Mobile wallet presentation
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Current Trends and Future ProspectsOctober 24, 2013
Mobile Wallets
Wednesday, October 23, 13
What Exactly is a Mobile Wallet?
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
‣ An application on the mobile phone that processes electronic
payments.
‣ A mobile device that has a secure element associated with it
that allows important financial and personal data to be stored
on the phone.
‣ A service that lets users integrate payment, loyalty, account
history, and financial instruments all in one application.
‣ A service that is usually targeted to cardholders, although
some offers do focus on merchants.
2Wednesday, October 23, 13
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Currently over 150 mobile wallet initiatives in the world!
3Wednesday, October 23, 13
Let’s Simplify it a Bit...
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Holistic focus Cardholder focusMerchant focus
4Wednesday, October 23, 13
Agenda
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
‣ Recent Announcements and Their Implications
‣ Consumer Attitudes and Apathy
‣ The Mobile Wallet Simple Matrix
‣ Trends for the Future
5Wednesday, October 23, 13
Agenda
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
‣ Recent Announcements and Their Implications
‣ Consumer Attitudes and Apathy
‣ The Mobile Wallet Simple Matrix
‣ Trends for the Future
6Wednesday, October 23, 13
‣ Loop rolling out mobile wallet that works at 90% of retailers‣ Boston Business Journal, October 21, 2013
‣ How Will the Isis Mobile Wallet Stand Out? ‣ All Things D, October 16, 2013
‣ Central Bank approval awaited for mobile wallet‣ GulfNews.com, October 22, 2013
‣ Mobile wallet progress stalled in 2013, but could heat up in 2014‣ American Banking Journal, October 15, 2013
‣ Google Wallet Gets an Update‣ The Street, October 17, 2013
Recent Announcements
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved 7Wednesday, October 23, 13
Agenda
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
‣ Recent Announcements and Their Implications
‣ Consumer Attitudes and Apathy
‣ The Mobile Wallet Simple Matrix
‣ Trends for the Future
8Wednesday, October 23, 13
‣ 79% of consumers remain concerned with security of payment information stored on wallet First Data Universal Commerce Tracker Study, 2013
‣ Identification of Drivers - 34% of overall respondents would use a mobile wallet to originate payments UK Study FC Business Intelligence LTD, 2013
‣ ⬆46% for smart phone users
‣ ⬆49% for 25-34 year olds
‣ ⬆55% for 18-24 year olds
‣ ⬆51% when incentive is offered
‣ However, studies in the US indicate that over 60% of consumers are not interested in a mobile wallet. Why the apathy? Consult Hyperion, 2013
Consumer Attitudes
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved 9Wednesday, October 23, 13
We have established that security is one key reason for low interest in mobile wallets...but maybe a stronger reason is in front of us in plain sight....could it be that 100% of smart phones already have a mobile wallet on them? The simple answer is YES!
Why the Mobile Wallet Apathy?
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Beyond safety issues, consumer apathy is due to two reasons:
✓Mobile wallet offers are too many and too fragmented
✓Value offering is not yet strong enough10
Wednesday, October 23, 13
Agenda
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
‣ Recent Announcements and Their Implications
‣ Consumer Attitudes and Apathy
‣ The Mobile Wallet Simple Matrix
‣ Trends for the Future
11Wednesday, October 23, 13
Mobile Wallet Simple Matrix
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Mer
chan
tsCardholders
Alternative (Cash or other method)
Traditional (Visa / MC)
Isis
Dwolla
MCX
Google Wallet
Tabbed Out
MocaPay
Cimbal
GoPago
Corduro
Western Union
YeCel
Roam X4
Level Up KuaPay
Paydiant
Mobile Pay
Corduro
PayPal P2PPayPal Here
PayPal Prepaid
Square Wallet
Square Cash
Square Reader
Square Register
12Wednesday, October 23, 13
Mobile Wallet Simple Matrix
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Mer
chan
tsCardholders
Alternative (Cash or other method)
Traditional (Visa / MC)
PayPal P2P
Square Wallet
Square Cash
PayPal Here
Square Reader
Square Register
PayPal Prepaid
Solutions on Y axis are P2P
focused
Isis
Dwolla
MCX
Roam X4
Google Wallet
Tabbed Out
Level Up KuaPay
Paydiant
Mobile Pay
MocaPay
Cimbal
GoPago
Corduro
Corduro
Western Union
YeCelLegend
Competition Clusters
Niche Solutions
Square Cash Omnicommerce Players
13Wednesday, October 23, 13
Agenda
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
‣ Recent Announcements and Their Implications
‣ Consumer Attitudes and Apathy
‣ The Mobile Wallet Simple Matrix
‣ Trends for the Future
14Wednesday, October 23, 13
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Mer
chan
tsCardholders
Alternative (Cash or other method)
Traditional (Visa / MC)
Dwolla
Cimbal
Square Register
Tabbed Out
GoPago
Square Reader
Roam X4
Level Up KuaPay
Paydiant
Mobile Pay
Corduro
Square Wallet
Isis
Google Wallet
Corduro
Square Cash
PayPal P2PPayPal Here
PayPal Prepaid
Solutions on Y axis are P2P
focused
MCX
MocaPay
Western Union
YeCelLegend
Competition Clusters
Niche Solutions
Square Cash Omnicommerce Players
Future Trend # 1
15Wednesday, October 23, 13
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Dwolla
Cimbal
Square Register
Tabbed Out
GoPago
Square Reader
Roam X4
Level Up KuaPay
Paydiant
Mobile Pay
Corduro
Square Wallet
Isis
Google Wallet
Corduro
Future Trend # 1Consolidation of vendors in competition clusters
Square to strengthen market position via increased acquisition of vendors / vendors run out of money and fall out / one or two key competing players by cluster / fewer new mobile wallet offerings / PayPal
absent in clusters
Activities and Comments
P2P cluster
Cardholder clusterBig retailer cluster
Small retailer cluster
15Wednesday, October 23, 13
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Mer
chan
tsCardholders
Alternative (Cash or other method)
Traditional (Visa / MC)
YeCel
Future Trend # 2
16Wednesday, October 23, 13
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Mer
chan
tsCardholders
Alternative (Cash or other method)
Traditional (Visa / MC)
YeCel
Strongest opportunity for new mobile wallet
development lies in this quadrant
Future Trend # 2
16Wednesday, October 23, 13
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Expect new solutions that focus on the consumer but that offer alternative means of payment outside of traditional card products.
