Post on 13-Jan-2015
description
Slide 1
Mobile Payment Beyond the Hype Insights into the mobile space
Slide 2
Mobile payments can significantly enhance the experience and processes centered around payment
Executive summary
Current mobile payment solutions don’t offer a significant value add over traditional methods when it comes to payment functionality vs.
Payment integration involves many parties, certifications and local knowledge
Mobile payments can significantly enhance the experience and processes centered around payment
Buy 10, Get 1 Free
Slide 3
Mobile payment is predicted to be a big thing
Mobile payment in numbers
This year, more people will use mobile phones than desktop computers to go online
By 2016, mobile commerce is expected to grow to 5 times its current size
Sources // Google, Gartner, Moovweb
In 2016, there will be 448 million mobile payment users, in a market worth $617 billion 448
Slide 4
But everyone has their own definition of mobile payment
Some mobile payment variations
S // Shopper M // Merchant
Mobile as the Point of Sale
§ § PIN
M S
Mobile at the Point of Sale
M S
Mobile Shopping
S
Slide 5
Mobile payment has payment at its core and needs to fulfill four major criteria
Our understanding of mobile payment
Mobile payment
is
payment enhanced with mobile technology
!
Risk mitigation Availability Cost Efficiency
$ Secure transfer of funds
A B
Slide 6
Mobile payment solutions don’t offer a significant value add over traditional methods when it comes to payments
Current situation in payment
Debit and credit cards are still the
predominant means to pay
Mobile doesn’t fundamentally change the
way authentication and authorization are
done
Payment problem is essentially solved in developed markets and current mobile payment solutions don’t offer significant improvement in security, risk, availability and cost
Slide 7
Mobile payments can significantly enhance the experience and processes centered around payment
Advantages mobile payment technology can offer
Provide access to cashless payments for small merchants
Seen in the US, spreading world-wide
Service under-banked merchants
New workflows possible
Very specific solutions tailored to the merchant
Improve the sales process
Merchants can increase customer retention
Loyalty, couponing, targeted advertisement
Add additional services
Cheaper hardware if mobile device is already present
Cut out middle-men (P2P)
Reduce risk through better authentication and authorization
Reduce costs
Slide 8
Mobile payments can significantly enhance the experience and processes centered around payment
Two examples of the value that mobile payment can bring
Pre-ordering of food Loyalty programs
Buy 10, Get 1 Free
For all of this you need payment but this is not the most important part
Slide 9
Our goal at payworks is to provide a way payment as a component that can easily be integrated into mobile solutions
payworks positioning
Easy We set ourselves the goal to make it possible for anyone to integrate payment
We provide a platform that lets our clients process both card present and card not present transactions on one independent platform Platform
We make mobile payment stars. Our clients run our platform and their mobile payment applications on their own – under their own brand.
Slide 10
Learning: Payment requires a lot of parties to work together
Parties and hardware involved in a simple transaction flow for a credit card transaction
Acquirer
Issuer
Shopper Merchant
Card Scheme
Processing Platform
§ PIN
Hardware integration effort Payment integration effort Handling multiple parties
Slide 11
Learning: Payment integration requires many certifications
Required certifications for a simple transaction flow
Own certifications
Acquirer
Issuer
Shopper Merchant
Card Scheme
Processing Platform
§ PIN
EMV PCI
PTS POI
ADVT mTIP
PCI P2PE
PCI DSS
Multiple certifications required
Slide 12
Learning: Payment is very local
Issues we had to solve
Different countries – different rules
Different countries – different banks
Different countries – different payment methods
Slide 13
The world of mobile payment on one single platform
Visit us! Hall 9, Stand A50