momo payments panel - ctia slides (kate kingberger
TRANSCRIPT
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CTIA- The Wireless Association
Kate KingbergerDirector, Wireless Internet DevelopmentCTIA- The Wireless Association
Presentation for DC MobileMonday
Mobile Payments:Global Perspectives and Western Implications
November 22, 2010Finnish EmbassyWashington, DC
Review of CTIA in Mobile Payments
• What is CTIA ?
• Wireless Industry Metrics = Growth
• CTIA Departments = Active and Pro-active
• Payment Types = Multiple forms for Mobile
• NFC - Review
• Common Short Codes = US and LatAm
• MFS Best Practices = Guidelines
CTIA-The Wireless Association® (www.ctia.org) is an international organization representing the wireless communications industry. CTIA advocates on behalf of its members at all levels of government.
The association also coordinates the industry’s voluntary best practices and initiatives, and sponsors the industry’s leading wireless tradeshows.
Wireless Internet Development department negotiated cross-carrier SMS in the Industry in 2003.
CTIA’s Role in the Industry
CTIA Member Based Association
• US Wireless Carriers (MNOs)
• Handset/Device Manufacturers
• Network manufacturers
• Platform providers
• Application providers
• Content providers
Review of CTIA in Mobile Payments
• What is CTIA ?
• Wireless Industry Metrics = Growth
• CTIA Departments = Active and Pro-active
• Payment Types = Multiple forms for Mobile
• NFC - Review
• Common Short Codes = US and LatAm
• MFS Best Practices = Guidelines
97,035,925
109,674,358
134,561,370
148,065,824
169,467,393
194,479,364
219,652,457
243,428,202
262,720,165
276,610,580
292,847,098
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10
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Consumer Metrics –Total Estimated Subscriber Connections
Source: CTIA Semi-Annual Wireless Survey
June 2010 ended with 292.8 Subscriber ConnectionsEqual to 93% of total US population
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200,000,000,000
400,000,000,000
600,000,000,000
800,000,000,000
1,000,000,000,000
1,200,000,000,000
Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10
Reported Six-Month Text Traffic Grows 33% Year-Over-Year
Traffic Measures –Six-Month Texting Traffic (includes IM)
Source: CTIA Semi-Annual Wireless Survey
1.8 trillion text messages in last 12 monthsUp 33% from prior period
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585 675820 858 941 1,014 1,104 1,122 1,081 1,156 1,119 1,13825
33
49 6594
147
216385
620
740 823983
11
2
3
3
6
9
1024
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$53.78 $52.19 $50.70 $49.39 $50.01 $49.81 $50.14 $49.51 $49.87 $48.89 $48.37 $48.79
0
500
1,000
1,500
2,000
2,500
Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10
Billi
ons
of M
essa
ges
/ Min
utes
Semi-annual Voice Traffic Semi-annual Text Traffic Semi-annual MMS Traffic Total ARPU (including toll & roaming)
Semi-Annual Traffic Measures –Voice & Data
Source: CTIA Semi-Annual Wireless Survey
In latest 6 months:1.138 trillion MOU982.9+ billion text messages32+ billion MMS
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Consumer Metrics – Devices and Users
Based on sequential questions:•279.5 mm total reported subscribers (overall survey) (292 mm– Estimated total)
•264.5 mm data-capable handsets – (up 7.5 million)
•243.7 mm SMS-capable devices – (up 5.3 million)
•243.5 mm web-capable handsets – (up 5.1 million)
•61.2 mm Smartphones & PDAs – (up 11.4 million)
•12.95 mm wireless-enabled laptops, netbooks, & wireless broadband modems
– (up 1+ million)
Source: CTIA Semi-Annual Wireless Survey
100%
95%
87%
87%
22%
4%
ALL
Data
SMS
WEB
Smartphones
‘net Books’
Review of CTIA in Mobile Payments
• What is CTIA ?
