to happen? Enabled handsets User expansion Stable eco- Convenience promotes usage scene expansion system & usability Positive Usage scene User expansion feedback expansion Cycle Scalability of Trust and solutions awareness Usage scene expansion promotes user Standard Cost expansion
- 13. NFC = importantenabler But still issues with: ► Standardization ► Interoperability ► Control (over secure element) ► Business model ► Customer awareness ► Handset availability ► Regulation
- 14. NFC-enabled handsets notyet omnipresent Mobile handset shipments (million) 1.600 25% 1.420 1.400 1.335 20% 21% 1.200 1.133 1.152 1.092 1.000 15% 800 9% 10% 600 400 301 5% 3% 200 116 1% 0% 3 14 34 0 0% 2008 2009 2010 2011 2012 All mobile handsets NFC-enabled mobile handsets Share of NFC-enabled mobile handsets
- 15. NFC might beoverhyped NFC Payment Media tablet Location-Aware Applications Mobile application stores QR / Color code Source: Gartner, Hype Cycle for Emerging Technologies 2011
- 16. Not all futurescenarios include mPayment Four scenarios based on scenario analysis – how will we communicate in 2020 Integration of internet and consumer life A Fully integrated & seamless B ‘Full Speed ‘Roller coaster’ Ahead’ Security and privacy Not in control In control ‘Speed Limit ‘Gear Down’ control’ Fragmented & separated C D http://www.ey.com/NL/nl/Industries/Telecommunications/telecoms2020
- 17. Should you wait? Itmay happen sooner than you think
- 18. Internet Mobile 13% 30% 87% 70% No Internet Internet No Mobile Mobile Source: broadbandtrends, Feb. 2012 and ITU, Nov. 2011
- 19. Smartphones on therise 52 100 million activated Android devices (Google IO 2011) % 400.000 new Android devices activated per day (Google IO 2011) Of phones shipped in Europe in Q1 2011 are smartphones (IDC, 2011) 468 million smartphones shipped in 2011 (expected, Gartner) 4 million iPhone 4S’ sold in first weekend (Apple)
- 20. 97 Of youth (age12-18) in Europe has a mobile phone % (Source: EY, compiled from several national studies) How many have a credit card?
- 21. Digital natives arecoming
- 22. 90 71 % mobile subscribers in US and Western Europe have a phone that can access the mobile Web US consumers likely to use mobile payments if it were instant % (half of which already HTML browser) Source: ComScore, 2011 Source: Toluna Survey and Poll Services, and Obopay 2011
- 23. Products researched orpurchased using a mobile device? 70% 62% 60% 55% 54% 50% 47% 42% 40% 40% 36% 32% 28% 29% 30% 24% 22% 20% 17% 14% 13% 8% 10% 0% Researched Purchased Source: JiWire research with WiFi hotspot users, Q1 2011
- 24. Also … NFCis more than mobile payments ► Identification ► Physical access ► Time registration ► Mobile ticketing ► Car rental ► Information provider ► Advertising ► Medical solutions ► Games ► Connecting devices
- 25. Again … Shouldyou wait? It is already happening
- 26. De Lijn Mobile For 3 Million 3,5 Million SMS tickets in 2011 mobile parking tickets (25% YoY increase)
- 27. Korea Japan 100% 9,8 million users 80% (10% mobile subscription base) Where are they paying? 60% 40% 20% 0% Source: ComScore, 2011
- 30. 28% Total revenue growth2011 24% Total payment volume (TPV) growth in 2011 $ 5 billion eBay revenue originating from mobile commerce in 2011 $ 4 billion Mobile payments volume 2011
- 31.
- 32. What’s ahead? 20 $ 245 billion mobile payment value by 2014 (Gartner, 2011) 40 % of all phones will be NFC enabled by 2015 (Ovum, 2011) Countries are expected to launch NFC services in the coming 18 months 32,8 % of global m-payments transactions will be NFC driven by 2014 (IE Market Research, 2010) $ 74 billion in NFC facilitated payments by 2015 (Juniper Research, 2012)
- 34.
- 35. Biggest challenge: Getting thepositive feedback cycle going Positive feedback cycle Negative feedback cycle User expansion Limited user induces promotes usage merchants’ scene expansion reluctance adoption Usage Usage scene scene User User decrease expansion expansion decrease User does not Usage scene increase expansion because of promotes user limited place of expansion usage
- 36. Mobility is notin the future, it is already happening NFC is promising
- 37. Towards “smart” commerce? ► Mobile is just one channel ► We are moving to a multi-channel environment ► Mobile wallet ► Online wallet ► Credit card Moving from mobile payments to a new holistic way of payment offerings?
- 38. Some recent thoughtleadership Available via our EY Insights app or online http://www.ey.com/NL/nl/Industries/Teleco mmunications/telecoms2020
- 39. Ernst & Young Assurance| Tax | Transactions | Advisory Contact details Ernst & Young Assurance | Tax | Transactions | Advisory About Ernst & Young Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 152,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. For more information, please visit www.ey.com. www.ey.com © 2012 EYGM Limited. All Rights Reserved. Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.