- 1.1 UL and the UL logo are trademarks of UL LLC 2013 Mobile
Proximity (Payments) Amos Kater Practice Leader Mobile &
Payment Practice May 22, 2014
2. 2 Three major global trends ? Mobile is (becoming) the
dominant channel mGovernment, mCommerce, mPayments, mID,
mTicketing, etc Security and trust are hot topic Several data
storage options Multiple hardware SE options Current major trend:
HCE Mobile solutions have to address many options High variety of
components: Handsets, OS, SEs, And technologies: NFC, HCE, BLE, QR
bar codes Interoperability is an issue in starting and existing
ecosystems 3. 3 The smart phone revolution is the next step for all
SPs In a similar manner as internet revolutionized the way
customers experience, identify, shop and share, the mobile phone is
the next evolutionary wave! 4. 4 Tremendous convergence towards the
smart phone ID Content Social PaymentMarketing Access 5. 5 Endless
possibilities mobile transactions are diverse Ticketing get access
to events, stadiums or movie theatres access trains, buses or metro
Payment electronic purse debit/credit pay with mobile handset
Access physical access to premises logical access, e.g. to
corporate network Loyalty handset replaces loyalty cards Tag
reading retrieve data by reading a tag Peer-to-Peer exchange data
between mobile handsets Identity related tokens e-passport driving
license Automotive related services key to start up a car
personalize automotive services Health care health care ID or
health care data in handset mGovernment Document signing Web-portal
access Self-help portals 6. 6 Valuables are also moving onto mobile
7. 7 Mobile payments momentum is there 14.6 25.4 40 54.627.8 32.1
40.5 48.3 27.8 32.5 41.3 49.5 70.2 90 121.8 152.4 0 20 40 60 80 100
120 140 160 2014 2015 2016 2017 InUSDBillion Global NFC Retail
Payments, 2014-17 Europe Asia North America Source: Juniper, 2012
Source: www.mobilepaymentsinsider.com, May 2014 8. 8 Data transfer
for proximity BLE NFC QR/Bar Codes 9. 9 How to protect data? TEE HW
SE cSE (HCE) 10. 10 Differentiate between the type of transactions
Virtual world (Remote) Real world (proximity) Non- personalized
OS-grade security HCE/Android KitKat Secure Element Micro SD UICC
Embedded Enables mGov Proximity technology: NFC Barcode Infrared
BLE Enablement of: Identification Ticketing Payments Access
HWsecurityOSsecurity 11. 11 How to manage data? Issuing and
lifecycle management Perso bureau CardvendorBPO Supply contract SP
TSM SEI TSM BPO Card vendor Supply contract GP interfaces GP
interface SP SP SEI BPO & supply contract 12. 12 Collaboration
in m-Commerce range from commercial JVs to similar technical
solutions Collaboration approaches UL TS Research 1. No
collaboration 2. SP requirements 3. Joint marketing platform 4.
