Mobile Payment Technology Analysis - Technology Leaders, Other Stakeholders....the current state of the market as of 8.2014. See www.audreymlehr.com or www.linkedin.com/in/audreymlehr for associated excel spreadsheet grid
Future of mobile payment and mobile commerce may 2013Tarang Shah
1) The document discusses the future of mobile payment and mobile commerce, noting that the future is mobile as major players are creating mobile-first experiences aimed at mobile commerce.
2) It outlines that key drivers of mobile commerce include strong smartphone penetration, and that mobile commerce growth will outpace e-commerce growth in the coming years. Mobile payment is also expected to become a large $400 billion market by 2015.
3) Recent investments and mergers and acquisitions in the mobile payment and commerce space indicate growing interest and momentum, though the market is still evolving as business models and infrastructure develop.
The mobile payments market is rapidly changing as new technologies emerge. A study analyzed over 200 million opinions to determine the most influential companies, executives, and events shaping conversations around digital mobile payments. PayPal and Apple have the highest influence scores while traditional payment providers like Visa are absent. International banks and wireless carriers also demonstrate more influence than US firms. An analysis of business news events found that while Apple's announcement of interest in mobile payments was the most influential, it generated only moderate reaction compared to other technology news.
Mobile payments are growing rapidly driven by increased mobile device adoption and usage. The document discusses the mobile payments market opportunity and various scenarios for mobile payment applications. It also examines the impacts on existing payment systems and some of the operational issues in implementing mobile money at scale, such as security, fraud detection, and ensuring availability. IBM is well positioned to help organizations address these operational challenges and enable new mobile money business models and partnerships.
Sample Report: Global Mobile Payment Methods: Full Year 2015yStats.com
Free Report Samples for our publication "Global Mobile Payment Methods: Full Year 2015 ".
Find the full report available for purchase at: https://ystats.com/shop/global-mobile-payment-methods-2021-and-post-covid-19s-recovery/
Mobile payments have grown significantly in recent years. PayPal processed over $14 billion in mobile payments in 2012, more than triple the volume from 2011. eBay also saw major growth in mobile commerce, with mobile purchases on eBay more than doubling from 2011 to 2012. This document discusses the mobile payments revolution and outlines key drivers of growth like changing consumer behavior and connectivity, as well as ongoing challenges around security and the diverse ecosystem of players involved in mobile payments.
Mobile Wallet and payment applications are poised to change the way consumers pay. This is driving substantial investment in the space with over $700 million flowing into private companies over the past three years and an estimated $1 billion into corporate initiatives and JVs like ISIS, MCX, Google Wallet, and PayPal mobile.
This report takes an in-depth look at how the industry landscape is evolving and some of the key trends driving innovation.
This document discusses peer-to-peer mobile payments. It begins by introducing the topic and noting key drivers for adoption. It then provides an overview of mobile payments in general, including common roles and scenarios. The document dives into peer-to-peer payment models, design issues, value chains, types including domestic transfers and international remittances, and considerations for evaluating models. It aims to give a well-rounded overview of the peer-to-peer mobile payment landscape.
This document discusses mobile payments and their potential impact. It covers topics like what mobile payments are, their effect on the payments value chain, barriers to adoption, and payment options. While mobile payments are in early stages, they may significantly change the payments landscape by converging payment mechanics, disrupting existing players, and providing access to the unbanked. However, barriers like security concerns, fragmentation, and a lack of ROI for merchants could slow widespread adoption.
Future of mobile payment and mobile commerce may 2013Tarang Shah
1) The document discusses the future of mobile payment and mobile commerce, noting that the future is mobile as major players are creating mobile-first experiences aimed at mobile commerce.
2) It outlines that key drivers of mobile commerce include strong smartphone penetration, and that mobile commerce growth will outpace e-commerce growth in the coming years. Mobile payment is also expected to become a large $400 billion market by 2015.
3) Recent investments and mergers and acquisitions in the mobile payment and commerce space indicate growing interest and momentum, though the market is still evolving as business models and infrastructure develop.
The mobile payments market is rapidly changing as new technologies emerge. A study analyzed over 200 million opinions to determine the most influential companies, executives, and events shaping conversations around digital mobile payments. PayPal and Apple have the highest influence scores while traditional payment providers like Visa are absent. International banks and wireless carriers also demonstrate more influence than US firms. An analysis of business news events found that while Apple's announcement of interest in mobile payments was the most influential, it generated only moderate reaction compared to other technology news.
Mobile payments are growing rapidly driven by increased mobile device adoption and usage. The document discusses the mobile payments market opportunity and various scenarios for mobile payment applications. It also examines the impacts on existing payment systems and some of the operational issues in implementing mobile money at scale, such as security, fraud detection, and ensuring availability. IBM is well positioned to help organizations address these operational challenges and enable new mobile money business models and partnerships.
Sample Report: Global Mobile Payment Methods: Full Year 2015yStats.com
Free Report Samples for our publication "Global Mobile Payment Methods: Full Year 2015 ".
Find the full report available for purchase at: https://ystats.com/shop/global-mobile-payment-methods-2021-and-post-covid-19s-recovery/
Mobile payments have grown significantly in recent years. PayPal processed over $14 billion in mobile payments in 2012, more than triple the volume from 2011. eBay also saw major growth in mobile commerce, with mobile purchases on eBay more than doubling from 2011 to 2012. This document discusses the mobile payments revolution and outlines key drivers of growth like changing consumer behavior and connectivity, as well as ongoing challenges around security and the diverse ecosystem of players involved in mobile payments.
Mobile Wallet and payment applications are poised to change the way consumers pay. This is driving substantial investment in the space with over $700 million flowing into private companies over the past three years and an estimated $1 billion into corporate initiatives and JVs like ISIS, MCX, Google Wallet, and PayPal mobile.
This report takes an in-depth look at how the industry landscape is evolving and some of the key trends driving innovation.
This document discusses peer-to-peer mobile payments. It begins by introducing the topic and noting key drivers for adoption. It then provides an overview of mobile payments in general, including common roles and scenarios. The document dives into peer-to-peer payment models, design issues, value chains, types including domestic transfers and international remittances, and considerations for evaluating models. It aims to give a well-rounded overview of the peer-to-peer mobile payment landscape.
This document discusses mobile payments and their potential impact. It covers topics like what mobile payments are, their effect on the payments value chain, barriers to adoption, and payment options. While mobile payments are in early stages, they may significantly change the payments landscape by converging payment mechanics, disrupting existing players, and providing access to the unbanked. However, barriers like security concerns, fragmentation, and a lack of ROI for merchants could slow widespread adoption.
Mobile Payments in The Financial Services IndustryPenn Mutual
A comprehensive overview of the payments space specifically mobile payments, and how macro trends are driving revolutionary changes in how consumers purchase and transact. Mobile Payments (mPayments) is rapidly becoming the payment vehicle of choice for consumers worldwide. The primary drivers that have influenced this growth include mobile banking, social media, enabling technology, “unbanked” communities, and consumer/retailer acceptance of mobile commerce.
Growth in mobile and tablet sales is outpacing computers and in many markets now exceeds those of computers.
Acceptance and usage of mobile/tablet banking, payments, money movement, and other financial transactions are growing rapidly.
Mobile social media’s global exponential growth has become the primary channel for people to interact with friends and brands.
Convergence of mobile/tablet usage combined with social media are evolving into new, dynamic interaction models and ecommerce opportunities.
Financial service companies, most notable Banks, are faced with disintermediation and must rethink payment models and customer centric experiences.
