the future of payments and currency
DESCRIPTION
JWT ReportTRANSCRIPT
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5/19/2018 The Future of Payments and Currency
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THE FUTURE OF
CURRENCY
PAYMENTS &
ABRIDGED VERSIONOCTOBER 2014
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WHAT WELL COVER
Introduction
Trend drivers
New ways to pay
New forms of value exchange
New payment players
Appendix: More about our experts and influencers
The following is an abridged
version of JWT's Future of
Payments & Currency report. To
download the full version, please visit
JWTIntelligence.com.
http://www.jwtintelligence.com/trendletters2/http://www.jwtintelligence.com/trendletters2/http://www.jwtintelligence.com/trendletters2/http://www.jwtintelligence.com/trendletters2/http://www.jwtintelligence.com/trendletters2/http://www.jwtintelligence.com/trendletters2/http://www.jwtintelligence.com/trendletters2/ -
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INTRODUCTION
It seems that suddenly most aspects of the established payments system are on the verge of disruption.Apple Pay has just arrived, Facebook is reportedly mulling peer-to-peer payments, more merchants areaccepting bitcoin, banks are testing payment-enabled wristbands or creating pay-by-tweet schemes, andthe ranks of fintech innovators are growing.
This report examines the rise of new ways to pay and new forms of value exchange, along with newplayers in the payments space, and what it all means for brands.
Never in the history of the payments industry has there been a timeof such disruption and opportunity across regions. Digitaltechnologies will upset the competitive order and the role that
payments play both in the operations of businesses and in the daily lives of
consumers. BCG PERSPECTIVES, Global Payments 2014, Sept. 17, 2014
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METHODOLOGY
Our trend reports are the result of quantitative, qualitative and desk research conducted byJWTIntelligence through out the year. For this report, we also interviewed several experts and influencersin payments and currency.*
Deborah Baxley,consulting servicesprincipal, CapgeminiFinancial Services
Rob Girling,co-founder andprincipal, Artefact
EXPERTS
ANDINFLUENCER
S
Bill Maurer,dean of social sciences andprofessor of anthropologyand law, UC Irvine
Craig Erickson,creative director anddesigner, Artefact
*See Appendix to learn more about these experts.
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While technology is opening up myriad possibilities in payments and forms ofcurrency, the mobile wallet and other innovations have taken off in fits andstarts. Skeptics say consumers have little incentive to adopt new systems. ButMillennials are ushering in a new mindset: Theyre much less attached to thestatus quo than their elders and far more open to alternative ideas.
TREND DRIVERS
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TREND DRIVERS
MILLENNIAL MINDSET
DISTRUST IN FINANCIAL
INSTITUTIONS
TECHNOLOGY
DATA BREACHES
TRICKLE-UP INNOVATION
HEDGE AGAINST
ECONOMIC CHAOS
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NICK BILTON,The New York Times
TREND DRIVERS
MILLENNIAL MINDSET
DISTRUST IN FINANCIAL
INSTITUTIONS
TECHNOLOGY
DATA BREACHES
TRICKLE-UP INNOVATION
HEDGE AGAINST
ECONOMIC CHAOS
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TREND DRIVERS
MILLENNIAL MINDSET
DISTRUST IN FINANCIAL
INSTITUTIONS
TECHNOLOGY
DATA BREACHES
TRICKLE-UP INNOVATION
HEDGE AGAINST
ECONOMIC CHAOS
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NICK BILTON,The New York Times
TREND DRIVERS
Image credits: bitcoin;Apple
MILLENNIAL MINDSET
DISTRUST IN FINANCIAL
INSTITUTIONS
TECHNOLOGY
DATA BREACHES
TRICKLE-UP INNOVATION
HEDGE AGAINST
ECONOMIC CHAOS
https://en.bitcoin.it/wiki/Promotional_graphicshttp://www.macrumors.com/2013/09/10/apple-announces-iphone-5s/http://www.macrumors.com/2013/09/10/apple-announces-iphone-5s/https://en.bitcoin.it/wiki/Promotional_graphics -
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NICK BILTON,The New York Times
TREND DRIVERS
MILLENNIAL MINDSET
DISTRUST IN FINANCIAL
INSTITUTIONS
TECHNOLOGY
DATA BREACHES
TRICKLE-UP INNOVATION
HEDGE AGAINST
ECONOMIC CHAOS
Recent high-profile data breaches have severely impacted consumerconfidence in the payments system and motivated retailers to seek moresecure tools. In the U.S., Neiman Marcus, Home Depot, Supervalu and, mostnotably, Target are among the prominent businesses to have suffered databreaches. These have compromised millions of credit and debit cards, withTargets breach affecting up to 110 million people.
