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THE MOBILE CONSUMER:Mobile Payments and Security
Overview and History
Trends in Mobile Sales & Payments
Mobile Payment Security
Mobile Payment Trends
Who Am I?
Involved with emerging internet technologies since 1993. Wrote college thesis on Internet Banking in 1998. Website designer and filmmaker from 2004-2012. Created Bazookapps in 2012.
ABOUT BAZOOKAPPSBazookapps was created with the small to mid-size business in mind. We enhance current websites
for use on mobile devices and develop mobile applications for companies that are looking to increase customer retention, increase sales and most importantly, increase their profits. Developing a
mobile website for your business shouldnt be a scary or incredibly expensive proposition. Our belief is that by delivering an extraordinary customer service experience by getting to know your company
and its needs we can deliver the BEST mobile enhanced website to you at the BEST price.
Lets face it, in todays economy not every company has 10s to 100s of thousands of dollars to give to a big software firm. This is where Bazookapps comes in. We created our company to meet and exceed the needs and expectations of main street business; to give you a leg up on your competitors and offer you a custom application and/or enhanced website that not only doesnt break your bank
but also does something even more important, it makes you money.
Michael McCleary email: firstname.lastname@example.org: www.bazookapps.com
OVERVIEW What is Mobile Technology?
Definition: Mobile technology is the technology used for cellular communication.
Two Primary methods of Mobile Content Delivery Today:
A MOBILE HISTORY LESSON... First Pager - 1962
First Cellphone - 1973
First Digital Cellphone - 1990
Text Messaging Introduced - 1993
Blackberry Email Pager - 1999
iPhone Introduced - 2007
Android Introduced - 2008
PRICE & ADOPTION TIMELINE
* Source: whiteboardadvisors.com
Apple iOS (18.8%)
Blackberry OS (4.7%)
Windows Phone (2.6%)
MOBILE SALES TRENDS
According to CNET:
Shopping via Mobile Devices increased 81% in 2012 nearly doubling over 2011
Shoppers used their smartphones and tablets to make $25 billion in purchases last year
Mobile devices accounted for 11% of e-commerce sales last year to increase to 15% this year.
THE MOBILE GOLDRUSH eMarketer expects consumers to make nearly $87 billion in
mobile purchases by 2016, more than 27 percent of all e-commerce transactions.
Use of mobile devices for holiday shopping doubled in 2012 with 16.3% of Black Friday online sales completed on a mobile device.
In 2012 28% of consumers used a mobile device to visit a retailers site.
MOBILE COMMERCE GROWTH
THE MOBILE GOLDRUSH According to mobile solutions provider Payvia:
In 2012, 1 in 5 holiday sales came from a mobile device.
27% of gift shoppers purchased a digital good.
2012 top gifts included:
30% - digital goods
25% - consumer electronics, watches and jewelry
MOBILE PAYMENT TYPES
Mobile Web Payments (WAP)
Direct Operating Billing
Direct Mobile Billing
Online Wallets (Paypal, Amazon Payments, Google Wallet)
Near Field Communication (NFC)
MOBILE WEB PAYMENTS The consumer uses a web page to make a payment through
the browser on their mobile device.
Follow-on sales where the mobile web payment can lead back to a store or to other goods the consumer may like. These pages have a URL and can be bookmarked making it easy to re-visit or share.
High customer satisfaction from quick and predictable payments
Ease of use from a familiar set of online payment pages
ONLINE WALLET First payment:
User registers, inputs their phone number, and the provider sends them an SMS with a PIN.
User enters the received PIN, authenticating the number
User inputs their credit card info or another payment method if necessary (not necessary if the account has already been added) and validates payment
The user re enters their PIN to authenticate and validates payment
Near Field Communication (NFC) is used mostly in paying for purchases made in physical stores or transportation services. A consumer using a special mobile phone equipped with a smartcard waves his/her phone near a reader module. Most transactions do not require authentication, but some require authentication using PIN, before transaction is completed. The payment could be deducted from a pre-paid account or charged to a mobile or bank account directly.
NFC / WALLET EXAMPLES
MOBILE SWIPE DEVICES
HOW DOES IT WORK?
MOBILE PAYMENT FEES
NFC: Hardware cost ($150) + Fees (Vary: 2% - 5%)
Direct Mobile Billing: 10% to 20%
Mobile Web Payments (Varies according to merchant account)
Wallet: Varies (e.g. Google is 5% or 1.9% plus fixed rate)
Mobile swipe: 2.7% - 5%
PAYMENT SYSTEM SECURITY
Is it secure for the consumer?
Is it secure for the retailer?
Just where does all this data thats floating around in the air go and can it be intercepted?
PAYMENT SYSTEM SECURITY
The answer is yes...
Many cloud based wallets store financial data off the phone, the same with NFC.
Mobile credit card payments are encrypted.
MOBILE SWIPE DEVICES
Swipe devices such as Paypal Here and Square scramble and encrypt the credit card information after it is swiped before it is transmitted across the airwaves.
Source: Business Insider
THE TREND IS MOBILE
MOBILE PAYMENTS TRENDS
Trends we saw in 2012
Mobile Shopping, Mobile Brand Experience, 4G
Trends we will see in 2013
7 inch tablets, Mobile Payment Growth, Contactless Service, Mobile Loyalty
MOBILE WEB, APPS & PAYMENTSThank you for joining Michael McCleary for his presentations:
Going Mobile: The Future is Now &The Mobile Consumer: Mobile Payments and Security
To access the presentations you saw today, please visit our Slideshare pages on your computer or mobile device at:
Special Mobile Website Event Pricing!Visit our table following Mikes presentation and have Bazookapps create your custom mobile website at a special low price - only available at the Denver Gift, Home, Jewelry and Resort Show!
FLIP OVER FOR MORE INFORMATION