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WebrealityFebruary 2013
Mobile paymentsFixture or fad?
Wednesday, 6 February 13
Today’s agenda
• Mobile payments defined
• Global trends
• Leading technologies
• Apple Passbook
• Commercial opportunities
Wednesday, 6 February 13
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
Wednesday, 6 February 13
Global trends
• Mobile payments
• Transaction types
• Phones
• A pioneer of mobile payments
Wednesday, 6 February 13
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
Wednesday, 6 February 13
Global trends: transactions
• Money transfers and airtime top-ups to drive developing market growth
• Merchandise purchases expected to drive growth in developed markets
Wednesday, 6 February 13
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%
Wednesday, 6 February 13
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
Wednesday, 6 February 13
Leading technologies
• PayPal
• Google Wallet
• Square
• Apple Passbook
Wednesday, 6 February 13
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
Wednesday, 6 February 13
Wednesday, 6 February 13
Google Wallet
• Desktop and mobile (in-store) payments
• Uses NFC
• Partners with credit cards
• No transaction charges
• Revenue model depends on ads
Wednesday, 6 February 13
Wednesday, 6 February 13
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
Wednesday, 6 February 13
Wednesday, 6 February 13
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”
Wednesday, 6 February 13
Apple Passbook - pros
• Usable now
• Very high market penetration
• No transaction fees
• Typically affluent user base
• App support on other platforms
Wednesday, 6 February 13
Apple Passbook - cons
• Requires some up-front investment
• Apps for Android and Blackberry miss some functionality
Wednesday, 6 February 13
Commercial opportunities
• Store cards, gift vouchers, accounts
• Geo-targeting with coupons
• Behavioural analysis
• Kid spending control
• Marketing through innovation and customer service
Wednesday, 6 February 13
www.webreality.co.uk
Any questions?
Wednesday, 6 February 13
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