• Wireless Industry Metrics = Growth
• CTIA Departments = Active and Pro-active
• Payment Types = Multiple forms for Mobile
• NFC - Review
• Common Short Codes = US and LatAm
• MFS Best Practices = Guidelines
Policy and RegulatoryLobbying in DCFederal, State, Congress
Trade ShowExhibitors and Attendees
WIRELESS Show (Spring)
Enterprise & Applications (Fall)
Handset CertificationTesting and Certifying viability and safety
All Handsets available to Consumer in US market
Short Code Management CSCA – usshortcodes.com(SMS- Text Messaging)
5 and 6 digit codes using SMS to deliver programs to US consumers
CTIA – The Wireless AssociationDepartments
Other Departments: Wireless Foundation; Wireless Internet Development; Membership; Public Affairs
Publications from WIC Initiatives available on CTIA.org website include:
SMS Interoperability Guidelines http://ctiait.ctia.org/SMS-MMS/index.htm
MMS Interoperability Guidelines http://ctiait.ctia.org/SMS-MMS/index.htm
Code Scan White Paper and Marketing Paper http://www.ctia.org/business_resources/wic/index.cfm/AID/11478
Location Based Services (LBS) Best Practices and Guidelineshttp://www.ctia.org/business_resources/wic/index.cfm/AID/10331
Mobile Content Classification Rating Categorieshttp://www.ctia.org/content/index.cfm/AID/10673
Mobile Financial Services (MFS) Best Practices and Guidelineshttp://www.ctia.org/business_resources/index.cfm/AID/11507
Enhanced Messaging Use Cases and Call Flowshttp://www.ctia.org/business_resources/index.cfm/AID/11506
Review of CTIA in Mobile Payments
• What is CTIA ?
• Wireless Industry Metrics = Growth
• CTIA Departments = Active and Pro-active
• Payment Types = Multiple forms for Mobile
• NFC - Review
• Common Short Codes = US and LatAm
• MFS Best Practices = Guidelines
Payment Types Via Mobile
Mobile Payment Segment/ Scheme Description Example/ Providers
Remote Digital/ Payment to phone Bill Run by Operator & aimed at low value payments for mainly digital content
Most Operators
Remote Digital/ Premium SMS To pay for Digital content & for interactive TV
Content Providers such as Jamster & TV companies
Remote Digital / Mobile Web & WAP Billing Non-SMS based payments for mobile web digital content via WAP billing
UK’s Payforit
Remote Digital & Physical/ SMS – mobile Wallet & Account based
SMS based using a pre-registered account and/or mobile wallet
PayPal Mobile, SmartPayJieyin & PayMate
Remote/ P2P Person-to-Person
SMS based transfer of funds between two mobile phones to redeem for cash or goods. Via SMS, downloaded application, account based or via phone browser.
Obopay, Globe Telecom and Trumpet
Remote Physical/ Mobile Web & WAP billing Mobile web browser user interface with WAP billing
mPoria, Rakuten, Digby
Point of Sale/ Text & PIN & Bluetooth Text-based and Bluetooth transactions at the physical storefront
PayMate, Vodafone New Zealand, ROLLCOM
Point of Sale/ Contactless (NFC)“Wave & Pay” scheme where phones are waved in front of reader, e.g. NFC or FeliCa
NTT DoCoMo, MasterCard PayPass and Visa
Juniper Research, October, 2009 – White Paper “Sharing Money the Mobile Way”
Current Payment Methodologies Include:
Review of CTIA in Mobile Payments
• What is CTIA ?
• Wireless Industry Metrics = Growth
• CTIA Departments = Active and Pro-active
• Payment Types = Multiple forms for Mobile
• NFC - Review
• Common Short Codes = US and LatAm
• MFS Best Practices = Guidelines
What is NFC
Content courtesy of Inside Contactless, Inc. ‐ 2010
• Derived from Contactless Smart Card Technology
• Any NFC device can act as a reader and as a card
• It works via standards (NFC Forum)
Near Field Communication offers an automatic and secure RF link between electronic devices.
(mobile phones, PDAs, computers , payments terminals, etc.)
Card Emulation
Reader mode
Device Pairing(Peer to Peer)
What are the Carriers doing in NFC ?
