This document discusses the changing payment world and the rise of mobile wallets and near field communication (NFC) technology. It notes that major newspapers regularly publish articles on NFC and mobile payments, and that banks are establishing departments focused on these areas. Market leaders see NFC as the next big development. The document outlines the value chain for NFC mobile wallets and some of the ecosystem challenges. It also discusses issues like the importance of the secure element, virtual vs physical wallets, getting relevant content to mobile wallets, and the need for common interface standards. Finally, it suggests the shopping experience is changing and notes examples of this, like a store replacing cashiers with mobile checkout.

1. Mobile Wallet, NFC and the
Revolution In The Payment World
N-House, April 2013

2. • Changes In The Payment World
• NFC And Mobile Wallet
• The Future Of The Point Of Sale
(All From The Entrepreneur’s Perspective)
• Open Discussion

3. 700 B.C. 900 A.D.
1900s A.D. NOW
Is it really such a big change?

4. Payment World Is Changing
All major newspapers, every
week, release at least one article related
to NFC or Mobile Payment/Banking
All Banks , established departments
for Mobile Banking and NFC
Key market shapers see NFC as the next
big thing: Operators, Google, Handset
Manufacturers and many more

5. Type
Click Gesture
Touch

6. Tap To Tap To
Discover Interact
Point Of Sale
(Pay/ Tickets/ Coupons)

8. NFC Mobile Wallet -
The Value Chain Paradox
(Where is the money?)

9. Evolution of Advertising Medias
NFC empower mobile
advertising by:
Personalized
“Closing the Loop”
at merchant’s location
Time
Context
User
Location
One on One
Time
Context
Time User (Opt in)
Context
Location
One for All Context
Time

10. NFC: Collision of 3 Mega Industries
Mobile Virtual
Near Field
Communication
Retail
10

11. The Merchant Side
The first to understand that M-Commerce is as much
about the consumer as it is about the MERCHANT
Every app in the
mobile phone must
have an acceptance
app at the POS
as well …
There is no Mobile Commerce without There is no Mobile Commerce without
an NFC Phone an NFC POS
VeriFone Proprietary and Confidential – Do Not Distribute Outside the Company

12. NFC Ecosystem Challenges
NFC Issuance NFC Acceptance
Payment Payment
Estate Management
TSM App and Terminal
Management
Secure
Element
Coupons Coupons
Wallet
App Network Services
Transaction
Management and
Loyalty/Gift Routing Loyalty/Gift
Tickets/ Tickets/
Transportation Transportation
Smart NFC Open API
Common
Software
Interface
Flexible NFC Standards
App Software
VeriFone Proprietary and Confidential – Do Not Distribute Outside the Company

13. Secure Element:
Is it really so important?
Virtual (cloud) or Physical:
Who will Prevail?

14. Get Relevant Content To Mobile Wallet
Push Pull
OTA campaign is sent to user’s User actively request for
Mobile Wallet from Telco content from: online, mobile
campaign manager. internet or smart posters.
User take “passive” role. Push Pull
Scheme
Manager
Service
Operator
Mobile Wallet
Content
Management
System

15. Common Interface Standard

16. Online/Mobile Credit Card Payment
1
2
eCommerce
Customer Merchant Gateway
6 3
Acquiring
Bank
Settlements & 5
American Express 4
Reports Acquirer Switch

17. Point Of Sale Stagnation
Any real change?
1937 2013
Stand in line, pay, get paper receipt Stand in line, pay, get paper receipt

18. Time For A Change
They are ready

19. He is ready too

20. The Shopping Experience Is Changing
(And it is not about the Technology)
Micro Merchant vs. The Enterprise Needs

22. Change Is In The Air

23. -’Smartone’ turned sales guys into cashiers
- Saved the need to employ ~4 cashiers
- Cashier salary in HK is $1,500
- $72,000 saving year/shop
30 shops X $72,000 =
$2,160,000 yearly savings
10% increase in ticket price!

24. Principles Stay - Technology Changes
Kodak dominated the photography technology market Small players replaced old giants
1975 – Developed the first Digital Camera
1986 – First 1.4 Mega Pixels sensor
2012 – Filed bankruptcy

25. The wave is only in its’ beginning..
Now it is your time to be part of it

26. - Technology is ready (in every phone)
- Infrastructure is in place
IT IS YOUR TURN TO CREATE…

27. Entrepreneur Life..
Something To Think About

28. The “Presenting” Principle for the
Investors
10-20-30

29. “Plan Is Nothing - Planning Is Everything”
Eisenhower
Don’t Underestimate The Business Plan

30. The Partnership Dilemma

31. The World Is Against The
Entrepreneur
• It will not work!
• Who will buy it?
• I’m sure someone thought about it!
• Let me explain you why it can’t…?

32. "If I had asked people what they
wanted, they would have said faster
horses."
Henry Ford

33. Thank You