Mobile Payments a Telco Perspective. Steve Rieger May 2012

Transcription

1 Mobile Payments a Telco Perspective Steve Rieger May 2012

2 NFC and the Mobile Wallet enable a whole new set of products and services 1 Payment 5 2 Couponing Secure storage & user identity 3 4 Transport ticketing 2 Club membership cards & loyalty schemes

3 A number of elements need to come together first however to make NFC work in the wider eco-system Ecosystem Development NFC Handsets Contactless Terminals 3 Banks, MNO s, Transport Operators and other service providers need viable business models The enabling infrastructure needs to be in place MNO s and banks can share the costs of the infrastructure Bespoke solutions are expensive and will not drive mass adoption MNO s will drive NFC handsets and NFC Sim s Manufacturers starting to incorporate NFC into handsets Momentum rapidly building with many NFC initiatives worldwide NFC in handsets will become ubiquitous - just like cameras Paymark will drive the NFC acceptance infrastructure Contactless cards likely to be rapidly superseded by NFC handsets

4 There needs to be a value proposition for all parties to drive mass adoption Consumers Merchants and Service Providers Banks and Payment Schemes MNO s Convenient Differentiation Remain Relevant! Remain Relevant! Fast Versatile Secure Streamline Payments In-store Merchandising Mobile Marketing channel Protect against OTT Threat Retain Transaction Volume Share Mobile Wallet VAS New Payment Revenues Mobile Wallet VAS Mobile Commerce 4

5 TSM is the central point of an NFC Ecosystem We believe a common TSM Ecosystem has the greatest chance of success Service Providers Replace cards with handsethosted NFC proximity services Mpayments TSM Joint Venture: 50% Paymark and 50% Between the 3 MNO s MNO s Provide network and SIM capability to host payment and other apps on handsets Consumers Use Mobile Wallet Transport Loyalty Vouchers Common TSM MNO Management Service Provider Management OTA App Provisioning and lifecycle Management SP App Management Access 5

6 We believe a collaborative approach makes the most sense but has pros and cons Strengths Competition on services not infrastructure Shared investment Simple and cost-effective NFC implementations Avoid multiple interconnections Weaknesses Are we weakening our competitive position? How do we all win? Common TSM Opportunities Collectively stave off OTT threat Fast implementation of NFC services Open access Drive scale quickly Threats OTT s Competitive TSM s Wallet wars 6

7 NFC & Mobile wallet open up Mobile Commerce opportunities for MNO s to monetise NFC MNO s Remain Relevant New Payment Revenues Mobile Wallet VAS Mobile Commerce Merchandising Tap for: Store login In-store offers Vouchers/Ads Personalised offers Location aware Wallet data is key Payment One-tap checkout On-line payment too MOBILE COMMERCE 7

8 The Mobile Commerce opportunity The mobile device is with us 24/7 making it the most personalised and available media channel. According to recent IAB research, on a daily basis... 84% of people send text messages 60% access the internet 56% check s 54% use apps 64% surf the net or watch TV while also being on their smartphone Recent market changes including Smartphone penetration (now 30%+), the drop in data rates, and the availability of GPS in devices have meant the mobile is now a rich and effective media channel. In the UK, Advertising on mobile devices rocketed by 157 per cent in 2011, to a new high of million*. This growth is expected to continue over the next 5 years upping mobile from 3.8% of Ad Spend to 15.2%. Mobile payments are expected to grow nearly four-fold in the next four years also, from $170bn in 2010 to $630bn by In a recent NZ Mobile study, 64.7% surveyed used their mobile device to get more information about a product or service MNO s are well positioned to play a key role in the Mobile Advertising value chain and to clip the ticket in this growth industry 8 *Source - Annual IAB and PwC mobile advertising spend study.

9 The key component of Mobile NFC - the Secure Element (SE) The TSM will be operating a SIM Hotel model where rooms are rented out to different Service Providers Why the SIM as the secure element: Consumers Portability - easily transfer services from one phone to another as well as between operators Established distribution and customer care network For Service Providers Address large share of the population: all MNOs, all phones (except iphone) Open, interoperable and standardized Highly secure thanks to direct OTA management For MNO Strengthen SIM and thus protect core business We can control the SIM and offer direct wallet customer service 9

10 The Mobile Wallet Key Principles: The Wallet (or container ) hosts many applications Every bank and service provider to have their own application Which can link to external applications e.g. Mobile Banking Enables MNO s to manage SE and customer service more easily Touch 4??? 10 Company Confidential

11 11 Thank You