Mobile NFC outside Europe Ernő Borsos Managing Director – South East Europe Agenda 1. 2. 3. 4. 2 Mobile Payment intro Snapshot of the US market 80 seconds around the world QnA Mobile payment landscape is in permanent evolution… … and still more to come (BLE, Coin, Biometrics, xCoin etc…) 3 NFC commercial roll-outs … Payment 4 Gemalto confidential – Distribution under NDA only …. leveraging on EMV Contactless Infrastructure 3 short term opportunities…. PAYMENT RETAIL MASSTRANSIT 5 Payment is not an isolated service Its take off and mass adoption is connected to other proximity services Transport spurs the payment Retail services spurs the payment Payment spurs transport & retail 6 Highlights  Mobile payment (NFC included) cannot be about emulating plastic cards in a handset  The business model must include additional services to consumers and Service Providers  Consumers expect to get better deals from mobile solutions than from cards  Better information  Better offers, Location based  Better prices  Transport is also a favorite use case  Payment as a standalone application stays behind 28/04/2014 7 Highlights  Retail is at the center of mobile payment/commerce battle  A new type of competition provides m-POS, « m-tills », cloud services, and new payment schemes.  Retailers mainly expect three things: • Better reach. Mobile marketing. Fight between OTTs and MNOs • Advanced profiling. Analytics. Fight between MNO, Banks and OTTs • Avoid « showrooming ». Shopping experience, in-shop deals. Tag based  Consumer are ready to share personal information if it results in better deals 28/04/2014 8 Consumer expectation  Ergonomics  Complete and organized set of mobile services  Anywhere, anytime  Fast and convenient means of payment  Complete set of mobile banking services  No additional charges or less charges  Stop queuing at the vending machines, even when roaming  Instant access to traffic information  Same means of payment for retails inside the transport infrastructure     Pay less (coupon, loyalty point, daily offers) Information on products and competition, retail location Easier management of coupons and loyalty cards (storing, sorting, redemption) Better suited or tailored offers  NFC available from their favorite brand  Trust: Security, Privacy 9 Consumer expectations 2/3 59% 1/2 68%: Provide convenience, ease of use for payment 59%: Enable to carry less cash, fewer cards 52%: Allow to receive mobile offers, store discounts Disclaimer: US statistics 45% 41% 10 45%: Allow to redeem points or offers directly from phone 41%: Improve loyalty rewards Willingness to share personal data may vary from country to country 11 A new NFC shopping experience Isis is an NFC Mobile Wallet application available in the US. It allows end-users to pay, redeem coupons and get loyalty points with their mobile phone. 12 What do you have in ISIS Wallet ? Payment American Express Green Card Capital One MasterCard Coupons Chase Freedom Visa ISIS Cash Visa Prepaid > Your credit and debit cards > Your reloadable Isis Cash card > Loyalty cards Loyalty Membership and loyalty programs > Personalized offers > Account details and purchase records Who’s behind ISIS? Top 3 US Wireless Carriers TSM 2 banks and more to come… 3 Payments Networks +++Merchants Isis trial confirms: Loyatly is attractive and boosts usage Retail spurs payment 2/3 7 Two-thirds of active users opted in to receive offers and messages The average user is following seven brands, (an American owns an average of 18 loyalty cards, only 2 are active) X2 wallet users engaged in loyalty and offers tap up to two times more frequently than users who only make payments 90% More than one-third of active Isis Mobile Wallets users in Austin have loaded a My Coke Rewards card 90 percent of these are new to the My Coke Rewards program 2/3 Two in three Isis users have added a payment card to their Isis Mobile Wallet Source: NFC World 28/04/2014 15 ISIS Adoption Activated ISIS Wallets +50% users monthly Q2 2013 Percentage of contactless POS 0% Slovakia Poland China Hungary Brasil UK Australia Spain France Italy US Netherlands 16 5% 10% 15% 20% 25% 30% 35% 40% 45% Q3 2013 Q4 2013 Q1 2014 Communication Generating expectation first and then educating about benefits Deploying NFC Use Cases Ergonomics: One is enough 1 Wallet 1 Tap Pay Redeem coupon Collect loyalty points 18 1 Pin Open wallet Tap Sign Efforts at shops POS at Verizon Stores With demo and describing features and benefits Product demonstration available, where users can play with the wallet and experience TAP Including PoS clear indication of the offer and NFC enabled handsets Clear display of NFC enabled handsets POS material describing Offer, features and benefits ez-link services On the Move Hassle-Free Top-ups Over-the-Air (OTA) Top-up #1 card used by commuters for public bus and train Retail therapy Top-up also possible at bus interchanges, ATMs, convenience stores and post offices. Loyalty Payments are easy with over 10,000 payment acceptance points in Singapore. 22 Gemalto Confidential Rewards points for every dollar spent. Payment, Transport, Couponing, Loyalty, Mobile gifts: T-Money 60,000 shops accept transactions & payment 108 brands affiliated 30M NFC handsets, with 50% of owners being active users 27 Gemalto Confidential •Over 24 million Octopus are now in circulation •95% of those between the ages of 16 and 65 have an Octopus •Octopus processes over 11 million transactions a day (6 million population) •Daily transactions are valued at over HK$110 million •More than 10,000 retail outlets from over 4,000 service providers accept Octopus •There are more than 60,000 Octopus readers all over Hong Kong •Over 2.5 million Octopus registered under the Octopus Rewards Programme 28 Gemalto Confidential Enriching the shopping experience Shop on the platform Be delivered home Combines - The best user experience ever - Infinite number of opportunities for - Mobile marketing - Loyalty - Couponing -Location based offers - On line payment Gemalto : Over 50 TSM references Vodafone Group (2011) T-Mobile Group (2011) Barclaycard (2010) Orange France (2010) TIM (2011) SIA (2012) KDDI (2011) Chase (2012) PCCW ISIS (2011) Hang Seng Bank DBS (2012) Ez-Link (2012) TIM MNO TSM SP TSM 31 SingTel (2012) M1 (2012) StarHub (2012) Thanks Contact Gemalto to engage and know more about the NFC opportunities Follow us on www.gemalto.com