Fear of fraud will both drive adoption of new systems and inhibit someconsumers from embracing relatively untested systems.
Image credit: businessjournalism.org 10
http://businessjournalism.org/2014/01/13/more-ideas-for-localizing-the-spreading-consumer-data-breach-story/http://businessjournalism.org/2014/01/13/more-ideas-for-localizing-the-spreading-consumer-data-breach-story/ -
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NICK BILTON,The New York Times
TREND DRIVERS
With less competition and fewer regulatory restrictions, emerging marketsserve as fertile testing grounds for new payment methods and new players.And with many consumers in these markets unbankedoutside thecommercial banking systemalternative systems like mobile money areflourishing.
Telecoms have led the way when it comes to sending and receiving paymentsvia basic cellphones. Safaricom, in partnership with Vodafone, launched themost successful of these services in Kenya in 2007. Nearly two-thirds ofKenyans now use M-Pesa, and 43% of the nations GDP moves through it.
The success of M-Pesa and similar services is prompting new ideas indeveloped markets. In the U.S., mobile carriers T-Mobile and Sprint have bothentered into the mobile money space.
Image credits: M-Pesa; T-Mobile
MILLENNIAL MINDSET
DISTRUST IN FINANCIAL
INSTITUTIONS
TECHNOLOGY
DATA BREACHES
TRICKLE-UP INNOVATION
HEDGE AGAINST
ECONOMIC CHAOS
http://www.thinkm-pesa.com/2012/04/how-to-get-your-m-pesa-mini-statement.htmlhttp://www.t-mobile.com/content/dam/tmo/en-g/marquee/landingpage-marquee-visa-desktop_v3.jpghttp://www.t-mobile.com/content/dam/tmo/en-g/marquee/landingpage-marquee-visa-desktop_v3.jpghttp://www.t-mobile.com/content/dam/tmo/en-g/marquee/landingpage-marquee-visa-desktop_v3.jpghttp://www.t-mobile.com/content/dam/tmo/en-g/marquee/landingpage-marquee-visa-desktop_v3.jpghttp://www.thinkm-pesa.com/2012/04/how-to-get-your-m-pesa-mini-statement.htmlhttp://www.thinkm-pesa.com/2012/04/how-to-get-your-m-pesa-mini-statement.htmlhttp://www.thinkm-pesa.com/2012/04/how-to-get-your-m-pesa-mini-statement.html -
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Digital technology is opening up new ways to pay, many of them more seamlessand secure than traditional methods. Foremost among these is the mobilewalletusing smartphones to make purchases or peer-to-peer paymentsbutvarious other ideas are coming to fruition, including wearables (tapping awatch, scanning a ring, etc.) and biometric technology like pay-by-fingerprint.
NEW WAYS TO PAY
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NICK BILTON,The New York Times
MOBILE WALLETS
Broadly speaking, mobile wallet users swipe, tap, wave or otherwise prompt a smartphone to pay afterinitial setup (providing credit card or bank account information and potentially linking to various loyaltyprograms). Technologies vary but include near field communication (NFC), Bluetooth and bar codesystems. For people with little to no access to commercial banks, the advent of mobile moneytexting tosend or receive payments using basic phoneshas been a godsend.
NEW WAYS TO PAY
61
MILLION+Active mobile moneyaccounts worldwide as
of June 2013*
*Source: GSMAImage credit: Alipay
http://technode.com/2013/12/27/alipay-wallet-to-launch-8-edition-and-an-english-version/http://technode.com/2013/12/27/alipay-wallet-to-launch-8-edition-and-an-english-version/ -
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NICK BILTON,The New York Times
MOBILE WALLETS(contd.)
NEW WAYS TO PAY
61
MILLION+Active mobile moneyaccounts worldwide as
of June 2013*
Image credits:Apple;Amazon; Google
https://www.apple.com/iphone-6/apple-pay/https://www.apple.com/iphone-6/apple-pay/https://www.google.com/wallet/https://www.google.com/wallet/https://www.apple.com/iphone-6/apple-pay/https://www.apple.com/iphone-6/apple-pay/ -
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NICK BILTON,The New York Times
MOBILE WALLETS(contd.)
