optism alcatel-lucent anthony belpaire mobile payments conference presentation
DESCRIPTION
Anthony Belpaire Optism Alcatel-Lucent speaking at the Mobile Payments Conference in Brussels. This conference is a joint organization by LSEC in collaboration with Agoria ICT, Agoria Banking Club, Mobile Mondays Brussels and the European Security Innovation Network. Agoria is a Belgian federation of technology companies, representing in this case both ICT and Banking services. LSEC is an association of information security companies. LSEC has been organizing over the last couple of years over 100 highly professional information security oriented activities. Mobile Monday Brussels brings together developers, manufacturers and services organizations in the domain of mobile applications.TRANSCRIPT
12/10/2012
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Mobile payments go well beyond payments… October 2012
Anthony Belpaire
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Alcatel-Lucent mCommerce
OPTISM™ MOBILE MARKETING &
WALLET
Solution Alcatel-Lucent mCommerce
360 Marketing & Wallet solution based on subscriber consent and preferences offering advertisers and merchants easy access to a willing and targeted audience for ads, coupons and offers. •The solution offers SaaS revenue sharing model, go-to-market
support, audience acquisition & management and campaign tools
Connected
to 157 million subs
Working with
major brands, retailers & agencies
Average response rates
of 20-25%
Most successful campaign:
55% response rate
Selected by
major MNOs:
Vodafone, Orange & Etisalat
#1 in permission marketing
12/10/2012
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Setting Market context
Emerging Markets
Developed Markets
Banked
Underbanked
Unbanked
Convenience
Remittance
Remittance, Bill payment
Savings, Microlending
Distribution
and
Subscriber assets
Subscriber asset
Context (LBS), Call Center, Billing, SIM-
SE, Device Management
Mobile Money for underbanked Closed loop SVA (mPesa, ..)
Convenience (mobile account linked to existing payment card) and value Added services (cfr Google Wallet,..)
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Do mobile payments provide sufficient value for consumer & merchants?
If mobile payments means, adding MORE players in the value chain…WHO will carry the cost?
12/10/2012
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Can mobile disrupt the traditional payment chain…
Merchant Acquirer Payment Scheme
(VISA, MC) ISSUER
0.5% 0,01% 1,5%
Consumer Consumer
98% 100%
1
Card Issuer Monetization / VAS
• Card Linked Offers
• Loyalty (mileage), virtual credits
• Shop alerts
Various carriers issuing co-branded credit/prepaid for access to issuing data and card linked offers
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Today’s Example: mobile check-outs (SecureVaults)
-ZERO ‘interchange’ fee to merchant
Subsidizes the transaction
Loyalty and Offers to compensate
Captures purchase data of consumer
1,8% merchant fee
Merchants get a campaign tool for deal uploads, so Groupon increases deal inventory
Captures purchase data of consumer
Mobile Check-Out - SecureVaults (Cloud)
•User registeres his payment credentials at Cloud based SecureVault provider
•Mobile App passes a ‘Token’ to Merchant (v)POS
Merchant Acquirer
of Vault
Payment Scheme (VISA,
MC) ISSUER Consumer Consumer
Vault
Token
Vault
Provider
0.5% 0,01% 1,5% 100% 100% Receives98%
Pays 100%
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Today’s Example: ‘Proxy’ Accounts (Cloud/NFC)
•Funding of payment by Google in return for
Capturing of on/ and off-line purchase data leading to Google Account profile enhancements
Enhanced Off-line conversion a killer app for advertisers
From display (CPM/CPC), to clipping of coupons (CPA) in Wallet, to Redemption (CPS)
Proxy Account (Cloud&NFC)
•User registers his payment credentials at Wallet Provider
•Wallet Provider associates a ‘Proxy’ card (eg Paypass debit) with the Wallet account
•Wallet Providers associates the consumers’s opted payment card with the Proxy Card
•Merchants sees ‘proxy card’, user sees Google as ‘merchant’ on his registered payment card
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(2) Today’s Example: Google Wallet
Merchant Acquirer
(Rails)
Proxy Account Issuer
0.5% 0,01% 1,5%
Consumer
Consumer Acquirer Payment Scheme
(MC) Issuer
Proxy Wallet
100%
1
1
100%- 0,20USD 0,20 USD 2 Receives 98%
Pays 100%
Google receives 98%, but needs to pay Merchant 100%
• Google captures purchase info • Original Issuer only sees Google as Merchant
1 2
DIS
RU
PT
IVE
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Today’s Example: Vikingspots – MVNO Mobile Vikings
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10 Information under NDA All Rights Reserved © Alcatel-Lucent 2012
Today’s example: O2 UK enhancing and monetizing consumer data
• Behavior
(Micro)-Location
Consumption behavior
Browsing/search behavior
• Profile
• Explicit preferences
ARPU
Profile info
Handset info
Browsing info
Billing details
Address
Consumption data
Recent card payments
Preferred content
Preferred events
Age, Gender, location
Explicit preferences
Consumption data
Recent card payments
O2 UK: full offer centered around customer data
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11 Information under NDA All Rights Reserved © Alcatel-Lucent 2012
Mobile Payments need to be more then payments
• mCommerce Consumer- and merchant adoption will require value added services beyond payment
Consumer seeks highly relevant and non intrusive (upon consent) content/services (coupons, deals, recommendations..)
Merchants seek point of influence during the commerce journey of the consumer to drive traffic, sales activation or loyalty
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Optism™ Mobile Wallet Vision
•bridging on/offline
• One User Experience aggregating
• Contextual and Personalized promotions
• Loyalty programs
• Prepaid money
• Payment cards..
•User in control
• Permission based: Opt-In
• Self service Profile & Interests
•Relevance
More then card virtualization but new experience
to engage with consumer
12 12 All Rights Reserved © Alcatel-Lucent 2012
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COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Optism™ mCommerce Business Architecture
Mobile Marketing add, coupon, offer
Wallet Existing and new Acquiring schemes
TSM Enabling virtual
Cards inlc prepaid
Consumer Mobile Wallet
MNO role Optism
Service Providers
Banks
Retailers
Brands
Permission Marketing Targeting Engine Campaign & inventory
management Analytics & reporting Multi Store value
account TSM (partner)
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
Brands
Agencies Media Seller Dashboard
Media Seller
Targeting
ADS
Profile Preferences
Location Behavior
Mobile App Web
Messaging (SMS, MMS) Dialogue campaigns In-App notification
Ad Interaction Deal purchase
Coupon clipping Coupon redemption
Optism™ 360Commerce - inventory flow
MNO loyalty
rewards
Merchant dashboard
Aggregated
DEALS &
COUPONS Retailers
Reporting Analytics
MNO consumers
OPT-IN base Opt-in mgt
Audience mgt
Reporting Dashboard
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COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION
15 Information under NDA All Rights Reserved © Alcatel-Lucent 2012
Rent SIM space
Monthly fee per payment app
Per ticket fee for transport/events
Transaction fees
Revenue on float
Opex reduction on airtime top-up
Churn reduction
Consumer subscription fees
E-wallet display ad fees
Context Based campaigns
Coupon redemption fees
Analytics & Reporting
JVs NFC SIM
rental
e-wallet
Mobile
Markting
JVs
MNOs target combination of mCommerce services
MNOs moving to full functionality Commerce offer
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION