Euro Banking Association closed Working Group on Alternative Payments

1. Mass-Market Payments
The battle for retail payments in the mass market is about identity, not money.
Dave Birch
Global Ambassador,
Consult Hyperion
Euro Banking Association
Brussels, September 2014
1 Version 1, 10-Sep-14 Attribution-ShareAlike 3.0

2. Who are Consult Hyperion?
Practical and independent expertise
TfL Future Ticketing Strategy
Enabling open-loop payments in London
transport
Mobile payments
Deep involvement in mobile payment programmes
around the world
Payment schemes
Technical authoring and consultancy on EMV payment
specifications, strategy, training & certification requirements.
Mobile POS
Enabling card payment acceptance within a new
category of Merchants
.
Please copy and distribute

3. The Banks in the ARC
Technology the three As
■ Authentication
■ APIs
■ Apps
Business the three Rs
■ Recognition
■ Relationships
■ Reputation
Market the three Cs
■ Conversion
■ Convenience
■ Communication
3 Version 1, 9/10/2014 Please copy and distribute

4. Technology: The Three As
You can pay for things with your phone. Now what?
(Note: product shown has been canned)
4 Version 1, 9/10/2014 Please copy and distribute
Mobile phones will
replace cards before
they will replace cash
Anthony Jenkins,
CEO Barclays (2008)

5. Technology: Apps
The wallet as an API, not an app
5 Version 1, 10-Sep-14 In commercial confidence

6. Technology: Authentication
The mobile phone and the social network
The first company to
fully execute on
embedding your
identity into your
phone wins the next
decade
Rebekah Cox,
Product Design,
Quora, ex-Facebook
(2012)

7. Technology: APIs
APIs for everything
7 Version 1, 9/10/2014 Please copy and distribute

8. Business: The Three Rs
40% of Americans, on average, carry
less than $20 in their wallets… 30%
of women have less than $10 in cash
(compared with 16% of men)
.
Fast Company (2013)
There is no path, but there is a need to facilitate
effective co-ordination
8 Version 1, 9/10/2014 Please copy and distribute

9. Business: Recognition
“It’s not about payment. It’s about identity”
Jack Dorsey, Founder of Square and Twitter (New York Times, 22nd December 2013)
9 Version 1, 9/10/2014 Please copy and distribute

10. Business: Recognition builds Relationships
MCX and the next generation
10 Version 1, 10-Sep-14 In commercial confidence

11. Business: Relationships build Reputation
“The real opportunity is not big data, but small data. Not centralised big iron, but
decentralised data wrangling” Rufus Pollock, Open Knowledge Foundation (April 2013)
1111 Version 1, 9/10/2014 Please copy and distribute

12. Market: The Three Cs
Economic avatars as
an improvement on
the forgetfulness of
cash
Jaron Lanier (2013)
We used to think that cards will replace cash, but
actually it’s phones (because phones are terminals)

13. Market: Conversion
Recognition plus relationship plus reputation at point-of-sale… and payments
13 Version 1, 9/10/2014 Please copy and distribute

14. Market: Convenience
“The mag stripe will become functionally obsolete… Mobile will take over”
Ellen Richey, Visa’s chief legal officer, quoted in New York Times (1st April 2014)
14 Version 1, 9/10/2014 Please copy and distribute

15. Market: Communication
The mobile wallet has to do things that the leather one cannot
and this is all about connectivity
15 Version 1, 9/10/2014 Please copy and distribute

16. Thank You
Consult Hyperion has helped some of the world’s leading organisations to make the
right technical and commercial choices within and around smart, mobile, contactless
transactions, including retail payments, identity management and transit ticketing.
Consult Hyperion is a trusted advisor adding product strategy, technical, regulatory,
compliance and information security expertise into project teams within
organisations considering deploying innovative new payment or identity services.
In January 2013, David Birch was ranked Europe’s most influential commentator on
emerging payments and in August 2013 Wired magazine named him one of their global
top 15 sources of finance and business information.
Tomorrow’s Transactions:
thought leadership from Consult Hyperion
Read www.chyp.com/media/blog
Listen www.chyp.com/media/podcasts
Visit www.chyp.com
Contact info@chyp.com
Follow @chyppings
16 Version 1, 10-Sep-14 Please copy and distribute

17. One more thing…
“An outstanding piece of work which
may well define our journey moving
forward.” Brett King, Founder and
CEO of Moven.com.
“a bold, forward thinking book that
grapples with weighty issues in a
concise and accessible way”
Retail Systems (May 2014).
“this short book is densely packed
with argument; written, praise be, in
English of a straightforward and
intelligible sort; has every technical
concept explained, and has a breezy
and enjoyable good humour that
typifies the author himself”
David Worlock (June 2014).
ISBN 978-1-907994-12-8
£7.99 at all good bookstores