NEW WAYS TO PAY
61
MILLION+Active mobile moneyaccounts worldwide as
of June 2013*
Image credits:PayPal; Kuapay; Softcard
https://www.paypal.com/webapps/mpp/beaconhttp://www.buylocalsantamonica.com/vendors/kuapay.htmlhttps://play.google.com/store/apps/details?id=com.isis.mclient.tmobile.activityhttps://play.google.com/store/apps/details?id=com.isis.mclient.tmobile.activityhttp://www.buylocalsantamonica.com/vendors/kuapay.htmlhttps://www.paypal.com/webapps/mpp/beacon -
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NICK BILTON,The New York Times
MOBILE WALLETS:PEER-TO-PEER
PAYMENTS
NEW WAYS TO PAY
Active mobile moneyaccounts worldwide as
of June 2013*
Image credits:Dwolla; Venmo; Ribbon; Paym
Various startups are looking to digitize peer-to-peer transactions, mostly by way of
mobile apps. Business Insider estimates the global volume of P2P payments at morethan $1 trillion annually, with only a sliver made through mobile today.
https://www.dwolla.com/abouthttp://brand.venmo.com/styleguidehttps://microventures.com/about/portfolio/ribbonhttp://www.paym.co.uk/http://www.paym.co.uk/https://microventures.com/about/portfolio/ribbonhttp://brand.venmo.com/styleguidehttps://www.dwolla.com/about -
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NICK BILTON,The New York Times
BRANDED APPS
NEW WAYS TO PAY
Active mobile moneyaccounts worldwide as
of June 2013*
As banks, tech giants and new entrants vie to dominate in the mobile wallet space, Starbucksand other brands are creating their own apps, enabling frequent customers to payseamlessly. In some casesnotably with taxi services like Uber and fast food brandsthe appslet users both order and pay, reducing wait times or hassle. In other cases, as with Starbucks,the apps draw users by folding in loyalty rewards or coupons. Brands benefit by collecting
extensive customer data and drawing in impatient, cash-averse Millennials.Image credit:Starbucks
http://news.starbucks.com/news/starbucks-accelerates-mobile-payment-leadership-with-release-of-enhanced-iohttp://news.starbucks.com/news/starbucks-accelerates-mobile-payment-leadership-with-release-of-enhanced-io -
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NICK BILTON,The New York Times
NEW WAYS TO PAY
Active mobile moneyaccounts worldwide as
of June 2013*
Image credit:MyCheck
DINE AND GO
Some see a role for payment apps beyond the fast food sphere, with patrons atbars and restaurants harnessing mobile to more quickly and easily settle theirchecks. Customers can tap, pay and leave without flagging down an employee;from the merchants point of view, this frees up staff and potentially opens up
tables more quickly.
MyCheck, which has apartnership with PayPal,
launched its app in
Israel in 2012 and hasmoved into a few citiesin the U.S., the U.K.
and Brazil.
https://itunes.apple.com/us/app/mycheck-us/id545739234?mt=8https://itunes.apple.com/us/app/mycheck-us/id545739234?mt=8 -
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NICK BILTON,The New York Times
WEARABLES
NEW WAYS TO PAY
Active mobile moneyaccounts worldwide as
of June 2013*
WearablesInternet-connected devices worn on the bodypromise an even more seamless
method of payment than mobile phones. The vision is that consumers will simply hold up awatch, tap a wristband or perhaps issue a verbal instruction to Google Glass.
Image credit: Eaze
Glasses: Some mobile-payment players are betting on consumers paying with a gesture, tapor voice command using Glass or other high-tech specs. Eaze, a startup pushing the idea ofNod to Pay, links to two bitcoin payment systems and plans to add fiat currencies.
https://paywitheaze.com/wallethttps://paywitheaze.com/wallet -
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NICK BILTON,The New York Times
WEARABLES(contd.)
NEW WAYS TO PAY
Active mobile moneyaccounts worldwide as
of June 2013*
Image credits:Apple;Artefact
Watches: Several payment apps work in tandem withearly entrants on the smartwatch market. Theseinclude PayPals app for Samsungs Gear 2 andWearBucks for owners of Android Wear watches.
