Partnering to provide

the dominant

Contactless Payment

solution

Roxanne Salton

Senior Product Manager – MCommerce

Telecom NZ

Telecom New Zealand

Slide 2© 2012 Telecom

Agenda

• Introduction

• NZ TSM Joint Venture Partnership

• Differentiation

• Telecom NZ’s Proof of Concept

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Introduction: Evolution of Money

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Introduction – Real Customer Value Proposition

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NFC – Simple Tap Redemption is Key

Slide 6© 2012 Telecom

In NZ, we believe a collaborative approach

has the greatest chance of success in NZ

Mpayments

Service Providers•Replace cards with Mobile Wallet apps

•New Mobile value added services

Transport

Loyalty

Vouchers

Access

MNO’sProvide handsets,

network and SIM

capability to host

payment and other

apps on handsets

ConsumersUse Mobile Wallet

TSM

•MNO Management

•Service Provider Management

•App Provisioning and Life-cycle Management

TSM NZ Joint Venture

TSM•Commercial & technical interface

between Banks, other SP’s &

MNO’s

•Provides the infrastructure to

support the NFC Ecosystem

Slide 7© 2012 Telecom

Collaborative approach makes the most sense but

has benefits and challenges

Benefits

• Common platform to enable service-based competition

• Shared investment

• Simple and cost-effective NFC implementations

• Avoid complexity and multiple interconnections

• Interoperability creates compelling proposition in face of OTT threat

• Drive scale quickly

Weaknesses

• Are we weakening our competitive position?

• Will this hinder innovation?

• How do we all win?

Challenges

• Do the advantages of a single TSM outweigh the disadvantages?

• Can all parties live with a common wallet and still gain value?

• Are we weakening our competitive position?

• Will this hinder innovation?

• Can we achieve a win-win for all?

Common

Infrastructure

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Telecom NZ: Differentiating yourself from the

competition

• Pillars of Activities - B2B

- NFC applications- E2E solutions- Access, Identity- Corporate services

- B2C- Why you?- Differentiated launch

proposition- MCommerce

- Couponing - Vouchers- Smart Tags - Advertising

- Other- Financial (SVA)- Remittances- Top Up- Data services Key Ecosystem Enablers

MANUFACTURER PAYMENT

INFRASTRUCTURE

ACQUIRING

PROCESSOR

SOFTWARE DEVELOPER

SERVICE PROVIDER

TRUSTED SERVICE

MANAGER (TSM)

SIM-based Near Field CommunicationEnabling secure mobile solutions for everyday services

Point- of- sale paymentVending machines Parking Utilities Multiple cards

PAYMENTS

Loyalty schemesPersonalised offers Incremental services Direct channel Eco- friendly

LOYALTY

Peer to peervCard distributionSocial networking and LBS

Call request

SMS initiation

INFORMATION SHARING

Health Public health Prescription trackingEventsWorkforce managementAsset trackingVehicle information

IDENTITY

VOUCHERS AND COUPONS

Smart postersTargeted consumer informationLeisure Data collection

M ARKETING AND ADVERTISING

Mobile ‘keysBusiness identification Hotels and homesSecure PC login

ACCESS CONTROL

Transport ticketing Airline check-in Parking Venue access

TICKETING

ACCESS CONTROL

SIM CARD

HANDSET

MANUFACTURERS

ISSUING PROCESSOR

PAYMENT SERVICES

PROVIDERS (PSP)

VouchersSocial mediaConsumer reachTargeted marketing

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Telecom NZ : How are we differentiating today?

• In April 2012, Telecom led the collaboration of 6 organisations in a Proof of

Concept

- Westpac NZ - MasterCard Mobile PayPass Credit Card

- Auckland Transport and Thales - New AT HOP Card

- Telecom NZ and Paymark - Top Up

- Gemalto Trusted Service Manager (TSM), wallet and NFC SIM Cards

• 3 simple actions

- Tag on, tag off Auckland new transport system

- Perform a contactless payment transaction using Westpac’s application

- Top up mobile account using stored payment card from wallet

• What we got out of it:

- Greater understanding of NFC capability and opportunities

- Shared learnings across all organisations

- PR

- Leadership in market

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Future proofing the trial

POC Architecture

SP TSMSP TSM

Mobile

Wallet

Server

Mobile

Wallet

Server

Perso

Bureau

Perso

Bureau

Acceptance

Software

Acceptance

Software

Interconnect

MNO TSMMNO TSM

Slide 11© 2012 Telecom

Results

• In just over 20 weeks:

- Delivered Westpac MPP application in NZ

- Delivered DESfire transport application on UICC

- Delivered an mWallet with 3 separate service

providers - payment and transport sitting side by side

on UICC

- Foundation for a new Top Up service

- A wealth of knowledge and understanding around NFC

technology and services

Video (to be provided)

Slide 12© 2012 Telecom

Conclusion

• Partnering with the right stakeholders is key

• Ensuring POS terminal coverage is important

• Thinking like a customer

• Share openly learnings and challenges

• Try and fail smartly