Mobile payments haven't set the world on fire, but there are reasons for thinking that downstream the mobile wallet will become the normal way to pay for things, in time displacing the plastic card as the consumer's preferred choice.

1. The New Normal
Dave Birch
Global Ambassador,
Consult Hyperion
Mobile Payments
Berlin, June 2014
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Technology, business and market evolution of the new digital wallet

2. Who are Consult Hyperion?
Practical and independent expertise
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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.
TfL Future Ticketing Strategy
Enabling open-loop payments in London
transport
Mobile POS
Enabling card payment acceptance within a new
category of Merchants
.

3. Outline
Mobile + Anything = Mobile
■ The mobile phone is going to replace cards
• long before it replaces cash
■ But card emulation is a dumb use of a smart device
■ So it’s mobile wallets, not mobile payments, that will become the normal
way for consumers to interact with retailers
Exploring three perspectives on this
■ The technology
■ The business
■ The market
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4. Technology: So?
You can pay for things with your phone. Now what?
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5. 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)

6. Technology: Apps
The wallet as an API, not an app
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7. Technology: APIs
APIs for everything
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8. Business: Benefits
There is no path, but there is a need to facilitate
effective co-ordination
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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)
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10. Business: Recognition builds Relationships
MCX and the next generation
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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)
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12. Mass Market: The New Normal
When the transactional costs of reputational capital become lower than the
alternatives, it becomes a means of exchange
Economic avatars as
an improvement on
the forgetfulness of
cash
Jaron Lanier (2013)

13. Market: Cards are Dumb, Even Smart Ones
As Anthony Jenkins (now CEO of Barclays) said back in 2008,
mobile phones are going to replace cards rather than cash
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14. Market: Convenience
The HCE/BLE revolution
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15. Market: Complement and Enhance
The mobile wallet has to do things that the leather one cannot
and this is all about connectivity
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16. 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
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.
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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.

17. One more thing…
24th April 2014 / 144pp paperback / ISBN 978-1-907994-12-8
£7.99 at all good bookstores
“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).