1. What is mobile payment ?

2. Mobile Payment
=
M-payment
Micro payment
Mobile transfer
M-commerce payment
….
What is mobile payment ?

3. Just Payment
Identity checked transaction initiated from a
personal device to settle remotely or
proximity based virtual and physical goods &
services directly or indirectly via 3rd party
billing provider, credit or financial institute.
What is mobile payment ?

4. * Study DMA and IAB
In 2010
6.1 trillion messages
4 billion individuals
SMS is growing by nearly
30% each year
SMS opening rates were
above 92%. Versus <25%
of brand emails*.
65% were read within 5
minutes and 85%<1hour
We did mobile payments

5. Operators take 35%
Big driver of P2P in
unbanked countries
Multiple Bio € per annum
We did mobile payments

6. New Services: operator
billing centric
(Premium) SMS evolves

7. Services: credit or
(operator billing) centric
We do mobile payments

8. Services: mobile banking
'Scashen'
by
We do mobile payments

9. Person 2 Person, person 2 merchant
Integration with Couponing
Location Based comparison / payment
Webpayments
We will do much more

10. Mobile Payments tomorrow

11. Models:
How? Improve current payment experience

12. Models:
How? Improve current payment experience

13. Models:
Card.io
1. Scanning of credit card
details
2. Processed in the back-end
3. Picture is deleted
afterwards
How? Improve current payment experience

14. Models:
How? Create new payment experience

15. M-payment solutions basically are a combination of:
Settlement : operator X bankaccount
Method : “pre-paid” X post-paid
Technology : SMS/Mobile data X NFC & QR
Operator Bank account – post-paid Bank account – pre-paid
SMS/Mobile Data
NFC
How? Create new payment experience

16. How? Create new payment experience

17. Collaboration versus Competition:
Between actors in same industry
Between industries
Local versus Global
Mobile Payments tomorrow

18. Profit decomposition of
payments for European Banks:
+ 30,2 € Billion
Huge benefits of cash
displacement :
• A 50% reduction of cash
transactions will result in 10 € Bio
annual savings for European banks
-21,2 € Billion
• And potentially billions in
Cash payments Non-cash payments new revenue streams
(credit/debit/transfer)
Source: McKinsey Payment Practice
What’s at stake?

19. Operator Centric
Benefit Bank Centric
Benefit
Risk Risk
Mobile Payment Provider Collaboration
Benefit
Benefi
t
Risk Risk
bank Telco Merchant Customer Mobile payment provider
Different models in the world

20. ISIS group : mid 2012
focus proximity
payment: AT&T
Mobility, Verizon
Wireless, and T-Mobile
JV fomr 2012 : ABN
Orange and MC, O2 and Amro, ING , Rabobank,
Visa : launch mid 2011 KPN, Vodafone, T-
Startups and major from 2012 olympics with Mobile
internet players : m-
Oyster (2Mio users)
commerce and
proximity in 2011- Vodaphone, DT:
2012 with NFC trials NFC, proximity
embedded focus
Different activities :
Telecom Austria
mainly Person 2 announced NFC trials at
person remote GSMA. Sms parking and
payments. Mio’s of ticketing omni-present
users
Trial NFC : Turkcell-YAPI Credi-
VISA : 40k merchants 1/2011
Avea-Garanti= mastercard 12/10
: 35k merchants , target 100k
users
Consortium Buys Atos
Agreement between : Orange,
Origin, Bouygues
Telefónica Movistar and
Telecom, Orange and SFR ter
Vodafone
:m-commerce focus+ NFC trial
No commercial joint actions
. Atos Origin, Bouygues
Telecom, Orange and SFR
Different models in the world

21. Will it come?
Will it be big?
Will it impact
the business?

22. Square
•Processes : $2 billion in
Will it come? 2011
•Signs up 800k merchants
Will it be big? 45% UK smartphone users
use mobile banking
Will it impact Sms parking has +300.000
the business? in Belgium, 30% tickets of
the Lijn are sms
+60% transport tickets
sms
Everybody should decide for him/herself; I did.