Mobile NFC outside Europe rnő Borsos E – South East Europe

Mobile NFC outside Europe
Ernő Borsos
Managing Director – South East Europe
Agenda
1.
2.
3.
4.
2
Mobile Payment intro
Snapshot of the US market
80 seconds around the world
QnA
Mobile payment landscape is in permanent evolution…
… and still more to come (BLE, Coin, Biometrics, xCoin etc…)
3
NFC commercial roll-outs …
Payment
4
Gemalto confidential
– Distribution under NDA only
…. leveraging
on EMV Contactless
Infrastructure
3 short term opportunities….
PAYMENT
RETAIL
MASSTRANSIT
5
Payment is not an isolated service
Its take off and mass adoption is
connected to other proximity services
Transport spurs
the payment
Retail services
spurs the payment
Payment spurs
transport & retail
6
Highlights
 Mobile payment (NFC included) cannot be about
emulating plastic cards in a handset
 The business model must include
additional services to consumers and Service Providers
 Consumers expect to get better deals from mobile
solutions than from cards
 Better information
 Better offers, Location based
 Better prices
 Transport is also a favorite use case
 Payment as a standalone application stays behind
28/04/2014
7
Highlights
 Retail is at the center of mobile payment/commerce battle
 A new type of competition provides m-POS, « m-tills », cloud services, and
new payment schemes.
 Retailers mainly expect three things:
•
Better reach. Mobile marketing. Fight between OTTs and MNOs
•
Advanced profiling. Analytics. Fight between MNO, Banks and OTTs
•
Avoid « showrooming ». Shopping experience, in-shop deals. Tag based
 Consumer are ready to share personal information if
it results in better deals
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Consumer expectation
 Ergonomics
 Complete and organized set of mobile services
 Anywhere, anytime
 Fast and convenient means of payment
 Complete set of mobile banking services
 No additional charges or less charges
 Stop queuing at the vending machines, even when roaming
 Instant access to traffic information
 Same means of payment for retails inside the transport infrastructure




Pay less (coupon, loyalty point, daily offers)
Information on products and competition, retail location
Easier management of coupons and loyalty cards (storing, sorting, redemption)
Better suited or tailored offers
 NFC available from their favorite brand
 Trust: Security, Privacy
9
Consumer expectations
2/3
59%
1/2
68%: Provide convenience, ease of use for payment
59%: Enable to carry less cash, fewer cards
52%: Allow to receive mobile offers, store discounts
Disclaimer:
US statistics
45%
41%
10
45%:
Allow to redeem points or offers directly from
phone
41%:
Improve loyalty rewards
Willingness to share personal
data may vary from country to
country
11
A new NFC shopping experience
Isis is an NFC Mobile Wallet
application available in the US.
It allows end-users to pay,
redeem coupons and get loyalty
points with their mobile phone.
12
What do you have in ISIS Wallet ?
Payment
American
Express Green
Card
Capital One
MasterCard
Coupons
Chase
Freedom
Visa
ISIS Cash
Visa Prepaid
> Your credit and debit cards
> Your reloadable Isis Cash card
> Loyalty cards
Loyalty
Membership and loyalty programs
> Personalized offers
> Account details and purchase
records
Who’s behind ISIS?
Top 3 US Wireless Carriers
TSM
2 banks and more to come…
3 Payments Networks
+++Merchants
Isis trial confirms:
Loyatly is attractive and boosts usage
Retail spurs payment
2/3
7
Two-thirds of active users opted in to receive offers and messages
The average user is following seven brands,
(an American owns an average of 18 loyalty cards, only 2 are active)
X2
wallet users engaged in loyalty and offers tap up to two
times more frequently than users who only make payments
90%
More than one-third of active Isis Mobile Wallets users in
Austin have loaded a My Coke Rewards card 90 percent of
these are new to the My Coke Rewards program
2/3
Two in three Isis users have added a payment card to their
Isis Mobile Wallet
Source: NFC World
28/04/2014
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ISIS Adoption
Activated ISIS Wallets
+50% users monthly
Q2 2013
Percentage of contactless POS
0%
Slovakia
Poland
China
Hungary
Brasil
UK
Australia
Spain
France
Italy
US
Netherlands
16
5%
10%
15%
20%
25%
30%
35%
40%
45%
Q3 2013
Q4 2013
Q1 2014
Communication
Generating expectation first and then educating about benefits
Deploying NFC Use Cases
Ergonomics: One is enough
1 Wallet
1 Tap
Pay
Redeem coupon
Collect loyalty
points
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1 Pin
Open wallet
Tap
Sign
Efforts at shops
POS at Verizon Stores
With demo and describing
features and benefits
Product demonstration
available, where users
can play with the wallet
and experience TAP
Including PoS
clear indication of the offer and NFC enabled handsets
Clear display of NFC
enabled handsets
POS material describing
Offer, features and
benefits
ez-link services
On the Move
Hassle-Free Top-ups
Over-the-Air (OTA)
Top-up
#1 card used by
commuters for
public bus and train
Retail therapy
Top-up also possible at
bus interchanges, ATMs,
convenience stores and
post offices.
Loyalty
Payments are easy with
over 10,000 payment
acceptance points in
Singapore.
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Gemalto Confidential
Rewards points for
every dollar spent.
Payment, Transport, Couponing, Loyalty,
Mobile gifts: T-Money
60,000 shops accept transactions & payment
108 brands affiliated
30M NFC handsets, with 50% of owners being active users
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Gemalto Confidential
•Over 24 million Octopus are now in circulation
•95% of those between the ages of 16 and 65 have an Octopus
•Octopus processes over 11 million transactions a day (6 million population)
•Daily transactions are valued at over HK$110 million
•More than 10,000 retail outlets from over 4,000 service providers accept Octopus
•There are more than 60,000 Octopus readers all over Hong Kong
•Over 2.5 million Octopus registered under the Octopus Rewards Programme
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Gemalto Confidential
Enriching the shopping experience
Shop on the platform
Be delivered home
Combines
- The best user experience ever
- Infinite number of opportunities for
- Mobile marketing
- Loyalty
- Couponing
-Location based offers
- On line payment
Gemalto : Over 50
TSM references
Vodafone Group
(2011)
T-Mobile Group
(2011)
Barclaycard (2010)
Orange France
(2010)
TIM (2011)
SIA (2012)
KDDI (2011)
Chase (2012)
PCCW
ISIS (2011)
Hang Seng Bank
DBS (2012)
Ez-Link (2012)
TIM
MNO TSM
SP TSM
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SingTel (2012)
M1 (2012)
StarHub (2012)
Thanks
Contact Gemalto to engage and know more about the NFC opportunities
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