the evolution of the mobile wallet · mwallet: a platform from which information can be pushed and...

Dominic MoreaSVP, Division Manager,

Advanced Solutions and Innovation, First DataKeith Smith

President & COO SK C&C USA

The Evolution of the Mobile Wallet

Source: Grail Research Analysis, June, 2010

Who are Tomorrow’s Customers? Generational View & Terminology

• Globally, mobile devices are now a necessityo Mobile is key: Always on; Always with you; 2-way;

1-to-1; real-time

• Pace of technological advancement is accelerating

• Service Providers need to offer mobile solutionso this has migrated from a “nice to have” to a

“must have”

• The stakes are high … transformation is comingInnovative financial solutions that focus on cohesion, multi‐

purpose functionality are likely to be big winners with Gen Y and X Innovative financial solutions that focus on cohesion, multi‐

purpose functionality are likely to be big winners with Gen Y and X

Current Mobile Landscape Connected Commerce & Integrated Financial Services are key

Mobile Commerce Point of ArrivalLeather wallet replaced with Electronic Wallet… but so much more…..Shifts commerce to anywhere, anytime, and personalized (1:1)

The contents of your leather wallet and so much more will ultimately migrate to the mobile device

Leather wallet migrates to phone

Virtual Tickets & Receipts

Virtual Coupons

Account Services

Personalized in Store

» Creates opportunity for all stakeholders & new payment-related services» The mobile acts as a payment & interactive marketing device

Mobile and Even More Complex Ecosystem

What is TSM

The mobile equivalent of today’s plastic card issuing process

New business services and new technologies are required to support this migration

Simplifies and enables the process of migrating wallet content

Single point-of-contact between Service Providers (account issuers) and MNOs (chip owners)Provisions applications over-the-air to mobile handsetsProvisions personalization data over-the-air to mobile handsetsManages NFC application lifecycleProvides customer care and other supporting services

TSM Gets Leather Wallet Contents into Phone

TSM securely distributes, provisions and manages the lifecycle of NFC apps to the customer base of

MNOs on behalf of Service Providers

Mobile network operator 1




Service provider 1

Service provider 2

Service provider 3

Service provider 4

First Data as Neutral

Trusted Service

Manager for NFC Payments

TSM Gets Leather Wallet Contents into Phone

Three Pillars of Mobile Commerce

Trusted Service Manager: a platform that provides a secure channel for transferring confidential account information to the secure element, issuing and provisioning mobile commerce services with aguaranteed end-to-end security

mWallet: a platform from which information can be pushed and pulled and a wide range of applications and value-added services such as payment, coupons, gifting, and loyalty

mMarketing: a platform includes mobile coupon, mobile offers, mobile loyalty, and mobile advertising. Customers can customize the services they’d like to offer which would then be bundled into a customized package to meet consumer needs

Mobile Commerce Life StyleMovie Clips(3min)

Mobile Commerce Lifestyle

TransitTicketCoupon

Promotion

P2P

Retail Shop

Recap

NFC reader

mParking

Digital Receipt

Mobile Wallet Client Service

1 Service

2 Service

3

TSM Proxy Agent

Secure Element

NFC Chip (Modem)

Antenna SWP

ISO 7816

API

(Lib

rary

), JS

R

MNO

Service Provider

TSM

Point of Sale

Secure Element

SP

Issuer

Mobile Commerce Service Flow

Mobile Commerce with TSM

mWallet�

TSM�

SIM

owns�owns�

SERVICE�PROVIDERS�

Mobile�Marke ng�

Mobile Wallet

Mobile Wallet

Credit Card

ChaseVISA

RewardCard

BestBuyCard

GiftVISA

NewService

Add New Service- Ticketing- Offering- Coupon

Service Provisioning

Mobile Security

Everybody Wins

! "#$%&'( ") ) &*+&', %‐ . "*) '

! "#$%&'/ ‐%%&0' 12! '

! "#$%&' ()*$+, ‐*., *‐$ /%/$

! " # $

! "#$%! & ' ( ! #%$

! "#$%&'! ( )*&+, ‐ .'/"01", .'2 3&)4'

! "# $%"&' ( ) # "*%

+ $, ‐."&' ( ) # "*%&

! "#$%&'(") *%+) ' ! "#$%&'( $)*&+, ‐ '

! "#$#%"$&' ( ) *+, ‐ ./ 012+

! "#$%&' ()*

! "#$%&' ()

Beyond Software: Creating Market Efficiency

• Shield stakeholders from ecosystem complexity– SE Owners need not be payments experts– SPs need not be chip / handset / mobile network experts

• Aggregate Service Providers– Single point of vertical market integration for SE Owners

• Aggregate broader ecosystem– Facilitation of all required relationships to make ecosystem work

• Minimize relationship complexity– SE Owner has one relationship with TSM, not numerous individual SP

relationships– SP has one relationship with TSM, not numerous individual SE Owner

relationships– TSM builds partnerships to enable end-to-end processes





Service provider 1

Service provider 2

Service provider 3

Service provider 4

First Dataas Neutral

Trusted Service Manager for

NFC Payments

Beyond Software: Creating Market Efficiency

• Maintain neutrality in ecosystem

– No bias towards specific SPs, account types, SE owners, chip types, handsets, etc.

– Positioned to service all stakeholders without conflict of interest

• Minimize capital investment for stakeholders

– TSM invests in specialized technology on behalf of customers in ecosystem

– All stakeholders benefit from TSM’s economies of scale

• Ensure security, reliability and operational excellence

– High standards in payments industry

– Proven track record or scale performance





Service provider 1

Service provider 2

Service provider 3

Service provider 4

First Dataas Neutral

Trusted Service Manager for

NFC Payments

SK C&C USA - First Data TSM Partnership

FD Value Add

•40+ Years in Electronic Payments•5+ Million Existing Merchant Clients•Thousands of Existing FI Clients

• 2.7 Billion Accounts Under Mgt•Payment infrastructure & gateway•Card Products:

• MiFare• Giftcard• Star• Loyalty• E-Gifting

• POS Terminals• Payment Experience

SK C&C USA Value Add

• Cap X in TSM• 10 years’ mCommerce experience• 20 years’ System Integration• U.S. HQ with experienced Mobile le adership• “Follow the Sun/24x7 Dev”• Global leader in Software De velopment

Combined Value Add

•1st commercial TSM in USA 3/11•MasterCard GVCP Certified•PCI Waiver for Commercial Services

Thank you Time for your questions!

Keith SmithPresident & COO SK C&C USA

Dominic MoreaSVP, Division Manager, Advanced Solutions and

Innovation, First Data

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