Alcatel lucent mobile wallet service - wima nfc conference 2010


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Alcatel-Lucent presentation at the 2010 Wima NFC conference in Monaco, France. Alcatel-Lucent's Ihsan Ozcan discussed the success factors for the go to market of NFC. He also explained how a Mobile operator wallet needs to be approached in parallel with the SIM rental model.

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  • Alcatel-Lucent takes a step closer to replacing the physical wallet by announcing it’s Mobile Wallet Service (MWS), a complete solution that places the mobile operator in the center of the mobile commerce equation. The MWS transforms the end-user experience by enabling a mobile operator to manage payments, coupons, loyalty points, gift vouchers and tickets for delivery, all from a subscriber’s mobile phone. This network, handset and program independent service breaks the mold of current options by enabling multiple value-based applications to be offered over a single platform. This can be in developed markets to buy parking or public transports tickets via the mobile phone, to replace cash payments at PoS or at vending machines or to use it for e- and m-commerce. Meanwhile, in underbanked markets, person to person money transfer can become an important day to day mobile tool for consumers. More background: Consumers increasingly operate in a digital world where the contents of their wallet, including personal information, are now resident inside of their mobile phone. Smart phones with touch screens and Internet browsers provide prime real estate for mobile commerce, mobile ticketing, vouchers and loyalty programs. These devices coupled with Alcatel-Lucent’s Mobile Wallet Service make the mobile wallet a reality, creating an effective ecosystem of payment providers, applications and devices to deliver a complete “ready to offer” solution. By bringing together all of the players in the value chain, Alcatel-Lucent has created a new customer experience, that can be branded by the operator, to increase subscriber loyalty and reduce churn. With the right set of applications and tools, consumer adoption will occur rapidly. MWS is provided in a Software-as-a-Service (SaaS) model, which allows mobile operators to fully participate in mobile commerce with limited up-front costs. Alcatel-Lucent’s unique platform also enables the development of rapidly deployable new applications and services for consumers, as well as programs tailored for vertical markets and ecosystems. Mobile payments are seen by both MNO’s and banks as a new source of revenues (to reverse commoditisation of existing services) and a means to increase customer stickiness. It is about who will ultimately control the customer relationship, the related revenue streams and the customer intelligence around purchasing behaviour with merchants. There is a window of opportunity for MNO’s to be first movers ahead of the traditional payment industry players, and to leverage the changing regulatory environment that allows MNO’s becoming payment service providers under certain conditions. MNO’s therefore have a vested interest to explore the different mobile payment opportunities in markets with highly banked populations as well as underbanked markets.
  • Transaction revenues for micro-payment & marketing transactions: By 2015, 1.4 billion people will be using mobile wallets – (Edgar Dunn Company, 2009) By 2013, over 95% of mobile transactions will be for physical goods and services. (Informa Telecoms & Media, 2009) Mobile proximity retail payment will grow 124% CAGR to 2012 (Arthur D Little, 2009) In five years time we expect mobile payments to support around $500B transactions - (Edgar Dunn Company, 2010) + pull through on more online connections & data usage Churn reduction: Not only enable 3 rd parties to use the phone for their payment services (e.g. SIM rental fee from credit card networks), but offer own payment services Regulatory evolution: Evolution of e-money and payment service directives open up feasibility of becoming a payment provider Market dynamics push operators to move fast (approaches of Paypal, Rabobank MVNO, iTunes..)
  • Product description: Most complete from feature perspective: Integrated wallet for money and virtual money (loyalty, coupon, gift card…) accepting various incoming triggers (SMS, USSD, web, mobile application, contactless triggers (e.g. NFC)) framework with SVA, APIs, dispatcher and workflow engine, profile server enabling various applications (p2p, proximity, e-commerce, remote ticketing) Most complete from go to market support approach: links with payment gateway from Clear2Pay for SVA payment settlement, upload via bank accounts and credit cards options for e-money license (e.g. mirror bank license, support for own operator e-money license, in agreement with the payment service directive and other regulations) enterprise go to market packages (for an operator it is a B2C play for p2p payment and for its own payment services, but a B2B2C play for 3 rd party payment services (e.g. SMS transport ticketing or point of sale payment), so it is crucial to support an operator with ready made enterprise packages, for which we also provide our wallet service to enterprise customers). Examples: Ex. 1 Payment via contactless mobile sticker: Payment for lunch via operator wallet at retailer Ex. 2 Contactless loyalty card: Loyalty for city service via city wallet (no operator) Ex. 3 Send SMS to short code on parking meter: Payment for parking via operator wallet
  • Most complete solution from technical perspective framework with SVA, APIs, dispatcher and workflow engine, profile server enabling various applications (p2p, proximity, e-commerce, remote ticketing) from go to market perspective links with payment gateway options for e-money license enterprise go to market packages Regulatory: KYC: know your customer AML: anti money loundering Additional inputs: Hosted service for minimum investment upfront and quickest time to market Established developer network for wallet application enablement Clear2Pay partnership for PCI compliant payment gateway and worldwide banking relationships Mirrored SVA license solution Enterprise rollout packages for retail, hospitality.. Certification program for readers, pos software.. Wallet GUI design for consumer acceptance Multiple operator AND enterprise references
  • Alcatel lucent mobile wallet service - wima nfc conference 2010

