Mobile Payments Evolution
-
Upload
solstice-mobile -
Category
Technology
-
view
411 -
download
0
Transcript of Mobile Payments Evolution
www.solstice-mobile.com2
there are different companies, industries and
technologies involved in
mobile payments
www.solstice-mobile.com
Money rendered for a product or service through a portable electronic device such as a cell phone, a smartphone or a wearable.
3
what exactly are mobile payments?
www.solstice-mobile.com4
Today, evolution is accelerating exponentially
because of increased consumer interest coupled with a trend of companies investing in transaction friction reduction.
www.solstice-mobile.com5
This means that these advances in mobile payments are going to continue to happen, and at a faster pace than we have seen before.
www.solstice-mobile.com
Right around 2014, yearly gaps are becoming
monthly gaps for new technologies to be invented.
New companies are constantly getting involved.
www.solstice-mobile.com7
1997 Coca Cola Vending Machine via text messages
1998 First downloadable ringtones
1999 Integrated payments with i-mode
2012 Apple Passbook introduced
2011 Google Wallet with NFC debuts
2014 Apple Pay introduced
2004 First text to donate system
2006 Paypal P2P via text messages
www.solstice-mobile.com9
Point of Sale (in person) Apple Pay
Google Wallet CurrentC Starbucks
Samsung Loop Microsoft (rumor)
Peer 2 Peer (P2P) Facebook
Paypal Venmo
Chase Quickpay Square Cash
Credit Card Enhancer Coin Plastc Stratos Wocket Walla.by
mCommerce Paypal Checkout Amazon 1-Click
Paypal One Touch Visa Checkout
Apple Pay Android Pay
www.solstice-mobile.com10
Google Wallet: 4% of mobile payments market (source: ITG)
Apple Pay: 1 - 1.5%of mobile payments market (source: ITG)
Launches Samsung Pay in 2015
right now, there’s no clear leader
www.solstice-mobile.com11
why is that?
Many players Many use cases Divergent goalsDiverse consumer base
www.solstice-mobile.com12
F I N A N C I A L S E R V I C E S R E TA I L G I A N T S S TA R T U P S
www.solstice-mobile.com13
Merchants and retailers can still have
an impact
why is it important now?
Mobile is still new
The omnichannel experience
Non traditional players can and have an impact
Mobile wallets will eat up
physical wallets market shares.. sooner or later
www.solstice-mobile.com14
source: McKinsey
new checkout experiences
Conveniently paying with points
Custom offers and promotions
what’s in it for the users?
15
of Millennials Prefer Non-Traditional Payments (source: FICO)
Millennials Distrust financial
institutions: 71% would rather go to
the dentist then talk to a banker (source: Scratch)
www.solstice-mobile.com
of Millennials have already used mobile payments (source: Accenture)
of mobile payments are made by millennials (source: Nielsen)
52%
millennials leading the way
45%
55%
www.solstice-mobile.com16
In order to succeed in mobile payments, , you have to combine both the merchant and the shopper.
www.solstice-mobile.com17
what’s in it for the providers?
Harness the power of data
Lock into services Revenue Loyalty
www.solstice-mobile.com18source: Forrester
mCommerce $42.5 Billion
In-person payment $3.7 Billion
Peer-to-peer transfer $5.25 Billion
$51 billion market in 2014
www.solstice-mobile.com19
Business Intelligence
2018: $750
Billion
2017:
$718 Billion
Gartner
2018:
$707 Billion
Juniper
worldwide united states
2019: $142
BillionForrester
www.solstice-mobile.com20
M-Pesa is used by 92% of Kenyans
54% of transactions on Alipay are on mobile in
Paytm is used my 50 million
individuals in India
mobile payments are already wildly popular in other parts of the world
www.solstice-mobile.com21
● Host Card Emulation - Google Wallet, Samsung Pay
● Virtual Card - Google Wallet
● Tokenization - Apply Pay, Samsung Pay, Android Pay
technology used by the leaders in the industry
www.solstice-mobile.com25
samsung pay
MST (loop pay) Works at more than 90% of existing terminals
www.solstice-mobile.com26
FOR PHYSICAL MERCHANTS: ● POS terminals that support NFC and tokenization
FOR APPS: ● Use PassKit framework ● Physical goods and services only, otherwise use In App Purchases (IAP) ● Need to use a payment processor or gateway. ○ Some processors have Apple Pay SDKs
integrating apple pay
www.solstice-mobile.com27
● API to allow developers to integrate payments. ● Google Wallet will use it. ● More details will likely be revealed at Google I/O on May 28 ● Will offer tokenization
here’s what we know so far about android pay
www.solstice-mobile.com28
Pay with Wearables
Apple Pay
Facial Recognition
CurrentC
Voice Purchase
Technology Trigger
Peak of Inflated Expectations
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Maturity
Vis
ibili
ty All emerging technologies go through a hype cycle. As soon as
new technology triggers ‘never been done before’ experiences, the hype begins to build. The end of the hype cycle, like pay with wearables, will be moving into the mainstream
mobile payments hype cycle
www.solstice-mobile.com30
On-Demand Services
mobile payments enable new experiences
www.solstice-mobile.com31
digital physicalMobile, beacons, IoT, and wearable technologies are blurring the lines between
physical and digital experiences.
www.solstice-mobile.com32
This means omni-channel journeys need to be seamless and more engaging as customer’s
tolerance for clunkiness plummets.
www.solstice-mobile.com33
You will see consumers switch to whatever brand
or service offers them best experience, even if that
means abandoning their previous brand loyalty.
www.solstice-mobile.com
www.solstice-mobile.com34
what’s next?
DEVICES INTERNET TV MERCHANT METRICS CULTURE SHIFT
www.solstice-mobile.com35
what’s next?DEVICES• The devices people own will play a larger role in their payment. • Payments are constantly evolving - the lines are “blurring” between digital and physical. • Digital interactions will require less and less action on your part to achieve your goal,
whether that goal is opening a bank account or buying lunch.
www.solstice-mobile.com36
what’s next?INTERNET TV• Internet TV hardware, such as Apple TV and Chromecast, will enable
payments over your TV • When you see an ad for something you are interested in, you will be able to
buy it then and there.
www.solstice-mobile.com37
what’s next?MERCHANT METRICS• Merchants will continue to contend with chicken and the egg problems for
constantly implementing software and hardware solutions on their end to play with these emerging forms of payment.
• The right strategy for merchants is to experiment on a small-scale and rollout larger deployments based on key success metrics, however they choose to define that success.
www.solstice-mobile.com38
what’s next?CULTURE SHIFT• There is a cultural and psychological issue that mobile payments are
contending with, and winning. • Millennials are very wary of bankers — a lot of startups in the mobile banking
space are keenly aware of this and building their products accordingly. • Some people and cultures rely more heavily on cash because they trust it. • Subscription services are gaining prevalence because they appeal to busy
people, and time is becoming a resource just as much as money. • People’s thought process around payments is shifting from “Is this the lowest
price” to “Will this save me the most time.”
www.solstice-mobile.com39
how frictionless is too frictionless?Do we want brands or services automatically buying things for us
based on predictive analytics past on our past history?
The answer is that it will be different for everyone.
www.solstice-mobile.com40
the digital & physical worlds are merging in
new and exciting ways
www.solstice-mobile.com41
Technologies are being cross-fertilized and pollinated across all industries, and unlocking brand new customer experiences that
we have never thought of before.
www.solstice-mobile.com42
“The best type of payment is the payment you don’t see. You want it to be invisible.” - John Lunn, former Global Director of Paypal
thank youwww.solstice-mobile.com [email protected] 866.380.8472