Mobile solutions are seemingly everywhere these days, and laptops,
tablets, and smartphones are enabling an “anytime, anywhere”
approach to business and personal lives. This is starting to include
payments. In news reports and ad campaigns, consumers are learning
that they can use their mobile devices to buy anything from a
Starbucks coffee or a Big Mac to office supplies, lumber, and clothing.
The age of mobile payments, it seems, is upon us. For more info: www.nafcu.org/vantiv
Mobile Payments: How U.S. Banks Can Deal with Disruptive ChangeCognizant
Banks are well-positioned to benefit from mobile payments, if they invest in the technology infrastructure and forge strong partnerships to out-maneuver emerging non-traditional players.
2007 09 - chicago fed letter i are mobile payments the smart cards of the aughtsBoni
This article compares the hype around but ultimate lack of adoption of smart cards in the 1990s to the current expansion of mobile payment platforms. It discusses how mobile payments could develop in the US, with two main methods being the integration of near-field communication technology into phones or the use of phone software as a "mobile wallet." The article notes that for mobile payments to succeed, they will need widespread consumer adoption and use, something that smart cards failed to achieve. It remains to be seen if cultural and technological factors will allow mobile payments to avoid facing similar challenges to becoming mainstream.
Gen Y consumers will earn 46% of the income in the United States by 2025, but they’re often misunderstood or ignored by financial services providers. This is especially true when it comes to online and mobile behavior and attitudes toward traditional banking.
Understanding this problem and designing to overcome it is critical to our work at Comrade, so we’re pleased to have partnered with Javelin Strategy & Research to publish “The Three Costliest Myths about Gen Y". This report applies consumer data to dispel the myths circulating in financial services today about Gen Y consumers. Beyond exposing pervasive misconceptions, it also explains how to optimize digital and physical touchpoints to attract tomorrow’s most profitable bank customers.
Banking & Innovation: How Financial Services Can Embrace the Customer RevolutionComrade
Financial services companies are increasingly seeing opportunities to be at the forefront of innovation. Historically, banks have been slow to translate consumer demands into technologies like paperless statements and mobile check imaging. However, they were quick to implement online banking and, today, customers who bank online are typically more satisfied as well as more cost-effective to maintain. Banks have also responded to the shift in consumer demand for mobile banking on tablets and smartphones. The next challenge facing financial services is how to address the rise of consumer trends evolving mainly outside of the industry. We’re pleased to have partnered with Matchi to publish “Banking & Innovation: How Financial Services Can Embrace the Customer Revolution." This paper focuses on three phenomena that will ultimately impact every bank:
- Crowdsourcing
- Wearable Technology
- The Sharing Economy
We explore the state of each these trends, and how they relate to financial services.
The document discusses 10 payment trends to watch in 2013 based on research from Vantiv and Mercator Advisory Group. It finds that while consumers have widely adopted smartphones and tablets, actual usage of mobile payments remains relatively low. It also notes the rise of omnicommerce, with consumers conducting research and shopping across both online and in-store channels in complex ways. Key trends highlighted include the growth of mobile payments if security and functionality issues can be addressed, the continued importance of security amid new threats, and merchants needing a consistent customer experience across channels to meet evolving consumer expectations in the changing payments landscape.
Mobile money applications are expanding financial access around the world and changing how people bank, send money, and pay for goods. There are opportunities to reach the billions who are unbanked or underserved, but also challenges around security, risk management, and ensuring proper regulation when dealing with money through mobile phones. Mobile money takes various forms like transferring directly from bank accounts, using companion accounts like PayPal, or debit/credit cards. Providers must implement know-your-customer verification, transaction monitoring, and other security practices to mitigate risks like fraud and money laundering that come with this new mobile financial system.
Private Banking: Redefining the Game Through MobilityCognizant
Today's sophisticated mobile devices have made it possible for bank customers to perform most banking transactions remotely - without having to visit their bank's branch offices. However, the nature of the private banking business and the profile of the clientele make this challenging. An all-inclusive, cross-platform app for private banking can provide more visibility into customers' and banks' needs and potentially become the primary channel for private banking, rather than merely an add-on.
Mobile Payments: How U.S. Banks Can Deal with Disruptive ChangeCognizant
Banks are well-positioned to benefit from mobile payments, if they invest in the technology infrastructure and forge strong partnerships to out-maneuver emerging non-traditional players.
2007 09 - chicago fed letter i are mobile payments the smart cards of the aughtsBoni
This article compares the hype around but ultimate lack of adoption of smart cards in the 1990s to the current expansion of mobile payment platforms. It discusses how mobile payments could develop in the US, with two main methods being the integration of near-field communication technology into phones or the use of phone software as a "mobile wallet." The article notes that for mobile payments to succeed, they will need widespread consumer adoption and use, something that smart cards failed to achieve. It remains to be seen if cultural and technological factors will allow mobile payments to avoid facing similar challenges to becoming mainstream.
Gen Y consumers will earn 46% of the income in the United States by 2025, but they’re often misunderstood or ignored by financial services providers. This is especially true when it comes to online and mobile behavior and attitudes toward traditional banking.
Understanding this problem and designing to overcome it is critical to our work at Comrade, so we’re pleased to have partnered with Javelin Strategy & Research to publish “The Three Costliest Myths about Gen Y". This report applies consumer data to dispel the myths circulating in financial services today about Gen Y consumers. Beyond exposing pervasive misconceptions, it also explains how to optimize digital and physical touchpoints to attract tomorrow’s most profitable bank customers.
Banking & Innovation: How Financial Services Can Embrace the Customer RevolutionComrade
Financial services companies are increasingly seeing opportunities to be at the forefront of innovation. Historically, banks have been slow to translate consumer demands into technologies like paperless statements and mobile check imaging. However, they were quick to implement online banking and, today, customers who bank online are typically more satisfied as well as more cost-effective to maintain. Banks have also responded to the shift in consumer demand for mobile banking on tablets and smartphones. The next challenge facing financial services is how to address the rise of consumer trends evolving mainly outside of the industry. We’re pleased to have partnered with Matchi to publish “Banking & Innovation: How Financial Services Can Embrace the Customer Revolution." This paper focuses on three phenomena that will ultimately impact every bank:
- Crowdsourcing
- Wearable Technology
- The Sharing Economy
We explore the state of each these trends, and how they relate to financial services.
The document discusses 10 payment trends to watch in 2013 based on research from Vantiv and Mercator Advisory Group. It finds that while consumers have widely adopted smartphones and tablets, actual usage of mobile payments remains relatively low. It also notes the rise of omnicommerce, with consumers conducting research and shopping across both online and in-store channels in complex ways. Key trends highlighted include the growth of mobile payments if security and functionality issues can be addressed, the continued importance of security amid new threats, and merchants needing a consistent customer experience across channels to meet evolving consumer expectations in the changing payments landscape.
Mobile money applications are expanding financial access around the world and changing how people bank, send money, and pay for goods. There are opportunities to reach the billions who are unbanked or underserved, but also challenges around security, risk management, and ensuring proper regulation when dealing with money through mobile phones. Mobile money takes various forms like transferring directly from bank accounts, using companion accounts like PayPal, or debit/credit cards. Providers must implement know-your-customer verification, transaction monitoring, and other security practices to mitigate risks like fraud and money laundering that come with this new mobile financial system.
Private Banking: Redefining the Game Through MobilityCognizant
Today's sophisticated mobile devices have made it possible for bank customers to perform most banking transactions remotely - without having to visit their bank's branch offices. However, the nature of the private banking business and the profile of the clientele make this challenging. An all-inclusive, cross-platform app for private banking can provide more visibility into customers' and banks' needs and potentially become the primary channel for private banking, rather than merely an add-on.
Balancing Fraud & Customer Experience in a Mobile WorldComrade
Consumers’ reliance on mobile continues to skyrocket in shopping, paying for bills, managing finances and socializing. This poses a great challenge for retailers, financial institutions and technology vendors. Digital account opening is fraught with pitfalls as the identity validation process relies on manual entry of personal information. Similarly account management uses knowledge-based authentication but can add friction to the user experience. How should retailers, banks and merchants integrate fraud protection measures into the user experience with the least amount of friction to the user?
I joined joined Al Pascual from Javelin Strategy & Research in a complimentary webinar to share lessons learned from working with leading companies that have struggled with the issue of fraud and customer experience.
We explored the following:
- Who are leaders in integrating fraud prevention into the user experience?
- Who owns the fraud prevention process in the organization?
- How to overcome legacy design issues that can underwhelm the customer experience and inhibit security measures?
- How to prevent fraud in a low-friction environment, while communicating a security-forward brand experience?
Analysis on Challenges Small Business Face in using the MBanking/Payment Serv...Dr. Amarjeet Singh
Mobile banking services are at the present
increasingly used to accomplish economic transactions by the
business people who would have followed long processes to
complete their transaction deals. Despite the importance of
mobile banking, several studies indicate that the industry still
faces challenges including lack of awareness among the
business parties and customers. Though large populations of
Kenyans have embraced the new technology in most of their
transactions, the contribution of the new technology on small
scale enterprises has received very little attention from the
scholars. The main purpose of this study was to identifying
and rank the challenges faced by the residents as they try to
embrace the mobile banking services. The study adopted a
survey design where data was collected from selected
respondents. The population of the study comprises of 730
small business enterprises. Simple random sampling technique
was used to select 88 small business enterprises based on 95%
confidence level and accepting 5% margin of error as
recommended for most business and social researches.
Primary data was collected from the respondents. Data was
analyzed by using statistical package for social sciences (SPSS)
and it was presented in the form of graphs, tables and charts.
Analysis of the data revealed that the highest challenge faced
by the business owners was the cost of transaction with a
cumulative percentage of 51.3 as compared with other
challenges.
Marketing strategy for launching mobile money services in MexicoAshish Tandon
Demographic, economic, technological, social, legal and political factors were analyzed for Mexico. Key points include a population of 114 million, GDP growth of 3.8%, telecom penetration of 18%, Roman Catholic majority, Spanish language, civil law system, and a federal republic government. Remittances and mobile usage are increasing. The banking sector is dominated by large commercial banks yet penetration is only 54%. Opportunities exist for mobile money due to lower costs, convenience and financial inclusion.
The Transformation Imperative - Jon Davies Banking White Paper v1Jon Davies
The document discusses the imperative for digital transformation in the banking industry. It states that banks are at a crossroads and must adapt to unprecedented technological changes like mobile and online banking. New fintech entrants not burdened by legacy systems pose a major threat to traditional banks. The document argues that to compete in the future, banks need to transform their structures, processes and mindsets through comprehensive digital strategies. This involves embracing technologies like analytics, cloud computing, and developing a digital mindset. The decisions banks make around digital transformation will ultimately determine their future success or decline in the rapidly changing financial industry.
