Mobile PaymentsMobile Payments

http://www.mobilemarketingwatch.com/wordpress/wp-content/uploads/2010/08/Mobile-Payment-Transactions-To-Reach-56.7B-By-2015-NFC-Adoption-Stands-At-1.7-Percent.jpg

Kristen Meyer, PharmD Candidate

University of Charleston School of Pharmacy

PCCA CPMS Intern

January 3, 2011 – February 3, 2011

OutlineOutline

Smartphone useSmartphone use Mobile technology utilized in pharmacyMobile technology utilized in pharmacy Mobile PaymentsMobile Payments

Types of Mobile Payments Types of Mobile Payments Mobile Payments use in pharmacy Mobile Payments use in pharmacy

practicepractice Recent news in mobile payments Recent news in mobile payments Questions/thoughts/opinionsQuestions/thoughts/opinions

Smartphone Users on Smartphone Users on the Risethe Rise

An estimated 73.3 million An estimated 73.3 million people in the United States own people in the United States own smartphonessmartphones

Predicted that 1 in 2 Americans Predicted that 1 in 2 Americans will own a smartphone by will own a smartphone by Christmas 2011Christmas 2011

69% of smartphone owners 69% of smartphone owners have downloaded an apphave downloaded an app

Text messaging remains the Text messaging remains the most popular feature most popular feature

weblearners.com

geek.com

macworld.com

manufacturer.com

Mobile Technology and Mobile Technology and PharmacyPharmacy

Walgreens Mobile AppWalgreens Mobile App Refill prescriptionsRefill prescriptions Reminder text-messaging serviceReminder text-messaging service Weekly Ads/CouponsWeekly Ads/Coupons Store locatorStore locator Order photosOrder photos Flu shot locatorFlu shot locator

bestapps.com

walgreens.com

New Trend: Mobile New Trend: Mobile PaymentsPayments

mybanktracker.com

paymentscouncil.org.uk

tomnoyes.wordpress.com

katu.com iranmobin.com

Predicted Mobile Predicted Mobile SpendingSpending

http://money.cnn.com/2011/01/24/pf/end_of_credit_cards/

Types of Mobile Types of Mobile PaymentsPayments

Mobile-to-mobile paymentsMobile-to-mobile payments Mobile devices as credit card Mobile devices as credit card

processorsprocessors Mobile devices used as credit cardsMobile devices used as credit cards

Mobile-to-Mobile Mobile-to-Mobile PaymentsPayments

Merchant applications allowing Merchant applications allowing instantaneous transfer of funds from instantaneous transfer of funds from one account to another via smartphoneone account to another via smartphone

Examples:Examples: Paypal Bump Paypal Bump

Bump phones together to receive account infoBump phones together to receive account info Or enter email address to download Or enter email address to download

appropriate account infoappropriate account info 1.9% - 2.9% + $0.30 transaction fee 1.9% - 2.9% + $0.30 transaction fee

Mobile Devices as Credit Mobile Devices as Credit Card ProcessorsCard Processors

Square, Inc.Square, Inc. Device acts a mini credit card reader Device acts a mini credit card reader

inputting pertinent transaction inputting pertinent transaction information into the phone through information into the phone through Square AppSquare App

Cost: 2.75% + $0.15/card swiped; 3.5% Cost: 2.75% + $0.15/card swiped; 3.5% +$0.15/card keyed in+$0.15/card keyed in

IntuitIntuit Mobile credit card readerMobile credit card reader CostCost

Low Volume: $0/month, 2.7% + Low Volume: $0/month, 2.7% + $0.15/swipe, 3.7% + $0.15/keyed in$0.15/swipe, 3.7% + $0.15/keyed in

High Volume: $12.95/month, 1.7% + High Volume: $12.95/month, 1.7% + $0.30/swipe, 2.7% + $0.30/keyed in$0.30/swipe, 2.7% + $0.30/keyed in

