Mobile Impact on Payment Evolution

Contention

Evolution of mobile payments will have as disruptive an impact on today’s payments as credit card did on checks & cash

The future is coming & fast

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Cost

Opportunity

Mobile payment revolution

#1 Interact Channele-wallet realization

Pay-net reformation

Interactive model

Ubiquitous channel

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Mobile drivers of payment evolution

• Any source, any type, anywhere, any time

• ‘Full relationship’ model• Trust & acceptance branding moves

to mobile e-wallet• Flexible funding models• Consumer usage controls • Electronic issuing

e-wallet realization Pay-net reformation

Interactive modelUbiquitous channel

• Natural adoption progression• Convenience factor• Social use influence

• Front-end becomes mobile hub• 2-part select/approve process• Consistent network mechanics• Transaction compatibility• Interchange rate competition• Condensed acceptance branding

• High customer touch• Customer choice driven• ‘Always on’ identity validation• On-demand offering

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Mobile evolution outcomes

Rise of e-wallet e-wallet presence vs. wallet share Family/social network helps drive e-

wallet choice Situational/offer driven pay source

choice Customer service to mobile Micro-issuing feasible Disappearance of cards NFC not key requirement Move to electronic issuing

Security leap Major 3rd party fraud loss reductions CNP fraud eliminated Broader 1st party fraud evaluation

Network shift Move to IP foundation Move to cloud delivery Transaction format convergence Dilution of existing acceptance

brands Redistributed & reduced

interchange

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Mobile evolution deterrents

Consumer security concerns– Perception vs. reality– Provider assurance

Merchant acceptance– Solution investment– ROI

Working with elephants– Payment $’s in legacy players– Major legacy players self-

protective– Big firm slowness– ‘Follow the herd’ mindset

Initial market fragmentation– Too many directions– Best approach clutter– Unclear leaders

Demographic resistance– Older & less tech savvy adopt

slower or not at all

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• Quicker and more accurate problem identification and solution• More dependable delivery of key payment initiatives/projects• Creative and tested solutions to payment systems improvements• An objective viewpoint that sees the whole picture• Deep experience delivering business value through technology

Further information on this

Contact: Mike Batton, President, Batton Consulting Inc. | mike@battonconsult.com | 630-443-7735 (O) 630-809-2817 (M)

Contact Mike

Payments solution evaluation Strategy and issue consultation

Project advisory or management Architecture direction & rollout

Executive IT help & leadership on payments when you need it

BCI provides focused consultation and assistance in the payment systems area