Presentation on mobile payments and mobile money at the June 2013 SmarterCommerce Global Summit in Monaco. Includes description of relevant IBM product families that support mobile money and mobile payments.
A new study on development organizations’ use of Mobile Money Bulk Payment Products carried out by NetHope. The report, based on qualitative and quantitative research, highlights a desire to move away from cash; usage of mobile money bulk payments; preferences and recommendations for design features of the products; and the estimated volume and value of this market segment.
Webcast Presentation - What's in your (e) Wallet? Transforming payments and t...GRUC
Payments and transactional services present multiple ‘moments of truth’ for demanding clients who are often interacting with us anytime and anywhere. For financial services organizations, the 24/7 nature of the industry and its intense competition have made innovation and optimization of these capabilities critical. Learn about the experiences of IBM clients in transforming their payments and transactional services with IBM Rational DevOps capabilities.
See how banks, brokerages and insurance firms are aligning the life cycles of legacy back offices with the agile sprints of the mobile payments development shops and value-added technology partners.
Presented by:
Bruce Baron, Financial Services Sector Offerings Leader, IBM
Bruce Baron serves as the Offerings Lead for IBM Rational for the Financial Services Sector. Bruce and his team set the strategy, define our offerings and work to drive a collaborative cross-functional team of sales, marketing, enablement and development in assisting clients with solving business issues by bringing to bear all product segments and IBM brands. Prior to IBM Rational Bruce was a Strategy Consultant to Financial Services clients and has years of client experience as an e-business and six-sigma consultant in Financial Services at GE Capital.
Peter Eeles, Financial Services Sector Industry Lead, IBM Rational Worldwide Tiger Team, IBM
Peter Eeles is Industry Lead for the Financial Services Sector in IBM Rational's Worldwide Tiger Team, where he helps organizations improve their software development and delivery capability. This is often in conjunction with an architecture-centric initiative such as SOA or strategic reuse, where Peter has particular in-depth knowledge. Peter comes from a delivery background and was previously Chief Architect of IBM Rational's Worldwide Solution Delivery organization. He is co-author of "The Process of Software Architecting" (2009), "Building J2EE Applications with the Rational Unified Process" (2002), and "Building Business Objects" (1998).
This white paper discusses the benefits of implementing on-demand and personalized payment card strategies for financial institutions. It highlights how the current economic climate and changing consumer behaviors have made innovation imperative. Personalized cards that allow cardholders to customize designs increase acquisition, activation, retention and spending. The traditional card fulfillment model has high costs and long lead times that limit personalization. A new on-demand card manufacturing model provides advantages like lower costs and faster fulfillment times, enabling cost-effective personalized cards. This strategy helps financial institutions drive growth during challenging economic times.
W P Current And Future Threats Toward The Retail BankingADKiT
This document summarizes current and future threats facing the retail banking industry. It identifies four circles of threats ranging from most immediate to most strategic. The inner circle represents new direct banks that offer superior customer experiences. The next circle includes retail giants expanding into banking. The third circle consists of single-product financial services providers. The outermost circle involves potential disruption from technology and mobile companies accumulating customer touchpoints. The analysis aims to help banks understand threats and consider strategic responses to changing customer expectations and new competitors.
Mobile Money Agent Network Development in HaitiNetHopeOrg
The Payment Innovations working group welcomed Nick Lesher of Open Revolution (www.openrev.com) to speak with Cameron Peake of Mercy Corps (www.mercycorps.org) on their experiences with mobile money agent network development in Haiti. We examine how NGOs can play a role in the development of healthy and sustainable mobile money agent networks.
Market Simplified specializes in simplifying mobile adoption for the financial industry, transition to latest mobility trends pre and post mobile adoption is made seamless with our experience in BFSI.
The document discusses several technology trends in banking, including:
Mobile banking is expected to significantly increase over the next few years, with over a third of online banking customers using mobile banking by 2010. Younger generations especially expect mobile banking services from their banks. Future mobile technologies may allow payments, location-based marketing, text alerts and confirmations. Mobile devices could directly interact with ATMs to withdraw cash or make payments at checkouts.
The Financial Advisor business is transitioning to a new paradigm in which advice, customer experience, and personalized content will merge. Advisors will need to build and maintain their personal brand via social media networks whilst balancing regulatory constraints. The industry has started to adapt but much more opportunity exists to create new interaction models and grow one's book of business. Among consumers, there is a growing expectation that firms have a social media presence as part of their engagement model – digital natives have a “social media first” mindset. This presentation highlights recent trends, transformations the industry is going through, and a roadmap to respond to these changes.
The document discusses transformational customer experience in financial services through technology by examining changes in customer behavior driven by self-actualization and technology adoption, outlining 3 phases of behavioral disruption and shifts in how customers access services through various channels like mobile banking and internet banking. It also provides recommendations for improving customer experience across channels like branches, ATMs, call centers, and digital platforms through initiatives focused on usability, analytics, sales capabilities, and organizational changes.
2014 Digital Banking in Asia - winning approaches in a new generation of fina...Simon Pomeroy
Digital banking is growing rapidly in Asia, driven by rising technology adoption among consumers. About 40% of Asian mass affluent customers now prefer online or mobile banking, and this share is higher among younger generations. The number of digital banking consumers in Asia could reach 1.7 billion by 2020. Banks that do not adapt digitally risk losing 30-50% of profits to competitors. Banks can create value by digitally enabling their current model or developing new digital propositions for customer segments. Approaches include improving the sales process through data analytics, managing the multichannel customer experience, and increasing frontline productivity with digital tools.
This document summarizes the potential benefits of contactless mobile payments and analyzes why some countries have been more successful than others in implementing mobile payment systems. It finds that Japan and South Korea lead the world in deploying mobile payment infrastructure due to coordinating the complex ecosystem of organizations required. For other countries to realize the economic and social benefits of mobile payments, they will need national mobile payment strategies to address challenges around technology adoption and defining business models for stakeholders.
Using Mobile Money to Promote Financial Inclusion in PakistanKarandaaz Pakistan
This work provides an overview of the state of financial inclusion in Pakistan along with the mobile financial services industry, and points to specific opportunities which, if capitalized upon, could improve m-wallet uptake. Published for the first time in Pakistan, the deck brings together information from both national and international data sets and reports on financial inclusion and mobile money.
Digital Trends in the Financial Services IndustryKL Daly
Reviewing trends in the financial services, this presentation looks at how brand repositioning, digital optimization, digital analysis and customer relationships can be used to help the financial services industry overcome disruption and set themselves up for success in the future.
Capitalizing on Market Changes to Grow Your Card Programs (Credit Union Confe...NAFCU Services Corporation
The ever-changing and almost daily shifts in the market provide enormous opportunities for credit unions to extend their reach by effectively leveraging debit and credit card programs. These programs are highly visible, provide important consumer functionality and drive revenue and membership growth. In this 2012 Strategic Growth Conference session, we get to learn how to combine the messages in the market with your credit union brand to capitalize on this unique time, including promoting card features and functionality necessary to differentiate your credit union. We will also look at an analysis of key performance indicators and industry benchmarking data to see how your credit union stacks up! More info at: www.nafcu.org/vantiv
Rising Above Uncertainty: Opportunities and Challenges for Credit Unions in P...NAFCU Services Corporation
Credit unions face opportunities and challenges from evolving payments markets. Regulatory changes are reshaping retail financial services, increasing pressure on legacy models. Emerging technologies and new entrants threaten traditional revenue streams. Credit unions have opportunities for growth but must continue innovating. EMV implementation in the US faces delays from dual debit network requirements. Prepaid cards and mobile devices are gaining traction, changing how consumers interact with financial institutions. To compete, credit unions must enhance digital capabilities and appeal to younger demographics through offerings like mobile payments and banking. Trusted brands position credit unions well to lead developments.
Balancing Fraud & Customer Experience in a Mobile WorldComrade
Consumers’ reliance on mobile continues to skyrocket in shopping, paying for bills, managing finances and socializing. This poses a great challenge for retailers, financial institutions and technology vendors. Digital account opening is fraught with pitfalls as the identity validation process relies on manual entry of personal information. Similarly account management uses knowledge-based authentication but can add friction to the user experience. How should retailers, banks and merchants integrate fraud protection measures into the user experience with the least amount of friction to the user?
I joined joined Al Pascual from Javelin Strategy & Research in a complimentary webinar to share lessons learned from working with leading companies that have struggled with the issue of fraud and customer experience.
We explored the following:
- Who are leaders in integrating fraud prevention into the user experience?
- Who owns the fraud prevention process in the organization?
- How to overcome legacy design issues that can underwhelm the customer experience and inhibit security measures?
- How to prevent fraud in a low-friction environment, while communicating a security-forward brand experience?
Analysis on Challenges Small Business Face in using the MBanking/Payment Serv...Dr. Amarjeet Singh
Mobile banking services are at the present
increasingly used to accomplish economic transactions by the
business people who would have followed long processes to
complete their transaction deals. Despite the importance of
mobile banking, several studies indicate that the industry still
faces challenges including lack of awareness among the
business parties and customers. Though large populations of
Kenyans have embraced the new technology in most of their
transactions, the contribution of the new technology on small
scale enterprises has received very little attention from the
scholars. The main purpose of this study was to identifying
and rank the challenges faced by the residents as they try to
embrace the mobile banking services. The study adopted a
survey design where data was collected from selected
respondents. The population of the study comprises of 730
small business enterprises. Simple random sampling technique
was used to select 88 small business enterprises based on 95%
confidence level and accepting 5% margin of error as
recommended for most business and social researches.
Primary data was collected from the respondents. Data was
analyzed by using statistical package for social sciences (SPSS)
and it was presented in the form of graphs, tables and charts.
Analysis of the data revealed that the highest challenge faced
by the business owners was the cost of transaction with a
cumulative percentage of 51.3 as compared with other
challenges.
Marketing strategy for launching mobile money services in MexicoAshish Tandon
Demographic, economic, technological, social, legal and political factors were analyzed for Mexico. Key points include a population of 114 million, GDP growth of 3.8%, telecom penetration of 18%, Roman Catholic majority, Spanish language, civil law system, and a federal republic government. Remittances and mobile usage are increasing. The banking sector is dominated by large commercial banks yet penetration is only 54%. Opportunities exist for mobile money due to lower costs, convenience and financial inclusion.
