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1 mobile commerce CHALLENGE or OPPORTUNITY?

2 the unstoppable mobile revolution 2 Consumers Mobile Love Affair Over 1.1 billion smartphone users worldwide. emarketer, May 2013 Ever since smartphones and tablets burst onto the scene, consumers have flocked to the ingenious devices. Annual smartphone sales now outpace traditional mobile phones by a rate of 3-to-1. 1 And shipments of ipads and Android-powered tablets are increasing at a tremendous rate of thirty-eight percent. 2

3 the unstoppable mobile revolution 3 Retailers Take Notice A A Savvy merchants realize mobile technology can help inject some much-needed excitement into their stores. Tablet registers, reimagined store layouts, innovative mobile apps and engaging consumer software offer new ways to connect with customers and increase profits. Mobile devices can help energize the consumer shopping experience and invite customers back to brick-and-mortar stores. energize the shopping experience

4 4 mobile brings opportunities & challenges Mobile presents the retail industry with both major opportunities and challenges. The ability to access vast amounts of data from online sources from any location allows for new applications that completely change the shopping experience and the relationship between merchants and consumers. The parties who better leverage mobile media to foster consumer engagement, increase loyalty and drive repeat business will be the winners in this brand new world.

5 The Challenge: Showrooming examining a product in store... While purchasing in-store is the most popular for those who research in-store, showrooming may still be an issue for retailers as 37% purchase on a smartphone or tablet after researching in-store. 3...buying online at a lower price The main in-store mobile activities are comparison shopping (59%), looking for coupons (48%) and searching for product reviews (47%). 3 Coined just a few years back, the term showrooming describes the practice of examining a product in a store, and then buying it online for a lower price. Showrooming has grown from a fringe practice to the norm, widely adopted by mobile users. And it s spreading globally, from its start in the United States to multiple countries worldwide. 5

6 The opportunity: relationship selling engage consumers... 79% of retailers plan to integrate mpos by Forrester Research To combat showrooming, retailers recognize they need to better engage consumers and develop their own mobile platforms and applications. With mobile solutions for smartphones and tablets, they can take advantage of back-office data, consumer data and online services to engage consumers in richer shopping experiences. Mobilility enables retailers to provide a personalized experience, while also leveraging location-based, geo-targeted offers and coupons. 6 70% of retailers expect to enable store associates with tablet-based solutions in the next three years. RIS News...provide a personalized experience

7 The opportunity: smarter stores 7 (Within the Next 36 Months) Projected % of Retailers Using Mobile Apps 4 Mobile technology is reinventing commerce, helping retailers create smarter stores, bringing better service to the hospitality industry and expanding commerce options for a wealth of other industries. Mobile POS helps reduce lines at checkout; inventory management brings more flexibility and efficiency to store operations; and mobile CRM brings rich customer data to the fingertips of every sales associate. 83% 66% 66% 64% Adoption of mobile solutions at POS is on the rise, with integration of mobile throughout the commerce experience expected to expand over the next two years. 4 Inventory Management Task Management CRM Messaging 62% 60% 59% 43% Mobile POS w/tender Cross-channel Save-the-sale Line Busting w/suspend HR

8 The opportunity: Online Comes In Store 8 (Within the Next 36 Months) Projected % of Retailers Using Mobile Payment Apps 4 53% PayPal 23% Apple Passport 50% Coupons on Mobile Screen 14% Isis 11% 42% Google Wallet 12% Square While consumers can use online tools against a retailer (showrooming), retailers can turn this to their advantage by bringing the online experience in store. Many of the Internet giants, plus countless new companies, are developing ways to engage retail shoppers. Mobile wallets and NFC-driven concepts for digital couponing, offers and promotions can help drive store traffic. Using online retail to create engaging experiences in store can come in many forms. With POS systems already in place, the opportunity to try different approaches and partnerships is easy and requires little additional investment. Amazon Payments

9 The opportunity: Enhanced Operations 9 Large retailers can boost revenue by $20,000 per location by adopting mpos and saving one single walkout per day. Yankee Group 5 sold sold sold satisfaction Increased revenue Upsell and cross-sell with fingertip access to past customer purchases Encourage repeat business with electronic loyalty and rewards programs Grow sales by bringing products to life in dynamic tablet catalogs Greater sales Deploy more campaigns, including digital offers, promotions and coupons Create a checkout anywhere, increasing employee productivity Capture sales on the spot, never missing another sale Better service Personalize service with access to customer profiles Deliver faster response times by accessing inventory online Enhance shopping experience with engaging tablet software