Mobile money, a development tool for benin powerpointAJAVON Samuel
The document discusses the growth of mobile money services in Benin. It notes that mobile money has significantly increased financial inclusion in Benin, where only 10% of the population has access to banks but mobile penetration is around 87%. Mobile money averages deposits of 8 billion CFA francs and withdrawals of 7 billion CFA francs per day, stimulating the local economy. The goal is to increase use of digital financial services like mobile money to 12% of Benin's adult population by 2019. However, the regulatory framework currently requires partnerships between mobile operators and banks that hinders market development, though some mobile operators are starting to seek independent licenses.
The document discusses the future of mobile payments, including the transition to a cashless society through new identification technologies like fingerprint and vein scanning. It describes how devices will identify users through biometrics and location data, allowing new payment methods via technologies like Bluetooth and connected "Internet of Things" devices. This will change both how people pay for items and entire store experiences. Overall, the document outlines emerging mobile and identification technologies that will transform how payments are made.
Overview of the Different Mobile Payment systems
- NFC based Platforms such as Google Wallet and ISIS
- Systems like Square, VeriFone, Card.io Naratte Zoosh and other exciting and disruptive startups in this space.
Using mobile devices to complete payment transactions in stores is on the brink of mass adoption in North America. What's not clear yet is what technology will be the most popular and how these methods of payment will be secured. So far, security seems to be an afterthought in some early attempts at a mass-market approach to mobile payments - including one particular app that happens to have 12 million users and a glaring loophole.
Mobile Payment Value chain and Business ModelsStomar
Mobile payment platforms can be categorized as mobile banking, remote purchases, person-to-person payments, and point-of-sale payments. For mobile payments to succeed, they need to alter consumer spending habits and be easy to use. While the concept seems promising, the business model reality check shows that the value chain players only see benefit if transaction and implementation costs are reduced and customer data access is provided. Near Field Communication (NFC) and SMS-based payments are the main technologies, but challenges remain around interoperability and security.
Cost and Features to Develop e-wallet Mobile AppTarun Nagar
Today the businesses are widely using the e wallet mobile app and replacing the need of carrying the cash. If you own a retail business, It is advised to contact mobile app development company, but always keep the trio of effort, risk and cost at perfect balance.
Know More: https://devtechnosys.com/ewallet-app-development.php
The Future of Mobile Payments – Role of mobile wallets in consumer purchase j...Data N Charts
This report will look into why US consumers aren’t warming up to mobile payment services and how mobile wallets can integrate shopping and peer-to-peer transfers to make payments relevant with smartphone owners for wider adoption.
The document discusses several emerging payment methods for the future, including wearable payments which are projected to hit $100 billion by 2018, biometric payments using fingerprints which are gaining popularity over passwords, mobile wallets which allow users to pay from their phone almost anywhere, QR code scanning payments which allow contactless payments with a scan, and mobile pay which is growing in usage and saving on transaction fees. Overall, the document outlines the transition from cash to digital and mobile forms of payment that are becoming more mainstream and popular.
A short summary of trends and technology in mobile payments. A brief look into the past, present and future of mobile payments. We will have detailed sessions on each in the coming versions.
With the ubiquity of the mobile phone, there is lot of interest in using this medium to deliver financial services. This document is a white paper on this field and tries to give the reader, a general understanding of the topic
The document describes an e-wallet system that allows customers to charge their online wallets through various channels and use the balances to make purchases online or offline. It can be charged at bank branches, Fawry points of sale, or via mobile. Payments to merchants can be made offline through NFC, SMS, or a mobile app or online using the wallet ID and PIN. The e-wallet supports online shopping, bill payments, retail purchases, event tickets, and more. It includes a mobile app, web interface, and integration with financial institutions, Fawry, and mobile operators. Statistics provided show growth in e-commerce and internet usage in Egypt and the MENA region in recent years. The document also
Mobile wallets have made it easy to carry out online shopping payments, online utility bill payments, mobile recharge online, DTH recharge online, online bus / movie ticket booking.
In India there are options like Paytm, Mobikwik, Vodafone M-pesa, Chillr, Free-charge, Airtel Money, Oxigen etc.
Mobile payment - what mobiles can do for youBenjamin Joffe
Mobile phones can enable financial services and payments for those without access to traditional banking. Rural entrepreneurs in developing countries can use phones as a replacement for assets like cows. In the Philippines, G-Cash allows payments through mobile airtime that can be used to shop, take out microloans, and make payments to retailers. For mobile finance to grow, issues of trust, standards, privacy and regulations must be addressed at both the physical and digital levels. The future hopes that mobile devices can serve as banking and payment infrastructure to empower and develop communities.
Sample Report: Asia-Pacific Online Payment Methods: Second Half 2016yStats.com
Free Report Samples for our publication "Asia-Pacific Online Payment Methods: Second Half 2016".
Find the full updated 2021 report available for purchase at: https://bit.ly/3x3gxtX
Mobile Payments in The Financial Services IndustryPenn Mutual
A comprehensive overview of the payments space specifically mobile payments, and how macro trends are driving revolutionary changes in how consumers purchase and transact. Mobile Payments (mPayments) is rapidly becoming the payment vehicle of choice for consumers worldwide. The primary drivers that have influenced this growth include mobile banking, social media, enabling technology, “unbanked” communities, and consumer/retailer acceptance of mobile commerce.
Growth in mobile and tablet sales is outpacing computers and in many markets now exceeds those of computers.
Acceptance and usage of mobile/tablet banking, payments, money movement, and other financial transactions are growing rapidly.
Mobile social media’s global exponential growth has become the primary channel for people to interact with friends and brands.
Convergence of mobile/tablet usage combined with social media are evolving into new, dynamic interaction models and ecommerce opportunities.
Financial service companies, most notable Banks, are faced with disintermediation and must rethink payment models and customer centric experiences.
Mobile money, a development tool for benin powerpointAJAVON Samuel
The document discusses the growth of mobile money services in Benin. It notes that mobile money has significantly increased financial inclusion in Benin, where only 10% of the population has access to banks but mobile penetration is around 87%. Mobile money averages deposits of 8 billion CFA francs and withdrawals of 7 billion CFA francs per day, stimulating the local economy. The goal is to increase use of digital financial services like mobile money to 12% of Benin's adult population by 2019. However, the regulatory framework currently requires partnerships between mobile operators and banks that hinders market development, though some mobile operators are starting to seek independent licenses.
The document discusses the future of mobile payments, including the transition to a cashless society through new identification technologies like fingerprint and vein scanning. It describes how devices will identify users through biometrics and location data, allowing new payment methods via technologies like Bluetooth and connected "Internet of Things" devices. This will change both how people pay for items and entire store experiences. Overall, the document outlines emerging mobile and identification technologies that will transform how payments are made.
Overview of the Different Mobile Payment systems
- NFC based Platforms such as Google Wallet and ISIS
- Systems like Square, VeriFone, Card.io Naratte Zoosh and other exciting and disruptive startups in this space.
Using mobile devices to complete payment transactions in stores is on the brink of mass adoption in North America. What's not clear yet is what technology will be the most popular and how these methods of payment will be secured. So far, security seems to be an afterthought in some early attempts at a mass-market approach to mobile payments - including one particular app that happens to have 12 million users and a glaring loophole.
Mobile Payment Value chain and Business ModelsStomar
Mobile payment platforms can be categorized as mobile banking, remote purchases, person-to-person payments, and point-of-sale payments. For mobile payments to succeed, they need to alter consumer spending habits and be easy to use. While the concept seems promising, the business model reality check shows that the value chain players only see benefit if transaction and implementation costs are reduced and customer data access is provided. Near Field Communication (NFC) and SMS-based payments are the main technologies, but challenges remain around interoperability and security.
