The document discusses Alcatel-Lucent's mCommerce solutions, emphasizing the integration of value-added services beyond traditional mobile payments to enhance customer and merchant experiences. It highlights the importance of consumer consent and targeted marketing strategies while presenting examples of mobile payment systems, including Google Wallet and various proxy account models. The document also addresses the challenges in the mobile payment ecosystem, such as cost distribution and consumer adoption.

1. 12/10/2012
Mobile payments go well beyond payments…
October 2012
Anthony Belpaire
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Alcatel-Lucent mCommerce
Alcatel-Lucent mCommerce Solution
360 Marketing & Wallet solution based on subscriber consent and
OPTISM™ preferences offering advertisers and merchants easy access to a willing
MOBILE MARKETING & and targeted audience for ads, coupons and offers.
WALLET •The solution offers SaaS revenue sharing model, go-to-market
support, audience acquisition & management and campaign tools
Selected by
Working with Most
Connected major Average successful major
MNOs:
#1 in
to 157 brands, response rates campaign:
Vodafone, permission
retailers & of 20-25% 55% response
million subs agencies rate Orange & marketing
Etisalat
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
1

2. 12/10/2012
Setting Market context
Developed Markets
Convenience Subscriber asset
Banked
Context (LBS), Call
Center, Billing, SIM-
SE, Device
Management
Remittance, Bill payment
Savings, Microlending Underbanked
Distribution
and
Remittance Subscriber assets
Unbanked
Emerging Markets
Convenience (mobile account linked
Mobile Money for underbanked
to existing payment card) and value
Closed loop SVA (mPesa, ..)
Added services (cfr Google Wallet,..)
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Do mobile payments provide sufficient value for
consumer & merchants?
If mobile payments means, adding MORE players
in the value chain…WHO will carry the cost?
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
2

3. 12/10/2012
Can mobile disrupt the traditional payment chain…
Payment Scheme Consumer
Consumer Merchant Acquirer ISSUER
(VISA, MC)
1
98% 0.5% 0,01% 1,5% 100%
Card Issuer Monetization / VAS
• Card Linked Offers
• Loyalty (mileage), virtual credits
• Shop alerts
Various carriers issuing co-branded credit/prepaid for access to issuing data and card linked offers
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Today’s Example: mobile check-outs (SecureVaults)
Mobile Check-Out - SecureVaults (Cloud)
•User registeres his payment credentials at Cloud based SecureVault provider
•Mobile App passes a ‘Token’ to Merchant (v)POS
-ZERO ‘interchange’ fee to merchant 1,8% merchant fee
-Subsidizes the transaction -Merchants get a campaign tool for deal uploads, so
Groupon increases deal inventory
-Loyalty and Offers to compensate
-Captures purchase data of consumer
-Captures purchase data of consumer
Vault Vault Payment
Acquirer
Consumer Merchant Scheme (VISA, ISSUER Consumer
Token Provider of Vault MC)
Receives98%
100% 0.5% 0,01% 1,5% 100%
Pays 100%
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
3

4. 12/10/2012
Today’s Example: ‘Proxy’ Accounts (Cloud/NFC)
Proxy Account (Cloud&NFC)
•User registers his payment credentials at Wallet Provider
•Wallet Provider associates a ‘Proxy’ card (eg Paypass debit) with the Wallet account
•Wallet Providers associates the consumers’s opted payment card with the Proxy Card
•Merchants sees ‘proxy card’, user sees Google as ‘merchant’ on his registered payment card
•Funding of payment by Google in return for
-Capturing of on/ and off-line purchase data leading to Google Account profile enhancements
-Enhanced Off-line conversion a killer app for advertisers
-From display (CPM/CPC), to clipping of coupons (CPA) in Wallet, to Redemption (CPS)
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
(2) Today’s Example: Google Wallet
1
Proxy Acquirer Proxy Account
Consumer Merchant Issuer
Wallet (Rails)
100%- 0,20USD 0,20 USD Receives 98% 2
Pays 100%
Payment Scheme Consumer
Acquirer Issuer
(MC)
1
DISRUPTIVE
0.5% 0,01% 1,5% 100%
1
2
• Google captures purchase info
• Original Issuer only sees Google Google receives 98%, but needs to pay
as Merchant Merchant 100%
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
4

5. 12/10/2012
Today’s Example: Vikingspots – MVNO Mobile Vikings
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Today’s example: O2 UK
enhancing and monetizing consumer data
Age, Gender, location
Explicit preferences
ARPU
Profile info
Preferred events • Behavior
Handset info
Browsing info - (Micro)-Location
Billing details - Consumption behavior
Address
- Browsing/search behavior
• Profile
Preferred content
• Explicit preferences
Consumption data
Recent card payments
Consumption data
Recent card payments
O2 UK: full offer centered around customer data
Information under NDA 10
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
All Rights Reserved © Alcatel-Lucent 2012
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
5

6. 12/10/2012
Mobile Payments need to be more then payments
• mCommerce Consumer- and merchant adoption will require value added services
beyond payment
- Consumer seeks highly relevant and non intrusive (upon consent) content/services
(coupons, deals, recommendations..)
- Merchants seek point of influence during the commerce journey of the consumer to drive
traffic, sales activation or loyalty
Information under NDA 11
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
All Rights Reserved © Alcatel-Lucent 2012
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Optism™ Mobile Wallet Vision
•bridging on/offline
• One User Experience aggregating
• Contextual and Personalized promotions
• Loyalty programs
• Prepaid money
• Payment cards..
•User in control
• Permission based: Opt-In
• Self service Profile & Interests
•Relevance
- More then card virtualization but new experience
to engage with consumer
All Rights Reserved © Alcatel-Lucent 2012
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 12
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
6

7. 12/10/2012
Optism™ mCommerce Business Architecture
Consumer Mobile Wallet
Service Providers MNO role
Optism
Mobile Marketing
add, coupon, offer  Permission Marketing
Banks  Targeting Engine
 Campaign & inventory
Wallet management
Existing and new
 Analytics & reporting
Acquiring schemes
Retailers  Multi Store value
TSM account
 TSM (partner)
Enabling virtual
Cards inlc prepaid
Brands
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Optism™ 360Commerce - inventory flow
Reporting
Analytics
Reporting Dashboard
Opt-in mgt
Audience mgt OPT-IN base
MNO consumers
Mobile App Ad Interaction
Aggregated Web Deal purchase
DEALS & Targeting Coupon clipping
Retailers COUPONS Profile Coupon redemption
Preferences
Merchant dashboard Location
Behavior
MNO loyalty
ADS rewards
Brands Media Seller
Media Seller Dashboard Messaging (SMS, MMS)
Agencies
Dialogue campaigns
In-App notification
E-mail
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
7

8. 12/10/2012
MNOs target combination of mCommerce services
Rent SIM space
Monthly fee per payment app
NFC SIM
rental Per ticket fee for transport/events JVs
Transaction fees
Revenue on float
Opex reduction on airtime top-up
e-wallet Churn reduction
Consumer subscription fees
E-wallet display ad fees
JVs
Mobile Context Based campaigns
Markting Coupon redemption fees
Analytics & Reporting
MNOs moving to full functionality Commerce offer
Information under NDA 15
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
All Rights Reserved © Alcatel-Lucent 2012
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
8