Wristbands:For people willing to link up credit ordebit card information, smart wristbands may have along-term role to play as a way to make fast
purchases at events like music festivals ordestinations like theme parks.
http://www.apple.com/apple-pay/http://www.artefactgroup.com/content/token-a-wallet-on-your-wrist/http://www.artefactgroup.com/content/token-a-wallet-on-your-wrist/http://www.apple.com/apple-pay/ -
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NICK BILTON,The New York Times
WEARABLES(contd.)
NEW WAYS TO PAY
Active mobile moneyaccounts worldwide as
of June 2013*
Image credit: Barclaycard
https://bpayband.co.uk/(X(1)S(z22023tpgbesd0xcmuh3r3fa))/default.aspx?AspxAutoDetectCookieSupport=1https://bpayband.co.uk/(X(1)S(z22023tpgbesd0xcmuh3r3fa))/default.aspx?AspxAutoDetectCookieSupport=1 -
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NICK BILTON,The New York Times
BIOMETRICPAYMENTS
NEW WAYS TO PAY
Image credits: PayPal; Biyo
The SamsungGalaxy S5enables
fingerprintpayment viaPayPals app
To improve security, businesses are starting to adopt systems that identify and
authenticate people based on physical or behavioral characteristics: iris scans, digitalfingerprints, voice prints, vein or facial maps and so on. The method is also moreconvenient for users than typing passwords, although privacy will be a concern forsome. Fingerprint recognition, the most widely used biometric system thus far, willbecome increasingly common now that Apple is embracing mobile payments.
https://www.youtube.com/watch?v=1XpAEH7ENXIhttp://biyowallet.com/http://biyowallet.com/https://www.youtube.com/watch?v=1XpAEH7ENXI -
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NICK BILTON,The New York Times
EMAILS, TEXTSAND TWEETS
NEW WAYS TO PAY
Image credit: Popmoney
Today more and more companiesfrom startups to financial institutions and tech giants
like Googleare enabling person-to-person payments, bill payments and productpurchases via a simple message. For instance, French bank Groupe BPCE will enablepeople to tweet money to one another via its S-money mobile-wallet subsidiary, thanksto a partnership with Twitter.
https://www.popmoney.com/https://www.popmoney.com/ -
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NICK BILTON,The New York Times
WHAT IT MEANSFOR BRANDS
NEW WAYS TO PAY
Prepare for a cash-limited future
Cater to Millennials
Compel consumers to opt in
Open a personalized marketing
channel
Security and privacy above all
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A growing array of alternative currenciesranging from cryptocurrencies tolocal currencies, branded currency and social media currencyis supplementingor even replacing conventional money.
NEW FORMS OF CURRENCY
Money is always only a human creation, kind of a collective illusion Its something weinvent as societies and states and communities, and we can reinvent it if we want to.
BILL MAURER, dean of social sciences and professor of anthropology and law, UC Irvine
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
NON-FIATCURRENCIES
Dollars, pounds, euros, pesos, yenthese are all fiat currencies, or legal tender. But even
with the backing of a government, their value exists only by popular consent. Soincreasingly people are thinking more creatively about what money can be, from localcurrencies to cryptocurrencies like bitcoin, which can function just as wellif not better, insome instancesas a medium of value exchange.
Local currencies are undergoing aresurgence thanks to the economic crisisand rising income inequality. A localcurrency can help to mitigate the impactof a troubled economy, stimulatinggrowth by increasing demand for localgoods while keeping money from flowingout of the area.
Image credit: Tilt
Local currencies incirculation includethe Brixton Pound
and Bristol Pound inthe U.K., the
Capivari in Braziland COjacks in
Colorado.
http://tilt.ft.com/posts/2011-09/30631/brazil-home-worlds-63-most-overvalued-currencieshttp://tilt.ft.com/posts/2011-09/30631/brazil-home-worlds-63-most-overvalued-currencies -
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
CRYPTOCURRENCIES
In the last year or so, a number of major businesses have started accepting bitcoin, most via
bitcoin middlemen, lending the novel currency greater credibility. And there are now morethan 250 bitcoin ATMs worldwide. Still, most consumers remain fairly skeptical about
bitcoin.
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
CRYPTOCURRENCIES(contd.)
