mobile payments (seminar 4 feb 2013)

WebrealityFebruary 2013

Mobile paymentsFixture or fad?

Wednesday, 6 February 13

Today’s agenda

• Mobile payments defined

• Global trends

• Leading technologies

• Apple Passbook

• Commercial opportunities


What are “mobile payments”?

Mobile at POS

Mobile as POS

Mobile payment platform

Direct carrier billing

Closed loop payments

The mobile wallet

Phone as cash register

The big catch-all

“Put it on my bill”

The digital store card

Customer pays at POS using mobile

with NFC or other mechanism

Merchant uses mobile device to

process card payment

Mobile to mobile payments, mobile

to merchant, online or offline

Typically digital content and

services; in-app payment

Typically, private technology

commissioned by single merchant


Global trends

• Mobile payments

• Transaction types

• Phones

• A pioneer of mobile payments


Global trends: m-payments

• Global m-payments $105.9b in 2011

• Gartner project 42% annual growth to 2016, to $617b and 448m users

• Juniper Research say $1.7trn by 2017

• PayPal: by 2016 UK consumers will only need a phone to shop on high street


Global trends: transactions

• Money transfers and airtime top-ups to drive developing market growth

• Merchandise purchases expected to drive growth in developed markets


Global trends: phones

• Q3 2012 global smartphone sales up 47% year on year

• UK smartphone penetration 44%; to reach 75% in 2016 (eMarketer)

• Jersey at 46%


Global trends: a pioneer

• Starbucks trialled m-payments in 2009

• Now has 7 million regular users; 2.1m mobile purchases every week

• Closed loop loyalty system; custom development

• Developing new channels


Leading technologies

• PayPal

• Google Wallet

• Square

• Apple Passbook


PayPal

• Multiple payment tools

• Owned by eBay

• Over 110m active users

• Positioned to compete with credit cards

• 18,000 US stores now using PayPal Instore

• 2.9% + 20p per transaction


Google Wallet

• Desktop and mobile (in-store) payments

• Uses NFC

• Partners with credit cards

• No transaction charges

• Revenue model depends on ads


Square

• Founded by Jack Dorsey (Twitter)

• Part-owned by Starbucks

• “Phone as PDQ” plus wallet

• 2.75% per swipe or $275 per month

• UK in 2013

• iOS and Android only


Apple Passbook

• New with iOS 6 (iPhone and iPod Touch)

• Stores vouchers, coupons, tickets, boarding passes, store cards etc

• Location-sensitive

• Rapid merchant adoption

• “Connecting layer”


Apple Passbook - pros

• Usable now

• Very high market penetration

• No transaction fees

• Typically affluent user base

• App support on other platforms


Apple Passbook - cons

• Requires some up-front investment

• Apps for Android and Blackberry miss some functionality


Commercial opportunities

• Store cards, gift vouchers, accounts

• Geo-targeting with coupons

• Behavioural analysis

• Kid spending control

• Marketing through innovation and customer service


www.webreality.co.uk

Any questions?


mobile payments (seminar 4 feb 2013)

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