Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
International Conference on E-money,
Cards and Payments in CEE/CIS
Michal Suster
25-26 June 2014, Bratislava
Mywallet
myWallet Card
Introducing
MYWALLET CARD PLATOBNÁ KARTA
 Prvá plne virtuálna platobná karta na SK vydávaná „vzduchom“
 Predplatná karta...
Preconditions for usage
SamsungGalaxySIIImini
SamsungGalaxyS4
SamsungGalaxyS4mini
SamsungGalaxyFame
SamsungGalaxyYoung
Sam...
Technical setup
MNO TSM
NBE platforms
Existing
Payment card
system
SP TSM
platform
OTA
platform
NFC phone
NFC SIM
C
BANKA-...
Why we struggled to
bring “the solution” to
market despite common
understanding that it is
future proof?
1) Technology Reasons
HOW IT WAS MEANT TO BE
TSM
OTA
platform
BANKA-X
MNO 2
OTA
platform
MNO 1
OTA
platform
MNO 3
SP
SP
SP...
SP
SP
SP
BANKA-X
BANKA-X
BANKA-X
BANKA-X
BANKA-X
1) Technology Reasons
HOW IT IS – “TSM SCHISM”
MNO TSM
OTA
platform
BANKA...
1) Technology Reasons
HOW IT IS – “STANDARDIZATION SCHISM”
MNO TSMSP TSM
STANDARD
Global Platform AFSCM
MODE
simple
delega...
SP
SP
SP
BANKA-X
BANKA-X
BANKA-X
BANKA-X
BANKA-X
1) Technology Reasons
GRAPH COLORING THEORY - COSTS ON ONE SIDE EQUALS RE...
2) Business Reasons
 BUSINESS CASE/CONNECTED COSTS
 PAYMENT SCHEME SELECTION (TECHNICAL DECISION AT THE END)
 RIGID DEC...
3) Customers facing Reasons
 DEVICES
 NFC penetration
 Mobile OS – firmware (compatibility issue )
 SECURE ELEMENT – N...
*Low penetration of POS Terminals
5,97,57,78,89,49,610,312,112,313,414,816,2
18,819,320,321,022,222,423,624,524,825,928,02...
Is There Light on the end of the tunnel?
26.6.2014– mimoriadne citlivé / citlivé / interné / verejné – Autor / Názov preze...
Way to go right here right now with ST and
MyWallet
SP
SP
SP
BANKA-X
BANKA-X
OTA
platform
OTA
platform
STMNO TSM
BANKA-X
C...
Multipurpose wallet vs.
single purpose wallet,
are those two
approaches mutually
exclusive?
Wallet ≠ payment instrument only
 INTERNAL MARKET RESEARCH HAS REVEALED THAT 87%OF CUSTOMERS PERCEIVE VALUE IN WALLET
APP...
War over customer ownership via Secure
Element control
UICC
(Universal Integrated
Circuit Card) – SIM card
SMC
(Secure Mem...
IS HCE a holy grail?
BIG JOB AHEAD
 SECURITY (MALICIOUS APPLETS, FAULT ATTACKS, MASQUERADES
AND SIDE CHANNEL ATTACKS)
 C...
Who can benefit from hce?
Bank
MNO
NEW ENTRANTS
 Big OTT players may leverage
and finally penetrate from
online to physic...
A bird in the
hand is worth
two in the bush
SIM Centric
TSM solution
2014 201?
HCE
Musical chairs – how
many players will last
and who will be out of
the game if we play
Mobile Payments?
Too many players not enough revenues
Bank
MNO
NEW ENTRANTS
 WE BELIEVE THAT THERE WILL BE
SEVERAL WINNERS AS IT IS
COMMON...
First X months of
MyWallet commercial
operation
Current Performance
 X = 1,5
 SO FAR WE ARE OVER PERFORMING OUR PLANS BY 20% :)
 INTENSIVE MARKETING COMMUNICATION IS A...
proposition
 MyWallet service is offered to customers with 100% price discount till
year end 2015
 MyWallet will be aval...
Future of MyWallet
PAYMENT CARDS
ID CARDS
TRANSPORT CARDS AND TICKETS
EVENT TICKETING
LOYALTY AND COUPONING
ENTRANCE CARDS...
Way to go right here right now with ST and
MyWallet
SP
SP
SP
BANKA-X
BANKA-X
OTA
platform
OTA
platform
STMNO TSM
BANKA-X
C...
Having questions or willing to
discuss cooperation? You are
welcome to contact me:
Michal.Suster@telekom.sk
Upcoming SlideShare
Loading in …5
×