The Transformation Imperative - Jon Davies Banking White Paper v1Jon Davies
The document discusses the imperative for digital transformation in the banking industry. It states that banks are at a crossroads and must adapt to unprecedented technological changes like mobile and online banking. New fintech entrants not burdened by legacy systems pose a major threat to traditional banks. The document argues that to compete in the future, banks need to transform their structures, processes and mindsets through comprehensive digital strategies. This involves embracing technologies like analytics, cloud computing, and developing a digital mindset. The decisions banks make around digital transformation will ultimately determine their future success or decline in the rapidly changing financial industry.
Presentation on mobile payments and mobile money at the June 2013 SmarterCommerce Global Summit in Monaco. Includes description of relevant IBM product families that support mobile money and mobile payments.
A new study on development organizations’ use of Mobile Money Bulk Payment Products carried out by NetHope. The report, based on qualitative and quantitative research, highlights a desire to move away from cash; usage of mobile money bulk payments; preferences and recommendations for design features of the products; and the estimated volume and value of this market segment.
Webcast Presentation - What's in your (e) Wallet? Transforming payments and t...GRUC
Payments and transactional services present multiple ‘moments of truth’ for demanding clients who are often interacting with us anytime and anywhere. For financial services organizations, the 24/7 nature of the industry and its intense competition have made innovation and optimization of these capabilities critical. Learn about the experiences of IBM clients in transforming their payments and transactional services with IBM Rational DevOps capabilities.
See how banks, brokerages and insurance firms are aligning the life cycles of legacy back offices with the agile sprints of the mobile payments development shops and value-added technology partners.
Presented by:
Bruce Baron, Financial Services Sector Offerings Leader, IBM
Bruce Baron serves as the Offerings Lead for IBM Rational for the Financial Services Sector. Bruce and his team set the strategy, define our offerings and work to drive a collaborative cross-functional team of sales, marketing, enablement and development in assisting clients with solving business issues by bringing to bear all product segments and IBM brands. Prior to IBM Rational Bruce was a Strategy Consultant to Financial Services clients and has years of client experience as an e-business and six-sigma consultant in Financial Services at GE Capital.
Peter Eeles, Financial Services Sector Industry Lead, IBM Rational Worldwide Tiger Team, IBM
Peter Eeles is Industry Lead for the Financial Services Sector in IBM Rational's Worldwide Tiger Team, where he helps organizations improve their software development and delivery capability. This is often in conjunction with an architecture-centric initiative such as SOA or strategic reuse, where Peter has particular in-depth knowledge. Peter comes from a delivery background and was previously Chief Architect of IBM Rational's Worldwide Solution Delivery organization. He is co-author of "The Process of Software Architecting" (2009), "Building J2EE Applications with the Rational Unified Process" (2002), and "Building Business Objects" (1998).
This white paper discusses the benefits of implementing on-demand and personalized payment card strategies for financial institutions. It highlights how the current economic climate and changing consumer behaviors have made innovation imperative. Personalized cards that allow cardholders to customize designs increase acquisition, activation, retention and spending. The traditional card fulfillment model has high costs and long lead times that limit personalization. A new on-demand card manufacturing model provides advantages like lower costs and faster fulfillment times, enabling cost-effective personalized cards. This strategy helps financial institutions drive growth during challenging economic times.
W P Current And Future Threats Toward The Retail BankingADKiT
This document summarizes current and future threats facing the retail banking industry. It identifies four circles of threats ranging from most immediate to most strategic. The inner circle represents new direct banks that offer superior customer experiences. The next circle includes retail giants expanding into banking. The third circle consists of single-product financial services providers. The outermost circle involves potential disruption from technology and mobile companies accumulating customer touchpoints. The analysis aims to help banks understand threats and consider strategic responses to changing customer expectations and new competitors.
Mobile Money Agent Network Development in HaitiNetHopeOrg
The Payment Innovations working group welcomed Nick Lesher of Open Revolution (www.openrev.com) to speak with Cameron Peake of Mercy Corps (www.mercycorps.org) on their experiences with mobile money agent network development in Haiti. We examine how NGOs can play a role in the development of healthy and sustainable mobile money agent networks.
Market Simplified specializes in simplifying mobile adoption for the financial industry, transition to latest mobility trends pre and post mobile adoption is made seamless with our experience in BFSI.
The document discusses several technology trends in banking, including:
Mobile banking is expected to significantly increase over the next few years, with over a third of online banking customers using mobile banking by 2010. Younger generations especially expect mobile banking services from their banks. Future mobile technologies may allow payments, location-based marketing, text alerts and confirmations. Mobile devices could directly interact with ATMs to withdraw cash or make payments at checkouts.
The Financial Advisor business is transitioning to a new paradigm in which advice, customer experience, and personalized content will merge. Advisors will need to build and maintain their personal brand via social media networks whilst balancing regulatory constraints. The industry has started to adapt but much more opportunity exists to create new interaction models and grow one's book of business. Among consumers, there is a growing expectation that firms have a social media presence as part of their engagement model – digital natives have a “social media first” mindset. This presentation highlights recent trends, transformations the industry is going through, and a roadmap to respond to these changes.
The document discusses transformational customer experience in financial services through technology by examining changes in customer behavior driven by self-actualization and technology adoption, outlining 3 phases of behavioral disruption and shifts in how customers access services through various channels like mobile banking and internet banking. It also provides recommendations for improving customer experience across channels like branches, ATMs, call centers, and digital platforms through initiatives focused on usability, analytics, sales capabilities, and organizational changes.
2014 Digital Banking in Asia - winning approaches in a new generation of fina...Simon Pomeroy
Digital banking is growing rapidly in Asia, driven by rising technology adoption among consumers. About 40% of Asian mass affluent customers now prefer online or mobile banking, and this share is higher among younger generations. The number of digital banking consumers in Asia could reach 1.7 billion by 2020. Banks that do not adapt digitally risk losing 30-50% of profits to competitors. Banks can create value by digitally enabling their current model or developing new digital propositions for customer segments. Approaches include improving the sales process through data analytics, managing the multichannel customer experience, and increasing frontline productivity with digital tools.
This document summarizes the potential benefits of contactless mobile payments and analyzes why some countries have been more successful than others in implementing mobile payment systems. It finds that Japan and South Korea lead the world in deploying mobile payment infrastructure due to coordinating the complex ecosystem of organizations required. For other countries to realize the economic and social benefits of mobile payments, they will need national mobile payment strategies to address challenges around technology adoption and defining business models for stakeholders.
Using Mobile Money to Promote Financial Inclusion in PakistanKarandaaz Pakistan
This work provides an overview of the state of financial inclusion in Pakistan along with the mobile financial services industry, and points to specific opportunities which, if capitalized upon, could improve m-wallet uptake. Published for the first time in Pakistan, the deck brings together information from both national and international data sets and reports on financial inclusion and mobile money.
Digital Trends in the Financial Services IndustryKL Daly
Reviewing trends in the financial services, this presentation looks at how brand repositioning, digital optimization, digital analysis and customer relationships can be used to help the financial services industry overcome disruption and set themselves up for success in the future.
Capitalizing on Market Changes to Grow Your Card Programs (Credit Union Confe...NAFCU Services Corporation
The ever-changing and almost daily shifts in the market provide enormous opportunities for credit unions to extend their reach by effectively leveraging debit and credit card programs. These programs are highly visible, provide important consumer functionality and drive revenue and membership growth. In this 2012 Strategic Growth Conference session, we get to learn how to combine the messages in the market with your credit union brand to capitalize on this unique time, including promoting card features and functionality necessary to differentiate your credit union. We will also look at an analysis of key performance indicators and industry benchmarking data to see how your credit union stacks up! More info at: www.nafcu.org/vantiv
Rising Above Uncertainty: Opportunities and Challenges for Credit Unions in P...NAFCU Services Corporation
Credit unions face opportunities and challenges from evolving payments markets. Regulatory changes are reshaping retail financial services, increasing pressure on legacy models. Emerging technologies and new entrants threaten traditional revenue streams. Credit unions have opportunities for growth but must continue innovating. EMV implementation in the US faces delays from dual debit network requirements. Prepaid cards and mobile devices are gaining traction, changing how consumers interact with financial institutions. To compete, credit unions must enhance digital capabilities and appeal to younger demographics through offerings like mobile payments and banking. Trusted brands position credit unions well to lead developments.
Vantiv has undergone a business transformation to become more agile and predictable in its delivery of payment processing solutions. Over the past year, Vantiv has made progress in forming dedicated agile teams, establishing key performance indicators, and delivering value in iterative sprints. However, challenges remain around test automation, engaging customers earlier, and achieving full organizational agility. Moving forward, Vantiv aims to further align its work to value streams, instill a culture of continuous improvement, and make agility part of its core operating model.
11.15.12 CBIG Event - Kalvin & Vantiv PresentationSubrata Debnath
Vantiv is a leading integrated payment processor in the US, ranking #3 in merchant acquiring transactions and #2 in transaction growth. It processes over 12 billion transactions annually through its single, integrated technology platform for merchant and financial institution services. The presentation discusses Vantiv's efforts to institutionalize analytics into decision making through 5 initiatives: 1) Defining and scoping analytics, 2) Prioritizing location within the organization, 3) Managing all-or-nothing thinking, 4) Balancing accuracy and understandability, and 5) Pushing intelligence to the front lines where business problems occur. Real-time analytics and reducing latency from data to insights is a focus.
Vantiv offers payment processing solutions for ecommerce businesses, including core payment processing along with value-added services. Their solutions help businesses drive revenue, manage risks, and gain insights from analytics and reporting. Vantiv provides fraud prevention tools, account updating to maximize authorization approvals, and ensures reliable payment acceptance across devices and currencies.
This document discusses the journey of Vantiv and Accenture in developing APIs for their enterprise. It outlines the challenges they faced transitioning from shared services to API products, including API proliferation, lack of standards, and knowledge loss. To address these, they organized into API product teams, adopted API management best practices, deployed APIs on resilient platforms, and built long-running teams. Currently, their mature API program has established reusable APIs and aims to spread an agile development culture by integrating API developers into product teams. The next steps involve decentralizing governance while maintaining standards.
The weekly market summary reported on the performance of the Prague Stock Exchange and other European markets for the week of May 30 to June 3, 2011. The PX index fell 0.6% as investors reacted to weaker than expected US unemployment data and comments from Moody's. Fortuna was the top gainer, up 3.8% ahead of its dividend payment. NWR fell 12.3% after its majority owner offered additional shares for sale. CEZ's shares traded ex-dividend and its managers sold shares. Pegas announced a EUR 55-60 million investment in a new Egyptian production facility to enter North African and Middle Eastern markets.
