The document discusses the rise of mobile commerce and how it will make wallets unnecessary. It notes that $275 is spent per second on mobile commerce and that 1/3 of purchases are made exclusively on mobile devices. It suggests that by 2025, wallets will be as unnecessary as watches due to the emergence of mobile payment technologies like NFC that allow users to make payments from their smartphones.

1. Leather Wallet: The Next Watch?
Mobile Commerce

5. Everyone is a walking cash register

6. $275/sec on mobile commerce
$1 million during this hour long
talk

7. “Wallets are becoming
as unnecessary
as watches” – Denise Lee Yohn

8. 2025

9. Emergence of Mobile Commerce
1997
Birth of mobile
commerce was in
Finland

10. Emergence of Mobile Commerce
1998
The first sales of
downloadable
ringtones

11. Emergence of Mobile Commerce
1999
A mobile platform for mobile commerce was
launched in Philippines

12. mobile listings
800k
100m
1.8 m
new users made first
purchase on mobile Jan-
Sep Q3
new customers solely
through mobile in Q3
2012

13. Mobile 3-4 times more
valuable than desktop
1000 cars a week
Women’s handbags sold
every 30 second on
eBay

14. Mobile Ordering
0%
10%
20%
30%
40%
50%
60%
18 months ago Today
Many from inside the four walls

15. 1 Out of Every 3 Exclusively on Mobile

16. EMEA is the mobile
money hot spot
In 2011,
EMEA accounts for 41%
of mobile transactions
value
North America 35%
Asia-Pacific 22%
Latin America 1%
Yankee Group (June 2011)

17. Users are readily adopting mobile
banking
• Yankee Group (June 2011) predicts that there
will be 500 million m-banking users globally by
2015.
27%
13%
11%
9%
0%
5%
10%
15%
20%
25%
30%
Mobile Banking M-Commerce Mobile Coupons Mobile Payments

18. Reach Your Customers
99%
of the time they are not in your store
or in front of their computer

19. TOUCHPOINTS

20. Tablet + Smartphone
Smartphone
60%
30%
Retail Systems Research

21. More than half of
mobile shoppers
were likely to make
a purchase using a
mobile app during
2013
Adobe

22. More convenient customer experience
More consistent store execution/employee productivity
Retail Systems Research

23. As many as 40% of
consumers say they are
consistently disappointed by
the sales associates they
encounter in retail stores.
eXperticity

25. Post Transaction

26. EXAMPLES

27. Pizza Hut earned $7 million in sales in the first year after launching a mobile ordering app

28. 75,000 bookings
£10 million over a
6 month period

30. Amazon
• Recommendations
• Categories
• 1-Click purchase

31. Walmart

32. TIPS

33. Apps Drive Engagement, Browsing
Wins on Tablets

34. Retail Category Browsing Can Vary
Considerably by Platform

35. Web or App?
• Performance
• Cost
• Maintenance
• Compatibility
• User Experience

36. Are you losing your mobile
customers?
• 47% of users abandon checkout pages due to
payment friction
– Too many fields
– Too small of a screen and keyboard
– Too much time
– Poor brand experience

37. Simple and Quick
A 1 second delay in a page
can reduce conversion by
7%
That’s $2.5M in sales for a site that does
$100K/day

38. Simple and Quick
47% expect pages to load in 2 seconds
40% leave if it takes more than 3 seconds
79% are less likely to use the site again
52% say load time is important to loyalty

39. Distractions are
Everywhere

41. RESPECT THE FINGER

42. No mouse
No HOVER

43. Fitt’s Law
Search
Search

44. Hick’s Law
Apple
Apple
Orange
Apple
Apple
Apple
Apple
Apple
Apple
Apple
Apple
Orange
Apple
Apple
Apple

46. Carts Across Platforms
26% of females and 16% of
males abandoned a cart
because they wanted to
complete the purchase later

47. Optimize Your Emails
56% of US consumers who have made at least
one purchase using their smartphone have done
so in response to a marketing email
ExactTarget
36%
33%
31%
28%
30%
32%
34%
36%
38%
Mobile Desktop Webmail
Open Rate

48. IN-STORE PAYMENT

49. Mobile POS

52. Starbucks is now averaging a million mobile transactions/week
tenfold increase year-over-year since January 2011 launch

53. 11% of transactions
10 million customers

54. Free card reader at stores
Starbucks infusion

55. HOW NFC FITS IN

57. 53% Phones NFC-enabled
by 2015
46% Mobile Phones Will Be
NFC-Enabled by 2016
MarketResearch
Frost & Sullivan

58. Frost & Sullivan
42.3%
Europe’s mobile
payments in
2015 via NFC

59. Visa Europe forecasts breakout year
for NFC
40 Mobile contactless
payment issuers in
Europe (2013)
80 Types of smartphones
certified by Visa

60. 500M NFC devices in
use by 2014
ABI

61. Gartner
Cuts NFC mobile
payments
forecast by
40%

62. Berg Insight
One in
Three
mobile phones
to come with
NFC by 2017

63. Strategy Analytics lowers NFC
payments forecast

65. NFC will not power US mobile
payments: Forrester
• Google Wallet separation
• iPhone reluctance

68. Jumio updates card scanning tech for
faster mobile checkout

69. FINAL THOUGHTS

70. Shaping the Future
• Customers spend more time on their mobile
devices than desktops
• Mobile shoppers are more focused
• Click-through rates are higher on mobile than
desktop
• Mobile shopping peaks at night
• The importance of the mobile web

71. The Zero Option

72. Drivers for Mobile Payments
• Virtual Gift Cards
• Wallet (loyalty)

73. Virtual Gift Card

74. The future of the Mobile Wallet
is not in payments,
but in organizing it

76. Passbook
• Store
– Loyalty cards
– Promotions
– Coupons
– Tickets
• 82,000 Sephora Beauty Insider cards added in
first week

79. PayPal + Samsung fingerprint

80. Remote Control of Shopping
• 31% of consumers highly trust retailers to
protect their personal data.
• 34% of consumers are interested in
scavenger hunt promotions
• 35% of consumers are interested in ‘beat
the clock’ specials
• 29% of consumers were interested in
getting on-demand advice

81. Three Important Developments For
The Future Of Mobile Commerce
• Snap to Buy with mobile image
recognition
• Apps that go beyond simple online
shopping
• Better engagement with brands

82. FUTURE CURRENCY