David Birch

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the future of retail payments in europe

THE FUTURE OF PAYMENTS !A EUROPEAN PERSPECTIVE!

DAVE BIRCH, CONSULT HYPERION!


the future of payments

David G.W. Birch

co-founder consult hyperion

chair digital money forum

research fellow centre for the study of financial innovation

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what is going to change?

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what is going to change?

Only a small proportion of M0 supports the needs of commerce About a third for the eurozone as a whole Down to 15% for Austria, 10% for Germany because they deliver banknotes outside the eurozone

The rest represents a tax on the people who hold cash The poor, the corrupt, the criminal

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Technology magnetic stripes and smart cards are already old technologies, we now have the internet, mobile phones, biometrics, virtual worlds…


contactless all of the evidence from around the world suggests that people like “touch and go” because convenience always wins

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mobile there is no doubt that the most important technology to most people in most of the world most of the time is the mobile phone


nfc combining contactless and mobile together delivers on a promise of innovation and tells a story that people are expecting to hear

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Business it’s a time of change and as consultants always tell us, change means opportunity


new opportunities electronic cheques, remittance and invoicing, mobile, conditional anonymity, real-time A2A, pre-paid, dispute and error handling…

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infrastructure we’ve got a stable infrastructure that works, and this may be holding businesses back, leaving us open to disruptive innovation


non-banks the opportunities are available to non-banks as well as banks, and there are retailers, transit systems, mobile operators who can play

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Social as technology push and business pull align for launch, it could be the social factors that light the blue touchpaper


inclusion around the world, the “next billion” need access to financial services, starting with payment systems

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locality the definition of local is changing in a networked world, so “think global, act local” means something different


regeneration there are people who think it is time for some new thinking about the role of money in society

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Predictions with a loss of faith in “money”, people will be more open to new and different means of exchange, perhaps not involving £$!


cash is a stealth tax it isn’t just about technology or business, but reducing the social costs of cash, and this is a good thing to do

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‘3g” networks it used to be girls, games and gambling that drove new requirements, what if now it’s social networking? Facebook credits will be a $1 billion business within a year


commodity or community? but will the new “local” groups want to use commodities (eg, gold or mobile minutes) or communities (eg, reputation or platinum pieces)?

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THANK YOU"

!  consult hyperion www.chyp.com !  digital money forum www.digitalmoneyforum.com/blog !  csfi www.digitaldebateblogs.typepad.com/vrf !  iTunes “consult hyperion” or www.chyp.com/podcasts.php !  david g.w. birch www.dgwbirch.com

Leadership & Management

David Birch