mcommerce: a global perspective · 6/2/2011 · sybase has mcommerce deployments in 25+ countries...

MCOMMERCE: A GLOBAL PERSPECTIVE

CARSTEN KRESS SENIOR DIRECTOR SALES, EMEA

MAY 31, 2011

2 – Company Confidential – June 2, 2011

SOME (OLD) WORKING DEFINITIONS

…. but over time these definitions have blurred

Account balances

Transaction History

Account details

Card Management

PIN Management

Complaints Management

Fraud Notifications

Account alerts

Wallet management with multiple sources of funds

Top up of any prepaid phone directly or via vouchers

Remote and proximity payments

P2P / Mobile Money Transfer

Bill payments

Microfinance solutions

Mobile cash in and cash out solutions

Money transfer from an agent, a wallet or account.

Remittance to an agent, a wallet or into an account

ATM cash-outs without a card.

Airtime Transfer across borders.

mBanking mPayments and

mTopup mRemittance


THE EVOLUTION OF MOBILE BANKING

& OTHER MOBILE COMMERCE SERVICES


MOBILE BANKING IS EVOLVING

We’ve been saying this for five years now, and you can now see this happening

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Address the Mobile Channel

• Alerts & Notifications push SMS

• Messaging services

• Alerts Engine

The New Return: Cost savings from Mobile

• Simple interactive mBanking

• Balance

• Statements

• Silo platforms for SMS, WAP and Rich Client

• Unified platform

The New Growth: Innovative fee based services

• Value add interactive mBanking

• Funds transfer

• Bill Pay

• 2FA

• Panic Pay

• mBanking Platform for quick launch of innovative services

The New Value: Mobile Financial services

• mPayments

• Macro-Payments

• P2P

• Remittance

• NFC

• Top-Ups

• mCommerce Platform

• Mobile Wallet

1 2 3 4


ALL MCOM SERVICES ARE NOW EVOLVING

But it isn’t just mobile banking that is evolving, all mobile commerce services are

mBanking mPayments mRemittance

Mobile Financial Services

mVouchers Customer

Engagement Loyalty Marketing

Mobile CRM

The Path for FIs

The Path for Enterprise

Mobile Commerce


A GLOBAL PERSPECTIVE

WHERE AND HOW IS THIS EVOLUTION TAKING PLACE?


OUR VIEW ACROSS THE WORLD

Sybase has mCommerce deployments in 25+ countries

USA

Canada

Chile

Mexico

Germany

Austria

Egypt

Kenya

Nigeria

South Africa

Singapore

Malaysia

Qatar

Russia

Albania

Bangladesh

Nepal

Barbados

Dom. Republic Trinidad

Indonesia

UAE

Saudi Arabia

Thailand


BANKING EVOLUTION

Evolving from mobile banking to mobile payments

Compass Bank, US

Commercial Bank, Qatar

• Compass a regional US Bank owned by BBVA, Spain

• Banking when and where customers want it – Full Mobile Banking Implementation – Check balances – View “posted” and “pending” – Transfer funds between accounts

• Qatar’s largest private bank • Multi-Channel Access via iPhone,

Blackberry, Mobile Internet , USSD and SMS for – Banking – Bill Payments, – Funds Transfer, – Remittances

DZ Bank AG, Germany

• Looking for the next mobile service after mobile banking

• Launching mobile top-up as first of these new services

• Full range of mobile payment services to follow

Banking

Payments


MOBILE OPERATOR EVOLUTION

From PSMS to real-world goods and services. From single payment service to banking

Singtel, Singapore

• The subscriber’s mobile phone is linked to a credit/debit card account.

• The Land Transport Authority (LTA) is the first merchant that utilises MobileP@y for consumers’ convenience.