Bitcoin pros and cons: While they have serious downsides, cryptocurrenciesappeal to users for a number of reasons. They allow people to send and receivemoney around the world instantly, without the need for banks as intermediaries.This means little to no fees for processing transactions, as well as greater privacy,although cryptocurrencies are not anonymous, as is widely believed. For peoplewith little trust in government and the banking system, cryptocurrency provides away to transact without relying on either.
38%of U.S. and U.K.
Millennials are interestedin using currencies such as
bitcoin, vs. 17% of GenXers and 7% of Boomers
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
CRYPTOCURRENCIES(contd.)
Experts place the number of businesses accepting bitcoin as high as 80,000
worldwide, a wide majority of which are small merchants. But some biggerplayers across categories are earning buzz by welcoming the currency, in someinstances experiencing an initial boost in sales. Most use Coinbase or anotherbitcoin middleman, shielding themselves from risk while paying much less in feesthan with credit card transactions.
Image credit: Life on Bitcoin
This crowdfundeddocumentary
follows a newlymarried couple
trying to get by onbitcoin alone.
Prominent businessesaccepting bitcoin:
Dish Network
Dell
United Way
Expedia
Overstock.com
The Sacramento
Kings
http://about.dish.com/sites/dishnetwork.newshq.businesswire.com/files/Poster.jpghttp://about.dish.com/sites/dishnetwork.newshq.businesswire.com/files/Poster.jpg -
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
ALTERNATIVE BRANDCURRENCIES
Social media as currency: Brands commonly offer incentives in exchange for
Facebook likes or Twitter follows. Now, with social media ingrained into the dailylives of many, some are evolving this idea by enabling consumers to acquireproducts or discounts with social media actions in lieu of cash.
Image credit: Carlsberg
Danish beer companyCarlsberg partnered with
bars in Denmark toextend happy hour fordrinkers who posted
social media photos withthe hashtag
#HappyBeerTime
http://adsoftheworld.com/media/ambient/carlsberg_happy_beer_timehttp://adsoftheworld.com/media/ambient/carlsberg_happy_beer_time -
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
ALTERNATIVE BRANDCURRENCIES
(contd.)
Tweet-to-pay pop-up shops:
These temporary locationsprovide unique experiences thatconsumers are keen to captureand then share with theirfollowers, increasing brandengagement and stimulatingword-of-mouth.
In London, Weight Watcherscreated the Feel Good Caf,where visitors paid with socialmedia shares. And Marc Jacobslaunched a Tweet Shop whereguests received free gifts basedon their social posts.
Image credit: Weight Watchers
https://twitter.com/wwfeelgoodcafe/status/469836320165343232/photo/1https://twitter.com/wwfeelgoodcafe/status/469836320165343232/photo/1 -
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
ALTERNATIVE BRANDCURRENCIES
(contd.)
Vending machines: Along with pop-up shops, Internet-connected vending
machines are becoming a go-to source for accepting social media actionsfor payment.
Image credits: Walkers; Old Navy
http://www.dailymail.co.uk/tvshowbiz/article-2737048/Gary-Lineker-introduces-worlds-Twitter-vending-machine-crisps.htmlhttp://www.hawtcelebs.com/emma-roberts-at-old-navy-flip-flop-vending-machine-in-los-angeles/http://www.hawtcelebs.com/emma-roberts-at-old-navy-flip-flop-vending-machine-in-los-angeles/http://www.dailymail.co.uk/tvshowbiz/article-2737048/Gary-Lineker-introduces-worlds-Twitter-vending-machine-crisps.html -
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
ALTERNATIVE BRANDCURRENCIES
(contd.)
Incentivizing good behavior: Some brands have turned positive actions on
the part of consumers into a form of currency.
Image credits:Anthon Berg; McDonalds
Chocolate brand AnthonBerg set up the pop-upGenerous Store, where
customers could earn boxesof chocolate by pledging to
do good deeds, andMcDonalds let customerspay with recycled cans.
http://popsop.com/2013/01/give-and-give/http://ddb.se/work/mcdonalds/can-currency/http://ddb.se/work/mcdonalds/can-currency/http://popsop.com/2013/01/give-and-give/ -
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
ALTERNATIVE BRANDCURRENCIES
(contd.)
