Leather Wallet: The Next Watch?

Mobile Commerce

Everyone is a walking cash register

$275/sec on mobile commerce

$1 million during this hour long talk

“Wallets are becoming as unnecessary

as watches” – Denise Lee Yohn

2025

Emergence of Mobile Commerce

1997 Birth of mobile commerce was in Finland

Emergence of Mobile Commerce

1998 The first sales of downloadable ringtones

Emergence of Mobile Commerce

1999 A mobile platform for mobile commerce was launched in Philippines

mobile listings

800k 100m 1.8 m new users made first

purchase on mobile Jan-Sep Q3

new customers solely through mobile in Q3 2012

Mobile 3-4 times more valuable than desktop 1000 cars a week Women’s handbags sold every 30 second on eBay

Mobile Ordering

0%

10%

20%

30%

40%

50%

60%

18 months ago Today

Many from inside the four walls

1 Out of Every 3 Exclusively on Mobile

EMEA is the mobile money hot spot

In 2011, EMEA accounts for 41% of mobile transactions value North America 35% Asia-Pacific 22% Latin America 1%

Yankee Group (June 2011)

Users are readily adopting mobile banking

• Yankee Group (June 2011) predicts that there will be 500 million m-banking users globally by 2015.

27%

13% 11%

9%

0%

5%

10%

15%

20%

25%

30%

Mobile Banking M-Commerce Mobile Coupons Mobile Payments

Reach Your Customers

99% of the time they are not in your store

or in front of their computer

TOUCHPOINTS

Tablet + Smartphone Smartphone

60% 30%

Retail Systems Research

More than half of mobile shoppers were likely to make a purchase using a mobile app during 2013

Adobe

More convenient customer experience More consistent store execution/employee productivity

Retail Systems Research

As many as 40% of consumers say they are consistently disappointed by the sales associates they encounter in retail stores.

eXperticity

Post Transaction

EXAMPLES

Pizza Hut earned $7 million in sales in the first year after launching a mobile ordering app

75,000 bookings

£10 million over a 6 month period

Amazon

• Recommendations • Categories • 1-Click purchase

Walmart

TIPS

Apps Drive Engagement, Browsing Wins on Tablets

Retail Category Browsing Can Vary Considerably by Platform

Web or App?

• Performance • Cost • Maintenance • Compatibility • User Experience

Are you losing your mobile customers?

• 47% of users abandon checkout pages due to payment friction – Too many fields – Too small of a screen and keyboard – Too much time – Poor brand experience

Simple and Quick

A 1 second delay in a page can reduce conversion by

7%

That’s $2.5M in sales for a site that does $100K/day

Simple and Quick

47% expect pages to load in 2 seconds

40% leave if it takes more than 3 seconds

79% are less likely to use the site again

52% say load time is important to loyalty

Distractions are Everywhere

RESPECT THE FINGER

No mouse

No HOVER

Fitt’s Law

Search

Search

Hick’s Law

Apple

Apple

Orange Apple

Apple

Apple

Apple

Apple

Apple

Apple

Apple

Orange

Apple

Apple

Apple

Carts Across Platforms

26% of females and 16% of

males abandoned a cart

because they wanted to

complete the purchase later

Optimize Your Emails

56% of US consumers who have made at least one purchase using their smartphone have done so in response to a marketing email

ExactTarget

36%

33%

31%

28%

30%

32%

34%

36%

38%

Mobile Desktop Webmail

Open Rate

IN-STORE PAYMENT

Mobile POS

Starbucks is now averaging a million mobile transactions/week tenfold increase year-over-year since January 2011 launch

11% of transactions 10 million customers

Free card reader at stores Starbucks infusion

HOW NFC FITS IN

53% Phones NFC-enabled by 2015

46% Mobile Phones Will Be NFC-Enabled by 2016

MarketResearch

Frost & Sullivan

Frost & Sullivan

42.3% Europe’s mobile payments in 2015 via NFC

Visa Europe forecasts breakout year for NFC

40 Mobile contactless payment issuers in Europe (2013)

80 Types of smartphones certified by Visa

500M NFC devices in use by 2014

ABI

Gartner

Cuts NFC mobile payments forecast by

40%

Berg Insight

One in Three

mobile phones to come with NFC by 2017

Strategy Analytics lowers NFC payments forecast

NFC will not power US mobile payments: Forrester

• Google Wallet separation

• iPhone reluctance

Jumio updates card scanning tech for faster mobile checkout

FINAL THOUGHTS

Shaping the Future

• Customers spend more time on their mobile devices than desktops

• Mobile shoppers are more focused • Click-through rates are higher on mobile than

desktop • Mobile shopping peaks at night • The importance of the mobile web

The Zero Option

Drivers for Mobile Payments

• Virtual Gift Cards

• Wallet (loyalty)

Virtual Gift Card

The future of the Mobile Wallet is not in payments, but in organizing it

Passbook

• Store – Loyalty cards – Promotions – Coupons – Tickets

• 82,000 Sephora Beauty Insider cards added in first week

PayPal + Samsung fingerprint

Remote Control of Shopping • 31% of consumers highly trust retailers to

protect their personal data.

• 34% of consumers are interested in scavenger hunt promotions

• 35% of consumers are interested in ‘beat the clock’ specials

• 29% of consumers were interested in getting on-demand advice

Three Important Developments For The Future Of Mobile Commerce

• Snap to Buy with mobile image

recognition

• Apps that go beyond simple online

shopping

• Better engagement with brands

FUTURE CURRENCY