*Also additional fees for non-qualified *Also additional fees for non-qualified transactionstransactions

allaexpression.com

http://www.multicellphone.com/category/mobile-payment/page/2/

Mobile Devices as Credit Mobile Devices as Credit CardsCards

Near Field Communication (NFC) TechnologyNear Field Communication (NFC) Technology Allows consumers to wave their mobile phone over Allows consumers to wave their mobile phone over

a point of sale terminal to purchase retail itemsa point of sale terminal to purchase retail items Thought to threaten the existence of the walletThought to threaten the existence of the wallet

Companies set to launch pilot programs:Companies set to launch pilot programs: Wells FargoWells Fargo GoogleGoogle ISISISIS (partnership between AT&T, Verizon Wireless,(partnership between AT&T, Verizon Wireless, T-Mobile, Discover Financial Services and Barclays)T-Mobile, Discover Financial Services and Barclays)

Costs:Costs: Approximately $200/reader Approximately $200/reader Phones with microchips would cost an Phones with microchips would cost an

additional $10 to $15additional $10 to $15 Transaction fees?Transaction fees?

news.softpedia.com

Adoptability of NFC Adoptability of NFC TechnologyTechnology

Multiple transaction systems (like with Multiple transaction systems (like with credit cards) would need to be put into credit cards) would need to be put into place before the technology would workplace before the technology would work

Banks, merchants, phone makers, and Banks, merchants, phone makers, and wireless carriers would need to agree wireless carriers would need to agree on transaction fees and technical on transaction fees and technical specificationsspecifications

Security threatsSecurity threats May be useful for small transactions May be useful for small transactions

(fast food, transit costs, etc.), but not (fast food, transit costs, etc.), but not predicted to be used for big purchasespredicted to be used for big purchases

OthersOthers

Some carriers have considered Some carriers have considered allowing consumers to use their allowing consumers to use their phone as a payment device and their phone as a payment device and their purchases are added to their purchases are added to their monthly phone bill monthly phone bill

Consumers would used their Consumers would used their telephone number in place of a telephone number in place of a credit card number or utilize NFC credit card number or utilize NFC technology technology

Use in PharmacyUse in Pharmacy

Purchasing Rxs and merchandise in Purchasing Rxs and merchandise in the pharmacy – gives patients the pharmacy – gives patients additional option of paymentadditional option of payment

Ease of payment for services Ease of payment for services provided outside the pharmacyprovided outside the pharmacy Deliveries Deliveries SalesSales ConsultationsConsultations

Recent News in Mobile Recent News in Mobile PaymentsPayments

Starbucks launches mobile Starbucks launches mobile barcode-based service across barcode-based service across the USthe US Customers download the Customers download the

Starbucks Card Mobile App and Starbucks Card Mobile App and can make payments by scanning can make payments by scanning the apps on-screen barcode at the apps on-screen barcode at the registerthe register

The app allows customers to The app allows customers to manage their Starbucks Card manage their Starbucks Card account, check the balance, account, check the balance, reload money on the card with reload money on the card with any major credit card, earn any major credit card, earn rewards and find nearby storesrewards and find nearby stores

blogs.oracle.com

January 24, 2011

Recent News in Mobile Recent News in Mobile PaymentsPayments

iPhones & iPads to gain NFC Payment Features iPhones & iPads to gain NFC Payment Features Technology will be introduced this year in new Technology will be introduced this year in new

generations of iPhone and iPad2generations of iPhone and iPad2 Service would access credit card numbers, iTune Service would access credit card numbers, iTune

gift card balances, and bank information and hold gift card balances, and bank information and hold loyalty credits and pointsloyalty credits and points

Cut costs of credit card processing fees to Apple by Cut costs of credit card processing fees to Apple by directly accessing customer bank accounts, thus directly accessing customer bank accounts, thus cutting costs to retailers who sell Apple productscutting costs to retailers who sell Apple products

Offering merchants free NFC payments terminals Offering merchants free NFC payments terminals that are compatible with the services in their devicesthat are compatible with the services in their devices

January 25, 2011

Works CitedWorks Cited Bannan, K. J. (2010, May 19). Bannan, K. J. (2010, May 19). Cell phone payment system options mutiply.Cell phone payment system options mutiply. Retrieved January 8, Retrieved January 8,

2011, from Fox Business: http://www.foxbusiness.com/personal-finance/2010/05/19/cell-phone-2011, from Fox Business: http://www.foxbusiness.com/personal-finance/2010/05/19/cell-phone-payment-options-multiply/payment-options-multiply/