SIM Centric TSM Mobile Wallet in Slovakia

712 views

Published on

Published in: Business, Economy & Finance
  • Be the first to comment

SIM Centric TSM Mobile Wallet in Slovakia

  1. 1. International Conference on E-money, Cards and Payments in CEE/CIS Michal Suster 25-26 June 2014, Bratislava
  2. 2. Mywallet myWallet Card
  3. 3. Introducing MYWALLET CARD PLATOBNÁ KARTA  Prvá plne virtuálna platobná karta na SK vydávaná „vzduchom“  Predplatná karta ktorú môže využiť ktokoľvek bez ohľadu na existujúce zmluvné vzťahy s bankami  Jednoduchá registrácia a aktivácia karty v priebehu par minút APLIKÁCIA MYWALLET MOBILNÁ PEŇAŽENKA  Prvá plne komerčná prevádzka mobilnej peňaženky na SK  Prvá multifunkčná mobilná peňaženka na SK  Postavená na plnej TSM infraštruktúre umožňujúcej vydávanie kariet „vzduchom“ bez nutnosti návštevy vydavateľa karty  Dostupná na širokej a rozširujúcej sa rade telefónov portfólia ST
  4. 4. Preconditions for usage SamsungGalaxySIIImini SamsungGalaxyS4 SamsungGalaxyS4mini SamsungGalaxyFame SamsungGalaxyYoung SamsungGalaxyNoteIII KOMPATIBILNÝ NFC TELEFÓN NFC SIM KARTA SonyXperia™Z1 SonyXperia™Z SonyXperia™M SonyXperia™L SonyXperia™SP SamsungGalaxyS5 SonyXperia™Z1Compact
  5. 5. Technical setup MNO TSM NBE platforms Existing Payment card system SP TSM platform OTA platform NFC phone NFC SIM C BANKA-X Bank back end systems MNO back end systems CRM Billing Application
  6. 6. Why we struggled to bring “the solution” to market despite common understanding that it is future proof?
  7. 7. 1) Technology Reasons HOW IT WAS MEANT TO BE TSM OTA platform BANKA-X MNO 2 OTA platform MNO 1 OTA platform MNO 3 SP SP SP BANKA-X
  8. 8. SP SP SP BANKA-X BANKA-X BANKA-X BANKA-X BANKA-X 1) Technology Reasons HOW IT IS – “TSM SCHISM” MNO TSM OTA platform BANKA-X MNO 2 OTA platform MNO 1 OTA platform MNO 3 MNO TSM MNO TSM C SP TSM (Group) BANKA-X C BANKA-X BANKA-X BANKA-X C SP TSM (Group) SP SP TSM (Aggregated) HUB
  9. 9. 1) Technology Reasons HOW IT IS – “STANDARDIZATION SCHISM” MNO TSMSP TSM STANDARD Global Platform AFSCM MODE simple delegated authorized D S D S
  10. 10. SP SP SP BANKA-X BANKA-X BANKA-X BANKA-X BANKA-X 1) Technology Reasons GRAPH COLORING THEORY - COSTS ON ONE SIDE EQUALS REVENUES ON ANOTHER (VENDOR) ONE MNO TSM OTA platform BANKA-X MNO 2 OTA platform MNO 1 OTA platform MNO 3 MNO TSM MNO TSM C SP TSM (Group) BANKA-X C BANKA-X BANKA-X BANKA-X C SP TSM (Group) SP SP TSM (Aggregated) SP TSM (Aggregated) HUB S D S D D D S D S D S S
  11. 11. 2) Business Reasons  BUSINESS CASE/CONNECTED COSTS  PAYMENT SCHEME SELECTION (TECHNICAL DECISION AT THE END)  RIGID DECISION MAKING – GROUP DECISIONS  CUSTOMER OWNERSHIP (OWN WALLET/APPLICATION) AND/OR  Online payment only vs. Offline payment supported  PIN on POS vs PIN on mobile  Change PIN posibility  Application management gateway integration
  12. 12. 3) Customers facing Reasons  DEVICES  NFC penetration  Mobile OS – firmware (compatibility issue )  SECURE ELEMENT – NFC SIM EXCHANGE ISSUE  ACCEPTANCE NETWORK* (50% penetration of contactless POS is it enough?)  EDUCATION (does service activation without need of personal office visit help?)
