20120903 mo mo mobile payments3 pwc
DESCRIPTION
MobileMonday DUS 03.09.2012 - Mobile Payment PWCTRANSCRIPT
![Page 1: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/1.jpg)
Mobile Payments in Germany State of the industry and key success factors
www.pwc.de
September, 3rd 2012
![Page 2: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/2.jpg)
1 Market Update 1
2 Challenges, risks & key success factors 9
Seite Kapitel Überblick
Agenda
![Page 3: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/3.jpg)
PwC
September, 3rd 2012
Market Update Kapitel 1
Mobile Payments in Germany • State of the industry and key success factors 1
![Page 4: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/4.jpg)
PwC
September, 3rd 2012
Mobile payment in the media The number of co-operations, roll-outs and press releases concerning mobile payment is exploding.
Mobile Payments in Germany • State of the industry and key success factors
Kapitel 1 – Market Update
2
![Page 5: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/5.jpg)
PwC
September, 3rd 2012
Current payment products Chosen payment methods depend on the items purchased
Mobile Payments in Germany • State of the industry and key success factors
Kapitel 1 – Market Update
3
Virtual Currencies
Carrier based billing E-Wallet
Pre-Paid Cards
Mobile-based NFC
Card-based NFC
Mobile Money transfer
Account based services
Carrier based billing
Micro Payments
Bank Transfers QR-code based
payment
Mobile-based POS
Multichannel intl. remittance
![Page 6: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/6.jpg)
PwC
September, 3rd 2012
What is NFC? ! Short for Near Field Communication ! Uses interacting electromagnetic radio fields ! Short-range communication between electronic devices ! A vehicle for data transmission to make transactions,
exchange digital content, and connect electronic devices with a touch
Examples for mobile payment solutions (1/3) NFC gets an Olympic discipline in 2012.
Mobile Payments in Germany • State of the industry and key success factors
Kapitel 1 – Market Update
4
! London is model city for NFC payments ! Athletes and other VIPs during the London 2012 Games will try out Samsung's Galaxy S III with
Visa's Paywave NFC payments ! NFC terminals on taxis, retail outlets, and the Olympic Park itself ! Visa expects there to be more than 140,000 contactless terminals in the UK ! How to use: Select the Visa icon on their device's screen and then hold the phone to a contactless
payment terminal to pay for a purchase ! Payments above £20 require entry of a PIN as an additional security layer ! app will also allow customers to check their transaction history and see their account balance.
![Page 7: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/7.jpg)
PwC
September, 3rd 2012
The goal is a more efficient payment process
Examples for mobile payment solutions (2/3) The Real Future Store uses the Mobile Shopping Assistant “MEA”.
Mobile Payments in Germany • State of the industry and key success factors
Kapitel 1 – Market Update
5
! The MEA is a mobile phone with special software
! customer scan products with their cell phone camera
! MEA will show, for example, the current pricing information
! MEA also helps to find products in the market and to create shopping lists
! When the purchase is complete, the customer pushes a button on the MEA
! the mobile phone displays a bar code
! This barcode will be scanned at the pay points to the self-service fast cash.
! the customer can pay cash, by card or fingerprint
![Page 8: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/8.jpg)
PwC
September, 3rd 2012
Examples for mobile payment solutions (3/3) Deutsche Bahn launches Touch & Travel.
Mobile Payments in Germany • State of the industry and key success factors
Kapitel 1 – Market Update
6
How to use it: ! register and install the Touch & Travel app on the phone ! Before each ride register with the phone. This can be done by:
! Positioning ! Scan of the bar code printed on the terminal ! Entry of the printed number of the terminal ! Use of the NFC at the terminal
! After signing up, customers have a valid ticket ! During an inspection the customer just has to show the cell phone to the security staff :
! barcode on the control side of the app is read with the conductor´s control device and checks your ticket
! With a NFC phone the ticket can be read directly without contact ! At the end of the trip the customer logs out with the mentioned variants again. ! The price of the trip is displayed on the phone ! Once a month the customer gets a Touch&Travel invoice ! The billed amount will be deducted from the customer´s account via direct debit
![Page 9: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/9.jpg)
PwC
September, 3rd 2012
The Mobile Payment Matrix An illustrative selection – not exhaustive
7 Mobile Payments in Germany • State of the industry and key success factors
Kapitel 1 – Market Update
Mobile Device
Paym
ent
Classic Use-Case: Any non-payment and non-mobile based use-case
generic Mobile Use-Case: A mobile device based non-payment use case
Classic & online Payment: A non mobile device applied payment method:
Mobile Payment: A mobile device based
payment method
![Page 10: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/10.jpg)
PwC
September, 3rd 2012
The Mobile Payment Matrix An illustrative selection – not exhaustive
8 Mobile Payments in Germany • State of the industry and key success factors
Kapitel 1 – Market Update
Mobile Device
Paym
ent
Classic Use-Case generic Mobile Use-Case
Classic & online Payment Mobile Payment
![Page 11: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/11.jpg)
PwC
September, 3rd 2012
Challenges, risks & key success factors Kapitel 2
Mobile Payments in Germany • State of the industry and key success factors 9
![Page 12: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/12.jpg)
PwC
September, 3rd 2012
Mobile payment in the media With the rise of the transaction volumes, mobile devices are becoming an increasingly lucrative target for hackers.