Cost and Features to Develop e-wallet Mobile AppTarun Nagar
Today the businesses are widely using the e wallet mobile app and replacing the need of carrying the cash. If you own a retail business, It is advised to contact mobile app development company, but always keep the trio of effort, risk and cost at perfect balance.
Know More: https://devtechnosys.com/ewallet-app-development.php
The Future of Mobile Payments – Role of mobile wallets in consumer purchase j...Data N Charts
This report will look into why US consumers aren’t warming up to mobile payment services and how mobile wallets can integrate shopping and peer-to-peer transfers to make payments relevant with smartphone owners for wider adoption.
The document discusses several emerging payment methods for the future, including wearable payments which are projected to hit $100 billion by 2018, biometric payments using fingerprints which are gaining popularity over passwords, mobile wallets which allow users to pay from their phone almost anywhere, QR code scanning payments which allow contactless payments with a scan, and mobile pay which is growing in usage and saving on transaction fees. Overall, the document outlines the transition from cash to digital and mobile forms of payment that are becoming more mainstream and popular.
A short summary of trends and technology in mobile payments. A brief look into the past, present and future of mobile payments. We will have detailed sessions on each in the coming versions.
With the ubiquity of the mobile phone, there is lot of interest in using this medium to deliver financial services. This document is a white paper on this field and tries to give the reader, a general understanding of the topic
The document describes an e-wallet system that allows customers to charge their online wallets through various channels and use the balances to make purchases online or offline. It can be charged at bank branches, Fawry points of sale, or via mobile. Payments to merchants can be made offline through NFC, SMS, or a mobile app or online using the wallet ID and PIN. The e-wallet supports online shopping, bill payments, retail purchases, event tickets, and more. It includes a mobile app, web interface, and integration with financial institutions, Fawry, and mobile operators. Statistics provided show growth in e-commerce and internet usage in Egypt and the MENA region in recent years. The document also
Mobile wallets have made it easy to carry out online shopping payments, online utility bill payments, mobile recharge online, DTH recharge online, online bus / movie ticket booking.
In India there are options like Paytm, Mobikwik, Vodafone M-pesa, Chillr, Free-charge, Airtel Money, Oxigen etc.
Mobile payment - what mobiles can do for youBenjamin Joffe
Mobile phones can enable financial services and payments for those without access to traditional banking. Rural entrepreneurs in developing countries can use phones as a replacement for assets like cows. In the Philippines, G-Cash allows payments through mobile airtime that can be used to shop, take out microloans, and make payments to retailers. For mobile finance to grow, issues of trust, standards, privacy and regulations must be addressed at both the physical and digital levels. The future hopes that mobile devices can serve as banking and payment infrastructure to empower and develop communities.
Sample Report: Asia-Pacific Online Payment Methods: Second Half 2016yStats.com
Free Report Samples for our publication "Asia-Pacific Online Payment Methods: Second Half 2016".
Find the full updated 2021 report available for purchase at: https://bit.ly/3x3gxtX
How to Raise Startup Capital in 6 Easy StepsEric Jackson
What are the most important tactics for raising capital to fund a new startup? I break it down into 6 easy (or at least relatively simplified) steps, and highlight the key decision points that an entrepreneur will encounter.
Samsung Pay is a mobile payment service that works with both NFC and magnetic secure transmission technologies, allowing it to be accepted in more retail locations than Apple Pay or Android Pay. It is easy to set up with participating cards and uses fingerprint authentication. While Apple Pay has a more streamlined user experience, Samsung Pay has a wider acceptance rate since it can pay even at older card readers. Overall, Samsung Pay is currently considered the most versatile mobile wallet.
The document provides information about censorship during World War 1 and instructions for writing a censored letter from the trenches. Soldiers' letters home had to be censored by officers to remove any details about military plans, locations, conditions, or casualties that could help the enemy or undermine morale. The goal was to protect secrets, control public opinion, and maintain support for the war by only allowing positive news to be reported. Students are asked to write a censored letter based on life in the trenches and then practice censoring a classmate's sample letter.
This document discusses the differences between mobile NFC payments using a SIM Secure Element (SIM SE) versus using Host Card Emulation (HCE). It notes that while HCE simplifies aspects like application provisioning by removing the need for mobile network operator involvement, it requires a new approach to security. Both approaches have advantages and disadvantages depending on the local market, and combining the two approaches may optimize solutions for different markets. Issuers will need to consider factors like the maturity of the local NFC ecosystem when determining the best approach.
Mobile Money Business Track: understanding the Model and MarketArief Gunawan
Left without intervention, mobile money transfers of various forms will continue to proliferate, and product innovation will continue, albeit at different rates and in different directions around the world. Global interoperability, however, would offer significant value to customers and ensure the mobile ecosystem delivers value and scale into this service.
This course will describe by placing mobile operators at the heart of remittances, Mobile Money Transfer has the potential to catalyze the whole mobile financial services market, incorporating mobile payments, mobile banking and mobile transfers.
Mobile Money Business Track: understanding the Model and Market (1 day)
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Accessing Pay Buy Mobile Model
- NFC M-Payment services
- Proposition
- Ecosystem and Value chain
- Pay-Buy-Mobile Business Models
- Mobile NFC Technical Guidelines
Accessing Mobile Money Transfer
- Introduction to the Remittance Market
- The Opportunity for Mobile in Money Transfer
- Mobile Money Transfer as a Mobile Financial Services Market Catalyst
- Mobile Banking Vendor Analysis
Transformation of the Electronic Payments Industry - Strategies for Growthfrancisfoo
This presentation provides a glimpse into the evolution of the digital payment industry and a discussion of both short-term and long-term strategies that players in this space could potentially adopt to stay ahead of the competition.
I've diverse interests across wide-ranging topics and industries and I thoroughly enjoy analyzing information and devising strategies to help companies better position themselves for the challenges ahead.
If you require more information and data, feel free to reach out to me at francisfoo@wustl.edu or connect with me on LinkedIn www.linkedin.com/in/francisfoo/.
Thank you for your interest! Hope you find the information useful.
How to Build a Future-Ready Mobile Wallet PlatformPanamax, Inc
Gone are the days when you had to carry a fat, heavy wallet in your pocket. Mobile Wallets have rapidly become a preferred choice, especially for those who are constantly on the go. As mobile wallets have revolutionized the way we use our money. No matter what we buy, a payment wallet is handy in the modern day and age. Let's the emergence of mobile wallets, popularity, and important things to consider while creating a future-ready mobile wallet platform.
The document discusses digital wallets, including their vision, components, technology like NFC, payment models, architecture, features, advantages, and disadvantages. It provides examples of how digital wallets are currently being used, mentioning Paytm, Google Wallet, PayPal, Isis, Venmo, and Dwolla. Digital wallets allow users to make electronic payments and store payment methods and other information to make transactions more convenient compared to physical wallets.
After 15 years of e-commerce experience and banking projects the new era for "Secure POS device" was come. In 2012 the first POS tablet with both swipe and smartchip features was patented in USA by Florin Suciu.
The new "perfecto POS - pPOS" was ready for the merchants and retail. In past 3 years tens of similar devices rise around the world. Now we develop the V2 generation
A digital wallet allows users to store payment and loyalty card information electronically rather than physically. It authenticates users and facilitates contactless payment using technologies like near field communication (NFC). Digital wallets provide advantages over physical wallets like convenience, flexibility, and safety. While systems issues, security concerns, and user experience challenges remain, major companies are developing digital wallet applications that can be used to pay at retail locations and transfer funds between individuals.