  13. 13. *Low penetration of POS Terminals 5,97,57,78,89,49,610,312,112,313,414,816,2 18,819,320,321,022,222,423,624,524,825,928,028,428,530,0 33,1 35,5 ROSKPLDEBGHUCZLVBEATLTNLSIEUEEEURLUSEDKPTITUKFRELESCYIEFI Source : European Central BankNumber of POS terminals per 1000 citizens (year 2012) a) POS terminals in Slovakia is domain of big cities and big retail chains only. 2008 2009 2010 2011 2012 2013 40 000 38 000 36 000 34 000 0 Number of POS terminals b) And even in this segment it seams market is saturated at level of 40ths. terminals 10 12 14 16 18 20 2013 16% 2012 16% 2011 17% 2010 17% 2009 17% 2008 16% POS terminals penetration among Cash Registers c) LONG TAIL MERCHANTS DON’T USE POS TERMINALS. ARE THEY ADDRESSED BY RIGHT PRODUCT AND APPROACH?
  14. 14. Is There Light on the end of the tunnel? 26.6.2014– mimoriadne citlivé / citlivé / interné / verejné – Autor / Názov prezentácie 14  TSM INFRASTRUCTURE IS COMPLEX BUT CURRENTLY THE ONLY SERCURE SOLUTION PREPARED FOR MASS COMERCIAL DEPLOYMENT  MOBILE WALLET MARKET IS NASCENT ECOSYSTEM BUT TSM INFRASTRUCTURE STANDARDIZATION AND EXISTING COMMERCIAL DEPLOYMENTS ARE PAVING THE WAY – UNIFICATION IS ON THE WAY  HOSTED CARD EMULATION MIGHT BY PROMISING ALTERNATIVE/COMPLEMENT TO TSM INFRASTRUCTURE IN FEW YEARS  DEVICE PENETRATION AND CUSTOMER EDUCATION IS IN OUR HANDS
  15. 15. Way to go right here right now with ST and MyWallet SP SP SP BANKA-X BANKA-X OTA platform OTA platform STMNO TSM BANKA-X C C SP TSM (Group) SP SP TSM (Aggregated) SP TSM (Aggregated) NFC phone NFC SIM Application BANKA-X S S S S 1) 2) + Full Control - Higher costs - Longer time to market (9+ months) - General ST solution constrains support planned in 2015 support planned in 2015 + Low Costs (NFC revolution program) + Fast time to market (6months) ? Outsourced solution - General ST solution constrains Card
  16. 16. Multipurpose wallet vs. single purpose wallet, are those two approaches mutually exclusive?
  17. 17. Wallet ≠ payment instrument only  INTERNAL MARKET RESEARCH HAS REVEALED THAT 87%OF CUSTOMERS PERCEIVE VALUE IN WALLET APPLICATION THAT AGGREGATES MULTIPLE SERVICES  AMONG MOST REQUIRED SERVICES ARE TRANSPORT CARDSAND LOYALTY CARDS  OTT PLAYERS AND MNOs (INTEGRATED ICT TELCO PLAYERS) ARE MORE LIKELY TO INTEGRATE/AGGREGATE MULTIPLE SERVICES THAN BANKS  AT THE END IT IS FEAR OF LOOSING CUSTOMER OWNERSHIPIF APPLICATION IS PROVIDED BY SOMEBODY ELSE (ON BOTH MNO AND TSM SIDE)
  18. 18. War over customer ownership via Secure Element control UICC (Universal Integrated Circuit Card) – SIM card SMC (Secure Memory Card) – SD card ESE (Embedded Secure Element) – separate device HW HCE (Hosted Card Emulation) – SE in cloud FULL TSM INFRASTRUCTURE NEEDED