Mobile Payments in Germany • State of the industry and key success factors
Kapitel 2 – Challenges, risks & key success factors
10
![Page 13: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/13.jpg)
PwC
September, 3rd 2012
What are hurdles of mobile payments? Despite the high expectations, mobile payments have not reached projected adoption levels. Some possible reasons:
Mobile Payments in Germany • State of the industry and key success factors
Kapitel 2 – Challenges, risks & key success factors
11
! low manageability due to numerous isolated solutions
! Registration and / or cash funding is required for every solution
! This lack of cooperation between the main players, including banks, mobile operators, and independent providers, is the significant barrier to mobile payments success
! Fears of cyber-crime ! Speculations about
security lapses in the NFC technology -> not yet fully developed?
! All forms base on a full battery
! Loss of mobile
! the benefits of mobile payment
! the different forms of mobile payment
! what happens if the battery is empty?
! Customers are afraid to get into a dubious subscription, especially if the charge is applied to their phone bill (e.g. ringtones)
! Merchants have to invest in new terminals and train staff on this new payment mechanism
Security and
Operability Uncertainty Missing
standards Imple-
mentation
![Page 14: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/14.jpg)
PwC
September, 3rd 2012
How can we overcome this hurdles? Setting the accents and built trust
Mobile Payments in Germany • State of the industry and key success factors
Kapitel 2 – Challenges, risks & key success factors
12
• BaFin „Banking licence“, FSA „E-Money Institute, etc. • E-Mandats & SEPA • EMD, EMD 2, PSD • PCI DSS Compliance • GWG, KYC, AML, ATF • Tax Implications
Regulatory & Compliance
• Payment Service Provider • Card-Issuance (Debit/Credit/Prepaid-Card) • Multi-Service Wallet (Payments, Couponing, Loyality,
etc.) • Technologie (NFC, QR-Codes, etc.) • POS Services (Mobile POS, etc.) • Multichannel Integration (Store, Online, Mobile, Apps,
etc.) • In-App Integration • B2B, B2C, P2P Business
Innovation & Strategy
• Platform technology selection • In-house solution vs. cloud (PaaS/SaaS) • Multi-Provider Interaction • Risk-, Fraud- und Scoring Integration • Merchant und User-Interfacing (APIs, UIs, etc.) • Technical intgration of G/L and Sub-ledger • Allocation of Customer Data
IT & Technology
• Positioning of products and services (internally and to the market)
• Market positioning, including additional services • Generating of Synergies
Organization
![Page 15: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/15.jpg)
PwC
September, 3rd 2012
The growth of m-commerce makes mobile payments the next big thing! Worldwide mobile payment market is expected to have 448 million users and $617 billion in transaction value by 2016.
Mobile Payments in Germany • State of the industry and key success factors
Kapitel 2 – Challenges, risks & key success factors
13
Key Takeaways ! Many providers are entering the market, but there is currently no standard solution ! There are just a few global players that have the scale and resources to serve large customers and the mass
market ! Merchants have to adopt mobile and online strategies to ensure success in the changing market ! Mobile payments will sooner or later replace payments via credit card or cash ! For the transmission of payments Near Field Communication (NFC) will become increasingly important in the
future ! Bridge technologies like QR-codes and NFC-stickers are key to accelerate a solid market reach and train
customers and merchants
! Retail spending habits are transforming ! Use of smartphones, e-commerce and m-commerce are growing exponentially ! 54% of all purchases will be made in online by 2014 ! 212.2 million m-payment users with a total of US $171.5 billion in transaction value in 2012 (Gartner, May
2012) ! SMS is expected to remain the key vehicle for m-payments in developing markets. NFC transactions will
remain relatively low through 2015, but will start to pick up from 2016 (Gartner, May 2012)
![Page 16: 20120903 mo mo mobile payments3 pwc](https://reader033.vdocuments.us/reader033/viewer/2022051109/548471e2b479590a0d8b4be2/html5/thumbnails/16.jpg)
PwC
September, 3rd 2012
Thank you for your attention!
Kapitel 2 – Challenges, risks & key success factors
14 Mobile Payments in Germany • State of the industry and key success factors
Jens Kohnen Moskauer Str. 19 40227 Düsseldorf +49 171 760 4743 [email protected]
Raphael Heiner Moskauer Str. 19 40227 Düsseldorf +49 170 799 5582 [email protected]