Mobile wallets focused on direct carrier billing / non-payment mobile wallets offering payment wallets / cross offering of non-payment wallets with mobile payment wallets / barriers to entry are lowest in this
quadrant
Activities & Comments
Strongest opportunity for new mobile wallet
development lies in this quadrant
Future Trend # 2
16Wednesday, October 23, 13
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
PayPal P2P
Square Wallet
Square Cash
Square Reader
Square Register
PayPal Prepaid
Corduro
Corduro
Alternative (Cash or other method)
MCX
Roam X4
Level Up KuaPay
Paydiant
Mobile Pay
Mer
chan
tsCardholders
Traditional (Visa / MC)
Solutions on Y axis are P2P
focused
Isis
Dwolla
Google Wallet
Tabbed Out
MocaPay
Cimbal
GoPago
Western Union
YeCelLegend
Competition Clusters
Niche Solutions
Square Cash Omnicommerce Players
PayPal Here
Future Trends # 3
17Wednesday, October 23, 13
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
PayPal P2P
Square Wallet
Square Cash
Square Reader
Square Register
PayPal Prepaid Corduro
Corduro
PayPal Here
Future Trends # 3PayPal and Square battle it out to become the de facto mobile wallet of choice for merchants, however there may be room for other players in certain merchant categories
Both companies continue to expand their offering / solutions increasingly technology agnostic / Square issues a prepaid card / PayPal looks to gain strength via differentiation from other solutions / Square
purchases clones in emerging and mature markets / PayPal most likely to become dominant over Square
Activities and Comments
17Wednesday, October 23, 13
Future Trend # 4
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved 18Wednesday, October 23, 13
Future Trend # 4
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
From an end consumer perspective, mobile wallets will not exist as stand alone, payment only services.
Financial institutions extend mobile banking services to include mobile payments / partnerships between FI’s and non-FI’s increase / Apple Passbook integrates payment / exception with P2P services
Activities and Comments
18Wednesday, October 23, 13
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
Alternative (Cash or other method)
PayPal P2PPayPal Here
PayPal PrepaidSquare Cash
MCX
MocaPay
Western Union
YeCel
GoPago
Dwolla
Mer
chan
tsCardholders
Traditional (Visa / MC)
Square WalletSquare Reader
Square RegisterSolutions on Y axis are P2P
focused
IsisRoam X4
Google Wallet
Tabbed Out
Level Up KuaPay
Paydiant
Mobile Pay
Cimbal
Corduro
Corduro
LegendCompetition Clusters
Niche Solutions
Square Cash Omnicommerce Players
Future Trend # 5
19Wednesday, October 23, 13
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved
PayPal P2P
PayPal Here
PayPal Prepaid
Square Cash
MCX
MocaPay
Western Union
YeCel
Future Trend # 5A few solutions will establish themselves in niches
Solutions mostly targeted to end users and not merchants / heavy focus on alternative forms of payment outside of Visa, MasterCard, and American Express / tied to prepaid cards or gift cards
Activities and Comments
19Wednesday, October 23, 13
‣ Emerging markets are laggards in mobile wallet adoption
‣ Key Drivers:
‣ Smart phone availability (currently at less than 40%)
‣ 3G availability
‣ WiFi availability
‣ Sound regulation by government entities - ex: Brazil
‣ Solutions will be driven by mobile operators and merchants
‣ Secure element most likely on SIM Card or Cloud Based
‣ Expect these markets to catch up to mature markets in 3 to 5
years
Emerging Markets Focus
www.paytroniks.com I [email protected] I 469-271-4774Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved 20Wednesday, October 23, 13
Current Trends and Future ProspectsOctober 24, 2013
Mobile Wallets
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Wednesday, October 23, 13