  19. 19. IS HCE a holy grail? BIG JOB AHEAD  SECURITY (MALICIOUS APPLETS, FAULT ATTACKS, MASQUERADES AND SIDE CHANNEL ATTACKS)  CERTIFICATION (Including emvco, visa, mastercard, american express, etc.) FUNCTIONAL DRAWBACKS  LOW POWER MODE  ROAMING AND NO DATA CONNECTIVITY SCENARIOS  TRANSACTION SPEED (Over LTE, network latency can be as low as 20ms but for a 3G or 2G network it can  frequently exceed 100ms and even 300ms what is close to 400ms threshold)
  20. 20. Who can benefit from hce? Bank MNO NEW ENTRANTS  Big OTT players may leverage and finally penetrate from online to physical stores  They are not likely willing to negotiate with local players  It is expected that many startups will bring their innovation to ecosystem  They are flexible not bounded by legacy approach – who from current players is able to cooperate with them?  Banks willing to bring their own application for their payment cards as complement to existing mobile banking applications.  Multipurpose mobile wallet freed from SIM centric and complex TSM solution is ideal for customer reach extension even beyond own customer base
  21. 21. A bird in the hand is worth two in the bush SIM Centric TSM solution 2014 201? HCE
  22. 22. Musical chairs – how many players will last and who will be out of the game if we play Mobile Payments?
  23. 23. Too many players not enough revenues Bank MNO NEW ENTRANTS  WE BELIEVE THAT THERE WILL BE SEVERAL WINNERS AS IT IS COMMON IN MOBILE APPLICATIONS WORLD  ULTIMATE DECISION POWER IS IN THE HANDS OF CONSUMER AND HE/SHE WILL DECIDE WHO WILL SURVIVE
  24. 24. First X months of MyWallet commercial operation
  25. 25. Current Performance  X = 1,5  SO FAR WE ARE OVER PERFORMING OUR PLANS BY 20% :)  INTENSIVE MARKETING COMMUNICATION IS ABOUT TO START  SIGNIFICANT DECISIONS TO INCREASE TARGET CUSTOMER BASE APPROVED
  26. 26. proposition  MyWallet service is offered to customers with 100% price discount till year end 2015  MyWallet will be avaliable for whole base of mobile customers (prepaid, postpaid, retail, business) till year end 2014  Prepaid payment card MyWallet Card is offered by ClickandBuy International Ltd – 100% daughter of DTAG  MyWallet Card issuing fee for 3 years is only 9,95 EUR  With digital MyWallet Card is issued also plastic payment card connected to the same account for ATM withdrawal and cases when contactless terminal is not available
  27. 27. Future of MyWallet PAYMENT CARDS ID CARDS TRANSPORT CARDS AND TICKETS EVENT TICKETING LOYALTY AND COUPONING ENTRANCE CARDS FRIST WAVE SECOND WAVE
  28. 28. Way to go right here right now with ST and MyWallet SP SP SP BANKA-X BANKA-X OTA platform OTA platform STMNO TSM BANKA-X C C SP TSM (Group) SP SP TSM (Aggregated) SP TSM (Aggregated) NFC phone NFC SIM Application BANKA-X S S S S 1) 2) + Full Control - Higher costs - Longer time to market (9+ months) - General ST solution constrains support planned in 2015 support planned in 2015 + Low Costs (NFC revolution program) + Fast time to market (6months) ? Outsourced solution - General ST solution constrains Card
  29. 29. Having questions or willing to discuss cooperation? You are welcome to contact me: Michal.Suster@telekom.sk

×