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Will mobile phonesreplace your wallet?

The State of Mobile Payments TodayJune 2012

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Is cash becoming obsolete?

• A recent Pew Research study suggests mobile payments may replace cash by end of 2020• 65% of respondents said they

believe most consumers will have embraced “smart-device swiping” vs. cash for purchases• However, 33% said they do not

trust devices with Near Field Communications (NFC) technology

Source: http://mashable.com/2012/04/17/mobile-payments-2020/

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Terms You Need to Know• Mobile payments

Financial transactions being processed wirelessly through mobile phones, via

apps, NFC (see below), and other technologies• Near Field Communication, or “NFC”

Technology that allows data to be transferred by tapping a phone on the surface.

In the case of mobile payments, transactions can be made by tapping your NFC-

capable phone at a merchant rather than handing over your credit card.• Digital wallet, or “e-wallet”

General term describing the shift toward digital payment solutions, such as

mobile payment transactions, versus physical cash

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Who are the major companies leading the mobile payments transformation?

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Some of The Major Players…

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What Google is Doing

Google Wallet

• Google’s answer to mobile payments is Google Wallet, an app that enables mobile payments and loyalty cards using NFC• Citi, MasterCard, Sprint and

First Data partnered with Google for this product launch

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What Amazon is Doing

Amazon Mobile Payments Service

• Amazon offers MPS – Mobile Payments Service• The NFC-based service enables

consumers to pay for goods at brick-and-mortar stores using their smartphones + Amazon’s MPS app• Amazon is pushing to become

one of the biggest players in mobile commerce

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What PayPal is Doing

PayPal + Bling

• PayPal has partnered with Bling Nation, a startup that has been installing contractless payment terminals at local merchants since 2008• When users attach an NFC-

enabled sticker to their phone, they can swipe to make payments & receive rewards• Users now have the option to

pay using their PayPal accounts

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What Major Credit Card Companies are Doing

• Contractless payment stations that use credit cards can easily accept payments that use• Most major credit card

companies have started the process of distributing payment stations to provide “tap-and-go” payment processing

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What Major Mobile Carriers are Doing

• Verizon, AT&T, andT-Mobile have partnered to launch an NFC-powered contractless payment network called “Isis”• Initially it was partnered

with just Discover, but recently Visa, MasterCard, and American Express have also signed on

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Let’s see some real world examples…

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VeriFone Leading Mobile Innovation

• VeriFone is one of the most innovative mobile payment providers currently testing the mobile payment waters• They recently deployed validator technology on bus

systems in Turkey which allows travelers to tap a pre-paid, contractless card issued by the country’s transportation authority to make bus travel easier & more efficient

The buses in Turkey are equipped with GPS tracking and are constantly reporting their location to Verifone’s system in the cloud. VeriFone then sends messaging to signage at various bus stops to inform travelers that their ride is only four minutes or so away.

—Paul RasoriVeriFone’s Senior Vice President of Marketing

“ “

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Major Cities Adopting Mobile Payment Solutions

• The city of Denver uses Parkmobile, an app that handles parking payments and alerts you when your meter will expire• If you take the light rail around

Denver, you can use the app to pay for parking your car at the nearest station• The app is available for iOS,

Android, BlackBerry and Windows phones

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Taxis Already Using Mobile Payments

• GetTaxi is a simpler, faster way to order a taxi from your mobile phone• Watch your taxi on a map

in real time• Travelers can also use the

app to pay their taxi fares instantly and earn rewards• GetTaxi is popular in the

UK, Israel, and Russia

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MasterCard PayPass

• MasterCard recently unveiled a new brand identifier called MasterCard PayPass Ready• It certifies NFC-capable phones, such as the LG Viper, HTC

One X & others as “tested and certified by MasterCard” for use with its PayPass technology

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Flash Valet• Flash Valet is a cloud-based solution that enables valet

parking operators to track vehicles, manage multiple locations, and keep track of employee time & attendance as well as accept mobile payments from customers• It’s currently only available for iOS, but BlackBerry,

Android and Windows versions will be rolled out soon

How Flash Valet Works:When customers drop off their cars they are given a ticket with a phone number. When they are ready to retrieve their car, they send a text message to the number along with their ticket number which alerts the valet parking attendant through the Flash Valet mobile app. When the car is ready for pickup, the customer receives a text message and can pay for their parking with a credit card or PayPal.

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The next generation of smartphonesthat give you the power to pay.

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Which phones are NFC-capable?

Here are just a few of the new breed of smartphones with built-in NFC technology, enabling mobile payment processing:

LG Viper HTC One XSamsung

Galaxy Nexus

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Where do Apple & Microsoft stand?

• One of the most popular Apple rumors of late is that the iPhone 5 will be NFC-enabled – the same rumor turned out to be false regarding the iPad 2.

• Not to be left out of the party, Microsoft is also rumored to be planning NFC capabilities for its next Windows phone releases

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iWallet: Coming Soon to the iPhone?

• Apple recently filed for a new patent hinting at an “iWallet” NFC-powered mobile payment capability for the iPhone• The patent describes a

Parental Controls system that would enable parents to control how their children are spending money via their phones

Source: http://mashable.com/2012/03/09/iwallet-apple-patent-iphone/