© cardsconsult pty ltd 2011 nfc mobile technologies an assessment digital money summit 28-29...

© CardsConsult Pty Ltd 2011

NFC Mobile TechnologiesAn Assessment

Digital Money Summit28-29 November

SydneyExploring the implications of Australia

developing its contactless payment methods


Consumers adopt more faster

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Reality vs Fiction

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Discussion points

What is the market potential for NFC, given the technology that is currently being used?

How can NFC technology be used, besides retail transactions?

How do you convince the public to use a technology they may already have in their pocket?

How to get them active on a mobile money service Linking the major players to make NFC viable &

realistic

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Mobile expectations

Communication Camera MP3 player Web & Email ApplicationsEnabled by: MNO networks – SMS, USSD, WAP…Additional interfaces: Wifi, Bluetooth, IR and

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NFC

More than 200 projects across 54 countriesMore than 200 projects across 54 countries


Mobile is not all about NFC


How are we transacting?

Gartner – mpayments $86bn in ‘11, up 176% on ‘10 E&Y – mpayments reach $245bn by 2014 IDC – smartphone sales outpace PCs 100.9m to 92.1m

(Q4/10) Juniper – 700m NFC enabled devices by 2013

– Analysts have been downgrading 2011 expectations all year Juniper – only 4% of smartphones have security software 50% of Facebook users interact via mobile, twice as active Frost & Sullivan: (Aust) 13% increase in online retailing to

$13.6bn, UK at £44bn or 10.7% of sales

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Proposition developmentNFC is More than just payments

NFC phone is not just a card emulator, it is also a reader

Like QR codes, accesses online content fast without need to key in URL’s

Could support a number of contactless environments eg RIM + HID

Acts as a key to services or functions including a “Wallet”

Some examples…

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Ticketing/Access

Rewards

Payments

Identification


NFC opportunities

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The one we all talk about

The one we all talk about

Clarion Hotel, Stockholm

Clarion Hotel, Stockholm

Museum of London

Museum of London

HomeCare health, NLHomeCare health, NL

MarketingMarketingCorporate access

Corporate access

Farm shop, Austria

Farm shop, Austria

Cambridge Christmas Lights


The Mobile PhenomenonNavigating the ‘Hype Cycle’

Evident that the industry is yetto reach the ‘peak of inflated expectations’; yet real business propositions are emerging for mobile

Significant investments arebeing made to corner the market; however not all will become viable or winning business models

Consumer owned & controlled points of access significantly outstrip bricks & mortar focused points of access - POS, ATM or kiosks

Identifying innovations that are relevant, viral and likely to become ubiquitous


CustomerCustomer

The NFC ecosystemIt’s a jungle out there

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MNOMNO

Trusted Service

Manager

Trusted Service

Manager

Handset Manufacturer

Handset Manufacturer

App Store OwnerApp Store Owner

Content ProviderContent Provider

Infrastructure

Many and varied stakeholders dependent on proposition design For bank card issuers it is incremental investment – the card

remains; resulting in two chip applet life cycles to manage Who sits in each role is the ongoing debate – some are working

together across or within sectors – many are not

SESE

SE = Secure element, USIM, Handset, MicroSD, …


Where is my Wallet?

In the Cloud On the SE Oroton

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63% of UK users prefer a single account access wallet (WorldPay)


Customers & Adoption

The digital age has changed the argument on Customer ownership

Adoption and a path to ubiquity requires a strong “Call to Action”

The digital age has unlocked the ability to engage with Customers in a “Dialogue” – no longer the monologue

“Think of Yourself as the Customer”

The moment that matters is the “Transaction Moment”

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The Transaction Moment

The proposition that captures and engages the full transaction moment can best influence Customer behaviour

Engagement before & after the payment activity will establish the requirements for supporting technologies

Transaction mobility enables new channel and distribution strategies

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Overcoming the hurdles

No one single organisation can make this work – collaboration is mandatory

Recognise that mobile will remain a companion tool to mainstream payments for some significant time– You still carry magnetic stripe, holograms,…

Consider the proposition for the end user – enablement Investment appetite and ubiquity of technology with the end

user – mobility will be & is more than the phone Is your strategy for remote or bricks & mortar channels or a

combination (40% of online in UK is on collection - Urbis) Add-ons and other requirements raise barriers outside of

trials (Did no one learn from Blue, ANZ First, Mondex, …)

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A developing model

Online access to catalogue with link to e-wallet for payment & delivery details

In app convenient code scan function. No need to download app scanner for in-store comparisons or link to member portal for Customer opinions

RT rewards/member platform to manage offers/discounts/reward points – support a rewards exchange to encourage new members

RT Customer service portal including video demonstrations or help NFC can enhance to

facilitate in-store activity replacing the

QR reader


The winner is…

Mobile technology penetrates many of our daily interactions across multiple end devices

Customers are learning Customers are not yet fully trusting

The Australian NFC opportunity is greater than many markets with a growing acceptance infrastructure

Lack of NFC enabled devices remains a hurdle Smartphone contract cycle ensures at least a 2013/2014

level of adoption Contactless adoption lessons need to be addressed to

build confidence on when I can “Tap & Go”

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Ian [email protected]

Mobile: 0407 042 885www.cardsconsult.com

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Thank you

© cardsconsult pty ltd 2011 nfc mobile technologies an assessment digital money summit 28-29...

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