nfc mobile payment ecosystem & business models · trusted service manager facilitates...
Post on 10-Aug-2020
2 Views
Preview:
TRANSCRIPT
NFC Mobile Payment Ecosystem & Business Models
Visa Inc.CTST 2009 Conference May 6, 2009New Orleans, LA
Forward-Looking Statements
Today’s presentations may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on our current assumptions, expectations and projections about future events which reflect the best judgment of management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by our comments today. You should review and consider the information contained in our filings with the SEC regarding these risks and uncertainties.Visa disclaims any obligation to publicly update or revise any forward-looking statements or information provided during today’s presentation.
2
Visa Mobile Strategy
Payment Value-Add
Money Transfer Acceptance
Point of Sale (POS)Mobile Visa payWave payment
RemoteVia IVR, SMS, mobile Internet
Alerts and NotificationsCustomer set parameters; Issuer triggered alerts
Remittances Cross border and domestic
Mobile AcceptanceMobile device enabled to accept Visa payments
OffersMobile offers and discounts
Visa’s mobile strategy extends Visa payment, money transfer, value-added service, and acceptance capabilities to mobile channels
3
NFC Payments
Mobile contactless payment uses existing VisaNet infrastructure and is processed like a Visa payWave card transaction
4
Mobile POS Pilot in US
United States
• Wells Fargo internal bank employee pilot with live payWave merchants to test OTA personalization and user experience of proximity payments
5
Mobile POS Pilot in UK
6
UK• Large scale mobile
payments pilot with mobile operator O2 and Barclays to test the use of mobile phones to pay for purchases, access events and transit
Mobile POS Pilot in Australia
7
Australia Program• Australia's fist contactless
payment trial with National Australia Bank (NAB) using components of Visa mobile platform to assess consumers' and retailers' reaction to mobile payments
Commercial Launch in Malaysia
8
Malaysia• Launched world's first
commercial Visa payWaveService On NFC‐enabled mobile devices in April 2009
• Worked with leading operator Maxis and MayBank, the largest issuer in Malaysia
Eco system
Collaboration within the mobile payments ecosystem continues through various forums, however, no clear business model has emergedKey forums and associations related to mobile payments
• EMVCo• ETSI• Global Platform• GSMA• Mobey Forum• NFC Forum• SmartCard Alliance
standardsbodies
paymentnetworks
banks
mobile operators
vendors
Stakeholders in Ecosystem
Payment Network
There are several stakeholders in the mobile contactless payments ecosystem
Issuer
Credit/debit/prepaid card issuer on mobile
Secure Element Provider
UICC vendors, secure memory card vendors, embedded SE vendors, & chip vendors
Handset Provider
Manufactures NFC enabled handsets
Trusted Service Manager
Facilitates application lifecycle management between mobile operators and issuers and provides
Merchant/ Acquirer
Process transactions and operate contactless enabled terminals at the Point of Sale
Mobile Network Operator
Provides mobile network & potentially rents UICC slots for NFC applications
10
Stakeholder Benefits in Ecosystem
Each stakeholder hopes to derive benefits from mobile contactless payments
Issuer Merchant
Mobile Network Operator Trusted Service Manager
Secure Element Provider Handset Provider
• Higher payment volume due to additional transactions resulting from cash displacement
• Intangible benefits like being first to market, innovator, etc
Benefits • Higher throughput due to convenience and speed• Savings from lower cash handling• Vehicle for sophisticated loyalty programs• Increased differentiation through innovation
Benefits
• New revenues streams (e.g. “rental" fees for hosting payment & non‐payment applications)
• Lower churn due to “stickiness”• Higher ARPU from increased usage• Opportunity for differentiation
Benefits • Fees for over the air services including card issuance, updates and lifecycle managementBenefits
• Higher revenues from increase in chip salesBenefits • Revenues from NFC handset sales• Increased differentiation through innovation
Benefits
Business Model Scenarios
There are various scenarios for a business model between Mobile Network Operators and Banks
• Co-Marketing Model• Software as a Service Model• Content Model
12
Summary
NFC Momentum continues to accelerate
Visa launched world’s first commercial contactless payment service on NFC phones in April 2009
Technology is ready, but no clear business model has emerged
Visa acknowledges that there are different business models in different territories and is flexible
Visa Mobile Platform paves the way to commercialization
13
top related