Este documento lista diferentes tipos de tiendas de comestibles y mercados como la frutería, carnecería, verdulería y pescadería. También enumera varios ingredientes de cocina comunes como el ajo, sal, pimienta, aceite y harina. Además, describe brevemente algunos platos típicos españoles como la paella, empanada y tortilla española, así como el postre flan.
Volunteers from Quill helped with several community events in 2010-2011, including Special Olympics swim meets, assisting burn victims at Camp I Am Me, donating to students in need via Donors Choose, painting homes for homeless families, book drives for schools, running in the Bears Care Midtown 5K, fundraising for animal shelters, walking for cancer research, sorting donations for a food bank, providing gifts and donations for families in need during the holidays, and planned activities with residents at the historic Winchester House long-term care facility. They also organized drives to collect essential items for domestic violence shelters.
The document is a shot list for a short film titled "Wrecked" by Hannah Butters. It describes 68 shots across 4 scenes. The scenes show: 1) Mary getting ready and leaving her bedroom, 2) Mary cleaning the kitchen while watching over Ruth, 3) Mary and Ruth meeting with a social worker, and 4) Mary and Ruth visiting the beach, leaving flowers and throwing a message in a bottle into the sea.
The Natural Innovation Foundation supports clean technologies for developing countries. They are testing a new solar-powered water pump called "SUnPulse Water" that can pump 20,000 liters of water per day from a depth of 30 meters and costs only €0.03 per kiloliter to operate. The pump is currently undergoing testing at a test site.
Shared Service Management - Service Manager Dag 2013Jordi Recasens
In de praktijk zien we HR, FM en ICT-afdelingen wel samenkomen, maar niet samenwerken. Dit is nodig wanneer u gezamenlijk uw dienstverlening verder wilt gaan verbeteren. Aan de hand van een uit de praktijk ontstaan groeimodel vertelt Jordi Recasens welke stappen nodig zijn om te komen tot Shared Service Management. Zo komt u tot een effectieve samenwerking binnen de dienstverlening, waarbij de kracht van de afdelingen wordt gebundeld. Gepresenteerd door: Jordi Recasens tijdens de Service Manager Dag, 2013
Due to dissatisfaction with customer service, analysts’ surveys advise that over a third of global retail banking customers moved providers in 2011. Losing this segment of customers reduces the opportunity to sell more financial products at the branch, negatively impacting profitability and growth. For more details: www.nafcu.org/ncr
El documento describe cuatro formas de cartografiar suelos en áreas aluviales. La primera da prioridad a la geomorfología y considera las inclusiones de suelo. La segunda utiliza información previa para delimitar áreas homogéneas. La tercera se basa en observaciones de suelo para reconstruir la geomorfología. La cuarta involucra análisis de datos de campo y correlación suelo-paisaje para ajustar límites de unidades de suelo.
Merchants and financial institution
executives devote a great deal of attention
to keeping up with changing
payment methods. They are constantly
weighing everything from mobile and
prepaid strategies to the rollout of
new security technologies and the
emergence of new competitors. Faced
with shifting and even contradictory
currents, they find the ultimate direction
of events is not always clear. As
a result, they are often hesitant about
moving forward with new approaches. For more info: www.nafcu.org/vantiv
Technology-driven change has become a constant for merchants,
financial institutions, and processors. That reality has created a shifting
landscape of new capabilities, new competitors, new rules, and new
customer expectations. It can all be complicated and confusing, but an
assessment of that landscape indicates several clear trends affecting
the industry. For more info: www.nafcu.org/vantiv
Business is changing on virtually every front, and the world of payments is no exception. Today, merchants, financial institutions, and processors all face an evolving landscape that is being reshaped
by an array of forces. The use of credit and debit cards is changing. Emerging payment methods, based on everything from smartphones to social networks, are rapidly gaining traction, as are innovative point-of-sale systems and a growing number of ewallet- based methods. For more info: www.nafcu.org/vantiv
Next Generation Mobile Banking and Return on Investmentmistervandam
Fiserv white paper on how the advancement of mobile banking - particularly next generation features and functionality - are driving return on investment for financial institutions
Few years before we are using the cash for payments. When a digitalization occurs the way of payments gets changed. It helps our country to move next level of development. It creates more awareness to people about the payment innovation. Umamaheswari K | Santhiya R | Ragavi J"Payments Innovation" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-3 , April 2018, URL: http://www.ijtsrd.com/papers/ijtsrd11150.pdf http://www.ijtsrd.com/management/innovation-and-product-dev/11150/payments-innovation/umamaheswari-k
This presentation explores what future of commerce may look like given the current trends in mobile devices, digital payments, social commerce and security including tokenization and new forms of identity verification
Mobile is a Marathon - Fiserv White Papermistervandam
The mobile channel is here to stay, and enabling compelling mobile financial services requires discipline, planning, preparation and a sustained investment of both time and energy, much like training for a marathon.
Key considerations for implementing mobile confirmitMerlien Institute
The document discusses the benefits of implementing a mobile engagement strategy to interact with customers. Mobile adoption is growing rapidly worldwide and changing customer expectations and behaviors. Customers now want interactions to be timely, relevant, and brief via their mobile devices. To maintain relationships, organizations need mobile strategies to engage customers anytime, anywhere. Some benefits include capturing more accurate feedback close to experiences, validating responses with location data and multimedia, and targeting customers based on location. Mobile engagement can make it easier for customers to provide feedback whenever convenient.
Mobile wallets are digital versions of traditional wallets that store credit/debit card and loyalty program information that can be accessed via a smartphone app. While adoption has been slow in developed countries, mobile wallets are growing rapidly in developing nations and where many lack bank accounts. A survey in Bangladesh found that while 74% were unfamiliar with mobile wallets, 70% believed they will feel more comfortable using mobile wallets than traditional cards, though 55% cited security concerns. As technology advances and security improves, mobile wallets are expected to continue gaining widespread use globally.
A STUDY ON CONSUMER PERCEPTIONS TOWARDS DIGITAL FINANCE AND ITS IMPACT ON FIN...IAEME Publication
With today’s world progressing at a lightning pace, finance cannot afford to lag behind. Finance must become inclusive, dynamic and buoyant. In other words, finance must becomedigital. The genesis and rise of digital financial services is a remarkable global phenomenon. There is little doubt that the financial services industry, today, is one of the most digitized industries. This paper throws light on the adoption and perceptions of the urban Indian consumers, in the context of digitized financial services. The study focuses on the extent of acceptability, usage, beliefs, deterrents and incentive patterns among the Indians. Itsuggeststhat although the popularity of financial services provided digitally is growing in absolute terms in India, but the rate of growth is painfully slow, considering the huge potential that the country possesses.
Mobile Phone Practices & The Design of Mobile Money Services for Emerging Mar...Jan Chipchase
This paper applies the lessons learned from of a number of qualitative research studies into communication practices, mobile phone use to the design of mobile money services.
More on Nokia Money can be found here:
http://www.nokia.com/about-nokia/new-business/finance/nokia-money
For more information see: http://www.janchipchase.com/designing-services-for-financial-inclusion
Mobile Remote Deposit: Capturing the Early AdoptersPaul McAdam
Mobile Remote Deposit Capture (Mobile RDC) received widespread attention over the past year with high-profile launches from J.P. Morgan Chase, U.S. Bank, USAA and others. Despite attention-getting publicity surrounding mobile RDC launches, apps had only penetrated 3 percent of the mobile phone owner population as of February 2011. Mobile RDC is in the initial part of the early adoption stage of market penetration and will require continued push from the supply side to drive widespread consumer adoption.
This document discusses the growing importance and opportunities of mobile marketing. It notes that mobile phone and tablet usage is increasing dramatically, with nearly 200 million mobile internet users in the US by 2016. Effective mobile marketing requires a closed-loop approach of understanding audiences, engaging them with targeted mobile ads, and driving responses through mobile transactions. However, there are challenges in measurement, proving ROI, delivering engaging content, and enabling transactions on mobile. Carriers are developing solutions to help marketers with audience understanding, targeted engagement, and driving mobile transactions. Privacy is also a key consideration, with transparency, choice and control being important.
This document discusses digital wallets and their increasing popularity in India. It provides background on the growth of digital wallets after India's demonetization and defines digital wallets as paperless payment systems that eliminate the need to carry cash. The document then reviews several studies that have examined factors driving the adoption of digital wallets in India like convenience, awareness among youth, government promotion of cashless payments, and security concerns. It also outlines the three types of digital wallets in India according to RBI regulations - closed wallets where payments can only be made to the issuer, semi-closed wallets, and open wallets.
To win against non-traditional competitors, retail banks must streamline operations and create innovative products and services, based on mobile, social and analytics technologies.
E-wallets have grown in popularity in India since demonetization due to the scarcity of cash. Digital wallets allow online transactions through smartphones and provide convenience for users by removing constraints like time and location. E-wallets provide transparency, speed, increased customer satisfaction, and business insights that help companies customize payments and control transactions without third parties. The document focuses on the benefits of digital wallets and how to use digital payment systems.
A STRATEGIC FRAMEWORK FOR MOBILE PAYMENTSIJMIT JOURNAL
With the exponential proliferation of mobile devices, smart phones and apps in the consumer market,
mobile payment is emerging as a key area to revolutionise the everyday financial life of both consumers
and merchants. The past few years have witnessed an increase in the adoption of digital payments and
online billing methods that leverage on wireless technologies and the Internet. However, the success or
failure of mobile payments in businesses is a hot topic today due to the multi-faceted factors such as, type
of wireless technologies used, security and privacy, the players involved and their influencing business
models, including consumer factors relating to interoperability, flexibility, ease-of-use and social
marketing. This paper examines mobile payments in all perspectives: technical, social as well as business
viewpoints and provides a strategic framework for a successful mobile payment adoption.
Strategic framework for mobile paymentsIJMIT JOURNAL
With the exponential proliferation of mobile devices, smart phones and apps in the consumer market, mobile payment is emerging as a key area to revolutionise the everyday financial life of both consumers and merchants. The past few years have witnessed an increase in the adoption of digital payments and
online billing methods that leverage on wireless technologies and the Internet. However, the success or failure of mobile payments in businesses is a hot topic today due to the multi-faceted factors such as, type of wireless technologies used, security and privacy, the players involved and their influencing business models, including consumer factors relating to interoperability, flexibility, ease-of-use and social
marketing. This paper examines mobile payments in all perspectives: technical, social as well as business
viewpoints and provides a strategic framework for a successful mobile payment adoption.