Pay-Buy-Mobile is a mobile payment initiative that allows customers to make secure payments using their mobile phones and Near Field Communication (NFC) technology. The ecosystem involves mobile network operators, banks, merchants, and other players. For Pay-Buy-Mobile to succeed, it must provide value to all ecosystem members, reach a large customer base through partnerships between banks and mobile operators, and achieve technical interoperability and standardization across implementations.
The document discusses digital wallets, including what they are, their components and technology, payment models, challenges, and the future of digital wallets. A digital wallet allows secure electronic payments and storage of payment methods and identification. It discusses how digital wallets use near-field communication (NFC) technology and secure storage to facilitate electronic payments from mobile devices. The future of digital wallets may include integrated services like bill payment, coupons, shopping comparisons, and personal information management.
Mr. Ali Rashid al Mohannadi's presentation at QITCOM 2011QITCOM
The document discusses the evolution of mobile banking and payment technologies. It describes how mobile banking has expanded from SMS-based services to smartphone applications. Mobile payment technologies like NFC are also discussed, along with challenges in developing sustainable business models. Multiple players are seeking to take a leading role in the mobile wallet ecosystem, including telecom operators, handset manufacturers, and banks. The future of mobile payment remains uncertain, as it needs to prove significantly more convenient than existing payment methods to gain widespread adoption.
HCE and Beyond: How Early Opportunities Can Accelerate NFC GrowthNFC Forum
The document discusses the role of the NFC Forum in accelerating growth of NFC technology. It describes how the NFC Forum develops standards and specifications to ensure interoperability, educates people about NFC, and enables implementations of host card emulation (HCE). Examples are given of financial institutions, transit agencies, and retailers that are using HCE for mobile payments and other applications. The NFC Forum aims to drive broader adoption through special interest groups, liaison partnerships, and a new developer program.
Mobile payments have grown in popularity over the past year and introduced new terminology. This document defines key terms related to mobile payments technologies like Android Pay, Apple Pay, contactless payments, encryption, loyalty programs, mobile wallets, merchants, and tokenization. It also covers related concepts such as EMV, mPOS, NFC, PCI, and POS in the emerging landscape of digital payments.
This document provides information about e-wallets. It begins with an introduction that defines an e-wallet as a software component that allows users to make electronic payments by hiding the low-level payment details. It then discusses the types of e-wallets, components, technologies like NFC, payment models, wallet architecture, features, advantages and disadvantages, and how e-wallets are currently being used. Examples of popular e-wallets mentioned include Square Wallet, Google Wallet, PayPal, ISIS, Venmo and Dwolla.
E-banking involves using electronic channels to access banking services without time or geographic limitations. It allows customers to perform transactions online or via mobile devices. Key developments included the growth of the internet in the 1980s, ICICI Bank launching online banking in India in 1997, and the introduction of technologies like ATMs, telephone banking, internet banking, SMS banking, WAP banking, and television banking. Security and privacy are primary concerns in e-banking.
This document summarizes the potential benefits of contactless mobile payments and analyzes why some countries have been more successful than others in implementing mobile payment systems. It finds that Japan and South Korea lead the world in deploying mobile payment infrastructure due to coordinating the complex ecosystem of organizations required. For other countries to realize the economic and social benefits of mobile payments, they will need national mobile payment strategies to address challenges around technology adoption and defining business models for stakeholders.
If you're looking to develop a digital wallet app, this guide is for you. In this comprehensive guide, we'll take you through the entire process of developing a digital wallet app, from conceptualization to deployment.
This document provides an overview of internet payment systems and electronic payment methods. It discusses key topics like:
- Common internet payment methods including credit cards, digital cash, electronic checks, and payment gateways.
- Electronic payment security issues and protocols like Secure Electronic Transaction (SET) that aim to securely transmit payment information online.
- Specific payment technologies like e-cash, e-wallets, smart cards, and their processing workflows.
- Regulations and growth of electronic payments in India, highlighting channels used and key players in the payments processing market.
The document aims to educate about the various methods available for collecting payments online from customers, while maintaining security of financial information transmitted over the internet.
Similar to Mobile payment technology 8.11.2014 final (20)
3. TABLE OF CONTENTS (CONTINUED)
Credit Card Companies: Visa, Mastercard, American Express
Starbucks Sensation
POS | Payment Processing Connectors: First Data, POS Companies in general
Government: FDIC, FTC, Patriot Act
Analysis of Mobile Payment Provider/Participant’s Technology and User Features (Separate Large Spreadsheet)
(C) AUDREYMLEHR.COM 8.11.2014
4. DEFINITION -‘MOBILE PAYMENT’
•The use of a mobile device, such as a smart phone or tablet computer, to initiate transfer of funds to people or businesses
•Focus of this presentation is the person2business transfer of physical $ funds (not logical $ funds such as ‘bit-coins’)
•For instance….a consumer pays via their smart phone for a product or service
•Note ‘S’ will be from a sellervantage; ‘C’ from a consumervantage
(C) AUDREYMLEHR.COM 8.11.2014
5. LANDSCAPE (C)
•The market is young and wide and there is not yet one dominant player
•The intricacies of evolving and combining new payment concepts, technologies, interfaces, and participants are yielding a complex market place for the consumer:
•Who do I trust? Will my money be safe?
•Should I tiptoe or jump in?
•Specifically which device, platform, or vendors will survive and are worth a trial?
•Do I really want a separate account (with or without fees) with each vendor?
•How does my bank fit in? My credit cards?
•Which mobile phone (or device) should I use?
•Does this make my life easier and is it affordable?
(C) AUDREYMLEHR.COM 8.11.2014
6. MIND MAP: A WAY TO LOOK AT THE BIG PICTURE
THE MARKET HAS A LOT OF MOVING PARTS AND A LOT OF INNOVATION
(C) AUDREYMLEHR.COM 8.11.2014
7. Evolving Consumer/Seller Marketplace
Large TelecomIndustry (Verizon, AT&T, T-mobile, Sprint, Vodafone)
Mobile PaymentEcosystem
EvolvingPoint of Sale Systems (POS), Use of NFC Technology
Big Tech (Google, Apple, Amazon)
Innovators: Hybridstart-ups; mergers/acquisitions; Starbucks
Federal RegulatoryBodies (FDIC, FCC, Homeland Security)
Existing Financial Industry (Banks, MC, Visa, First Data)
Boom in CLOUD Technology
(C) AUDREYMLEHR.COM 8.11.2014
9. MOBILE PAYMENT TECHNOLOGYTYPES
•Near Field Communication (NFC) –A wireless Protocol that allows for encrypted exchange of payment credentials and other data at close range.
•Cloud Based –leverages mobile connection to the internet to obtain credentials not stored on the mobile device
•Image Based –coded images, QR codes, used to initiate payments. Credentials may be encrypted within image or stored in cloud.
(C) AUDREYMLEHR.COM 8.11.2014
10. WHAT IS EMV; WHY DOES IT MATTER
•EMV (Europay-Mastercard-Visa) is the latest technology standard defining interactions at the physical, electrical, data, and application levels between credit/debit cards and point-of-sale (POS) terminals. This standard must be adopted by merchants by October 2015 to avoid liability for counterfeit card fraud. (S)
•EMV credit cards contain a chip and when used in combination with an EMV compliant POS system: there is increased security, and card transaction processing ease. (S, C)
•There is currently a shift regarding fraud liability; responsibility for fraud is shifting away from the banks and credit card issuers towards merchants using POS systems that are not EMV capable. (S)
(C) AUDREYMLEHR.COM 8.11.2014
11. WHAT IS NFC
•NFC stands for ‘Near Field Communication’. It is a short-range wireless technology, enabling communication between devices over a distance of <10 cm. It is an ISO standard; IEC 18092.
