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MOBILE PAYMENT INDUSTRYA GLOBAL PERSPECTIVE

Market Research

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Mobile Payment Industry Overview

The number of mobile payment transactions totalled 4.6 billion in 2010, and is expected to grow 48.8% per year through 2013 to 15.3 billion. (World Payment Report 2012)

Mobile-payment transactions are expected to surge to an estimated $600 billion world-wide by 2016, up from $172 billion in 2012. This growth is likely to be led by workers’ remittances and retail purchases using mobile phones. (Gartner Inc.)

After Google Wallet, Isis and MCX, Starbucks Corp. will invest $25 million in the company and use its technology to eventually process all credit and debit transactions at about 7,000 Starbucks outlets in the U.S

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Number of Global Mobile payments Transactions (Billion),2009–2013F (Source: World Payment Report 2012)

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Google, First Data, Citi, and Master Card collaborated to bring the latest innovation in commerce to life. Together they launch Google Wallet to millions of tech savvy consumers and merchants.Strength Weakness

• Strong brand image• Strong customer base• Equipped with advanced technology• Approaching new customer would not be that challenging due to a strong brand presence.

• Wide variety of customer, not all would easily shift to Mobile Payment• The service would be new for many customers and engaging them into a new service would be a challenge

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PayPal PayPal recently reported that their annual mobile

payment volumes will be in the $7 billion range for 2012 and expected to grow further.

One of the reasons why PayPal is so successful in mobile online payments is because it has made the transition from an online payments company to a true virtual payment engine combining both personal computing and mobile devices and providing choice to customersStrength Weakness

• Strong brand image• Strong customer base.• Equipped with advanced technology

• Weaker brand in comparison with Google. • Weaker customer base in comparison with Google.

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Isis, a mobile commerce joint venture created by AT&T Mobility, T-Mobile USA and Verizon Wireless, is working to bring together major card issuers, the four payment networks and merchants across a wide variety of categories to create an open mobile payment system. The company’s goal is to create the most consumer-friendly and widely accepted mobile wallet possible.Strength Weakness

• Equipped with advanced technology.• Collaborated with Master Card who is seen as a payment solution winner in the world.

• Weaker brand in comparison with Google and PayPal.• It would be difficult to convince customer to use this application in presence of brands like Google Wallet and PayPal.

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A group of the nation’s leading merchants formed Merchant Customer Exchange (MCX) in 2012. A new company dedicated to offering consumers a versatile mobile-commerce experience that will combine the convenience of paying at the register with customizable offers. Strength Weakness

• Collaboration of nation’s leading merchants like 7-Eleven, Inc.; Alon Brands; Best Buy Co., Inc.CVS/pharmacy; Darden Restaurants; HMSHost; Hy-Vee, Inc., Lowe’s; Publix Super Markets Inc., Sears Holdings; Shell Oil Products , US Sunoco, Inc. Target Corp. and Wal-Mart Stores, Inc.

• Weaker brand in comparison with Google and PayPal.• It would be difficult to convince customer to use this application in presence of brands like Google Wallet and PayPal.

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Bibliography

http://www.edgardunn.com/uploads/100012_english/100407.pdf

http://www.chyp.com/assets/uploads/Files/1430%20Jon%20Rutter_Lessons%20from%20TSM%20Deployment.pdf

World Payment Report 2012

http://newsroom.mastercard.com/wp-content/uploads/2012/02/Mobile-Fact-Sheet-2.24.12.pdf

http://news.paywithisis.com/wp-content/uploads/2011/08/Overview-for-Merchants2.pdf

http://www.firstdata.com/downloads/thought-leadership/MobileWalletWP.pdf

http://www.paywithisis.com/whatis.xhtml

http://www.cognizant.com/InsightsWhitepapers/Mobile-Payments-How-US-Banks-Can-Deal-with-Disruptive-Change.pdf

http://www.icr.co.jp/docs/NFC_and_Mobile_Payment_Market_Overview.pdf