Mobile payments is a growing industry projected to reach $320 billion by 2016. It consists of 3 building blocks and different collaboration models between telecom companies, banks, and app stores. While initiatives and trials are underway using NFC and proximity payments, the industry still has 2-4 years before business models mature. Mobile payments may ultimately be part of a larger digital economy equation.

1. Introduction Mobile Payments:
Overview of models
Vlerick Alumni 20/11/2012
Stijn Vander Plaetse

2. Mobile Payments
8,1 Trillion SMS
sent
Operator centric

3. Mobile Payments
App stores: 37% (Apple) to 72% (Android)free

4. Mobile Payments
New models emerge
Source : Mobile Payments Today

5. Mobile Payments
Projections : up to 320Bio $ by 2016
Source : Mobile Payments Today

6. Mobile Payments
Projections : up to 670Bio $ by 2015
Source : Mobile Payments Today

7. Mobile Payments
Actuals : today 315Mio$/day
Source : Mobile Payments Today

8. Mobile Payments
Mostly digital goods
Source : Mobile Payments Today

9. Mobile Payments
Which use cases?:

10. Mobile Payments
Mobile Payments consists of 3 building
blocks : explaining need of eco-systems
Pre-paid
X X Post-paid

11. Mobile Payments
Mobile Payments is part of the equation

12. Mobile Payments
Different Collaboration Models are
possible
Source : SapientNitro

13. Different initiatives
ISIS group : mid
2012 focus proximity
payment: AT&T
Mobility, Verizon
Wireless, and T-
Mobile
stopped: ABN Amro,
Orange and MC, O2 ING , Rabobank,
and Visa : launch mid KPN, Vodafone, T-
Startups and major
internet players : m- 2011 from 2012 Mobile
commerce and olympics with Oyster
proximity in 2011- (2Mio users) Vodaphone, DT:
2012 with NFC
embedded trials NFC,
proximity focus
Different activities Telecom Austria announced
: mainly Person 2 NFC trials at GSMA. Sms
person remote parking and ticketing omni-
payments. Mio’s present
of users
Trial NFC : Turkcell-YAPI Credi-
VISA : 40k merchants 1/2011
Avea-Garanti= mastercard 12/10 :
35k merchants , target 100k users
Consortium Buys Atos
Agreement between :
Origin, Bouygues Telecom,
Orange, Telefónica
Orange and SFR ter :m-
Movistar and Vodafone
commerce focus+ NFC trial
No commercial joint actions
. Atos Origin, Bouygues
Telecom, Orange and SFR

14. Mobile Payments
Chances: Viable Business Model
Open Federation
Model
4 7 20% 26% 43%
% %
Mobile-financial
institution partnership
3rd party
intermediation
model

15. Mobile Payments
Another 2-4 years to reach
maturity
Source : SapientNitro

16. Mobile Payments
Or is Mobile Payments is part of a larger
equation