Compete Financial Services: Mobile Moneyamainecompete
Mobile money adoption is highest for banking at 54% and lowest for auto insurance at 17%. While awareness of mobile money services is high, the likelihood of adopting them in the next 3 months is low. Once adopted, mobile money services see frequent use. Mobile ads have a high clickthrough rate of 19%. Marketers should focus on increasing adoption, addressing connectivity issues, and promoting mobile money services within apps.
The banking and finance industry has been transformed since the inception of mobile banking and payments. From checking your bank balance on your mobile device to being able to host your entire POS on an iPad, mobile commerce is continually evolving. Here are a few of the most recent trends and the future of mobile and commerce.
Similar to Payments go mobile: The gradual revolution | Vantiv (20)
Learn from the largest subservicer how best to evaluate and select the right subservicing partner for your credit union based on your portfolio, investor mix, product range and other key selection factors.
Nearly one-third of Americans surveyed by Securian Financial Group say they haven’t thought about what would happen to their debt if they – or their cosigners – were to pass away unexpectedly. Fewer than 13 percent say they have taken steps to protect themselves from the sudden loss of a borrower.
With the tsunami of new regulations from NCUA and the CFPB, getting good at compliance is becoming a key success factor for credit unions. In this podcast and presentation from the 2013 NAFCU Annual Conference, Toné Gibson explores how your credit union can develop a cost-effective approach to strike a better balance between compliance and operational efficiency. Through the utilization of three methodologies – strategic development, process excellence, and performance management – learn in detail how to reduce the cost of compliance.
Wolters Kluwer Financial Services is the NAFCU Services Preferred Partner for Consumer and Member Business Lending & Deposit Services. More educational resources and contact information are available at www.nafcu.org/wolterskluwer.
Consumers are willing to pay for services that they find either adds convenience or delivers value. In this podcast and presentation from the 2013 NAFCU Annual Conference, Dave Schneider, Brent Dixon, and Paul Muse discuss how to expand your credit unions credit and debit opportunities and explore innovative products that can help guide your future credit union operations, including new approaches to increasing penetration, activation, and usage of the fundamental card. Also, learn to leverage new payment options that will appeal to Gen Y consumers, including Internet PIN debit, PINless at the point of sale, and payments and delivery of service through mobile.
The document provides an overview of strategic succession planning presented by Deedee Myers. It discusses best practices for succession planning at multiple levels including the board, CEO, executive roles, and managers. It emphasizes the importance of evaluating the board and having necessary conversations. Integration of board and CEO succession planning is highlighted. Outcomes of effective succession planning include increased capacity, opportunities for high potentials, and improved employee morale.
In this presentation from the 2013 NAFCU Annual Conference, Barrett Burns provides a comprehensive analysis of credit score models and discusses how your credit union can utilize them for member outreach and education.
Listen to the full podcast here: http://www.nafcu.org/NAFCU_Services_Corporation/Partner_Library/Credit_Scores__What_s_Behind_the_Number___Podcast_and_Presentation_/
Insuritas: Boost Income and Expand Wallet Share by Engaging the Digitally Dis...NAFCU Services Corporation
This document discusses how financial institutions can engage website visitors and members through digital marketing strategies. It begins by noting that digital spaces are dynamic and outpace marketers' ability to predict what will resonate. It then provides examples of how testing and optimization led to significant increases in traffic and conversions for credit unions. The rest of the document outlines strategies for personalizing the member experience online, nurturing conversations, and creating a "digital exchange" where members can complete multiple financial transactions in one place. The goal is to transform the website from basic information to an engaging sales and service channel.
The document summarizes a presentation about the impact of Dodd-Frank regulations on international payments and how credit unions can address these changes. It discusses:
- New disclosure requirements for international payments under Dodd-Frank that will take effect in October 2013.
- How the Federal Reserve's FedGlobal international ACH system can help credit unions provide lower cost international payments to members while meeting regulatory requirements.
- Benefits of using FedGlobal ACH payments include no beneficiary deductions, lower costs, consistent delivery times, and accessibility for institutions of all sizes.
- Resources available to help credit unions understand and comply with new international payment rules.
Money Concepts: Slides for What to Look for in Your Wealth Manangement Progra...NAFCU Services Corporation
This document outlines key considerations for credit unions looking to offer wealth management and financial planning services. It discusses the role and responsibilities of an advisor, important characteristics and qualifications to look for in candidates, how to integrate advisors with existing staff, the recruiting and hiring process, compensation structures, and lessons from positive and negative past experiences. The goal is to provide guidance to credit unions on establishing an effective wealth management program and selecting an advisor that will help achieve program mandates for success.
The document discusses Loan Prospector, a tool from Freddie Mac that assists with underwriting conventional loans. It highlights credit policy updates that Loan Prospector has been updated to reflect. These include changes to maximum loan-to-value ratios, how short sale fees are treated, and asset and income documentation requirements. The document also provides an overview of how Loan Prospector analyzes loan files, returns feedback and documentation checklists, and explains the risk classifications and documentation levels it assigns loans.
Deluxe Financial Services: Building an effective social marketing program | D...NAFCU Services Corporation
This document outlines key reasons for credit unions to establish an effective social media marketing program, including growing social media popularity and declining in-person touchpoints. It notes that while social media risks must be managed, regulations should not prevent social media use. The document provides tips for a successful social media strategy, including setting goals, defining a strategy, developing assets and gaining buy-in. It emphasizes measuring key social media metrics and lists humanizing your brand and cross-selling to members as benefits of social media.
The document provides an overview of best practices for outsourcing receivables collections. It discusses the risks and benefits of outsourcing, as well as keys to success. Case studies show how two credit unions reduced costs and increased returns by outsourcing to Credit Control. The presentation emphasizes selecting a financially stable vendor with industry experience, strong client support, and national licensing. It also stresses the importance of accurate data, service level expectations, and compliance with numerous regulations to protect members' data and privacy.
The document outlines 10 ways to improve a vendor management program. It discusses evolving the role of the vendor manager to be more strategic. It recommends having a senior-level vendor manager and understanding the market position of vendors and your own institution. It also suggests changing performance metrics, connecting with vendor representatives on LinkedIn, using the right type of ROI metrics, tying vendor performance to business plans, choosing the right implementation model, and making vendor management a key strategic performance indicator.
2013 NAFCU BFB Survey of Executive Compensation and Benefits (Presentation Sl...NAFCU Services Corporation
First introduced in 2007, the NAFCU-BFB Survey of Federal Credit Union Executive Benefits and Compensation was created to better understand the compensation and benefits for the top five executives of Federal credit unions. For more info: www.nafcu.org/bfb
Study Confirms Debit Strength, Reveals Reward Trends (Payment Choice Study Re...NAFCU Services Corporation
TSYS partnered with Mercator Advisory Group to conduct the 2012 Consumer Debit Payment Choice Research Study. This unique study combines survey questions and focus groups, enabling researchers to have an interactive discussion with participants about payment choices and influences, technology awareness and overall user experiences. Learn more at: www.nafcu.org/discover
The document discusses five truths for defining a mortgage strategy. It outlines that a strategy is a high-level plan to shape the future. The five truths are having a vision, commitment to the vision, proper performance and productivity tracking (PPT), internal measurement of goals, and external measurement of goals against market benchmarks. The document encourages downloading additional resource materials on defining a mortgage strategy.
There is an unprecedented focus today around the future of retail branch networks. Credit union executives are seeking new ways to economically alter the scale, reach, and character of their branch assets to drive growth and enable expansion in profitable new territories and non-traditional locations. While the channel is universally acknowledged as best for both member acquisition and sales, the economics must change in order for this way of member-centric financial services to thrive and realize its potential in the new, consumer-driven, omnichannel environment. For more info: www.nafcu.org/ncr
The document provides an agenda and overview for a Desktop Underwriter training session. It discusses understanding DU recommendations, recent announcements from Fannie Mae, analyzing DU reports, data integrity reminders, and additional training resources. It also outlines general lender requirements when underwriting loans with DU, including employing prudent judgment, ensuring accurate data, complying with verification messages, and reviewing documentation.
Build it, and they will come? Without a sound foundation, your wealth management program will languish, and eventually strike out. This webinar examines key steps for implementing an effective wealth management program and provides a realistic timeline from conception to making the first sale. Learn more at: www.nafcu.org/moneyconcepts
3. 3
Payments go mobile:
The gradual revolution
Mobile solutions are seemingly everywhere these days, and lap-
about the
tops, tablets, and smartphones are enabling an “anytime, anywhere”
research
approach to business and personal lives. This is starting to include
The Vantiv/Mercator Insight
payments. In news reports and ad campaigns, consumers are learn-
Series research focuses on
ing that they can use their mobile devices to buy anything from a understanding payment
Starbucks coffee or a Big Mac to office supplies, lumber, and cloth- trends and adoption rates
for emerging payments
ing. The age of mobile payments, it seems, is upon us. methods. As part of this
primary research effort,
But things are not that simple. Mobile payments are indeed grow- Vantiv and Mercator Advi-
ing. Yet, in spite of the industry and media buzz, it is likely to be sev- sory Group teamed up in
early 2012 to survey 1,200
eral years before the majority of consumers are using their phones consumers about how they
at points of sale. currently make payments
and how they expect to do
so in the future. In addi-
That’s one of the key findings of recent Vantiv/Mercator research
tion, researchers conducted
exploring consumer and industry-executive views of the evolving in-depth interviews in the
payments landscape (see “Key Points,” page 4). The research found spring of 2012 with execu-
tives from financial institu-
that consumers see a bright future for mobile payments, with 62% tions and merchants to
saying that they expect mobile payments to be widely used within explore their perspectives
on the changing payments
five years. Yet only 38% actually see themselves using mobile pay- landscape.
ments by then.