Celcom, Malaysia

• Incumbant and largest Malaysian operator • Mobile payment proposition

with USSD interface including TopUp, P2P, remittance, bill payment

• Rolling out remittance solution cross the Axiata Group

Payments

Banking

Vodafone, O2, & T-Mobile Germany

• mPayment standard initiated by Vodafone and o2, other operators invited – Sign-up for all postpaid subscribers via opt-in – Any other subscriber can sign up online

• Payment processing via direct debit through PSP with banking license

• Focus on secure online payments, mCommerce, NFC


INDEPENDENT FI EVOLUTION

Rapid movement of customers from simple payments, through bill pay to banking

Mobikash, Kenya

• Independent of mobile network operators

• Linked to the banks, MFI & SACCOs

• Remote bank A/C opening, remote bank loan application, payments

• Scratch card based

• Focus on SME

• Street agents — anywhere, anytime

Payments

Banking


A GLOBAL PERSPECTIVE

WHY THIS IS RELEVANT?


"Everything that can be invented has been invented." Charles H. Duell

Director of U.S. Patent Office, 1899

A PATENTLY FALSE PATENT MYTH, SAMUEL SASS, THE SKEPTICAL INQUIRER, VOL 13 (SPRING 1989) PP 310-313


NEW DEVELOPMENTS IN THE MARKET HAVE PARALLELS ELSEWHERE Competitive threats from Operators

OPERATOR MOBILE PAYMENTS JV mpass in Germany enables mobile payment services for customers of 3 of the 4 major operators

MOBILE NFC

Mobile NFC service trials at paybox Austria


NEW DEVELOPMENTS IN THE MARKET HAVE PARALLELS ELSEWHERE Addressing new market segments

BILL PAYMENTS, MONEY TRANSFER & REMITTANCES

ADDRESSING HNWI & UNDER BANKED

Celcom’s Aircash: New customers can sign up from their phones

Commercial Bank of Qatar addresses both the banked, and services for migrant workers including remittance


MOBILE PAYMENTS MIRROR CARDS

Mobile payments have moved past PSMS, and are starting to mirror card schemes

2 Party

• Merchant Run

• Example: Store Card

• Quick to setup

• Limited suitability

• Business model: Avoiding Interchange

3 Party

• Issuer Run

• Example: American Express

• More complex to set-up

• Wider range of application

• Business Model: Fees

4+ Party

• Scheme Run

• Example: MasterCard

• More Complex in set-up and billing

• Wider range of application

• Business Model: Interchange


GAINING AN EVEN WIDER PERSPECTIVE


This guide is full of paradigm-shifting examples of mCommerce at work. For those who need and use the services that mCommerce has to offer, the benefits range from speeding up economies to life-changing improvements. For merchants, operators and banks, the new channel offers another way to grow business and revenues while meeting the financial needs of customers.


BY THE NUMBERS

•37 articles including contributions from

• Analysts & Consultants

• Banks, Operators and Independent service providers

• 2Industry associations

•Covering

• Mobile banking, payments, remittance and mCRM

• Every continent*


PROVING INSIGHT IN TO:

• What is mobile commerce landscape today?

• Who should be offering what services?

• What services should you be offering?

• The ROI for mobile commerce

• Building an Ecosystem/finding partners

• Planning for the future

• Best practice

• How NFC will impact existing and future service?

• … and much, much more


CONTACTS

EMEA Carsten Kress Senior Director Sales EMEA [email protected]

Asia Tarik Husain Director, Business Development [email protected]

Americas David Youker Senior Director Sales [email protected] Al Manzelli Director, Business Development [email protected]

mailto:[email protected]





Mobile banking provides ease, accessibility and convenience for customers, in addition to portability, security and enhanced functionality such as alerts to enable more proactive banking services.

WHAT IS MOBILE COMMERCE LANDSCAPE TODAY?

Mobile phones are delivering safe and stable payments and money transfer systems in countries that have highly developed mobile networks but lack a widespread banking infrastructure

The market consists of payments players (traditional banks, payment brands and processors, and established non-banks) and mobile telecommunications players (mobile operators and start up technology providers).

In general, the smaller countries are leveraging their ability to move more quickly vis-à-vis the larger countries in their deployment of mobile payments solutions.


Banks are teaming up with operators in smaller countries, or they’re working to build their own systems.

WHO SHOULD BE OFFERING WHAT SERVICES?