•It has three main modes of communication:
•Card emulation: It behaves like a contactless (EMV) credit card such as those issued by Visa, Mastercard, or AX.
•Reader mode: the NFC device is active and reads a passive RFID tag; for example, reading and storing web address or coupon from a poster for interactive advertising
•Person2Person mode: two NFC devices communicate to exchange information
(C) AUDREYMLEHR.COM 8.11.2014
12. WHAT IS HCE
•HCE stands for ‘Host Card Emulation’. It acts as an extension to NFC technology, a ‘virtualization’ of the underlying secure NFC hardware.
•It’s technical architecture evolved out of the issue of poor NFC adoption – both customer and seller needed physicalNFC hardware to communicate.
•To implement this in a free market with many stakeholders has proved difficult (telecommunications companies, big technology companies, point-of-sale companies, customers with different cell phones and credit cards, and merchants.)
•HCE enables the NFC information transfer between a (POS) terminal and an other device to exchange NFC radio information. It enables NFC to work at the logicaloperating system level instead of on a secure element chip, thereby enabling a device application to emulate the functional response of a physical NFC card.
•This technology was spear-headed by SimplyTappand Google.
(C) AUDREYMLEHR.COM 8.11.2014
13. HCE (CONTINUED)
HCE Enables:
•Transactions between mobile devices and other credential- acquiring*devices such as:
•Other mobile devices
•Contactless point-of-sale terminals
•Transit turnstiles
•A variety of access control touch pads
HCE lets apps like Google Wallet retrieve stored credit card information from the cloud
Visa and Mastercardhave already approved the use of their cards through the HCE architecture
* Part of a security protocol
(C) AUDREYMLEHR.COM 8.11.2014
14. BLE
•BLE stands for ‘BlueToothLow Energy’ or BlueToothLE
•It is a BlueToothextension that allows devices to use much less power than standard BlueToothconnections; it is a wireless transmission protocol
•It is good for short-range, short bursts of data exchange
•In the mobile payment ecosystem, it is likely to be used for quick transmissions of data (e.g. text message) that don’t require the security offered by NFC/HCE. It could be used for in-store loyalty cards or coupons, for instance.
(C) AUDREYMLEHR.COM 8.11.2014
15. CLOUD TECHNOLOGY
Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.
Cloud Computing can include these delivery models:
1.Infrastructure as a Service
2.Platform as a Service
3.Software as a Service
(C) AUDREYMLEHR.COM 8.11.2014
18. GOOGLE WALLET
•By 2012, Google Wallet was launched and there was a YouTube Video training video for merchant employees: https://www.youtube.com/watch?v=hLbmy4XQsMo
•It shows a Google solution that enables payment through NFC (Near Field Communication, a phone-2-POS-Terminal Payment Solution)
•It proposes a ‘wallet’ payment solution for credit cards, gift cards, loyalty cards, coupons stored on their phone
•It suggests that their pay-by-phone solution is safe, because it is processed ‘just like a credit card’
•Google Wallet at that time worked on the Samsung Galaxy Smartphone through the Verizon network
(C) AUDREYMLEHR.COM 8.11.2014
19. GOOGLE WALLET
•Within the past year, Google Wallet added a Google-branded ‘credit’ card to their NFC- phone-2-POS-terminal solution
•They have issued plastic credit cards, co-branded with MasterCard, so now you can pay with a plastic card (in lieu of your phone). This enables customers to pay merchants who do not have an NFC terminal, or customers not having an NFC phone
•It looks like Google is using the branded cards to capture more of the consumer market until retailers and phones are established with NFC technology. It seems likely that their strategy will encourage use of the google payment interface
•A list of merchants who accept Google Wallet: American Eagle Outfitters, Bloomingdales, Foot Locker, Jamba Juice, Macy's, RadioShack, Subway, The Container Store, Toys "R" Us, Walgreens, BP, CVS Pharmacy, Dairy Queen, McDonald's, Office Max, Petco, Sports Authority, Sunoco, The Home Depot, Tim Hortons, NJ Transit
•Also of note is a lawsuit filed in 2011 by Ebay/PayPal against 2 former employees/Google, for stealing its employees and trade secrets –alleged, over this very technology.
(C) AUDREYMLEHR.COM 8.11.2014
20. WHAT GOOGLE WALLET DOES
•Send and request money easily in the US
•Digitize your gift cards. Sync gift card balance in real-time for participating merchants.
•Manage your loyalty programs and offers right on your phone
•Use the Wallet Card to spend your Wallet Balance anywhere MasterCard, Visa, AXis accepted in the US
•Tap and pay with your phone wherever contactless payments are accepted (NFC phones/POS only)
•Track your online orders, get notified when they’re shipped, plus view your order history in one place
(C) AUDREYMLEHR.COM 8.11.2014
21. Google Wallet Transaction Interface and Card
Google Wallet Loyalty Card Interface
Google Wallet Gift Card Interface
(C) AUDREYMLEHR.COM 8.11.2014
22. CAN I USE GOOGLE WALLET TO PAY AT BRICK AND MORTAR STORES?
Is my phone a (Gingerbread v2.3+) or iPhone (iOS v6.0+)
Do I trust Google and Partners to use Google Wallet?
Does store participate in Google Wallet and have NFC terminal?
(C) AUDREYMLEHR.COM 8.11.2014
23. GOOGLE WALLET COMPARISON
HOW IT HELPS ME
•Consolidation of credit cards, debit cards, loyalty cards into 1 account (C)
•1 view of many accounts (C)
•Ability to pay with a specific phone only if a merchant has an NFC enabled POS terminal (C)
•Or …ability to pay with the Google Wallet credit card
HOW IT MAY NOT HELP ME
•Google and Partners will collect data on every browse and purchase-the customer must trust them with this information (S)
•If the regulatory environment is not yet set to protect customers, he/she may be at risk for $ or confidentiality loss (C)
•Does the customer want to fund an account at Google, separate from their bank account, separate from their credit card accounts?
(C) AUDREYMLEHR.COM 8.11.2014
24. PAYPAL’SVENMO
•VENMOis a licensed money transmitter and authorized delegate of PayPal, Inc.
•Its app also launched in 2012, available for iPhone and Android
•Its main feature is to ‘Pay Your Friends’; Venmoappears to have a close relationship with Facebook to implement their technical solution
•It boasts that all transactions are secured and essentially guaranteed
•Due to its person2person design, its adoption is viral by design, similar to its partner Facebook. It is very popular on college campuses.
•Its sales volume in the past 2 years is equal to that of the Starbuck’s payment app so it has some eye-catching velocity in its adoption rate.
(C) AUDREYMLEHR.COM 8.11.2014
26. VENMO(PAYPAL) COMPARISON
HOW IT HELPS ME
•It enables friends to electronically pay back their friends for meals out, tickets, etc.
•If a friend shares their bank account, or supported debit card with Venmoto create an account balance, paying back friends is completely free (S)
•It costs nothing to the friend that accepts the funds
HOW IT MAY NOT HELP ME
•If a friend pays by credit card, the fee is 3%
•Non-millenialsmay not trust this app as readily, wondering, will my friends understand this process and trust it/me?
