Mobile Commerce in the Age of Connected Devices

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Mobile Commerce in the Age of Connected DevicesMay 25, 2016

©2015 MasterCard. Proprietary and Confidential

Key questions in mobile commerce

Who are you?



Who are you?Are you you?



Who are you?Are you you?What can you do?

©2015 MasterCard. Proprietary and Confidential©2015 MasterCard. All rights reserved.©2016 MasterCard. All rights reserved.6

The digital commerce landscape01


Device-‐based commerce is growing rapidly.

• Source: 1 Ericsson Mobility Report North America, November 2014 2 Business Insider: http://www.businessinsider.com/internet-‐of-‐things-‐billions-‐of-‐connected-‐devices-‐2014-‐1




6.1 billion by 2020

Smartphone ownership worldwide1




6.1 billion by 2020

Smartphone ownership worldwide1

Connected devices by 20182

18 billion


Commerce through devices is accelerating.

• Source: 1 MasterCard commissioned study by BCG and “Market Forces” project

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Global digital payment volume is estimated to reach $6T by 2023, representing 26% of total retail commerce (~$23T).1

$14T

$23T

$6T

$0.7TDigital

Traditional

2013 2023

Device-‐based contactless15% of commerce

In app5% of commerce

Browser6% of commerce


Smart devices are the new first-‐stop shopping channel.

• Source: 1 The New Multi-‐screen World: Understanding Cross-‐platform Consumer Behavior, Google, 2012

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65% of digital shopping starts on a smartphone.1

Mobile shopping in-‐home and out-‐of-‐home are approaching parity.1


The average consumer moves seamlessly between multiple devices throughout the day.

• Source: 1 Ericsson Mobility Report North America, November 2014 2 The New Multi-‐screen World: Understanding Cross-‐platform Consumer Behavior, Google, 2012

of U.S. households have at least three connected devices.1

90%of people move between devices during the day.2

98%of people use multiple screens sequentially to accomplish a task.2

90%

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©2015 MasterCard. All rights reserved.

MasterPassA platform to connect to consumers to digital payments


Across devices

MasterPass is designed to support any smart device across operating systems and manufacturers. This enables issuers to serve the widest range of customers from a single open platform.


Across channels

MasterPass is designed to serve consumers through every shopping channel, allowing issuers to be there at any moment of payment.

This omnichannel capability fosters a consistent digital payment experience across shopping contexts.

Contactless purchases at point of sale

In browser both on the go and at home

In-‐app purchases on mobile devices anywhere, anytime


Advanced security

MasterPass provides advanced security through a multi-‐layered approach,that includes issuer verification of the consumer, card tokenization and EMV-‐liketechnology.

These security measures deliver even greater data protection across channels and digital touch points.

User Identity &VerificationVerification of the cardholder and card

Card tokenizationCard is converted to a unique token assigned to each device

Issuer-‐approved authenticationBank approves transactionduring checkout

EMV-‐like cryptographyFor both contactless and mobile in-‐app payments

MasterCard fraud monitoringSophisticated fraud prevention and detection tools


From your bank

MasterPass partners with issuers to offer consumers the most common-‐sense path to digital payments.

This approach allows banks to offer a trusted and relevant payments solution to their customers in ways that support mass consumer adoption and use.

Bank-‐brandedSolution comes from consumer’s own trusted bank and offers the security that customers expect.

DifferentiatedProvides unique services and features—balance display, alerts, bank messaging—by connecting to bank assets.

Easy to set upOpportunity to embed MasterPass into issuer’s web and mobile banking solution for simplified setup.

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Fifth Third Converged MasterPass

MasterPass by MasterCard

What’s happening now


Source: Forrester Research, “Disrupting Finance: Digital Wallets”, April 2016


Key implications

Early movers have an enhanced opportunity to delight


Key implications

Early movers have an enhanced opportunity to delightSmartphone is often the control panel for devices


Key implications

Early movers have an enhanced opportunity to delightSmartphone is often the control panel for devicesDesign end to end experiences vs. the device experiences

Questions?

Thank you :)

Mobile Commerce in the Age of Connected Devices

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