Mobile World Congress 2015 "#appandpay vs. #tapandpay"
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My presentation to the Mobile World Congress 2015 on why in-app payments will come to dominate NFC at POS.
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Mobile World Congress 2015 "#appandpay vs. #tapandpay"
- 1. #appandpay vs. #tapandpay Dave Birch Global Ambassador, Consult Hyperion Mobile World Congress Barcelona, March 2015 1 Attribution-ShareAlike 3.0Version 1, 3-Mar-15 Why in-app payments will be an industry focus in the coming year
- 2. Consult Hyperion Practical and independent expertise
- 3. Mobile payments are old news So what’s new? 33 Please copy and distributeVersion 1, 3/3/2015
- 4. But the environment has changed ApplePay legitimised the entire sector ■ Mindshare not marketshare US EMV migration began ■ Now contactless makes sense Proximity and vicinity interfaces • HCE and BLE are friends Tokenisation Google, Samsung… 4 Please copy and distributeVersion 1, 3/3/2015
- 5. So our “live five” trends for 2015 Consult Hyperion’s “hot five” ■ In-app payments • “App and pay” not “tap and pay” ■ The three-party party • Think global, act local ■ Privacy • Part of the proposition ■ Blockchain • The real revolution ■ IDIoT • Identity for the Internet of Things The next big battle 5 Please copy and distributeVersion 1, 3/3/2015
- 6. Wait, we already have in-app, don’t we? The payments are vanishing inside the apps (as I’ve said at MWC before) 6 Version 1, 3-Mar-15 Please copy and distribute
- 7. In-app payments Right now, in-app payments are card-not-present in a silo 7 Please copy and distributeVersion 1, 3/3/2015
- 8. Amazonisation (APIs and integration) But now it’s about chip-and-PIN security baked in to apps 8 Please copy and distributeVersion 1, 3/3/2015
- 9. Mobile + Anything = Mobile ( © Tomi!) The real impact of Apple Pay will be in “app and pay” not “tap and pay” 9 Please copy and distributeVersion 1, 3/3/2015
- 10. Retailers want in-app It’s not just about payments, it’s about integration 10 Please copy and distributeVersion 1, 3/3/2015
- 11. 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. We are 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. Wired listed David Birch of Consult Hyperion one of their global top 15 favourite sources of finance and business information. He was ranked Europe’s most influential commentator on emerging payments by Total Payments magazine. He is a NextBank FinTech Titan and one of the European “Power 50” in digital financial services. 11 Version 1, 3-Mar-15 Please copy and distribute
Editor's Notes
- All the things you are This is me buying soup at a Vietnamese stall, paying with chip and PIN, they have an iPad and mPOS. Is this new any more or mainstream?
- Last year, we caved to the marketing pressures of modern business and put out a “hot five” technology blog post for 2014. For the most part, it was pretty accurate. Which ought to be no surprise, since as blog readers must realise, my colleagues at Consult Hyperion are always working on projects involving the exploitation of new technologies in the transactions business while I maintain the deceptive appearance of a blog based on random thoughts. As an example: my prediction that tokenisation would be hot in 2014 was a cheat based on the fact that I knew just how much tokenisation work was already going on all around me down at CHYP End, not a evidence for my crystal balls. Dave Birch, founder and "global ambassador" at payments consultancy Consult Hyperion, believes that a new approach is needed. "I think the days of spending more and more on security like PCI-DSS are drawing to an end. The PAN- [permanent account number] centric card solutions will soon be replaced by chip and pin, tokenisation and new (identity-centric) alternative mechanisms," says Birch. [From Retail malware: PCI-DSS is part of the problem, says retail security specialist Slava Gomzin - 07 Aug 2014 - Computing Feature] Why the quotes? Are they implying that I'm not really the "Global Ambassador"! But to the point. I also said that "proximity and vicinity" interfaces would be hot and I stand by that having seen both NFC and BLE become a focus. Of course, these two predictions were not entirely unconnected. This has been reported as being a technology initiative that undermines NFC, whereas I tend to think that it dovetails with it. [From The "hot five" retail transaction technologies for our clients in 2014 - Tomorrow's Transactions] I said APIs but that was also an easy prediction because everyone was saying the same thing and they were all right. I won’t say much more about this here as I’m going to be writing a couple of much longer posts about APIs early in the new year. I said “recognition" because I could see that the increasing importance of transaction-appropriate identification and authentication technologies was shaping the business strategies available to our clients downstream and we are working on projects in that space right now. The key here is, as you might imagine, that the smartphone is capable to delivering a wide spectrum of identification and authentication possibilities and gives organisations real choices in how they recognise customers and how customers recognise them. The one I didn’t think quite panned out as I was expecting was “small data”. I thought that more organisations would exploit the ability of the mobile to give customers a window into their own data and provide tools for managing and analysing that data. This certainly happened in some cases but not at the scale I was expecting (as I discovered when I tried to search my own bank accounts to find some transactions from a few months ago).