10 navigating The opportunities While the opportunities to leverage mobile technology are vast, so are the options and potential challenges. How does a retailer choose the right path? How do they limit their mistakes or avoid them altogether? And ultimately, how does a retailer develop the right, comprehensive mobile strategy a roadmap from concept to deployment, all while maintaining uninterrupted store operations, POS functionality and sales??? ios, Android, How do you plan to stay relevant Windows? NFC, Beacon, Barcode Mobile or mpos, Retailing, CRM cloud wallets?? What is the strategy?what s to further the brand missing What is the competition doing better?? How can operations improve 10

11 reimagined Store layout 11 not much has changed in store layout... It s no wonder many retailers are feeling overwhelmed by the changing landscape. After all, not much has differed in store layouts over the last one hundred years. While there have been advances in technology and processes in the last century, the shopping experience is still very similar. Most notably, associates have stayed behind the counter, separated from their customers, until now....associates have stayed behind the counter

12 reimagined Store layout 12 Checkout C E Floor Sets Client Engagement Inventory Now, retailers have an opportunity to dramatically rethink store layouts, bringing customers and employees closer together. Mobile technology can affect the entire store, playing a role in improving both operations and the shopping experience. Reporting Training Self Service

13 scalable, flexible solution Keeping an eye on future technology is a key component of any strategy. For example, whatever mobile platform a retailer implements, it must be flexible and scalable able to securely integrate both current technology as well as new and emerging solutions. This is also true for other verticals like transportation, health care, petroleum and taxi, to name a few. 13 mwallets Mobile CRM Out-of-store Sales Mobile Inventory RETAIL POS SYSTEM Line-busting/ POS Roaming POS

14 the right partner Trust in an expert already in place at the point of sale. The opportunities and challenges of mobile commerce do not have to be faced alone. Navigate the new landscape with a trusted partner. VeriFone has been integrating the newest and greatest technology into payment systems for over thirty years. With VeriFone, gain access to the industry s broadest collection of mobile payment solutions, POS software and platforms for wallets, apps and innovations. From retail and hospitality to transportation and petroleum, a wide variety of industries can increase revenue, build customer loyalty and improve service and operations with a partner that has the right mobile expertise. 14 bringing the newest and greatest payment technology for over 30 years

15 empowering mobile payments 15 Success Story: Deployed cutting-edge mobile payment solution, PAYware Mobile Turned over 3,000 smart devices into mobile payment solutions Empowered sale associates to perform line busting, price checking and inventory management Enabled all forms of payment, including mag-stripe, debit/credit, chip and PIN, EMV and NFC

16 empowering mobile retail 16 Success Story: Integrated, highly engaging tablet software, GlobalBay Retailing Enabled sales associates to access online catalog in real time, cross-selling and upselling consumers on the spot Empowered associates to order out-ofstock items online, shipping directly to the customers homes Deeply integrated the mobile solution within the existing back-end infrastructure

17 empowering mobile platforms 17 Powerful Partnerships: Opening the point-of-sale to outside innovation Enabling 80% of retailers accepting PayPal, Google Wallet or Isis in the United States Making it seamless to remotely add and manage multiple wallets in millions of POS systems through innovative software and services Offering the most extensive line of NFC payment solutions in the world

18 18 Capitalize on the Mobile Revolution

19 VeriFone Mobile Solutions Empowering Mobile Commerce 19 Simplifying the integration of mobile devices, software and platforms that can help grow business. To help navigate the mobile revolution, trust in the proven expertise of VeriFone. Already at the epicenter of commerce, VeriFone is uniquely suited to help simplify the deployment and integration of new concepts at the point of sale. Unmatched Mobile Portfolio For most merchant types and use cases, VeriFone offers a mobile solution to match. ENHANCED Customer Experience New software for tablets and smartphones is revolutionizing merchant-consumer interaction. Enabling Mobile Platforms To answer demand for mobile wallets, apps and alternative payments, VeriFone makes it easy with unparalleled open access. Trusted Expertise For mobile solutions today and tomorrow, look to the proven expertise of VeriFone: the leader in electronic payment technology and ironclad security. Click the Learn More Now button below or visit us at global.verifone.com/mobile-solutions Learn More Now

20 references 1 IHL Report, Mobile POS: Hype to Reality May 15, JiWire s Mobile Audience Insights Report for Q RIS News Store Study - Free Version 5 Yankee Group VeriFone, Inc. All rights reserved. VeriFone, the VeriFone logo and PAYware are either trademarks or registered trademarks of VeriFone in the United States and/or other countries. All other trademarks or brand names are the properties of their respective holders.

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