european mobile payments - what is the next killer feature?
TRANSCRIPT
European Mobile Payments: European Mobile Payments: What’s the Next Killer Feature?What’s the Next Killer Feature?
Mario Fernandez, Research Analyst
Information and Communication Information and Communication Technologies
21 March 2012
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Today’s Presenter
Mario Fernandez, Research Analyst
Frost & Sullivan
2
Monitoring and analyzing emerging trends, technologies and
dynamics in the mobile telecommunications, non-cash payment
and smart card markets in Europe.
Leveraging long-standing working relationships with leading
industry participants.
• Areas of expertise: bank cards’ technologies, mobile
payments, machine-to-machine communications, and smart card
solutions for the telecom industry.
Focus Points
• Market Overview
• Market Challenges
• Competitive Landscape
• Business Models
3
• End user Experience
Poll Question
When do you think NFC technology will be mass-commercialized?
• 2012
• 2013
• 2014-2015
• 2016-2017
4
• 2018 or after?
The Mobile Payments Market is poised to grow
50.0
60.0
70.0
80.0
90.0
Va
lue
Tra
ns
ac
tio
n (
bil
lio
n €
)
M-Payments: Value Transaction over Mobile Devices, Europe, 2011-2018
Mo
bil
e F
inan
cia
l S
erv
ices
Mobile Banking
Mobile Payments
Remote:-SMS- USSD
5
0.0
10.0
20.0
30.0
40.0
50.0
2011 2012 2013 2014 2015 2016 2017 2018
Va
lue
Tra
ns
ac
tio
n
Year
Source: Frost & Sullivan
Mo
bil
e F
inan
cia
l S
erv
ices
- USSD- Internet-based
Proximity:- NFC
M-money transfer
Market participants should overcome significant challenges
Acceptance of end users
Interoperability
Businessmodels
6
models
Source: Frost & Sullivan
JVs and partnerships appear as the first step towards the mass commercialization of m-payments
Telecom partnerships
Financial Services
MNO
Bank
Payment scheme
7
Source: Frost & Sullivan
Cross-industrial partnerships
Handset vendor
Telecom
OS vendor
Retailers
Online Services
Transport Serv.
Merchant
End users
Online SP
Successful partnerships will have a business model based on…
Business
Scalability
8
Business Model
Open
Security
Flexibility
Source: Frost & Sullivan
The end-user experience is key – The question is not ‘what’ technology will be supported but ‘how many’
SMS
Internet-based
The underlying technology
?
?
• Adaptation to the local requirements will be key:
9
NFC
Source: Frost & Sullivan
• M-payments application alone will not drive adoption. Other applications, different than payments, may drive it:
• Access control
• M-ticketing
• Loyalty and couponing
• Social networking
? ??
?
Key Takeaways
OpportunitiesM-payments offer significant opportunities for market participants of the telecom and online payments industry.
Competitive landscape
The market is expected to consolidate, finding the right partner is key to ensure the long term success of the m-payment strategy.
10
Business modelThe business model should be future-proof. Only scalable and ‘open’ business models will prevail in the long term.
End user experience
M-payment offerings should be as ‘horizontal’ as possible. Payment applications alone will not drive adoption.
Source: Frost & Sullivan
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For Additional Information
Joanna Lewandowska
Corporate Communications
ICT
(+48) 22 481 62 20
Mario Fernandez
Research Analyst
ICT
(+33) 493 00 61 87
14
Jean-Noel Georges
Research Manager
ICT
(+33) 493 00 61 87
Cyril Cromier
Sales Manager
ICT
(+33) 1 4281 22 44