- Last year, we caved to the marketing pressures of modern business and put out a “hot five” technology blog post for 2014. For the most part, it was pretty accurate. Which ought to be no surprise, since as blog readers must realise, my colleagues at Consult Hyperion are always working on projects involving the exploitation of new technologies in the transactions business while I maintain the deceptive appearance of a blog based on random thoughts. As an example: my prediction that tokenisation would be hot in 2014 was a cheat based on the fact that I knew just how much tokenisation work was already going on all around me down at CHYP End, not a evidence for my crystal balls. Dave Birch, founder and "global ambassador" at payments consultancy Consult Hyperion, believes that a new approach is needed. "I think the days of spending more and more on security like PCI-DSS are drawing to an end. The PAN- [permanent account number] centric card solutions will soon be replaced by chip and pin, tokenisation and new (identity-centric) alternative mechanisms," says Birch. [From Retail malware: PCI-DSS is part of the problem, says retail security specialist Slava Gomzin - 07 Aug 2014 - Computing Feature] Why the quotes? Are they implying that I'm not really the "Global Ambassador"! But to the point. I also said that "proximity and vicinity" interfaces would be hot and I stand by that having seen both NFC and BLE become a focus. Of course, these two predictions were not entirely unconnected. This has been reported as being a technology initiative that undermines NFC, whereas I tend to think that it dovetails with it. [From The "hot five" retail transaction technologies for our clients in 2014 - Tomorrow's Transactions] I said APIs but that was also an easy prediction because everyone was saying the same thing and they were all right. I won’t say much more about this here as I’m going to be writing a couple of much longer posts about APIs early in the new year. I said “recognition" because I could see that the increasing importance of transaction-appropriate identification and authentication technologies was shaping the business strategies available to our clients downstream and we are working on projects in that space right now. The key here is, as you might imagine, that the smartphone is capable to delivering a wide spectrum of identification and authentication possibilities and gives organisations real choices in how they recognise customers and how customers recognise them. The one I didn’t think quite panned out as I was expecting was “small data”. I thought that more organisations would exploit the ability of the mobile to give customers a window into their own data and provide tools for managing and analysing that data. This certainly happened in some cases but not at the scale I was expecting (as I discovered when I tried to search my own bank accounts to find some transactions from a few months ago).
- The first area is in-app payments. Much of the discussion around ApplePay, tokenisation, NFC and retail has naturally focused on the “tap and pay” simplicity of the proposition. However, there are lots of reasons for thinking that this will be a sideshow rather than the main event. The introduction of tokenisation means that in-app payments (“app and pay”) can now be more secure than chip and PIN payments and since I rather imagine that most retailers would prefer no POS to enhanced POS and given the experiences that we already see around us from Uber to AirBnB and KFC, I think that in-app payments will become the norm, the most frictionless way to pay. Once again, this is hardly a wild Priceline.com Becomes First Major Online Travel Agency to Integrate Apple Pay Into its Newly Updated iOS 8 App [From Priceline.com Becomes First Major Online Travel Agency to Integrate Apple Pay Into... -- NORWALK, Conn., Dec. 11, 2014 /PRNewswire/ --]
- The first area is in-app payments. Much of the discussion around ApplePay, tokenisation, NFC and retail has naturally focused on the “tap and pay” simplicity of the proposition. However, there are lots of reasons for thinking that this will be a sideshow rather than the main event. The introduction of tokenisation means that in-app payments (“app and pay”) can now be more secure than chip and PIN payments and since I rather imagine that most retailers would prefer no POS to enhanced POS and given the experiences that we already see around us from Uber to AirBnB and KFC, I think that in-app payments will become the norm, the most frictionless way to pay. Once again, this is hardly a wild Priceline.com Becomes First Major Online Travel Agency to Integrate Apple Pay Into its Newly Updated iOS 8 App [From Priceline.com Becomes First Major Online Travel Agency to Integrate Apple Pay Into... -- NORWALK, Conn., Dec. 11, 2014 /PRNewswire/ --]
- The first area is in-app payments. Much of the discussion around ApplePay, tokenisation, NFC and retail has naturally focused on the “tap and pay” simplicity of the proposition. However, there are lots of reasons for thinking that this will be a sideshow rather than the main event. The introduction of tokenisation means that in-app payments (“app and pay”) can now be more secure than chip and PIN payments and since I rather imagine that most retailers would prefer no POS to enhanced POS and given the experiences that we already see around us from Uber to AirBnB and KFC, I think that in-app payments will become the norm, the most frictionless way to pay. Once again, this is hardly a wild Priceline.com Becomes First Major Online Travel Agency to Integrate Apple Pay Into its Newly Updated iOS 8 App [From Priceline.com Becomes First Major Online Travel Agency to Integrate Apple Pay Into... -- NORWALK, Conn., Dec. 11, 2014 /PRNewswire/ --]
- The first area is in-app payments. Much of the discussion around ApplePay, tokenisation, NFC and retail has naturally focused on the “tap and pay” simplicity of the proposition. However, there are lots of reasons for thinking that this will be a sideshow rather than the main event. The introduction of tokenisation means that in-app payments (“app and pay”) can now be more secure than chip and PIN payments and since I rather imagine that most retailers would prefer no POS to enhanced POS and given the experiences that we already see around us from Uber to AirBnB and KFC, I think that in-app payments will become the norm, the most frictionless way to pay. Once again, this is hardly a wild Priceline.com Becomes First Major Online Travel Agency to Integrate Apple Pay Into its Newly Updated iOS 8 App [From Priceline.com Becomes First Major Online Travel Agency to Integrate Apple Pay Into... -- NORWALK, Conn., Dec. 11, 2014 /PRNewswire/ --]