Joint wallet 5. Joint TSM 6. Complete Joint Venture
Commercialdomaincollaboration Technical domain collaboration 4 1 2
3 5 Collaboration over the technical domain Collaboration over the
commercial domain 6 13. 13 TSM models SP MNO MNO MNO SP SP TSM TSM
TSM MNO TSM SP TSM SP TSM MNO MNO MNO MNO MNO TS M SP TS M SP TS M
SP TS M SP TSM SP SP TSM MNO TSM MNO TSM MNO Individual modelTSM
hub SP aggregatorSEI aggregator 14. 14 The SP has their own app
with services linking to the SE Normally only 1 service, but it can
be more Different walletoptions Neutral branded wallet The wallet
will get a neutral brand name (not linking to an SEI or SP) White
labelled wallet SP branded app With SDK, individual parties can
customize their wallet SE Issuer branded wallet SEI has multiple
SPs within the SEI branded wallet 15. 15 The playground for
contactless mobile projects Source: NFC times, 2014 16. 16 Typical
roadmap of TSM service 17. 17 SP Aggregators Logo Name Coverage TSM
provider Key point Visa Mobile Provisioning Service Global Oberthur
Connect to Samsung already Target 2/3 tier banks without TSM Plan
to connect also to MNO Trevica TSM Poland Morpho Payment
processor's TSM, connecting to 5 banks Plans to expand to Czech,
Hungary, Russia and Ukraine Mobiel Betalen Nederland Netherl ands
NA, pre- provisioned Project of 3 major banks in the Netherlands
Partering with KPN, MasterCard and others Samsung Galaxy Express
18. 19 Mobile Payments in The Netherlands 2005 2006 2007 2008 2009
2010 2011 2012 2013 19. 20 Mobiel Betalen Nederland SP-led SEIsSP
Model SP TSM 20. 21 Partnering with Mobile Payments in The
Netherlands 21. 22 Contactless payment Manual provisioning From
(debit)card to smartphone 22. 23 Pincode can be changed on the
mobile phone User can choose to Always require pincode during
payment Pincode is optional Limit on the total amount without
pincode: 50,- Pincode is required Pincode can be pre- entered, or
the mobile phone must be tapped 2x on the terminal Payment < 25
Payment > 25 Settings Existing international payment products of
Maestro and VPay Online and real-time payments (debit) , no stored
value NFC Smartphone with banking payment app PoS terminal should
support contactless From (debit)card to smartphone 23. 24
Cooperative vs. Competitive 24. 25 Source: University of Maastricht
& Panteia (measurement transaction times) Very positive results
End score 7,8 from consumers End score 6,9 from merchants Most
important advantages: Smartphone always within reach Transaction
speed Ease of use Most important improvements Communication
Technical stability (terminals) (Perception of) Security More type
smartphones Payment method Transaction speed Cash 18 seconds
Debitcard (contact) 17 seconds Debitcard (contactless) 12 seconds
Mobile (single tap) 10 seconds Mobile (double tap) 20 seconds
Results customer research 25. 26 Results customer research 26. 27
Results customer research 27. 28 Results customer research 28. 29
SEI Aggregators Name Coverage TSM provider Key point EnStream
Canada Bell ID JV of three biggest MNOs Rogers, Bell and Telus.
Also expand it service to SP- TSM Payment, ID, and Loyalty WEVE UK
Not yet finalized JV of three MNOs in UK Offer one stop shop for
mCommerce retails, advertise, payment, loyalty ISIS mobile commerce
US Gemalto 3 biggest MNOs, ATT VZE TMO Also support iPhone with uSD
A few banks on board: Chase, Amex, Wells Fargo Payment and Loyalty
29. 30 MNO-led Isis MNO TSM SPsMNO Model 30. 31 Isis Today Total
1,5 million activated Wallets, 20.00 new activation per day More
than 200.000 merchant location Promotions like 20% cash back on all
Isis taps with Serve everywhere! A million free smoothies in
partnership with Jamba Juice 3 Free Cokes and every 10th one free
with Coca-Cola vending machines Every 5th vend free at over 50,000
USA Technology enabled vending machines Cash incentive by MNOs paid
on Serve account 31. 32 TSM Hubs Logo Name Coverage TSM provider
Key point IDA Singapore Nation wide Gemalto Government initiated
Connected to SingTel, Starthub and M1 Connected to DBS bank and
EZ-link User base is still small TSM New Zealand Nation wide
Gemalto JV between 3 NZ MNO and Paymark, the payment processor
Payment and loyalty TSM Nordic Nordic Countries Gemalto JV between
DNB and Telenor Provide natural brand for any SPs and SEIs Offer
payment and other service in scope later 32. 33 Valyou
Collaborative SPs/SEIsSP MNO Model TSM 33. 34 Take home messages:
its about an ECO- system and not about an EGO-system Conclusions
Explanation Easy integration and possibility to build on top Do not
lock in to existing solution (or even brand)Open & Flexible ID
Bank Ticketing Other? Multiple types of SP Ease of use Not simply
substitution Low cost Use case is key Many options and technologies
exist: NFC, QR code, BLE HW SE, cSE (HCE) Lets technology not
distract you 34. 35 Questions? 35. 36 Thank you Amos Kater
[email protected] Mobile: +31 653423967 Marcel Suers
[email protected] Mobile: +31 630943808