    1. 1. Alcatel-Lucent Mobile Wallet Service (MWS) Alcatel-Lucent, April 2010 Ihsan Özcan R&D Manager Istanbul
    2. 2. Agenda <ul><li>NFC and Mobile Wallets: NFC one of the channels </li></ul><ul><li>Go-to-Market success factors </li></ul><ul><ul><ul><li>Appeal for consumer and merchant or service providers </li></ul></ul></ul><ul><ul><ul><li>Not technical play but eco-system play </li></ul></ul></ul><ul><ul><ul><li>eMoney License for m-payments </li></ul></ul></ul><ul><li>Conclusion </li></ul><ul><li>      </li></ul> | Alcatel-Lucent MWS |March 2010
    3. 3. Alcatel-Lucent at a Glance | Alcatel-Lucent MWS |March 2010 <ul><li>R&D PROFILE </li></ul><ul><li>Budget: €2.5 billion </li></ul><ul><li>Active Patents Held: More than 26,000 </li></ul><ul><li>Nobel Prizes Won: 6 </li></ul><ul><li>APPLICATIONS PROFILE </li></ul><ul><li>Subscriber data management : 190+ customers </li></ul><ul><li>Real-time payment customers : 210+ customers </li></ul>Ben Verwaayen Chief Executive Officer <ul><li>Worldwide Presence: More than 130 countries </li></ul><ul><li>Annual Revenues: €15.16 billion (2009) </li></ul><ul><li>Employees: More than 77,000 </li></ul><ul><li>Employee Nationalities: More than 100 </li></ul>
    4. 4. Alcatel-Lucent Mobile Wallet Service 1.4 billion wallets for banked and un-banked by 2015 (EDC, 2009) | Alcatel-Lucent MWS |March 2010 Proximity payment Remote ticketing Mobile marketing E- and M-commerce Person to person payment International remittance Convenient, always on and integrated payment and marketing (wallet 2.0) Access to financial services in under-banked countries
    5. 5. What opportunity MWS opens to operators and why now? And to enterprises? <ul><li>Churn reduction using a branded wallet </li></ul><ul><li>More connections and more data usage </li></ul><ul><li>Why now: </li></ul><ul><ul><li>Easing regulatory restrictions on m-money </li></ul></ul><ul><ul><li>Consumer preference for digital life </li></ul></ul><ul><li>Enterprise opportunity: </li></ul><ul><li>cost saving on administration, vending points and cash money handling </li></ul><ul><li>fast payment and low cost transactions </li></ul><ul><li>increased conversion advertising to sales with real time reporting and analytics </li></ul> | Alcatel-Lucent MWS |March 2010 1. Addressable Market opportunity via e.g. transaction revenues
    6. 6. End2end solution: NFC as one of the channels, proximity payment as one of the applications amongst others… | Alcatel-Lucent MWS |March 2010 Proximity payment, loyalty & marketing Person to person money transfer Remote ticketing Online micro-payment City & Transport University Hospitality & Retail Voucher Media Mobile Application Contactless SMS USSD WEB Payment gateway Mobile Wallet Service Portfolio of Payment applications E-store Picture of telco bill MNO 2 MNO 1
    7. 7. Success Factors <ul><li>Consumer reach and merchant/SP appeal </li></ul><ul><ul><li>NFC + interim steps (stickers/tags/cards) </li></ul></ul><ul><ul><li>Multiple applications iso silo </li></ul></ul><ul><ul><li>Payment + marketing services (payment2.0) </li></ul></ul><ul><li>Not technical play but eco-system play </li></ul><ul><ul><li>Vertical Solution Packages </li></ul></ul><ul><ul><ul><li>Case study Sanoma </li></ul></ul></ul><ul><ul><ul><li>Case study City of Antwerp </li></ul></ul></ul><ul><li>eMoney License </li></ul> | Alcatel-Lucent MWS |March 2010
    8. 8. eMoney license: Alcatel-Lucent MWS: collaborative model with banks – “Mirrored SVA” <ul><li>Virtual accounts managed by Stored Value Account </li></ul><ul><ul><li>Stores e-money and other values </li></ul></ul><ul><ul><li>SVA owner is identified by MSISDN & unique PIN code </li></ul></ul><ul><ul><li>No expiration date </li></ul></ul><ul><ul><li>Money is always redeemable </li></ul></ul><ul><li>Does not require individual deposit in “real bank” </li></ul><ul><ul><li>“ One” deposit account in Bank </li></ul></ul><ul><ul><li>Individual balance hold in SVA </li></ul></ul><ul><ul><li>Bank has no knowledge of </li></ul></ul><ul><ul><ul><li>Individual accounts balance </li></ul></ul></ul><ul><ul><ul><li>Individual user activity </li></ul></ul></ul> | Alcatel-Lucent MWS |March 2010 Consultancy on e-money license & collaborative bank models
    9. 9. Why Alcatel-Lucent’s Mobile Wallet Service ? | Alcatel-Lucent MWS |March 2010 <ul><ul><li>~20,000 service professionals worldwide </li></ul></ul><ul><ul><li>Synergies with mobile advertising solution </li></ul></ul><ul><ul><li>Synergies with 210+ Convergent Billing & Rating Customers </li></ul></ul><ul><ul><li>Enabling multiple applications (payment & marketing) via multiple transaction initiators </li></ul></ul><ul><ul><li>Turnkey framework with wallet, workflow engine, APIs and interconnectivity to payment networks </li></ul></ul>Most complete solution <ul><ul><li>SaaS model for fast go to market </li></ul></ul><ul><ul><li>PCI compliant payment gateway </li></ul></ul><ul><ul><li>Consultancy on e-money license, collaborative bank models </li></ul></ul><ul><ul><li>Off the shelve enterprise go to market packages </li></ul></ul><ul><ul><li>Security & regulatory compliant (AML, KYC) </li></ul></ul>Most complete go to market Global knowledge local presence
    10. 10.