Mobile Payments in the Netherlands. Picture Michel Drupsteen Senior Business Consultant, ING

Transcription

1 Mobile Payments in the Netherlands Picture Michel Drupsteen Senior Business Consultant, ING

2 ING on Mobile Beliefs & MBN cooperation Michel Drupsteen ING, Business strategy MBN, Core Team EPCA Payment Summit 2013 Brussels, March

3 Today s 30 minutes agenda 1. About ING 2. A mobile lifestyle 3. Hypes, hopes and facts 4. Beliefs 5. About the MBN cooperation 6. MBN s objectives 7. Leiden soft launch 8. Questions & Answers 3

4 ING will be a strong, predominantly European Bank Leading Commercial Bank in Benelux and CEE, supporting domestic economy. Leaders in Specialised Finance and Financial Markets Northern Europe: Leading domestic banking positions in Netherlands, Belgium, Germany and Poland CEE and Asia: Domestic banks provide options for future growth Direct franchises: Selectively evolve over time towards mature model Home markets ING Direct plus ING Direct Australia Domestic Banks CEE and Asia CB presence 4

5 Amobile lifestyle 5

6 Benedictus XVI Franciscus I 6 Source:

7 Explosive growth mobile banking* Best rated banking application by customers with an average star rating of: 4,3 (out of 5) #1 position in app stores in the financial category since launch * #ING mobile banking users, November 2012 (ING); Source Infographic: ING 8

8 Explosive growth mobile online payments* ING is the first & only bank that provides a mobile ideal version (since December 13 th 2011) Further improvements will follow (app-based) * #Buyers via smartphone/tablet H (Thuiswinkel.org m-commerce Monitor); Source Infographic: Thuiswinkel.org, Blauw Research 9

9 The next step: Mobile in the retail environment 11

10 Hypes, hopes and facts 12

11 Hypes 1 universal wallet It s about customer choice and not about complex walled garden business models It s about the right balance between cost, convenience & security 1 Secure Element type 1 single payment instrument It s about the right payment product for the specific purchase use case 13

12 Hopes Strong(er) focus on stable mobile payment apps First a stable mobile payment product With a cost-effective basis Harmonized and easy payment experiences Emerging Secure Element alternatives And a seamless and trusted user experience 14

13 Facts Immature mobile certification & test procedures Work to be done by card schemes and device vendors A good basis tot start with NFC is available (on phones and terminals) Consumers adopt mobile banking (security) Available NFC infrastructure will be less of a problem 15

14 Beliefs 16

15 Expectations for the next years 1. Mobile NFC payments will be adopted, supported by issuing contactless cards and convenient (non payment) NFC services 2. Mobile NFC payments and mobile online payments will converge and co-exist in the retail environment 3. Payments will be extended with value added services to improve the customer s shopping experience (or payments will be an add-on to existing purchase services) 4. Bank s existing mobile banking apps are the ideal stepping-stone towards new mobile payments shopping propositions 17

16 From payments to more: Banks must act now!!! Purchase process Enter store Compare Choose Buy Come back Payment products 18

17 About the MBN cooperation 19

18 MBN cooperation In August 2012 the three banks ABN AMRO, ING and Rabobank initiated a joint project: Mobiel Betalen Nederland (MBN) As a follow-up of the Sixpack project (ended in the summer of 2012) To introduce mobile payments at the point of sale in 2013 Resulting in an open ecosystem* for mobile payments accessible for all retailers, payment institutions, service providers and mobile operators / handset vendors Applying a minimal set of requirements in order to preserve a sufficient level of interoperability, security and a harmonized customer experience This cooperation has been established by means of a cooperation agreement between the 3 banks This cooperation is for a fixed period of time and ends in Q Supported by UL Transaction Services (former Collis) for project support Supported by MasterCard and Visa with their payment products (Maestro, Vpay) Supported by Atos, CCV and Equens with their processing and terminal products Supported by KPN as mobile operator and issuer of the UICC ( SIM )** 20

19 MBN objectives Over-the-air distribution Contactless payment* 21

20 Soft launch: Leiden centre this summer The numbers: ± consumers ± 150 merchants Controllable local area to create density where soft launch participants meet, to improve active soft launch participation Sufficient availability of A-brand merchants already accepting, planning or interested in mobile/contactless payments Sufficient availability of interested consumers / early adopters Bank branches are at location Active local merchant community 22

21 Soft launch context Product Roll-out Commercial launch (individual bank) Joint launch window (MBN) Individual bank proposition Enrollment pilot (individual bank) Individual bank proposition Soft launch (MBN) Joint payment user experience Joint soft launch geographic location Joint marketing and evaluation Employee pilot (individual bank) Harmonized reqs (MBN) Usability test Security evaluation Customer experience The MBN soft launch will start a new era on the Dutch market by introducing the contactless Maestro and VPay payment products* The MBN soft launch will be evaluated after 3 months, but contactless PoS acceptance will be continued ABN AMRO, ING and Rabobank are the first banks providing contactless merchant products to their business customers ABN AMRO, ING and Rabobank are also the first banks providing mobile payment products to their customers In addition both ABN AMRO and ING will start providing contactless payment cards to significantly increase the consumer reach for merchants 2013 * Maestro and VPay are contactless products from Mastercard and Visa that can be used by merchants who accept Maestro and VPay card payments 23

22 Mobile and contactless value proposition Contactless Payments enable consumers to pay without dipping or swiping, using a contactless debit card or an NFC smartphone provided with a bank s payment application Directly linked to bank s current account, no pre-paid or stored value No pin code required for payments up to 25 Payments are processed as regular Maestro or VPay transactions Possible with certified mobile phones and payment terminals 24

23 Merchant value proposition Soft launch: Available payment terminals CCV: VeriFone Vx680 Atos: Yomani Atos: Xenta CCV: VeriFone Vx520 25

24 Consumer value proposition Soft launch: Available smartphone 26

25 Questions & Answers 27

26 My coordinates 28

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