October 2015 1 Market Forecasts POS Adoption Still Slow 2 Lots of Activity amp Investment 3 Mobile Wallet Competition What You See 4 Source First Annapolis What You Might Not ID: 928989
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Slide1
Mobile Wallets
Smart Card Alliance-NFC Solutions SummitOctober 2015
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Slide2Market Forecasts: POS Adoption Still Slow
2
Slide3Lots of Activity (& Investment)
3
Slide4Mobile Wallet Competition: What You See…
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Source: First Annapolis
Slide5What You Might Not See…
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Key
aspects
U.S.
b
anks
lower interchange to play;
iOS
users are 44% of smartphones, but 65% of total spend
Appeals
to other half of smartphone market not using
iOS
SmartTap
takes over where Isis left offMST could enable 80-90% of POS terminals without Merchant changesNo fees (yet)New payment options, aggregated merchant spending, cross-loyalty Device agnosticPaydiant-based, One-Touch re-launch aspires to re-bootOffer to ‘take-in’ MCX doesn’t flyBusiness ModelControl and direct ‘walled garden’ of prime customersUse existing payments system to ChinaInsinuate itself into every mobile transaction possible, direct ads to better targetsHold line on Apple in the U.S., while beating them in the rest of the worldProvide consumer choices for merchant-friendly paymentsFacilitate merchant-directed commerceBecome Switzerland of arbitraged payments and commerce enablementChal-lengesCard-loading fraud exposes deficiencies in card payment systemMerchant acceptance and receptivity laggingStory lines reveal lots of learning still to doOnly 12% of handsets use latest versionTrying to accommodate 270+ operating systemsLower-income demographicU.S. isn’t KoreaMany changes being implemented in great rush (e.g., full NFC)Slow merchant buy-in so farDeployment process issues (e.g., avail-ability of apps, Gemalto vs. Paydiant) and management fluxAbility to afford long-term participationWanted MCX, but didn’t get it25 big merchants integrated, but no usageLittle love lost in rest of industry for themProspectsVolume building slowly as shininess wears offDiscover’s 10% incentive offers test Apple watch worksDeal with Visa and HCE accommodation could be material80% global handset share fuels strategyPotential appeal to well-heeled transactors with fancy handsetsResources and business model big plussesEnd-to-end retailing customer experience choice and integration could be differentiatorsManagement changes could helpPlatform improvements comingRoll-out newsMovie to PL, Loyalty, Discover in 2.0;Slow roll in U.K.Big NFC target is China1st HCE implementation going live (with top 10 bank)Many banks signing up500,000 users signed up before 9/28 official launchRest of market not soldColumbus “test” building slowly, but Target (others) pushing forwardMacy’s omni-channel play offered as paradigm for push onmerchant outreach
Slide6Merchant Solutions
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Slide7Still…the Power of Retailer Relationships…
Overall, a suite of app solutions are needed to address spectrum of consumer needs.Despite privacy concerns regarding retailers, the demand is substantial for retailer-driven apps that improve the shopping experience and deliver value
“
Which best describes the type of mobile wallet app(s) you would most like to use?”
Consumer Opt-In Controls
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Source: Phoenix Marketing 11/2014
Slide8When (why) Does the Consumer Show Up?
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Slide9Key Question: Who Will Consumers Trust?
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9/14
8/13
Phoenix Marketing
Slide10Mobile Wallet/Payment Adoption: A Long Tail
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Slide11Steve Mott’s Contact Coordinates
dba CSI Management Services, Inc.
1386 Long Ridge Road
Stamford, CT 06903
and 1214 Querida Drive
Colorado Springs, CO 80909
(o) 203.968.1967
(c)
203.536.0588
email: stevemottusa@yahoo.com
website:www.betterbuydesign.com
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