Michael McCleary gave a presentation on mobile payments and security. He discussed the history of mobile technology and the growth of mobile commerce. Mobile payments can be done through mobile web payments, direct mobile billing, online wallets, and near field communication (NFC). Security for mobile payments is ensured through encryption of credit card data during transmission. Trends show continued growth in mobile shopping and payments through smartphones and tablets.

1. THE MOBILE CONSUMER:
Mobile Payments and Security

2. SESSION HIGHLIGHTS
• Overview and History
• Trends in Mobile Sales & Payments
• Mobile Payments
• Mobile Payment Security
• Mobile Payment Trends

3. OVERVIEW
• Who Am I?
• Involvedwith emerging internet technologies since 1993.
Wrote college thesis on Internet Banking in 1998. Website
designer and filmmaker from 2004-2012. Created
Bazookapps in 2012.

4. ABOUT BAZOOKAPPS
Bazookapps was created with the small to mid-size business in mind. We enhance current websites
for use on mobile devices and develop mobile applications for companies that are looking to
increase customer retention, increase sales and most importantly, increase their profits. Developing a
mobile website for your business shouldn’t be a scary or incredibly expensive proposition. Our belief
is that by delivering an extraordinary customer service experience by getting to know your company
and its needs we can deliver the BEST mobile enhanced website to you at the BEST price.
Lets face it, in today’s economy not every company has 10′s to 100′s of thousands of dollars to give
to a big software firm. This is where Bazookapps comes in. We created our company to meet and
exceed the needs and expectations of main street business; to give you a leg up on your competitors
and offer you a custom application and/or enhanced website that not only doesn’t break your bank
but also does something even more important, it makes you money.
Contact Us
Michael McCleary
email: mike@bazookapps.com
web: www.bazookapps.com
phone: 303-817-0694

5. OVERVIEW
• What is Mobile Technology?
• Definition: “Mobile technology is the technology used for
cellular communication.”
• Two Primary methods of Mobile Content Delivery Today:
• Applications (App’s)
• Mobile Web

6. A MOBILE HISTORY LESSON...
• First Pager - 1962
• First Cellphone - 1973
• First Digital Cellphone - 1990
• Text Messaging Introduced - 1993
• Blackberry Email Pager - 1999
• iPhone Introduced - 2007
• Android Introduced - 2008

7. PRICE & ADOPTION TIMELINE
* Source: whiteboardadvisors.com

8. THE PLAYERS
• Operating Systems
• Android (68.3%)
• Apple iOS (18.8%)
• Blackberry OS (4.7%)
• Windows Phone (2.6%)

9. MOBILE SALES TRENDS
• According to CNET:
• Shopping via Mobile Devices increased 81% in 2012 nearly
doubling over 2011
• Shoppers used their smartphones and tablets to make $25
billion in purchases last year
• Mobile devices accounted for 11% of e-commerce sales last
year to increase to 15% this year.

10. THE MOBILE GOLDRUSH
• eMarketerexpects consumers to make nearly $87 billion in
mobile purchases by 2016, more than 27 percent of all e-
commerce transactions.
• Useof mobile devices for holiday shopping doubled in 2012
with 16.3% of Black Friday online sales completed on a mobile
device.
• In2012 28% of consumers used a mobile device to visit a
retailers site.

11. MOBILE COMMERCE GROWTH

12. THE MOBILE GOLDRUSH
• According to mobile solutions provider Payvia:
• In 2012, 1 in 5 holiday sales came from a mobile device.
• 27% of gift shoppers purchased a digital good.
• 2012 top gifts included:
• 30% - digital goods
• 25% - consumer electronics, watches and jewelry

13. MOBILE PAYMENT TYPES
• Mobile Web Payments (WAP)
• Direct Operating Billing
• Direct Mobile Billing
• Online Wallets (Paypal, Amazon Payments, Google Wallet)
• Near Field Communication (NFC)

14. MOBILE WEB PAYMENTS
• The consumer uses a web page to make a payment through
the browser on their mobile device.
• Benefits include:
• Follow-on sales where the mobile web payment can lead back to a store or to other goods the
consumer may like. These pages have a URL and can be bookmarked making it easy to re-visit
or share.
• High customer satisfaction from quick and predictable payments
• Ease of use from a familiar set of online payment pages

15. ONLINE WALLET
• First payment:
• User registers, inputs their phone number, and the provider sends them an
SMS with a PIN.
• User enters the received PIN, authenticating the number
• User inputs their credit card info or another payment method if necessary
(not necessary if the account has already been added) and validates
payment
• Subsequent payments:
• The user re enters their PIN to authenticate and validates payment

16. CONTACTLESS NFC
• Near Field Communication (NFC) is used mostly in paying for
purchases made in physical stores or transportation services. A
consumer using a special mobile phone equipped with a
smartcard waves his/her phone near a reader module. Most
transactions do not require authentication, but some require
authentication using PIN, before transaction is completed. The
payment could be deducted from a pre-paid account or
charged to a mobile or bank account directly.

17. NFC / WALLET EXAMPLES

18. MOBILE SWIPE DEVICES
• Paypal Here
• Square
• Intuit Gopayment
• Roampay
• Others

19. HOW DOES IT WORK?

20. MOBILE PAYMENT FEES
• NFC: Hardware cost ($150) + Fees (Vary: 2% - 5%)
• Direct Mobile Billing: 10% to 20%
• Mobile Web Payments (Varies according to merchant account)
• Wallet: Varies (e.g. Google is 5% or 1.9% plus fixed rate)
• Mobile swipe: 2.7% - 5%

21. PAYMENT SYSTEM SECURITY
• Isit secure for the
consumer?
• Is it secure for the retailer?
• Just where does all this data
thats floating around in the
air go and can it be
intercepted?

22. PAYMENT SYSTEM SECURITY
• The answer is yes...
• Many cloud based wallets
store financial data off the
phone, the same with NFC.
• Mobilecredit card payments
are encrypted.

23. MOBILE SWIPE DEVICES
• Swipe devices such as Paypal Here and Square scramble and
encrypt the credit card information after it is swiped before it
is transmitted across the airwaves.

24. THE FUTURE
Source: Business Insider

25. THE TREND IS MOBILE

27. MOBILE PAYMENTS TRENDS
• Trends we saw in 2012
• Mobile Shopping, Mobile Brand Experience, 4G
• Trends we will see in 2013
•7 inch tablets, Mobile Payment Growth, Contactless Service,
Mobile Loyalty

28. MOBILE WEB, APPS & PAYMENTS
Thank you for joining Michael McCleary for his presentations:
Going Mobile: The Future is Now &
The Mobile Consumer: Mobile Payments and Security
To access the presentations you saw today, please visit our
Slideshare pages on your computer or mobile device at:
http://www.slideshare.net/bazookapps/going-mobile-1661057
http://www.slideshare.net/bazookapps/mobile-consumer-16610498
Special Mobile Website Event Pricing!
Visit our table following Mike’s presentation and have Bazookapps create your custom mobile
website at a special low price - only available at the Denver Gift, Home, Jewelry and Resort Show!
www.bazookapps.com
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