cartes asia 2014 2 years on, the experience of mpos uptake richard goodlad - coo darren shaw –...

Cartes Asia 2014

2 years on, the experience of MPoS uptake

Richard Goodlad - COO

Darren Shaw – Strategy Development

Miura Systems Ltd

© 2014 Miura Systems. All Rights Reserved.

Who are we?

• Private Company founded 2008.

• Spent significant time and man hours in developing a ground-breaking hardware payments platform centred around mobile

• Probably the most used and least well known component in the global expansion of Mobile Chip and PIN (EMV) based payment solutions.

• Founders and management all successful in EMV, mobile and ecommerce payments across retail and financial sectors for many years.

• Delivered some of the most recent game changing mPOS hardware solutions with the leading Blue Chip companies.

• Forging ahead in moving mPOS hardware to the next level.


What Caused The mPOS Explosion

mPOS Hardware

Market Dynamics

Industry Compliance/Schemes

Traditional Acquiring

ModelNew To Market Players

Smart Devices

M SOP


Why Did Smart Devices Impact the Traditional Payment Market ?

Processing Power Connectivity

Consumer Awareness

Smart Devices

User Interface Always On

Open Platforms

Consolidate Mobile O/S

Consumer /Business Trust


Empowering the Payment Innovators

EMV L2EMV L1

PCI PTS 3.x P2PEPCI PTS

SRED

Smart Card

Mag Stripe

OPE

N A

PI A

RCH

ITEC

TURE

Payment Application Environment

Payment Processing & Encryption

P2PE / PCI PTS SRED

Simple Command API’s

mPOS Secure Hardware Environment

Off-Line PIN

On-Line PIN Sig


The Market Today – Successes

Those who deliver real end-merchant value propositions in the form of tangible Applications.

Focused market penetration & segmented market approach

Clear concise end user pricing for hardware and processing

Concentrated on delivering application solutions as the differentiator – NOT the Hardware

Developed true cross-border acquiring models

Built and building reputable brand value

Started to build out the payment proposition as an SDK to promote viral application development


The Market Today – Challenges to Achieving Growth Potential

? Some market require Trusted Players to engage – difficult for new players to build brand without massive investment.

? Traditional Merchant Acquiring running on ‘Slow Burn’ – legacy IT infrastructures can’t react to new software approaches.

? Traditional Merchant Acquiring undertaking ‘white labelled 3rd Party’ defensive strategies (Speed v Solution) - Commercial models can be difficult – especially to meet volume growth.

? Confused market place – continually waiting for the next hardware because its going to be cheaper (The Mythical $40 device). Can a compliant/certified, robust and usable device actually ever get to this Price ?

? Lack of bundled solutions with Smart Devices – Operators/MNO’s still not found a workable commercial model but best placed to deliver ‘combined propositions’.


The Growth Markets

mPOS has opened up an opportunity in many emerging markets where previous mobile Chip & Pin solutions (GPRS/3G PED’s) too expensive. Technology Jump to latest Mobile networks.

Aligned very much with EMV Migrations – great opportunity to deliver low cost EMV (Chip & PIN) Solutions without high legacy costs.

Opportunity in emerging markets to link payment and authentication for value add services (Government – Agent Services).

mPOS very much now been seen as the next generation Payment Device. Cannibalising a number of traditional stand alone terminal verticals.

Retail Verticals now emerging as a real opportunity. Major retail markets lacking innovative mPOS hardware solutions to deliver there need to dynamically change the legacy POS environment.

Enterprise Opportunities – Cash on Delivery (COD) - Delivery Centric markets.


The mPOS Affect

Basic Cash Registers

PDA’s & Enterprise Solutions

Secure Authentication Services for PC & Mobile

Based ApplicationsFeature Phones

(Emerging Markets)EPOS Solutions

Smart Devices PC’s/Laptops


The Retail Opportunity

Retail mPOS requires usability and premium features such as Contactless/NFC – 1st Generation mPOS doesn’t deliver.

Q Busting , Assisted Selling Solutions to change the traditional POS payment environment

Demand for Integrated Tablet Payment Solutions to deliver real value to bricks and mortar retail and utilise historic investment in tablet architecture.

POS in Box or SME Pop Up Shop now becoming a reality as both traditional and new to market players identify the market opportunity.

Traditional POS changed forever – even the mainstream suppliers now have tablet variant solutions.

Many Retailers don’t know there mPOS strategy but are now actively engaged in ensuring its part of any future POS procurement.


The Winners in the mPOS War

Those who Take Control and embrace mobile

Targeted market approach

Clear and concise pricing and end user proposition

Build Brand but don’t assume the market will come to them – there is

work to do !


The Losers in the mPOS War

Do Nothing and assume your current business is ok.

Assume one solution fits all – New verticals Demanding

more. Move Quickly – mPOS is changing the dynamics of

traditional POS

NOT THE WINNER !


Summary?

• mPOS is here and the face to face payments world is changing.

• The Explosion of Smart devices is opening up the payment market and new players can compete .

• The Traditional Acquirers need to move quickly.

• Its not just a Micro-Merchant proposition anymore but Retail want more (Usability/Functionality)

• mPOS and POS are blending – Will there be a difference in 12 months ?

• Retail is changing and mPOS will be an enabler – Where will traditional EPOS be in 12 months ?

I’m very pleased to be at the heart of the global payments revolution


Thank You

cartes asia 2014 2 years on, the experience of mpos uptake richard goodlad - coo darren shaw –...

Documents

traditional payment

payment solutions

moving mpos hardware

market players smart

pin emv

application solutions

growth markets mpos

market today successes