mapa research mobile payments-brochure-jan13

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Mobile Payments – The Future Is Now

Insight report on current point-of-sale initiatives including a deep dive

into 10 real world examples December 2012


Report structure: A. Executive summary* B. Definitions and focus areas for the report* 1. Selected statements and articles you should read (3 pages) 2. Key findings (2 pages) 3. Deep dive: Spotlight on 10 real world examples* (75 pages) * See subsequent pages for examples from this section.

Methodology: For all examples we include quick facts, business cases, our commentary and analysis, and screenshots, as well as statistics and other insight we have obtained from both the public and secure pages of our global panel of real bank accounts. The report comprises 90 pages.

See the very latest in point-of-sale initiatives from around the world

Objective: The key objective of this research was to understand what type of point-of-sale mobile payments initiatives are available in the market including: • How are these initiatives positioned (the business

model and partnerships)? • How do a selection of these services work – hands-

on – from customer enrolment to on-going usage? • What are these services bringing in terms of

customer value – outside the actual payments element?


Objectives The objectives of this research is to support internal planning and decision making processes. What type of point-of-sale mobile payments initiatives are available in the market? • How are these initiatives positioned (the business model and partnerships) • How do a selection of these services work – hands-on – from customer

enrolment to ongoing usage • What are these services bringing in terms of customer value – outside the

actual payments element Key Issues Covered We start of by defining the often confusing terminology around mobile payments and outlining our research focus. In Chapter 1 we look at news, statistics and articles from influential commentators and major players in the world of mobile payments. Chapter 2 lists some of our key findings we have uncovered during the research for this project, some of which will become apparent in Chapter 3. In Chapter 3 we identify and investigate 10 key initiatives spanning different types of providers, countries and technological solutions We finish with a conclusion and a brief look towards the future…

Executive Summary A

Key themes Many key players around the world are experimenting with alternative payment trials, with no dominant approach evident. NFC payments are on the radar, with many banks experimenting with iCarte cases for iOS devices. However, as all the differing approaches prove, mobile payments are not currently just NFC payments. Telecoms providers have partnered with banks or formed their own sole or joint ventures. The involvement of many stakeholders can in part explain some past failures and the fragmentation of the market. Some of the existing mobile payment solutions provide the ‘wow’ factor which will help drive early adoption. Add-on services provide a huge revenue opportunity for mobile payments providers and added value for customers.

Sample page from report


1. Kaching by Commonwealth Bank (AUS) 2. TouchPay by NatWest (UK) 3. KIX by BNP Paribas (FR) 4. SEQR by Seamless (SE) 5. Mon Panier (My cart) by Carrefour (FR)

6. PayPal inSTORE by PayPal (UK) 7. EasyPay by Apple 8. Square Wallet by Square 9. Google Wallet by Google 10. Isis Wallet by Isis (USA)

Spotlight on 10 real world examples: Summary 3

We have identified 10 different initiatives spanning different types of providers, countries and technological solutions. The key purpose of each service is explained below. On subsequent pages we give extensive insight on each initiative including quick facts, business cases, our comments and opinions. Where relevant we also include quotes and comments around the different initiatives as picked up in our ongoing monitoring of developments within the field.



Quick facts • The Wallet organises payment cards, offers and loyalty cards in one app • Point-of-sale payments can be made at Isis ready merchants (currently available in

Salt Like City and Austin). • Payments are made through the use of NFC technology – users tap their

smartphones to pay and the app is protected with a 4 digit PIN. • Offers, deals and promotions are stored in the Wallet. • The Wallet comes with a Isis Cash Card which is preloaded with $10 when the

service is activated and another $15 will be added when the user make the card reloadable.

• At the moment only selected cards from American Express, Capital One and Chase can be added to the Wallet.

• Consumers interested in the service are urged to buy an Isis Ready™ phone either AT&T, T-Mobile or Verizon and then get the app.

Business model Isis is a joint-venture between network operators AT&T, T-Mobile and Verizon founded in November 2010. It has struck deals with four major credit card companies (Visa, MasterCard, American Express and Discover) and also got the support from six handset makers. Furthermore they have partnered with four large POS system. Payment credentials in stored on a secure element SIM. When cards are inserted to the app they directly connect to the banking servers meaning that Isis doesn’t see any of the data. They want to keep their role as service providers, facilitating a neutral platform. Isis plan for now is to make its money from the card issuers*.

Mapa comments The joint the venture has taken time to build a strong and credible proposition through partnerships with major brands at all ends. It is now time for getting users on board this will need more effort by all parties involved. Also, the current exclusion of iPhone users is a challenge.

Real world examples: Isis Wallet – Overview 3

Extract from Isis press release “MasterCard has been working with industry partners like Isis to turn mobile phones into secure payment devices and create better shopping experiences for both consumers and merchants,” said Mung Ki Woo, group executive, mobile, MasterCard Worldwide. “The use of NFC technology is a path to an improved consumer experience, and the launch of the Isis Mobile Wallet – combined with the growing number of NFC-enabled handsets – will help make mobile commerce a reality for millions of consumers.” “Today’s launch of the Isis Mobile Wallet is a significant achievement in terms of enabling consumer adoption of mobile payments,” said Suzan Kereere, senior vice president and general manager, American Express, Global Network Business. “Mobile commerce holds the promise of dramatically enhancing consumers’ shopping experience, and American Express’ first priority as a network is to provide choice and flexibility for all industry participants as we work together to influence the speed and growth of mobile NFC payments in the U.S.” Isis pressrelease, October 2012 bit.ly/KjFPDv

*bit.ly/HlTI7L


http://bit.ly/KjFPDv

http://bit.ly/HlTI7L


3 Isis Wallet – Making the payment

1. Login using 4 digit PIN 2. Choose payment and loyalty card. Make sure the green NFC button at the top

is lit

3. Touch the merchant terminal to initiate the

transaction

4. Confirmation screen summarising details sent

After login using the 4 digit PIN users can either pay directly using the default card or select another preferred payment card (listed at the top row of the screen). The payment card can be combined with an applicable loyalty card (listed at the bottom row of the screen). Users than tap their smartphone on the merchant terminal to conduct the transaction. Receipts can be viewed within the app.

Demo of payment process:

bit.ly/ZeWF2m


http://bit.ly/ZeWF2m


When users first sign up for the Isis Wallet and provide their home ZIP code they will receive a selection of special offers from participating Isis merchants. To continue receiving offers from these and other merchants they actively need to choose to follow them from the directory in the Wallet. Future offers and messages from selected merchants will then appear in the Iris feed within the app.

Isis Wallet – Add-on features 3

Notification feature highlights when you new messages

are available to read within the Iris Feed

Irss Feed page Information regarding existing loyalty card

including current offers

Option to add an offer to a purchase

An additional ‘Clip to Isis’ feature enable users to send

offers from participating merchants to the app



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