allen wright, director, chip initiatives, visa canada
TRANSCRIPT
Allen Wright, Director, Chip Initiatives, Visa Canada
The Sixth International Conference on Mobile Business July 11, 2007
Visa Mobile
Visa Public
Visa Confidential
• Landscape
• Global Platform
• Pilot Activities
Overview
2Visa Public
Visa Confidential
Mobile Momentum
Numerous developments are driving momentum for mobile payments
• Consumer demand increasing for multi-application mobile devices
• Technology emerging
– Contactless acceptance infrastructure
– NFC-enabled handsets
• Wireless and financial services stakeholders – Pilots and trial activities
– Technology and business models
3Visa Public
Visa Confidential
1998 20001999 2001 2002 2003 2004
Why is now the time for m-Commerce?
Source: GSMA, Morgan Stanley Research, 2006
Current Mobile Subscribers : 2.5 B
• Sources: Juniper Research 'Mobile Commerce Strategies', 2005; Informa Telecoms & Media/data published by eMarketer, 2006; Celent 'Mobile Commerce: Dealing with the Devil in the Details', 2005
140
120
100
80
60
40
20
Source: Gartner Inc 2001Durlacher Research 1999
Past m-Commerce Predictions
(Hype Curve Circa 2001)
Trigger Hype Disillusion Maturation Growth
E-CommerceMobile PDAs
BandwidthCoverage
EdgeTechnology
Geo-location
Visa Public
Visa Confidential
The world has changed, creating new opportunities
Source: Visa International, Innovation
Th
enN
ow
Technology Infrastructure Applications Consumer Behavior Stakeholders
PhonesPDAs
WAP
2G Voice
Messaging
Limited data
Communicating Telecom bubble
Banking consolidation
Smart Phones
Feature Phones
Java, Ajax
XHTML
Pervasive coverage
3G
HSDPA
USIM
Games
Customer Care
Mobile Internet
Online Banking, Bill Pay
Content Download
SMS/MMS
Sharing
ARPU reduction
“Opening Gardens”
ContactlessDeployments
Local Search/ Advertisement
Visa Public
Visa Confidential
Consumer research*Consumers are increasingly interested in purchasing phones with payment capabilities
*Source: Fabrizio, McLaughlin & Associates, March 2007
of consumers 18-42 would
consider switching banks
6Visa Public
58%*
consumers prefer mobile payments to
appear on card statement, rather than wireless bill
5:1*
of consumers 18-42 would consider
switching carriers
64%*
of those interested would pay more for a device with
payment capability
90%*
are interested in mobile payments
57%*
Visa Confidential
Technology advancements
Visa Public
Visa Confidential
Investment in mobile payment technology and services has increased rapidly
CANADA
• Wireless Payment Services
EUROPE
(Italy)
(Germany)(France)
(Belgium)
(UK)(UK)
(Finland)
(Netherlands)
(Amsterdam)
ASIA PACIFIC• Taiwan Proximity Mobile
Trans Alliance• TOM Online (China)
E-Tong (China)Q-Pay
(Australia)
CEMEA•
m-pesa (Kenya)
(South Africa)
(South Africa)
• LATIN AMERICA
• (Venezuela)
USA
Visa Confidential 9Visa Public
Visa Mobile Platform Capabilities
The flexible design of the Visa mobile platform allows for stand-alone and integrated payment and service offerings
• Mobile payments in stores
• Mobile Internet purchases
• Person-to-Person payments
• Mobile coupons, rewards
• Account management
• Security alerts
• Authentication
Visa Confidential
Non-Payment
Information
Purchase Information
Purchase Enhancement
Payment Management
Account Management
Dynamic User Interface
Proximity Remote
Visa Mobile Platform
Visa’s mobile platform provides secure access to payment and information applications
10Visa Public
Applications
Payment
Secure Access
Visa Confidential
Visa announced a mobile platform for engaging in market trials and identifying areas of interest
• Establishes framework for an integrated consumer experience
• Helps improves the business model through functionality combinations
Visa Payment Services
Directory Services
Provisioning / Activation
MessageGateways
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Visa Confidential
Payments
The mobile device delivers ability to initiate proximity, e-commerce, and person-to-person payments
Person toPerson PaymentsSMS initiated payments
12Visa Public
ProximityContactless payments
E-commerce Via web-enabled phone
Visa Confidential
Payment-Related Services
Delivery of information via SMS and NFC can help increase customer engagement and loyalty
Account ManagementIntegrated user interface
CouponsDelivery of discounts
Alerts/NotificationsCustomer set parameters
Two-Factor AuthenticationReal time authentication
for online purchases
13Visa Public
SMS
NFC
Visa Confidential
U.S. Pilots – Philips Arena Pilot
Several industry leaders collaborated in a pilot to test mobile contactless payment and other NFC applications
14Visa Public
Mobile Contactless Payments
Service Discovery/ Content Downloads
December 2005 to May 2006
Visa Confidential
U.S. Pilots – Coupon Pilot
Visa USA engaged 500 employees to test mobile coupon delivery and redemption
15Visa Public
Graphic Text Barcode
Coupon Types• Graphic• Text• Bar code
Considerations • Business case
• New stakeholder engagement
• Security• Scalability
Scope• Participation:
500 employees• Location:
Visa headquarters
Visa Confidential
Visa/SK Telecom Pilot
In February 2007, SK Telecom announced that its commercial mobile payment program will be supported by the Visa Global Platform
• Launching Visa payWave™ on SK Telecom 3G USIM card
• OTA (Over-the-Air) provisioning
• Combines acceptance base of Visa Wave and Mobile Touch merchants
• Part of SK Telecom’s rollout of advanced 3G services
• Supported by Visa Global Mobile Payment Platform
16Visa Public
Visa Confidential 1717Visa Public
Commercial Mobile Momentum
Wireless and financial services industries in a new technology atmosphere:• Pilots and product development
• Standards development for security and message sets