Bell, S. (2010, October 13). Bell, S. (2010, October 13). In Accepting Mobile Payment, Merchants Face Higher Fraud Risk.In Accepting Mobile Payment, Merchants Face Higher Fraud Risk. Retrieved January 8, 2011, from Insurance Networking News: Retrieved January 8, 2011, from Insurance Networking News: http://www.insurancenetworking.com/news/insurance_technology_mobile_payments_risk_fraud_credhttp://www.insurancenetworking.com/news/insurance_technology_mobile_payments_risk_fraud_credit-26090-1.htmlit-26090-1.html

Clark, Sarah. (2011, January 24). Clark, Sarah. (2011, January 24). Starbucks ‘will continue to explore NFC’Starbucks ‘will continue to explore NFC’ . Retrieved January 24, 2011, from NFC World: http://www.nearfieldcommunicationsworld.com/2011/01/24/35709/starbucks-will-continue-to-explore-nfc/

Eichenbaum, P., & Collins, M. (2010, August 2). Eichenbaum, P., & Collins, M. (2010, August 2). AT&T, Verizon to Target Visa, MasterCard With AT&T, Verizon to Target Visa, MasterCard With Smartphones.Smartphones. Retrieved January 8, 2011, from Bloomberg: http://www.bloomberg.com/news/2010- Retrieved January 8, 2011, from Bloomberg: http://www.bloomberg.com/news/2010-08-02/at-t-verizon-said-to-target-visa-mastercard-with-smartphones.html08-02/at-t-verizon-said-to-target-visa-mastercard-with-smartphones.html

Intuit, Inc. (2011). Intuit, Inc. (2011). Service FeesService Fees. Retrieved January 24, 2011, from Intuit, Inc.: . Retrieved January 24, 2011, from Intuit, Inc.: http://payments.intuit.com/products/basic-payment-solutions/mobile-credit-card-processing.jsphttp://payments.intuit.com/products/basic-payment-solutions/mobile-credit-card-processing.jsp

Kharif, O. (2011, January 4). Kharif, O. (2011, January 4). In the Works: A Google Mobile Payment Service?In the Works: A Google Mobile Payment Service? Retrieved January 8, Retrieved January 8, 2011, from Bloomberg Businessweek: 2011, from Bloomberg Businessweek: http://www.businessweek.com/technology/content/dec2010/tc20101231_087039.htmhttp://www.businessweek.com/technology/content/dec2010/tc20101231_087039.htm

Kharif, O. (2011, January 25). Kharif, O. (2011, January 25). IPhones, iPads to Gain NFC Payment FeaturesIPhones, iPads to Gain NFC Payment Features Retrieved January 25, Retrieved January 25, 2011, from Bloomberg Businessweek: 2011, from Bloomberg Businessweek: http://www.businessweek.com/technology/content/jan2011/tc20110125_174308.htmhttp://www.businessweek.com/technology/content/jan2011/tc20110125_174308.htm

King, R. (2001, January 4). King, R. (2001, January 4). Wells Fargo to Employees: Leave Wallets Home, Pay by Phone.Wells Fargo to Employees: Leave Wallets Home, Pay by Phone. Retrieved Retrieved January 8, 2011, from Bloomberg Businessweek: January 8, 2011, from Bloomberg Businessweek: http://www.businessweek.com/technology/content/dec2010/tc20101231_921299.htmhttp://www.businessweek.com/technology/content/dec2010/tc20101231_921299.htm

PayPal. (1999-2011). PayPal. (1999-2011). Fees & Mobile TechnologyFees & Mobile Technology. Retrieved January 8, 2011, from PayPal: . Retrieved January 8, 2011, from PayPal: https://www.paypal.com/https://www.paypal.com/

Square, Inc. (2011). Square, Inc. (2011). Service FeesService Fees. Retrieved January 8, 2011, from Square, Inc.: . Retrieved January 8, 2011, from Square, Inc.: https://squareup.com/https://squareup.com/

Questions/Thoughts/Questions/Thoughts/Opinions?Opinions?