Post on 14-May-2022
Mobile Payments – A Frontier For
InnovationPeter Keenan – C.E.O Zapp
14th November 2013
The Age of MobileWhere Are We Now?
The Chasm
Crossing the ChasmZapp
Smartphone/tablet & mobile banking adoption forecasts
Smartphone/tablet adoption Mobile Banking App (MBA) Adoption
Assumes:
• s/p launched in 2003
• 64% combined adoption
rate in 2013 (TGI)
• Reaches average of 99%
by 2023
• In line with Gartner
projections
Assumes:
• M-Banking launched in
2008
• 27% App adoption in 2013
• Reaches average of 80%
by 2023
2013: 27% (avg.)2013: 64% (avg.)
+ population growth forecast 0.5%pa (as in the Zapp commercial model)
The Age of Mobile
Where Are We Now?The Chasm
Crossing the ChasmZapp
Mobile WalletRetail /Closed
Loop
Scheme Driven Payment Platforms Direct Billing
The current payment context: A large volume of innovation but who will win?
Volu
me
Time 2013
WinnersCh
asm
The Age of Mobile
Where Are We Now?
The ChasmCrossing the Chasm
Zapp
Crossing the Chasm
Technologists Visionaries Pragmatists Conservatives Sceptics
Creators Critics &
Collectors
Joiners &
Spectators
Inactives
Adoption
profile:
The Chasm
Winning Solution
Winning Solution
TotalLLMEMEAI
1,626 8,291 18,996 14,271 7,852 51,037
+ Smartphone OR
tablet use
1,518 7,347 13,439 7,369 2,880 32,553
Population
+ Mobile banking
app use*
665 2,721 3,454 1,548 297 8,685
44% 37% 26% 21% 10% 27%
% of population with smartphone or tablet
3.2% 16.2% 37.2% 28.0% 15.4% 100.0%
93% 89% 71% 52% 37% 64%
If crossing the chasm doesn’t seem that daunting, consider the
following…..
The Age of Mobile
Where Are We Now?
The Chasm
Crossing the ChasmZapp
• After a fierce initial land grab, the solutions which will remain will be…
• Those who can scale very quickly.
• Those who find a niche.
• Those whose whose business model best integrates the following three concepts
Who will cross the early adopter / early majority chasm?
Simplicity Scale Security
• Simplicity is key to conversion.
• Simple registration, Simple Authentication, Simple Customer
Journey.
• Easier, more convenient & simpler than traditional payments.
• Seamless interoperability, no limitations on where, when, who
and how.
Simplicity
52% 45% 38% 41%55%
40%38%
38% 33%
36%
Convenient Quick &Easy
Replacecash
Replacecards
Secure
37% 35% 33% 24%37%
42% 45%27%
25%
36%
Convenient Quick &Easy
Replacecash
Replacecards
Secure
What do you want from mobile
payments?How would you describe Zapp?
CONSUMER NEEDSCONSUMER
RESPONSE TO ZAPP
Agree
Strongl
y Agree
• Huge consumer concerns center around security,
fraud and theft.
• Authentication needs to be simple but must be
%100 secure.
• E – COMM & M-COMM transactions need to be
secure and deliverables guaranteed or refunded.
Security Current Card Transactions
» You give away
– Your Name
– Your Address
– Your Card Number
– Card Expiry Date
– Your CVV
– Your Time
– …all to a 3rd Party you may not know!
Consumers state that security is the most prominent issue however concerns
are significantly lower among mobile banking users………
40
38
35
32
25
23
23
22
19
18
1713
11
8
8
6
6
1
38
25
27
24
21
14
14
16
17
20
17
7
20
1212
13
7
5
5
29
I don’t want to put my card details in my mobile phone
I don’t need this service
Mobile phones can be lost easily
Its not secure
I don't trust mobile networks
Prefer to carry and use cash
Its not private or confidential
Phone doesn’t have the capability
I wont be able to use it if my battery on my mobile…
Mobile phones have network problems
Accidently paying the wrong person
I don’t know how to use this service
There is no pin code to enter when I make a payment
Too complicated to set up
It is not widely available in my area
Its expensive
It takes to much time too make a payment via mobile
I tried it and don’t find it useful
Other
None of the above
Reasons for not being interested in mobile payments
All respondents
Mobile banking users
Mobile Payments U&A
Base: All respondents (10,010), Mobile banking users (2039)
Scale or find a niche
• Scale on Users.
• Scale on Transactions
• PayPal + eBay / Droplet + Digitising
Cash
• Dependency on a niche can be risky.
The Age of Mobile
Where Are We Now?
The Chasm
Crossing the Chasm
Zapp
Crossing the Chasm
The concentrated
brand idea for Zapp
Make paying
a simple
pleasure
HUMAN TRUTH
“It’s my #%@!-ing
Money”
BRAND TRUTH
We get out
of the way
MARKET TRUTH
Payment is
made a chore
Putting the bank account back at the heart of spending money
Sell more at lower cost
with instant settlement
Empowering the customer – putting them back in control with a simple payment experience.
The Consumer
MerchantsFinancial
institutions
The category trilemma…
Make paying a simple pleasure
Zapp is a tokenised solution which works behind the banks authentication
layer which means that there is less risk carried by distributor or merchant
Zapp uses time-limited tokens which
carry no financial information
Liability shift from distributor /
merchant to financial institution
TRADITIONAL PAYMENT
» Customer gives away
– Your Name
– Your Address
– Your Card Number
– Card Expiry Date
– Your CVV
– Your Time
– …all to a 3rd Party you may not know!
Zapp - You give away nothing, if the token is compromised then all fraudster can do is pay for
your goods!
TRADITIONAL PAYMENT
» Liability for consumer is
principally taken by the merchant
or distributor
Zapp works within the financial institution mobile banking app and
their authentication hence the financial institution is liable for any
consumer risk
Zapp’s seamless & Simple checkout experience has the potential to deliver a
significant increase in conversion rates for a typical merchant
Worked example: Dixons check out experience current
Worked example: Dixons check out with Zapp
Currys £22.99Currys £ 22.99
Customer needs to enter card details
10% conversion drop out per step in the journey
Pre-registrationneeded for addressand cards
Need to be a customer of Amazon
Single factor security
No pre-registrationwith retailer required
Two factor security
Available to ALLmerchants
One Click Check Out
14seconds
12 seconds
Time in seconds
Average E-commerce
and M-commerce
Check-out
87seconds
37seconds
(if card
registered)
ZAPPQuickPay
Drop outs decreased & conversions increased
100
25
20
20
20
1525
Start Step 1 Step 2 Step 3 Step 4 Final
Drop out of customers
throughout the
checkout process
Zapp’s seamless
check out experience
delivers significant
conversion
improvements
Beginning with 40% of
all UK bank accounts
and 60% of retailers at
Zapp we aim for…..
18m usersUsing Zapp in 36 months
800m transactionsAnnually through Zapp in 36 months
856,212 33,615,916
278,843,651
845,273,706
1,569,483,275
2,399,699,247
3,080,297,149
3,616,471,235
4,026,934,604
4,360,290,127
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
742,046
5,360,439
11,896,359
17,658,668
22,105,025
25,191,412
27,032,325
28,003,698
28,361,611
28,478,339
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
User Scale & Transaction ScaleZapp’s Projections
ThankyouAny questions?