4. 4
KEY POINTS Why the paradox? The research sug- gart, chief product officer at Vantiv.
gests that although consumers see “The emergence of mobile payments
1 mobile payments becoming common in will enable consumers, merchants, and
Widespread adoption will take the future, they can’t picture it in their financial institutions to do a variety of
several years due to some daily lives. Some may lack a compelling payment activities in new and more ef-
fundamental challenges. reason to change. Others see problems fective ways.”
with security that make them skeptical
2 about using mobile devices to move To take advantage of these opportu-
Consumers are concerned their money around. nities, merchants and financial institu-
about security and don’t see a tions will need to move beyond to-
need for mobile payments. And it’s not just consumers. Merchants day’s wait-and-see attitudes. “There
and financial institutions also have is still reason to move cautiously, and
3 concerns about mobile payments and methods you can use to do so. But
Worried about costs, standards, how they will work and affect their that doesn’t mean inaction,” says
and technologies, many businesses. They see uncertainty in Weingart. “To succeed with mobile
merchants and FIs are taking a evolving standards and technologies, payments, they will have to under-
wait-and-see approach. and are acutely aware of the impact stand these new approaches and
of security problems. And they have technologies, take steps to be part of
4 questions about demand and solution this emerging world, and be ready to
Including mobile payments will “stickiness.” As a result, many are un- deliver the mobile payments that their
be key to the appeal of mobile derstandably cautious, and are taking a customers expect. Financial institu-
banking platforms—and banks wait-and-see attitude. tions that deliver mobile services
may have a leg up there. that consumers value—such as check
But the issues slowing adoption will deposit—will have an advantage in the
5 eventually be worked out—and re- future.”
Widespread adoption will search findings assure us that consum-
depend on a compelling value ers will be ready. The Vantiv research
Understanding the Growth
proposition that offers more assessed consumers’ usage, interest,
than convenience. and awareness of mobile payments, Curve
and an analysis of those factors shows In the Vantiv research, a number of
6 that this method is at a critical tipping findings pointed clearly to significant
Consumers are looking for point, where it is beginning to enter growth of mobile payments in the
platforms that provide more the mainstream—and in five years, it is coming years. True, only a small number
information, location-based likely to be a familiar part of the pay- of consumers are using mobile pay-
applications, and rewards. ments landscape. ments today (1% to 4%, depending on
the form). However, 50% of consum-
7 “Mobile payments may evolve a little ers are aware of mobile payments, and
Merchants and FIs can take more slowly than people expect, but 23% are interested in using mobile
incremental steps today to they will evolve—and it will absolutely payments going forward. Those levels
build knowledge and strategies. be a game changer,” says Bill Wein- of awareness and interest typically
5. 5
Mobile payments will be
common
Mobile payments will22%
be 7%
indicate that an emerging payment their even younger counterparts move
Mobile payments will be
common10%
common
method is on the verge of widespread into the consumer mainstream, they 30%
adoption. are going to drive increased usage.” 22% 7%
22% 31%
7%
The research also found that tablet 10%
10% 30%
An important driver of adoption will owners, smartphone users, and con- 30%
undoubtedly be the ongoing prolif- sumers earning more than $100,000 a 31%
31%
eration of mobile devices. Vantiv’s year were more likely to see a positive
research found that smartphone future for mobile payments. “Affluent I will use mobile payments
ownership at the beginning of 2012 consumers are interested,” he says. “So
37%
was 45%, up from 28% in 2011. “This some of the best customers out there
I will use mobile payments 18%
year, smartphone market penetration for both merchants and banks will be I will use mobile payments
is crossing an important line between looking for this.” 18%
37% 19%
being an early-adopter technology to 37%
being in the early stages of mainstream Today, the most common use of mobile 18% 8%
18%
usage, with double-digit growth in the payments is via a mobile phone using 18%
numbers of devices in use,” says Ben the mobile web or a retailer’s phone 18% 19%
8% 19%
Love, vice president, Mobile, at Vantiv. app. However, says Love, “as mobile 8%
■ 1-2 years
payments take hold, they will be used in ■ 2-5 years
A deeper exploration of the findings a growing range of payment scenarios, ■ 5+ years
shows other indicators of growth. For altering the overall share of wallet for ■ 1-2 years ■ No idea
example, consumers ages 18 to 34 various payment methods.” ■ 1-2 years
■ 2-5 years ■ Never
are far more likely to think that mobile ■ 2-5 years
■ 5+ years
payments will be common within five Indeed, the Vantiv/Mercator research ■ 5+ years
■ No idea
years, with 72% of this group believing shows that mobile payments will gain ■ No idea
■ Never
that, compared to 61% for consumers traction in all major spending cat- THE MOBILE
■ Never
overall. Fifty-six percent of respon- egories. For example, about 10% of PAYMENTS PARADOX
dents in that age group said that they consumers said that by 2017, they
personally expect to be using mobile expect to be using mobile payments Consumers like the concept
payments by that time. As one execu- for small in-store and grocery purchas- of mobile payments but also
tive interviewed by Vantiv/Mercator es, displacing primarily cash and debit have doubts about actual
researchers said, “Mobile payments transactions. In addition, 9% expect usage. About two-thirds of
is a multigenerational thing. For older to use them for household expenses, consumers think that mobile
generations, smartphones and iPads displacing mostly debit transactions; payments will be widely used
are a second language, but the young- 8% for large in-store purchases, dis- in five years or less. But only
er generation expects more and more placing mostly credit; and 7% for online about one-third think that
to be digital.” purchases, displacing credit/debit. they personally will be using
These percentages may actually be this method.
“Today’s younger consumers are more low, because consumers tend to under-
comfortable with the idea of mobile estimate future usage of tools that are
payments,” adds Love. “As they and currently unfamiliar to them.
6. 6
Great moments The Obstacles because they allow consumers to use
their credit or debit cards or a bank ac-
in Mobile Altogether, these factors indicate that count to make payments, using a single
payments mobile payments will grow very rap- point of access—the phone. Consum-
idly, and very soon. But there are other ers are more interested in mobile wal-
1994 factors at play, as well—and they are let/phone payments at retail points of
Online banking inhibiting that growth. sale than any other mobile phone pay-
ment method. But security issues are
1997 A key obstacle is consumer percep- dampening interest in this approach,
Vending machines take tions of smartphone-based payments. too, with 63% of those not interested
SMS payments The research found that consumers in mobile payments citing security con-
are concerned about problems such as cerns. Smartphone and tablet owners
1997 short smartphone battery life (53%), were especially worried on this front
SMS-based mobile banking losing their phones (77%), and be- (79% and 80%, respectively).
ing hacked (78%). With such issues in
1999 mind, two-thirds said that even if they It’s not just consumer perceptions
Web-based mobile banking used a phone for payments, they would that are an issue. The broad merchant
keep a traditional card as a backup. in-store infrastructure needed for
1997 smartphone payments is not in place
Contactless payment Consumers’ greatest concern with today. Most existing POS terminals
(Mobil Speedpass) smartphone payments is security. More are not equipped for near field com-
than three out of four cited criminal munications (NFC) and therefore do
2004 hacking of phones and the resulting not allow users to tap or wave their
NFC Forum founded compromise of account security as a phone near a device to make payments.
real worry. “This does not seem to be a Some companies are exploring other
2006 matter of consumers being suspicious approaches, such as using closed-loop
First NFC phone (Nokia) of a new, unfamiliar technology,” says prepaid accounts and a 2-D barcode
Patty Walters, senior vice president for transactions at specific retailers.
2007 of Merchant Product and Security at But in many scenarios, adoption of
Release of iPhone Vantiv. “Smartphone users and young smartphone payments will require new
consumers are actually more likely than infrastructure—and merchants see
2009 consumers in general to be concerned that as a significant investment with an
Mobile-phone households about smartphone security.” They are uncertain return, given the unsettled
surpass landline households also more apt to say that even if they nature of the technology and related
were to use smartphone-based pay- standards.
2010 ments, they would continue to carry
Release of iPad cards as a backup. These issues are not insurmountable,
but finding and implementing solu-
2011 The research found similar concerns tions will take time. For example, in the
Google Wallet with mobile wallets. These apps are Vantiv/Mercator research, security was
key to convenient mobile payments less of a concern among consumers if
2012
Isis Wallet
7. 7
the retail store had its own app, such likely to increase interest in both NFC Criminal
as the one offered by Starbucks, that and mobile payments.) hacking to get 78%
payment data
the user could download for smart-
phone payments. And technology Payments and Next-
companies will continue to bring more
sophistication to security, including the Generation Mobile Banking Losing phone 77%
expected rollout of EMV chip-based As interest in mobile payments grows,
security technology. “The increase in many in the industry see mobile bank-
Would still
tokenization and encryption as well as ing apps as a ready platform for build- carry credit/ 67%
the implementation of EMV will really ing out payments functionality. “Of- debit cards
help address some of the immediate fering payment capabilities is a natural
concerns with respect to fraud and se- extension of the mobile banking plat-
curity when we move into new mobile form, and many banks are starting to Battery life 53%
technology,” says Walters. pursue that in the form of wallet-based
payments,” says Love. The inclusion of
The lack of in-store infrastructure may mobile payments and wallets promises 0% 40% 80%
change soon, as well. Current EMV to be key to taking mobile banking to
mandates from MasterCard and Visa the next level.
will shift liability for security breaches
CONSUMER
to merchants over the next few years— But banks are not alone in their inter-
CONCERNS ABOUT
which means security problems could est in mobile wallets. Other players
SMARTPHONES
cost major merchants millions of dol- have been working on wallet offerings, When thinking about mobile
lars a year. Thus, they have a financial from Google and Apple to numerous payments, more than three-
incentive to upgrade their terminal large retailers. “There are more than quarters of consumers have
network to comply with EMV require- 100 wallets in development or in pilot concerns about security, such
ments. Merchants may decide that in the U.S. today, and that number may as hacking or losing their
this upgrade is a good opportunity to be as high as 200 by the end of the phone. That lack of confi-
also bring on NFC capabilities, which year,” says Love. (See sidebar, page dence leads more than two-
are needed to support communication 12.) The result is a confusing array of thirds to say they would still
between phones and terminals. That options being laid in front of consum- carry plastic cards as a back-
way, the merchant can leverage compli- ers—and that confusion is often trans- up to smartphone payments.
ance-driven expenditures to move into lating to a lack of interest and uptake
a payment method that consumers are of mobile wallets.
going to expect in the coming years.
(Of course, standards are evolving, Banks, however, have many strengths
and, while it is still not clear that NFC that they can draw on to differenti-
will be the winning technology, it is an ate themselves in that crowded field.
approach that many see as being the When it comes to payment methods,
most viable. A number of executives security is always foremost in consum-
interviewed noted that the release of ers’ minds. In a churning mix of mobile
more NFC-equipped smartphones is wallet options—many from companies
8. 8
Tablets:
At Home on the Sales Floor
Tablets such as Apple’s iPad, have found er wants and have the item brought to
their way into a variety of retail settings, the floor, without having to leave the
Aware 51% where they are used by salespeople to customer. The customer can then fill
help customers—and, in a number of out his or her payment information on
cases, to accept payments throughout the tablet and complete the sale via
the store. secure, encrypted card acceptance.
