The world of mobile payments is making exciting leaps forward. Consumers favor credit cards to cash at a ratio of 80:20. And, just as consumers were able to make that transition from cash to card, there’s an opportunity for consumers to accept and embrace a new form of payments with mobile.
there are different
companies, industries and
technologies involved in
Money rendered for a product or service through a portable electronic device
such as a cell phone, a smartphone or a wearable.
what exactly are mobile payments?
Today, evolution is
because of increased
consumer interest coupled
with a trend of companies
investing in transaction
This means that these advances in mobile payments are going to
continue to happen, and at a faster pace than we have seen before.
Right around 2014, yearly gaps are becoming
monthly gaps for new technologies to be invented.
New companies are constantly getting involved.
Coca Cola Vending
Machine via text
Google Wallet with
Apple Pay introduced
First text to
Paypal P2P via text
there are 4 categories of mobile payments
Point of Sale (in person)
Peer 2 Peer (P2P)
Credit Card Enhancer
Paypal One Touch
Google Wallet: 4% of
market (source: ITG)
Apple Pay: 1 - 1.5%of
market (source: ITG)
right now,there’s no clear leader
why is that?
Many players Many use cases Divergent goalsDiverse consumer base
F I N A N C I A L S E R V I C E S R E TA I L G I A N T S S TA R T U P S
can still have
why is it important now?
players can and
have an impact
will eat up
sooner or later
paying with points
what’s in it for the users?
of Millennials Prefer Non-
Millennials Distrust financial
institutions: 71% would rather go to
the dentist then talk to a banker
of Millennials have already
used mobile payments
of mobile payments are
made by millennials
leading the way
In order to succeed
in mobile payments,,
you have to combine
both the merchant
and the shopper.
what’s in it for the providers?
power of data
Lock into services Revenue Loyalty
mCommerce $42.5 Billion
In-person payment $3.7 Billion
Peer-to-peer transfer $5.25 Billion
$51 billion market in 2014
worldwide united states
M-Pesa is used by
92% of Kenyans
54% of transactions on
Alipay are on mobile in
Paytm is used my
individuals in India
mobile payments are already wildly
popular in other parts of the world
● Host Card Emulation - Google Wallet, Samsung Pay
● Virtual Card - Google Wallet
● Tokenization - Apply Pay, Samsung Pay, Android Pay
technology used by the leaders
in the industry
MST (loop pay)
Works at more than 90%
of existing terminals
FOR PHYSICAL MERCHANTS:
● POS terminals that support NFC and tokenization
● Use PassKit framework
● Physical goods and services only, otherwise use In App Purchases (IAP)
● Need to use a payment processor or gateway.
○ Some processors have Apple Pay SDKs
integrating apple pay
● API to allow developers to integrate payments.
● Google Wallet will use it.
● More details will likely be revealed at Google I/O on May 28
● Will offer tokenization
here’s what we know so far about
Pay with Wearables
Peak of Inﬂated
All emerging technologies go
through a hype cycle. As soon as
new technology triggers ‘never
been done before’ experiences, the
hype begins to build. The end of the
hype cycle, like pay with wearables,
will be moving into the mainstream
so why aren’t
mobile payments enable new experiences
wearable technologies are
blurring the lines between
physical and digital experiences.
This means omni-channel journeys need to be
seamless and more engaging as customer’s
tolerance for clunkiness plummets.
You will see consumers switch to whatever brand
or service offers them best experience,even if that
means abandoning their previous brand loyalty.
DEVICES INTERNET TV MERCHANT METRICS CULTURE SHIFT
• The devices people own will play a larger role in their payment.
• Payments are constantly evolving - the lines are “blurring” between digital and physical.
• Digital interactions will require less and less action on your part to achieve your goal,
whether that goal is opening a bank account or buying lunch.
• Internet TV hardware, such as Apple TV and Chromecast, will enable
payments over your TV
• When you see an ad for something you are interested in, you will be able to
buy it then and there.
• Merchants will continue to contend with chicken and the egg problems for
constantly implementing software and hardware solutions on their end to
play with these emerging forms of payment.
• The right strategy for merchants is to experiment on a small-scale and rollout
larger deployments based on key success metrics, however they choose to
define that success.
• There is a cultural and psychological issue that mobile payments are
contending with, and winning.
• Millennials are very wary of bankers — a lot of startups in the mobile banking
space are keenly aware of this and building their products accordingly.
• Some people and cultures rely more heavily on cash because they trust it.
• Subscription services are gaining prevalence because they appeal to busy
people, and time is becoming a resource just as much as money.
• People’s thought process around payments is shifting from “Is this the lowest
price” to “Will this save me the most time.”
how frictionless is too frictionless?
Do we want brands or services automatically buying things for us
based on predictive analytics past on our past history?
The answer is that it will be different for everyone.
the digital & physical
worlds are merging in
new and exciting ways
Technologies are being cross-
fertilized and pollinated across all
industries, and unlocking brand
new customer experiences that
we have never thought of before.
“The best type of payment is the payment
you don’t see. You want it to be invisible.”
- John Lunn, former Global Director of Paypal
www.solstice-mobile.com firstname.lastname@example.org 866.380.8472