Branded currency: For years, loyalty has translated into a currency of sorts, with
merchants offering Buy 10, get 1 free, airlines awarding seats to frequent flyersand so on. These loyalty schemes, including gift cards and coupons, account formore than $165 billion in purchasing power in the U.S. alone. With that much valuein circulation, some brands are reframing these offers, shifting brand loyalty into acurrency in a more traditional sense. And thanks to smartphones, disparateprograms are becoming more manageable for consumers, who can readily cash in.
Image credits:Amazon; Kik; McDonalds
http://g-ecx.images-amazon.com/images/G/01/zeroes/retail/images/zeroes-coin-dp._V353889149_.jpghttps://top.kik.com/http://a2.mzstatic.com/eu/r30/Purple6/v4/12/da/31/12da31ea-4a98-005a-f30f-c6131517311d/screen568x568.jpeghttp://a2.mzstatic.com/eu/r30/Purple6/v4/12/da/31/12da31ea-4a98-005a-f30f-c6131517311d/screen568x568.jpeghttps://top.kik.com/http://g-ecx.images-amazon.com/images/G/01/zeroes/retail/images/zeroes-coin-dp._V353889149_.jpg -
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
ALTERNATIVE BRANDCURRENCIES
(contd.)
Products as currency: Brands have been getting creative with the age-old practice
of barter, turning their goods into currency as part of social responsibility initiativesor novel marketing ploys. For telecom brands, mobile minutes or data can serve ascurrency for consumers hungry for more phone access.
Image credits: KitKat; Vodafone
Social responsibility: To help boost tourism in aregion of Japan that was devastated by the 2011earthquake and tsunami, Nestl is enabling
travelers to use special-edition KitKat packs astravel passes on the Sanriku Railway.
Mobile airtime/data: In Egypt, Vodafone worked with
JWT to introduce airtime as a form of currency. Smallshops or kiosks in the country often substitute low-valueitems like gum and candy for small change; in a twist onthis practice, Vodafone created mobile-top-up cards insmall denominations, designing them to fit in a cashregister. These Fakka (small change) cards drove anaverage 7% rise in revenue per customer.
http://www.nestle.com/media/newsandfeatures/kitkat-for-japan-railway-recoveryhttps://www.jwt.com/en/cairo/work/fakka/https://www.jwt.com/en/cairo/work/fakka/http://www.nestle.com/media/newsandfeatures/kitkat-for-japan-railway-recovery -
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
ALTERNATIVE BRANDCURRENCIES
(contd.)
Ad campaigns: Some brands have turned their products into currencies in ad
campaigns, framing the emotional value of their goods in a new light. To show thatHeineken opens your world, the beer-maker tasked a man with getting from InnerMongolia back home to Thailand using nothing but Heineken and a little bit of wit.
Image credit: Heineken
https://www.youtube.com/watch?v=1jponFXRHNMhttps://www.youtube.com/watch?v=1jponFXRHNM -
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NEW FORMS OF CURRENCY
NICK BILTON,The New York Times
WHAT IT MEANSFOR BRANDS
Barter reinforces value
Drive engagement with social currencies
Turn loyalty into instant currency
Embrace alternative currencies
-
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Disruption in the payments and currency sphere is opening the way for newplayers to act as intermediaries between consumers and their money. Well seeconsumer interaction with banks and other traditional financial institutionswane as newcomers offer innovative or compelling solutions. Consider that 73%of Millennials would be more excited about a new offering in financial servicesfrom Google, Amazon, Apple, PayPal or Square than from their own nationwidebank, according to Viacoms Millennial Disruption Index.
NEW PAYMENT PLAYERS
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NEW PAYMENT PLAYERS
NICK BILTON,The New York Times
BRANDS ASFINANCIAL
INTERMEDIARIES
Mobile operators, tech giants and others are making forays into the financial space, taking
on roles traditionally filled by banks and other financial services companies. By doing so,these companies can track spending patterns and behavior, as well as reduce interchangeand processing fees. The mobile wallet is a key driver. Mobile payment transactionsfacilitated by non-banks will increase from 1.1 billion in 2012 to 7 billion in 2015,according to a forecast by Capgemini and The Royal Bank of Scotland.