Interested 28%
“There are still relatively few mer- Beyond support for sales and pay-
chants actually using tablets for mobile ments, merchant tablets can contribute
payments at this point, but many are to a satisfying customer experience
evaluating this approach,” says Dean in a number of ways. They can, for ex-
Seifert, senior vice president, Product ample, be used to deliver product and
Used 17%
Strategy, at Vantiv. And a number of availability information out to the floor,
those merchants have deep concerns either to salespeople or to customers
about having to change in-store pro- themselves. Tablets can also be linked
0% 20% 40% 60% cesses and handle the complexity of to CRM systems so that salespeople
multiple mobile POS checkout points. can capture customer information for
the merchant’s marketing efforts, and
TABLETS TAKE OFF Nevertheless, payments handled retrieve customer preferences and his-
through merchant-owned tablets are tories—including a customer’s interac-
Merchant tablets may have likely to grow rapidly over the next tions in other channels—as they help
already hit the tipping point, two years, according to recent Vantiv/ customers. One retail executive whose
with more than half of all Mercator research. Already, 17% of company is planning to implement
respondents aware of this surveyed consumers have used them tablet payments told the research-
payment method and 17% for in-store payments. What’s more, ers: “We think mobile technology will
saying they’ve already 51% are aware of this payment op- help us better engage our customers
used it. This percentage is tion, and 28% are interested in using and we can help them in the aisles. We
slightly higher among it. These levels are quite high—higher, also expect to have a profile within our
smartphone users. in fact, than those of any of the other application to guide them around our
emerging payments covered in the stores while they are shopping. We’ll
research, including smartphone pay- have associates there to assist them
ments, mobile wallets, and retailer and let them pay right there.”
app-based payments. “Merchant POS
tablets are clearly at the tipping point As they find their way into more retail
of wide adoption—if not already past environments, the tablets themselves
that point,” says Seifert. will evolve in various ways to fit the
specific situation. Some might be
The use of merchant tablets for in- “hardened” for home-improvement
store payments can be highly cost- stores, others made waterproof for
effective. They use the existing in- restaurant use, and yet others be highly
stalled base of card-acceptance pro- specialized with limited functions to
cesses, and the devices themselves are discourage theft. “We believe that
one-tenth the price of traditional cash merchant tablets will be used by many
registers. They enable salespeople to types of merchants,” says Seifert. “And
sell and handle payments more effi- ultimately, they will change the way
ciently and help shorten checkout lines stores operate.”
during peak periods. Using the tablet,
salespeople can quickly check invento-
ry for a given product that the custom-
9. 9
that are new to the payments space— play an important role in expanding the
those consumers may see their banks use of mobile payments. But the most
Convenient 27%
as a safe and simple wallet option. critical factor will be consumer behav-
Banks already maintain consumers’ ior—whether consumers find mobile
personal and financial information, payments appealing enough to change
so there is no need for consumers to their current habits.
share that with other organizations.
Convenience, too, is a factor: if a con- Today, many consumers simply don’t Reliable 23%
sumer already uses a mobile banking see a reason to shift their payment be-
application, it is easy to add payments havior. Just 1 in 4 survey respondents
to that and rely on that one device for said that they regard mobile wallets as
a broad range of financial activity. convenient, and just 1 in 8 would prefer
to use smartphone payments rather Secure 17%
Overall, mobile banking is clearly an area than a card. “We are looking at mobile
of focus for banks. In a Vantiv survey wallet apps, but our customers aren’t
of financial institutions, nearly half clamoring for it,” one regional bank ex- 0% 15% 30%
said that they expect to invest in this ecutive told researchers. “Why is wav-
platform in the coming year. Already, ing something in front of a tablet faster
NOT CONVINCED:
banks are rolling out mobile check than swiping a card? When will there
PERCEPTIONS OF
deposit, which enables consumers to be a mobile wallet app where custom-
MOBILE PAYMENTS
use their smartphones to photograph ers will really ditch everything else and
and deposit a check, and thus avoid a start to use it?” Consumers don’t seem to
trip to the bank branch. “This makes it think that today’s mobile
very easy for the consumer,” says Love. “People have been using cards for de- payment methods of-
“And banks like it because it helps them cades,” agrees Donald Boeding, presi- fer much more than credit
reduce over-the-counter physical trans- dent of Merchant Services at Vantiv. cards. Only one-fourth or
actions.” With continued investment, “It won’t work to say, ‘Now you can do less see mobile payments
financial institutions are expected to of- that on your phone —problem solved.’ as convenient, reliable, or
fer additional innovations in the near fu- There wasn’t really a problem to begin secure.
ture. These will enable them to build on with. Merchants and banks have to pro-
existing consumer relationships—and vide a compelling consumer experience
consumer trust—to take advantage of and a clear value proposition for mobile
the growing consumer interest in both payments—one that offers more than
mobile banking and mobile payments. just convenience.”
Connecting with Consumers One way to appeal to consumers is to
offer them rewards, which can have
The actions of banks and merchants— a real impact. In the Vantiv research,
as well as technology providers—will 32% of consumers said that they
10. 10
AGE regarded rewards as a potentially ef- more features and functions to con-
18-34 57% fective way to encourage the use of sumers. The Vantiv research points to
35-64 33% mobile payments. That was especially some of the things that consumers
65+ 14%
true of smartphone users (42%) and hope to find with mobile payments.
those earning more than $100,000 Consumers select their payment
a year (39%). “Once consumers try methods based on no- or low-cost
GENDER a new payment approach and get (87%), their being fast (85%), and their
Men 41% comfortable with it, they’ll move to it security (72%). Nearly three-quarters
Women 33% more and more over time,” says Dean of that group (71%) said they are inter-
Seifert, senior vice president, Product ested in tracking account balances to
Strategy, at Vantiv. “But you have to control spending.
INCOME get them to do that initial trial. So we
Less than $50K 34% expect to see more rewards associ- In general, consumers expect mobile
$50K-75K 33%
ated with mobile payments to help solutions to put more knowledge at
consumers overcome their reluctance their fingertips, to help them make
$75K-100K 42%
and skepticism.” better decisions about purchases and
More than $100K 43% payments, and ultimately to combine
Doing so may not be that difficult. The increased control over financial activi-
0% 20% 40% 60% research found that for many consum- ties with their increased mobility. “We
ers a 1% rebate at the point of sale think our customers are interested in
would be an effective incentive for mobile payments and remote deposit
Cutting-Edge adopting a new payment method—a capture now; they have been very
Consumers more modest figure than many would vocal about this interest, and we will
Who’ll be using expect. “Many financial institutions be implementing both within the next
smartphones to make and merchants feel that it takes a 5% 12 months,” one credit union execu-
payments in five years? to 10% reward to incent customer be- tive told researchers. “It’s particularly
According to the Vantiv/ havior and get people to select a cer- important for small businesses. If the
Mercator research: more tain type of payment method. But the boss is on the road with an iPhone or
men than women, more research shows that it can be far less,” iPad and forgot to authorize payroll or
Millennials than Boomers, says Seifert. “So banks and merchants forgot to pay a bill, all they do is open
and more people earning may be overestimating what it takes.” up their application, click a few icons,
more than $75,000 a year. and authorize release of payment.”
Building the Compelling Value
To offer more than just basic pay-
Proposition ments via mobile device, merchants
Rewards are good as far as they go, and financial institutions can take full
but to truly build and sustain success advantage of that device’s mobility,
with mobile payments, merchants using geo-location capabilities and
and financial institutions will need to apps that predict consumer needs to
provide a value proposition that brings provide a good experience to custom-
11. 11
ers wherever they are. For example,
merchants can offer coupons, credits, Micropayments: Empowering the Individual
and discounts based on the individual
consumer and his or her location. A
Micropayment tools let individuals make payments directly to one another,
consumer in a store, for example, could
electronically. But while ACH-based P2P payments are used regularly in
be offered a discount on something
much of the world, that’s not the case in the U.S. In the Vantiv/Mercator
he or she buys frequently, or someone
research, only 3% of consumers said they are using mobile P2P services.
passing by a retail facility could be sent
Most small payments in the U.S. are still paper-based and handled via
a coupon for a sale item to encourage
checks or cash.
him or her to stop in. Mobile platforms
could also include polling features that Why? For one thing, consumers don’t seem to be especially interested in
allow consumers to quickly solicit the P2P. Forty-seven percent said that they don’t see a need for it, and 38.5%
opinions of friends about a given prod- have security concerns. These responses may reflect a lack of familiarity
uct. And as consumers make a mobile- with mobile P2P, with just 24% saying they had even heard of it.
based payment, “frequent shopper”
points can be added to their account Another issue is the time it takes to make a payment. With P2P payment
and an update sent to their phone. services that rely on the ACH network, it can take a several days for pay-
ments to clear.
“The days when you had to walk
around with a paper coupon or loyalty The industry is working to address these issues. “It’s possible that finan-
or rewards card are going away. That cial institutions, for example, could use their existing debit payment ‘rails’
will all be in the cloud and tied to the in reverse to enable real-time P2P—and benefit by charging a fee,” says
phone,” says Seifert. “Merchants are Vantiv’s Dean Seifert . In addition, “P2P has seen use among individuals
going to recognize when you are in a making payments to tradespeople and other small businesses.”
certain location and send you special-
ized marketing within the store or as Several trends may increase consumers’ familiarity with P2P in the near
you are walking through the mall.” Or, future. There is a growing number of banks, as well as providers such as
on the other end of the spectrum, Amazon, moving into the P2P space. And the rapid spread of devices such
scanning attachments and apps can as Square, which let small businesses and individuals accept credit card
enable smaller providers, from plumb- payments with a smartphone, are increasing awareness of micropayments.
ers to mechanics and musicians, to
accept secure credit card payments on
the spot, via their smartphone. tage of that to better reach consumers
and deliver information and offers that
“The fact that we have a computer in are specific to them. A retailer might
our pocket that knows who we are, send a discount that entices them to
where we are, and what we are doing buy a good or service at a store that
creates a powerful opportunity for lots is nearby, and then they can actually
of different players,” says Seifert. “So complete that purchase with their
merchants and banks can take advan- phone.”