Tuesday Nov 16th, 2010
AT&T, T-Mobile and Verizon Wireless Announce Joint Venture to Build National Mobile Commerce Network
Joint Venture called ISIS www.PayWithIsis.com
Carriers – Founding members = AT&T, Verizon, T-Mobile USA
Discover Financial Services’ - payment network (7 million merchants)
BarclayCard – first issuer on the payment network
NFC Technology- embedded in phones – Encrypted exchange of info
Review of CTIA in Mobile Payments
• What is CTIA ?
• Wireless Industry Metrics = Growth
• CTIA Departments = Active and Pro-active
• Payment Types = Multiple forms for Mobile
• NFC - Review
• Common Short Codes = US and LatAm
• MFS Best Practices = Guidelines
Mobile Payments
Mobile Payment Segment/ Scheme Description Example/ Providers
Remote Digital/ Payment to phone Bill Run by Operator & aimed at low value payments for mainly digital content
Most Operators
Remote Digital/ Premium SMS Short Code Enabled - To pay for Digital content & for interactive TV
Content Providers such as Jamster & TV companies
Remote Digital / Mobile Web & WAP Billing Non-SMS based payments for mobile web digital content via WAP billing
UK’s Payforit
Remote Digital & Physical/ SMS – mobile Wallet & Account based
SMS based using a pre-registered account and/or mobile wallet
PayPal Mobile, SmartPayJieyin & PayMate
Remote/ P2P Person-to-Person
SMS based transfer of funds between two mobile phones to redeem for cash or goods. Via SMS, downloaded application, account based or via phone browser.
Obopay, Globe Telecom and Trumpet
Remote Physical/ Mobile Web & WAP billing Mobile web browser user interface with WAP billing
mPoria, Rakuten, Digby
Point of Sale/ Text & PIN & Bluetooth Text-based and Bluetooth transactions at the physical storefront
PayMate, Vodafone New Zealand, ROLLCOM
Point of Sale/ Contactless (NFC)“Wave & Pay” scheme where phones are waved in front of reader, e.g. NFC or FeliCa
NTT DoCoMo, MasterCard PayPass and Visa
Juniper Research, October, 2009
CSCA- Common Short Code Administration
5 or 6 digit numbers •Random - Assigned by CSC Registry•Selected - number chosen from available CSCs•First number can not be ‘0’ or ‘1’, i.e. number range is 20000 to 99999
Leased, not bought•$500 per month for random codes, $1000 per month for selected codes•Lease periods of 3, 6, and 12 months•Leases may be renewed•Leases assigned to content owner
CSC assignment is the first step•CSC applications must be individually approved by participating carriers•CSC connectivity must be implemented and tested with each participating carrier•Commercial terms for CSC applications must be negotiated with participating carriers (ie standard rate or premium)•The CSCA does not facilitate any step after the CSC number assignment
Review of CTIA in Mobile Payments
• What is CTIA ?
• Wireless Industry Metrics = Growth
• CTIA Departments = Active and Pro-active
• Payment Types = Multiple forms for Mobile
• NFC - Review
• Common Short Codes = US and LatAm
• MFS Best Practices = Guidelines
Mobile Finance- Specific Published Work by CTIA Member Group
Mobile Financial Services (MFS) Best Practices and Guidelineshttp://www.ctia.org/business_resources/index.cfm/AID/11507
This was a voluntary and joint effort by CTIA member companies. Legal representatives participated.Presented to and accepted by CTIA Board of Directors, January, 2009.
Meant to be a guideline that assists Application Providers background from which to base their development and customer practices.
Important step because the members foresaw meteoric growth in this area.
Mobile Finance- Specific Published Work by CTIA Member Group
• MFS Guidelines/Best Practices (BoD, Jan 2009)
• Ensure that Liability Rests with Mobile Financial Service Providers
• Clear & Conspicuous Disclosures to Users
• Extra Layer of Security for Financial Data
• Fraud Prevention
• Compatibility Standards: Networks & Handsets
• Collection, Use and Control of Data
• Customer Service/Complaints
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CTIA- The Wireless Association
Kate KingbergerDirector, Wireless Internet DevelopmentCTIA- The Wireless Association
Presentation for DC MobileMonday
Mobile Payments:Global Perspectives and Western Implications
November 22, 2010Finnish EmbassyWashington, DC