•Venmoand Partners (Facebook, Ebay?) likely will collect data on every browse, purchase, and customers will need to trust them with this information (S), (C)
(C) AUDREYMLEHR.COM 8.11.2014
27. CAN I USE PAYPAL’SVENMOIN A BRICK AND MORTAR STORE? NO…BUT I CAN PAY BACK MY FRIENDS….
Do I have an iPhone with ios7.0 or later **or**an Android 4.0 or later phone?
Trust Venmowith bank account/CC information?
Will my friends trust and accept payments via Venmoas opposed to cash?
(C) AUDREYMLEHR.COM 8.11.2014
28. PAYPAL IS ALSO ENABLING PAYMENT ON POINT-OF-SALE SYSTEMS….
PAYPAL AND HOME DEPOT
The POS systems at HOME DEPOT allow PayPal Payments. This means that you can pay for your Home Depot products with your PayPal account at the cash register. Might this ultimately be a part of PayPal’s overall wireless payment roll-out strategy? (C) AUDREYMLEHR.COM 8.11.2014
29. AMAZON: MOBILE PAYMENT PROGRESS
•In July 2012, Amazon launched an app that lets people store onlygift cards and loyalty cards. Recently, Amazon has a new partnership with BlackHawkNetworks, Inc.
•With a mobile phone, a customer can scan bar or QR codes at the cash register, on their gift and loyalty cards
•The app does not yet store credit or debit card information
•In June 2014, Amazon announced the sale of Amazon’s first smartphone ‘Fire’, further setting the stage for a mobile platform –in partnership with AT&T, 4GE LTE network
(C) AUDREYMLEHR.COM 8.11.2014
30. LOOP PAY
•Offers a product based on newly patented ‘Magnetic Secure Transmission’ (MST). Loop Pay is a start-up company led by former Equinox Payments and MIT graduate Will Wang Graylin
•Product launched in February 2014, so it is a new-comer to the mobile payments market
•Company is building global relationships with payment companies, and of note is that Graylinhas sold former payment start-ups to Verifoneand ROAM data
•Payment product is a unique one, introducing botha hardware device and associated software solution for mobile payments (C)
•Loop Pay mayhave relationships with Equinox Payments, Apple, and one of its key investors is VISA; the color choices of the keyfobhave the ‘feel’ of Apple marketing…remember the color choices for iPads? (AML)
(C) AUDREYMLEHR.COM 8.11.2014
32. LOOP PAY WALLET & FOB
HOW LOOP PAY WALLET & FOB WORK….
Software(C):
•Download Loop app from respective app store
Hardware(Buy) (C):
•Have iPhone 5 or 5s, or Android with OS >= 4.2
•Enable BlueToothon your phone
•Install ChargeCasearound your phone; insert fob into phone
•Press button on charge case to enable its wireless discoverability
•Swipe credit cards, loyalty cards, and to load and enable them on your phone. Assume that they have mag strip to use upload fob (AML)
•(S) Merchant point-of-sale terminal (implicitly implied in the process).
Software meets hardware (full process):
•Put phone against POS to pay, select card from your wallet. Tap Loop Wallet to approve (C). (C) AUDREYMLEHR.COM 8.11.2014
33. LOOP PAY FEATURES
1.Ability to buy a sleek wireless payment device to wrap your phone. This is only charge for new technology, currently $39 for Loop Fob, $99 for Loop ChargeCase.
2.Ability to ‘upload’ and store all of the credit cards and your ID in your wallet via the Loop fob.
3.Ability to pay wirelessly at a point-of-sale (POS) terminal with either your Loop ChargeCase-enwrapped mobile phone or with a Loop fob.
4.No transaction fee for (C) –Just buy fob and/or ChargeCase
5.With ChargeCasecharger, you can extend phone battery life 60%.
6.Transactions are secure
7.It will work with most current POS systems, no hardware upgrade by merchants is necessary
(C) AUDREYMLEHR.COM 8.11.2014
34. LOOP PAY COMPARISON
HOW IT HELPS ME
•Customer can swipe all credit cards, debit cards, loyalty cards on to a mobile phone (C)
•Customers can pay wirelessly and securely if they have the correct phone and it is wrapped with Loop ChargeCase, or has a loop fob. It will work on most merchants’ POS systems (C).
•Sellers probably don’t need a new POS system to please my ‘early adopter’ customer base (S)
•Loop Pay business model now does not seem tied to advertising revenue as are Google, Amazon, and perhaps PayPal to some degree (S)
HOW IT MAY NOT HELP ME
•If the regulatory environment is not yet set to protect me, I may be at risk for $ or confidentiality loss
(C) AUDREYMLEHR.COM 8.11.2014
35. LOOP PAY TECHNOLOGY
•MST –Magnetic Secure Transmission –a newly patented technology. MST is notthe NFC transmission communication protocol that other market players’ (e.g. Google) initial platforms are based on. If it is functional and truly secure, it could be a market shifter.
•The Loop fob does notuse BlueTooth. The Loop fob uses the 3.5 mm audio jack to communicate with the LoopWalletapp on your smartphone. The Loop device uses MST to communicate with the POS terminal.
•Loop also enables security with dynamic tokenized data. This interface currently co- exists with EMV and helps issuers leverage mobile without investing in new terminals.
•Loop Pay discussion boards claim that Loop works on roughly 92 percent of all POS systems in the country. There are two types of systems that Loop won't work on: the dip-style card slots that you find at gas stations and ATMs, and a special two-sided mag-strip reader that is found in a small number of older machines.
•
(C) AUDREYMLEHR.COM 8.11.2014
36. CAN I PAY WITH LOOP PAY AT A BRICK AND MORTAR STORE
Do I have an iPhone 5, 5s, or Droid OS>= 4.2, and have I purchased a Loop Charge Case or Loop Fob?
Do I trust this start-up and new MST with my financial data?
Do I want to teach the technology to the cashier at each business I go?
(C) AUDREYMLEHR.COM 8.11.2014
37. APPLE
•To date, Apple has not launched a mobile payment solution
•Rumored
•that there will be a solution with the iPhone 6;
•that the finger print sensor (‘TouchID’) released with iPhone 5s may be a future part of their mobile payment strategy
•that security would involve the ‘Secure Enclave Coprocessor’, that relies on a random number generator and encrypted memory to safely store information
•that a new partnership may help bypass third-party payment processors to lower costs
•Passbook, one of their existing apps has a high adoption rate and it features virtual tickets for concerts and sports events
•Apple is in talks with several mobile payment stakeholders including Visa
•Possible and even likely is that they have had time to learn from the mistakes of their competitors and launch a smoother platform as a result
(C) AUDREYMLEHR.COM 8.11.2014
38. •Square is a product that allows the user (S) to accept credit card payments via mobile devices, such as the iPhone, iPad, and Android.
•As of July 2014, the Square hardware device is now ‘accepting’ (reading) EMV Chip-Enabled Credit Cards.
•They have also announced they will be releasing a process chip-and- signature in addition to mag strip transactions.