Many operators have launched services, but not all have been successful—the uptake has not been nearly what was expected. Many obstacles still must be overcome. Operators must establish a pseudo-bank look and feel, which takes them out of their depth.

Some banks have also launched services without sufficient research—maybe they launched bill payment for people on the go, but in reality people didn’t pay bills on the train

The question of what kind of company should set up a mobile payment method is complex, but mobile operators are uniquely qualified for this function. Their accounting systems have handled customer billing relationships for decades, and mobile customers are already familiar with paying for mobile (digital) content with their mobile phones. So it makes sense to extend this asset to a mobile payment system that also allows billing for physical goods.


The North American market has time and again proven arguments for single-use mobile solutions to be flawed or at least short-lived

WHAT SERVICES SHOULD YOU BE OFFERING?

Financial institutions need to pursue strategies that target the three waves in mobile financial services: mobile self-service, mobile payments, and mobile self-marketing.

paybox austria is now Europe’s most successful mobile payment method, the second most popular payment mechanism in that country

The first step toward mCommerce in these countries has been mobile top-up, which is the way a person adds credit to a mobile phone account.

It’s important to understand what unique demand conditions exist in a country as the starting point for service design


$2 billion in mobile money transactions that occurred in 2009 is expected to grow ten-fold to $22 billion by 2012. Mobile remittances, or phone-to- phone transferring of funds, stood at $11 billion in 2009, and should reach $68 billion by 2012. And that’s before we consider alternative forms of mobile value, including vouchers, coupons and loyalty points.

THE ROI FOR MOBILE COMMERCE

(LatAM) with 152 million households, an average annual remittance per family of $400 and a total annual remittance figure of $58.8 billion (2009), inflows of funds from abroad exceed 10 percent of the region’s nominal GDP

mCommerce is replacing cash on the street.


Bank of America, for example, realized an annual savings of $110 million by deflecting calls to mobile self-service channels.

THE ROI FOR MOBILE COMMERCE

Banks making investment decisions for retail banking in the United States have been challenged to define revenue-based business cases. After all, retail customers expect the bulk of bank services to be free of charge. Treasury management, however, is an entirely different story. The average dollar value of a B2B transaction dwarfs that of C2B—and typically carries with it incomparable urgency.


They (telcos) do recognize that new revenue sharing models with new partners will be required to expand beyond small ticket digital purchases and intend to play a key role in the payments value chain.

BUILDING AN ECOSYSTEM/FINDING PARTNERS

A small vendor can have a virtual POS machine on his phone and accept payments. mCommerce is bringing success to smaller merchants.


The spread of tablets may be the ultimate catalyst for corporate mBanking, as the larger form factor offers better potential for reporting, analysis (including graphs), and exception processing.

PLANNING FOR THE FUTURE

(Africa) moving on from the P2P money transfers that started it all toward advanced and niche payment products, disbursements, government collections, real-time settlements, loyalty programs and mobile advertising, as well as micro insurance, micro health and micro savings. Mobile technology is open

enough to adapt and customize services without making any major changes in architecture.


Security concerns are an absolute showstopper for This fear hampers U.S. consumer acceptance of mCommerce. U.S. financial institutions and mobile operators will have to prove to consumers that mCommerce is safe, as well as fast, dependable and simple to use. Consumers typically don’t practice safety habits because doing so is inconvenient.

BEST PRACTICE

The decision to make mobile sign-up automatic requires a change in the mindset of bank product managers

Consumers will adopt a new payment method only if it’s more convenient than what they’re already doing.


NFC technology in the United States faces a number of challenges, from the hardware upgrades required on phones and the point of sale to the coordination of numerous competing/collaborating entities. But banks need not wait on NFC to implement a market-moving mobile strategy.

HOW NFC WILL IMPACT EXISTING AND FUTURE SERVICES?

Near-Field Communications (NFC)technology is a perfect example of how the fractured, regional approach is jeopardizing the development of a single, global standard.

mcommerce: a global perspective · 6/2/2011 · sybase has mcommerce deployments in 25+ countries...

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