12. 12
The eWallet Question
A key enabler for mobile payments is flects the evolution of banking over the
the mobile wallet, which provides a past couple of decades, from branches
single access point to an individual’s to ATMs to online and mobile banking,”
cards and accounts for payments. But says Love. “Providing a wallet on the
there are no wallet standards in place. mobile device is the next logical step
In this environment, “everyone from the for banks.”
biggest names in payments and the
Internet to small startup companies is E-commerce wallets. Organizations
getting involved,” says Ben Love, vice such as Amazon, Apple iTunes, and
president, Mobile, at Vantiv. PayPal are interested in using wallets
In $ billions
to get into the physical, bricks-and-
$300 mortar world and the offline purchase
of goods and services.
$250
TOTAL TRANSACTION VALUE
There are other types of wallets in the
$200 mix as well; aggregator wallets, for ex-
ample, let consumers consolidate their
$150 various credit, gift, prepaid, and loyalty
cards into one wallet. And single-
$100 feature wallets have a narrow focus on
doing one thing well, such as keeping
$50 transaction fees low.
$0 Many find this growing lineup confus-
2009 2010 2011 2012 2013 2014 2015
ing and a source of uncertainty. For
Source: IE Market Research Corp. The result is a burgeoning number of example, a number of merchants have
mobile wallets—a number that cur- taken a wait-and-see approach to in-
OPPORTUNITY rently tops 100, and continues to grow. stalling terminals with NFC—in part be-
KNOCKS It can be difficult to keep track of it cause of the battle among gatekeeper
all, says Love, but an understanding of wallet providers. “One side wants the
Mobile wallets are being who is offering what—and the motiva- NFC chip to be part of the mobile
pursued by a range tions of those providers—can help. The device, while the other side wants it to
of providers that are list of wallet contenders includes: be part of the device’s SIM card, which
interested in capturing gives control to the wireless service
part of the growing mobile Gatekeeper wallets. These are the provider,” says Love. Both groups, he
payments market, which is “giants,” including Visa, MasterCard, says, are ultimately looking for control
projected to rise to Google, and Isis, that are “jockeying for of valuable customer purchase data for
$260 billion by 2015. dominance in the way NFC is used,” marketing purposes.
says Love. NFC technology can enable
easy smartphone wallet payments. At this point, it’s difficult to determine
which mobile wallets will survive and
Retailer wallets. These give merchants thrive. But, Love says, there’s an upside
a way to leverage coupons and dis- to this fluid situation. “From a retail
counts, and move from a broad mass- and banking standpoint, the fact that
marketing strategy to a more individu- few players are taking sides is a good
alized strategy to strengthen customer thing,” he explains. “Without any domi-
relationships. nant player emerging, the field is wide
open to those who want to be involved
Banking wallets. “This approach re- in providing mobile wallets.”
13. 13
Mobile banking, too, can be enhanced ogy, uncertain standards, and growing 51%
Mobile phone
to provide a more compelling value consumer interest—present a complex payment 23%
proposition—again, by taking fuller ad- picture. For merchants and financial 1%
vantage of mobility. This represents a institutions, it can be difficult to know
logical progression of mobile banking, how to move forward. One approach,
Buying online 40%
says Peter Kulik, vice president, Prod- notes Love, is to “understand what with
uct Management, at Vantiv. Mobile your customers want, and use those smartphone 21%
with app
Banking 1.0 essentially involved ac- needs to build stronger relationships 4%
tions such as sending a text message with them.”
to the bank and getting account bal- eWallet 32%
ances back in real time—“Cool, but not The Vantiv research suggests that payment with
20%
credit or
something that is going really catch merchants and financial institutions debit cards
1%
consumers’ attention and change their may not be fully aware of the growing
habits,” he says. Mobile Banking 2.0 consumer interest in mobile payments.
moved PC-based Internet banking In general, interviews with industry 28%
Pay in store
onto the phone, allowing consumers executives showed that most mer- with app on 20%
smartphone
to check balances and transfer funds chants feel that they already offer a 2%
in a more convenient format—but not wide enough array of payment op-
really do any more than they could with tions to satisfy current needs, and 0% 20% 40% 60%
their desktop computers. few merchants or financial institutions
think that their customers are ready ■ Aware ■ Interest ■ Use
“We are starting to see Mobile Bank- for mobile payments at this point. It
ing 3.0 starting to emerge” Kulik says. was clear that both groups foresee a
“Mobile Banking 3.0 is all about imple- fairly long timeline for the adoption USE AND PERCEPTION
menting new use cases that are inher- of mobile payments, with merchants OF EMERGING PAYMENTS
ently tied to the mobility and location expecting it to occur somewhat later
Consumers are very aware of
sensitivities of mobile phones.” With and financial institutions expecting it
and interested in various mobile
Mobile Banking 3.0, he says, consum- somewhat sooner.
payment methods. But actual
ers will have features such as mobile
usage is still relatively low, due
check deposit and payments, alerts, But those perspectives are out of
in large part to concerns about
and personal financial management sync with the consumer view. As the
security, the lack of infrastruc-
functions such as budgeting tools, research shows, growing awareness
ture, and a small installed base.
alerts about overspending, and offers and interest indicate that consumers
from third parties—all on one device. expect mobile payments to become
commonplace in five years—and
What’s Next? many expect that they themselves
will be using them before long.
The rapid changes taking place in mo- Merchants and financial institutions
bile payments—the evolving technol- appear to be lagging behind consum-
14. 14
ers when it comes to their outlook on providers that make more effective
adoption. use of the mobile platform. Merchants
also worry about third-party wallets
Merchants and financial institutions do from organizations such as Google
have a number of real concerns about and losing control in customer rela-
mobile payments. Like consumers, they tionships because of the need to work
see security as a challenge. But over- through intermediaries.
all, executives interviewed from both
types of organizations expressed opti- Such concerns are significant, but so
mism about the ability of the industry too are the potential opportunities. By
to provide sound security for mobile building mobile payment capabilities,
payments—and even exceed cards in merchants and financial institutions
that area, through the use of multifac- will be able to give customers what
tor authentication processes. they want in payments—convenience,
flexibility, and more information and
Beyond that, banks worry about losing control. But these companies may also
control of their payment networks to benefit from a better understanding
third-party competitors, as so many of customers. With more payments
players are now involved and technol- being handled through mobile devices,
ogies and standards are in a state of more data will be available for analysis.
flux. “The most challenging obstacle Merchants and banks can use this data
is to figure out which payment types to assess consumer preferences and
a bank with limited resources should behavior, thereby improving their ability
mobile products’ offer,” said one regional bank execu- to reach customers.
maturity status tive. “It’s a balancing act, picking and
choosing which approach to take with A merchant, for example, might de-
The speed of adoption of a limited budget. We can’t offer every velop an Amazon.com-like capability
mobile devices continues type of solution that comes along.” to constantly track purchase behavior
to be rapid, while the use For their part, merchants fear that and use the resulting insights to hone
of financial apps on those mobile payment systems will be costly the offers and discounts it gives to
devices follows a to implement and could steer con- consumers. “The relationships with
traditional path. sumers to competitive products from customers are already there—people
come into stores all the time,” says
100% Love. “But now, the mobile data allow
you to know them better—to under-
90% stand what they buy, where. With that,
JANUARY 2012 CONSUMER USAGE LEVEL
80% you start moving from mass marketing
to individual marketing. You no longer
70% have to give people generic coupons or
have a broad loyalty scheme that may
60%
50% ✦ Smartphones (iPhone intro)
40%
30%
20% ✦ Mobile banking* (initially SMS-based)
✦ Tablets (iPad intro)
10%
✦ Mobile P2P services
✦ Open and single-merchant e-wallets
0%
0 years 5 years 10 years 15 years 20 years
YEARS IN U.S. MARKET
Source: Vantiv/Mercator Insight Series Research, February 2012. * Data from Mercator Advisory Group Survey, October 2011
15. 15
or may not be meaningful. Instead, can then be used to develop a larger 63%
eWallet
you can give each consumer target- strategy. payment with
credit or 4%
ed, relevant offers.”
debit cards
As they explore, merchants and 27%
Overall, financial institutions and mer- financial institutions should make
chants have an opportunity to take sure that they are looking beyond the 54%
Mobile phone
advantage of the growing consumer obvious and conventional to con- payment at 6%
excitement around mobile pay- sider the broader possibilities of this POS
31%
ments—or run the risk of being left emerging payment method. “When
behind as others do so. “These com- the Apple iPad was introduced to
46%
panies can lead the way for value- the market, it was perceived as a Buying online
added mobile payments by getting small personal computer—because with app on 6%
smartphone
involved in early steps to engage that’s what everybody knew,” says 35%
their customers, steer the technology Weingart. “Now, tablets are used
to their advantage, and encourage as vital work tools by airline pilots, 45%
mobile payment adoption,” physicians, and a host of others who Pay in store
with app on 6%
says Love. would never have used a ‘small PC’ in iPhone
their work, so it really created a new, 37%
In such a fluid environment, mer- unforeseen model.
chants and financial institutions will 0% 20% 40% 60% 80%
benefit most by taking small, incre- “The rise of mobile commerce prom- ■ Security ■ Reliability
mental “early steps” that are not too ises an even greater paradigm shift, ■ No need for service
large. In these initial stages of mobile Weingart continues. “The tendency
payment adoption, “it is very hard to today is to look at the mobile device
WHAT’S HOLDING
know what is going to happen next in certain ways—as a self-service
THEM BACK
in the coming years,” says Wein- tool, an ATM without the cash with-
gart. “But holding still is not a good drawal, a device-based version of the When asked what limits their
option.” With that in mind, he says, traditional debit or credit card. But interest in mobile payments,
companies might seek the guidance it’s much more than that. It is a new consumers cited security
of a partner in the payments industry. kind of key intersection between the issues, especially with
consumer and the bank or merchant, mobile wallet and in-store
Such partners could help them and it is changing the face of busi- mobile phone payments.
conduct pilot programs in a limited ness for merchants and banking Across payment scenarios,
region, which doesn’t require a large forever.” a sizable number also said
bet on a given technology. This can that they simply don’t see a
help them build knowledge and ex- need for mobile payments.
perience and better understand the
evolving landscape and how consum-
ers are behaving as mobile payments
evolve. Those accumulated insights
16. About Vantiv
Vantiv LLC is one of the
leading integrated payment
processors in the United
States. Known as Fifth
Third Processing Solutions
since 1971, the company,
headquartered in Cincinnati,
Ohio, changed its name to
Vantiv in 2011, and be-
came a public company in
2012. Vantiv’s credit, debit,
prepaid, and data security
solutions help businesses
and financial institutions of
all sizes get the most out of
payment activities.
Vantiv Corporate Headquarters
8500 Governors Hill Drive, Cincinnati, OH 45249
866-622-2880 | www.vantiv.com
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