EMVstands for Europay, MasterCard, Visa
(C) AUDREYMLEHR.COM 8.11.2014
39. HOW DOES SQUARE WORK?
1.Request and Receive your SQUARE reader (S)
2.Download the SQUARE ‘register.’ The register is a Point-of-Sale application. (S)
3.Link SQUARE register to your bank account (S)
4.Plug the SQUARE reader into your device headphone jack (S)
5.Swipe credit card (C)
6.Approve transaction by finger-swiping signature (C)
7.Receive SQUARE deposit next day in your bank account, for each transaction, less 2.75% per swipe (S)
(C) AUDREYMLEHR.COM 8.11.2014
40. SQUARE COMPARISON
HOW IT HELPS ME
•As a buyer (C), it allows more merchants to accept my credit card so I don’t have to carry cash
•As a Seller (S), I can wirelessly accept payment from customers in many more places and they don’t need to pay me cash
HOW IT MAY NOT HELP ME
•Currently as a buyer and a seller, a credit card ‘interchange fee’ is ~ 1.79% (S, C)
•Square transaction fee is 2.75%. Is the technology convenience worth the cost to my business(S)?
•As a Seller, does the Square Orders inferface(cash register) help my business?(S) (C) AUDREYMLEHR.COM 8.11.2014
42. ISIS
•A mobile wallet payment system that is a joint venture of AT&T, Verizon, & T-mobile
•It uses NFC technology
•American Express is offering incentives to use its card via the ISIS wallet
•ISIS has 20,000 wallet activations per day
•The ISIS security platform
•Purposely does NOT “store the data people want (to steal).” They make the consumer data on their platform a “fairly uninteresting” target and unique and dynamic data is generated on every transaction.
•Includes a PIN protecting every wallet
•Sets 30 minutes maximum the wallet can be set to be open
•Has a robust shut down program if a phone is lost or stolen
•ToysRUsaccepts the ISIS mobile wallet and is happy with it
(C) AUDREYMLEHR.COM 8.11.2014
44. ISIS WALLET COMPARISON
HOW IT HELPS ME
•Customer can consolidate all credit cards, debit cards, loyalty cards into 1 account (C)
•Has 1 view of many accounts (C)
•Customer can pay by phone if they have the right phone..andif…the brick/mortar merchant has NFC POS (C)
•ISIS has transparent security policies about not storing personal data (C)
•At this point in time the customer is not charged from any party for a wireless transaction (C)
HOW IT MAY NOT HELP ME
•If the regulatory environment is not set to protect me, the customer may be at risk for $ or confidentiality loss (C,S)
•Customer may get used to the mobile pay convenience and eventually be charged a/increased transaction fees (C,S)
(C) AUDREYMLEHR.COM 8.11.2014
45. CAN I USE ISIS WALLET TO PAY AT BRICK AND MORTAR STORES
Is my phone an ISIS able model from either AT&T, T-Mobile, or Verizon?
Do I trust ISIS and Partners to use its wallet?
Does store participate in ISIS and have NFC terminal?
(C) AUDREYMLEHR.COM 8.11.2014
46. SIDELINE PLAYERS?: VODAFONE & SPRINT
•Vodafone is a world wide telecommunications company
•In 2013, Vodafone divested itself of a large stake in Verizon in the US
•In 2014, they are in a ramp up hiring mode in NYC –several hundred personnel
•To date, they don’t appear to have a large stake in the mobile payments industry, but with the uptick in US presence makes one wonder if and what part they will play
•Sprint just tried and backed out of acquiring T-Mobile
(C) AUDREYMLEHR.COM 8.11.2014
47. CREDIT CARD COMPANIES
WHAT THEY ARE DOING RELATIVE TO MOBILE PAYMENTS
(C) AUDREYMLEHR.COM 8.11.2014
48. VISA VISION STATEMENTS
•There is a 40% increase in the value of payments people will make using their mobile devices around the globe this year.
•“As mobile commerce continues to grow, Visa will keep playing a vital role in making seamless commerce experiences secure, reliable and scalable. We are working on several fronts to build an ecosystem that simplifies digital commerce, including developing new standards and capabilities and supporting new stakeholders. Our goal is to duplicate the ease of the card swipe in digital channels, and make click or wave to pay as simple and secure as traditional card.”
(C) AUDREYMLEHR.COM 8.11.2014
49. VISA
•As a financial services provider, Visa Digital Solutions are positioning themselves relative to the mobile payments space in several ways:
•They have created Visa checkout for online transactions, and it may ultimately also be used at merchant checkout POSs.They currently have these merchant partners –PizzaHut, Staples, United Airlines, and Neiman Marcus.
•They have also positioned themselves as a technical leader and integrator, creating VISA industry standards including product specifications, APIs, SDKs, and implementation guidelines for the industry.
•To address security, they have created a system of security tokens that can be stored directly in mobile devices, cloud mobile applications, and online e- commerce applications. (C) AUDREYMLEHR.COM 8.11.2014
50. MASTERCARD
•In 2012, Mastercardreleased Paypass, a contactless credit card that could be used at POS checkout. They also launched mobile application that enabled a customer to pay via their phones by reading QR codes for bills and products in other countries.
•They say now that they provide a set of technical standards for setting up a mobile payment application, user interface, and provisioning of payment accounts on mobile phones.
•Other than providing contactless credit card and supporting mobile devices to use their card, information regarding mobile payment stake and product development in the USA is scarce.
(C) AUDREYMLEHR.COM 8.11.2014
52. STARBUCKS
•Starbucks was THE mobile payment disrupter in 2013, reporting $1B in mobile payment revenues, and that its mobile payment/loyalty app is used by 10 million customers
•Starbucks developed its own mobile payment app and associated processes in-house, and this innovation provided in a unique market solution
•The solution uses fairly ‘old’ technology, an image based solution
•Most of the thinking by mobile payment technologists was to have the user scan the QR code during the transaction. Starbucks flipped this scenario to have the register (POS) scan the QR code. They accomplished this within the software technology stack related to the POS.
•Their mobile payment solution also includes an interconnected loyalty program
(C) AUDREYMLEHR.COM 8.11.2014
53. STARBUCKS
•The success of the Starbucks wallet is attributed “not to entrepreneurial guesswork, but from empirical, practical and pragmatic research.” **
•Success factors include:
•“Existing successful loyalty program
•Existing successful gift card program
•Simple 2D barcode on consumer device
•Sophisticated barcode scanner on POS
•Perfect cloud merchant integration
•Simple to use consumer app”**
**Forbes 6/13/2014
(C) AUDREYMLEHR.COM 8.11.2014
54. STARBUCKS
Features of the Starbucks app include:
•Pay, check your balance, and reload your (loyalty) card
•Get instant access to your barcode with Shake to Pay
•Track Stars and redeem rewards
•Leave digital tip for your barista
•Find and redeem your personalized offers
•Get their free ‘Pick of the Week’
•Find stores, get directions and access store-specific hours and amenities
(C) AUDREYMLEHR.COM 8.11.2014
56. POS MANUFACTURERS AND RESELLERS
•Recall that EMV compliance in the US is due October 2015
•The two top terminal makers in the world are
•Verifonewho used to be the market leader in the US until its share dropped 17 percent to its competitor Ingenico
•Ingenico, who has expertise with EMV technology
•These retailers are likely to shift their business to a more operations-based one. Payment-as-a-Service, a spinoff of Software-as-a-Service cloud technology, integrates POS hardware platforms with end2end bundled customer service solutions.
•Existing top POS software providers include: PacificAmber, LightSpeed, NCR, touchbistro, comcash, instore, ivendretail, Vivonet, ConsignPro, SimpleConsign
•It is highly possible we may see a lot of merger/acquisition activity in the upcoming months as industry requirements for mPOS(mobile POS) move beyond basic EMV implementation, towards evolving mobile payment marketplace requirements
(C) AUDREYMLEHR.COM 8.11.2014
57. FIRST DATA
•First Data links merchants and issuers, at scale, around the world
•It has a partnership with STAR debit network, a product that enables PIN secured realtimetransactions for customers, and complementary products and services that help retailers, financial institutions, processors, and billers
•They have secured a $3.5 billion influx of capital
•They have shifted focus to provide products for small businesses with more robust POS solutions such as ‘Clover Stations’; Perka, a provider of a smart loyalty program; and, Isightics, a payments analytics tool
(C) AUDREYMLEHR.COM 8.11.2014
59. FDIC
•There are several concerns held (C,S), credit/liquidity (S, C), operations/IT, reputation, and vendor by the FDIC relative to mobile payments:
•Mobile payments present the same types of risks as those financial institutions are well equipped to address, such as Bank Secrecy Act (BSA), Anti-Money Laundering compliance, fraud management.
•“ In the current mobile payments ecosystem, unlike the existing banking products that control much of the payment interaction, (mobile) payments require the coordinated and secure exchange of information among several unrelated entities. Adding in entrepreneurial companies that are not familiar with the existing checks and balances that apply to banks, coupled with emerging technologies, the pot could be rich for exploitation.” **
(C) AUDREYMLEHR.COM 8.11.2014
**
“FDIC Highlights Mobile Payment Technologies and Related Risks,” Financial Institutions, Financial Privacy, United States, January 18th, 2013
60. EXISTING LAWSTHAT MOBILE PAYMENTS NEED COMPLY WITH:
•EFTA –Electronic Fund Transfer Act (C)
•TILA –Truth in Lending Act/Regulations Z13 (S)
•Truth-In-Billing (S)
•UDAP –Unfair, Deceptive, or Abusive Acts or Practices (under FTC) (C,S)
•UDAAP –Unfair, Deceptive or Abusive Acts or Practices (Consumer Financial Protection Act of 2010) (C,S)
•GLBA –Gramm-Leach-Bliley Act –Privacy and Data Security Provisions (S)
•Federal Deposit Insurance or NCUA Share Insurance (C)
(C) AUDREYMLEHR.COM 8.11.2014
61. FDIC FORWARD COMMENTARY
•‘Financial institutions should not assume their place in the new mobile payments marketplace is assured because they are an integral part of the existing payments infrastructure.’
•Non-bank mobile payments providers are devising ways to streamline the current payments system and reduce transaction costs by limiting the role banks play in mobile payment or eliminating them from segments of the payments process altogether.
•‘Banks could find themselves displaced by non-banks in the mobile payments marketplace.’
(C) AUDREYMLEHR.COM 8.11.2014
62. FTC : ‘MOBILE CRAMMING’
•Consumers have been finding unauthorized charges on their telecommunications carrier bills. (C)
•Mobile phone bills are not to include unauthorized charges. FTC reinforces that consumers (C) have the right to block all 3rdparty charges on their phones.
•After getting consumer consent to bill 3rdparties, such charges should be placed in a very prominent view on the bill. (C, S)
•FTC suggests that carriers (S) should put in effective dispute resolution practices that do not make it difficult for consumers to get a refund. (C)
(C) AUDREYMLEHR.COM 8.11.2014
63. PATRIOT ACT
It is important to note that all mobile payment systems and related data are subject to provisions of the Patriot Act.
(C) AUDREYMLEHR.COM 8.11.2014
64. COMPARISON OF TECHNOLOGY AND FEATURES
THERE ARE A LOT OF MOVING PARTS AND DIFFERENT SOLUTIONS TO BRINGMOBILE PAYMENTS TO MARKET
SEE SEPARATE EXCEL SPREADSHEET:
ANALYSIS OF MOBILE PAYMENT PROVIDER/PARTICIPANT TECHNOLOGY AND FEATURES (C) AUDREYMLEHR.COM 8.11.2014
65. REFERENCES
•“Easier Ways to Make Payments with Smartphones,” New York Times, July 31, 2014, Molly Wood.
•“Phone Carriers Face New Mobile Wallet Challenge,” Investor’s Business Daily, April 2, 2014, Reinhardt Krause.
•“U.S. NFC Mobile Technology Adoption to be Spurred by the ‘Big Three’: HCE, BLE and EMV,” GlobeNewsWire, June 10, 2014.
•“Host Card Emulation Will Drive NFC for Mobile,” The Credit Union Journal, July 28, 2014, Ray Birch.
•“Square Announces a Signature-Based Chip Reader, with Availability Early 2015,” Digital Transactions, Trends in the Electronic Exchange of Value, July 30, 2014.
•“Apple to set cash in on mobile payments: report,” Tech News, July 29, 2014.
•“Apple could launch own mobile wallet this fall,” @Phildzikiy, Thursday July 24, 2014.
•“AmEx, PBZ partner to launch payments pilot in Croatia,” Payment Technology, August 5, 2014.
(C) AUDREYMLEHR.COM 8.11.2014
66. REFERENCES
•“First Data Launches the PayLuckySolutions”, First Data Website, beyond the transaction, July 8, 2014.
•“First Data launches its mobile payment solution,” www.thehindubusinessline.com/features/smartbuy/tech-news/, Priyanka Pani, July 17, 2014.
•“Visa invests in mobile-payment startup: IS the sleeping giant awakening?,” www.bizjournals.com/sanfrancisco/blog/2014/07/visa- mobile-payments-innovation-san-francisco-apps.html?page=all, Spencer A Brown, July 24, 2014.
•“Visa introduces new Visa Digital Solutions,” DatamonitorCardsandPaymentsWire, July 29, 2014.
•“Six Best Practices Every Entity Needs to Know to Assure PCI Compliance,” Market Wire, July 29th, 2014.
•“UtimacoHardware Security Modules Deployed to Secure Millions of Connected Devices and Sensitive Customer, Corporate, and Citizen Data,” Business Wire, July 29, 2014.
•“Starbucks hits $1B in mobile payment revenues in 2013, analysis says,” ComputerWorld, Mat Hamblen, February 5, 2014.
•“Why is The Starbucks Mobile Payments App So Successful?,” www.Forbes.com/sites/quora/2014, June 13, 2014.
•“Showdown at the POS: Ingenicoversus Verifone,” www.payments.com, August 5, 2014.
•“FTC’s carrier billing report impacts burgeoning mobile payments methods,” Chantal Tode, July 29th, 2014.
(C) AUDREYMLEHR.COM 8.11.2014
67. REFERENCES
•“US mobile payment firm LoopPaywins Visa funding,” www.telecoms.com/274632.
•“Phone Carriers Face New Mobile Wallet Challenge,” Investors Business Daily, Reinhardt Krause, April 2, 2014.
•“FTC Staff Report on Mobile Shopping Apps Found Disclosures to Consumers Are Lacking,” PR NewsWireUS, August 1, 2014.
•“FDIC Highlights Mobile Payment Technologies and Related Risks,” Financial Institutions, Financial Privacy, United States, January 18th, 2013.
•“Mobile Payments: An Evolving Landscape,” Supervisory Insights (FDIC), Devoted to Advancing the Practice of Bank Supervision,Vol. 9, Issue 2, Winter 2012.
•www.gemalto.com/techno/inspired/nfc/definition.html
•en.wikipedia.org/wiki/Host_card_emulation
•“PayByPhoneApp Available for New Amazon Fire Phone,” Business Wire, July 30, 2014.
•“Ingenico: Strong increase in business performance and results in the first half of 2014,” GlobeNewsWire, July 30, 2014.
•“Loop Mobile Wallet Debuts with Expectation of Near Ubiquitous Acceptance,” Kevin Woodward, February 20, 2014.
(C) AUDREYMLEHR.COM 8.11.2014