72%of North American
Millennials would be likelyto bank with at least one
nonfinancial servicescompany if it offered
banking services*
*Source: Accentures 2014 North America Consumer Digital Banking SurveyImage credits:Millicom; T-Mobile
http://www.tigo.co.tz/tigo-pesahttp://consumerist.com/2014/01/22/a-whole-new-meaning-to-mobile-banking-t-mobile-announces-money-management-service/http://consumerist.com/2014/01/22/a-whole-new-meaning-to-mobile-banking-t-mobile-announces-money-management-service/http://consumerist.com/2014/01/22/a-whole-new-meaning-to-mobile-banking-t-mobile-announces-money-management-service/http://consumerist.com/2014/01/22/a-whole-new-meaning-to-mobile-banking-t-mobile-announces-money-management-service/http://www.tigo.co.tz/tigo-pesa -
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NEW PAYMENT PLAYERS
NICK BILTON,The New York Times
BRANDS ASFINANCIAL
INTERMEDIARIES
(contd.)
Image credits:Google; Tech for Korea
Tech companies andmessaging services are well
positioned to integratepayments systems. Google
now offers free P2Ppayments through Gmail orits Wallet app, and South
Koreas KakaoTalk recentlylaunched the PayPal-like
KakaoPay.
https://www.google.com/wallet/images/overview/send-money.pnghttp://www.techforkorea.com/2014/09/17/kakaopay-easy-mobile-transaction-app-for-south-korea/http://www.techforkorea.com/2014/09/17/kakaopay-easy-mobile-transaction-app-for-south-korea/https://www.google.com/wallet/images/overview/send-money.png -
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NEW PAYMENT PLAYERS
BRANDS ASFINANCIAL
INTERMEDIARIES
(contd.)
Image credits:Tesco; Walmart
Retailers: Retailers have long providedfinancial services, but some are expandingmore assertively into the space. BothMarks & Spencer and Tesco recentlystarted offering personal checkingaccounts in the U.K.
Walmart has been targeting the
underbanked. This year, the retailerlaunched a money transfer serviceenabling customers to send funds to orfrom any Walmart in the U.S. and PuertoRicoand partnered with Green Dot Corp.on GoBank, a mobile checking account
with a linked debit card.
http://www.tescobank.com/http://www.walmart.com/cp/Online-Money-Transfers/1089406http://www.walmart.com/cp/Online-Money-Transfers/1089406http://www.tescobank.com/ -
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NEW PAYMENT PLAYERS
FINTECH INNOVATORS
Image credits:Circle; Plastc; Ripple; Square; Stripe; WorldRemit
The payments space is moving at incredible speed, with new technologiesand startups quickly making headway while most traditional institutions lagin updating clunky legacy systems. Innovative fintech startups include thebitcoin bank Circle; Plastc, which is creating a credit card-shaped digitaldevice; and Ripple, whose open-source, distributed-payment protocol letsusers make instant payments with any currency.
https://pbs.twimg.com/profile_images/467154031182221312/mnDS-oR7.pnghttps://www.facebook.com/PlastcInc/photos/a.1397550390484882.1073741825.1397550057151582/1510153712557882/?type=1&theaterhttps://pbs.twimg.com/profile_images/3444605259/7df80b92dafa6e42ff9e28259d9f62dd.pnghttps://pbs.twimg.com/profile_images/458796011356311552/2D5G8yIo.pnghttps://pbs.twimg.com/profile_images/497432038492733440/eW6tXeq3.pnghttps://pbs.twimg.com/profile_images/506490752927416322/oMtZaXBj.pnghttps://pbs.twimg.com/profile_images/506490752927416322/oMtZaXBj.pnghttps://pbs.twimg.com/profile_images/497432038492733440/eW6tXeq3.pnghttps://pbs.twimg.com/profile_images/458796011356311552/2D5G8yIo.pnghttps://pbs.twimg.com/profile_images/3444605259/7df80b92dafa6e42ff9e28259d9f62dd.pnghttps://www.facebook.com/PlastcInc/photos/a.1397550390484882.1073741825.1397550057151582/1510153712557882/?type=1&theaterhttps://pbs.twimg.com/profile_images/467154031182221312/mnDS-oR7.png -
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NEW PAYMENT PLAYERS
WHAT IT MEANSFOR BRANDS
Boost your primary business with financial services
Pursue the underbanked opportunity
Utilize and build your network
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MORE ABOUT OUR EXPERTS AND INFLUENCERS
Deborah Baxley, consulting services principal, Capgemini Financial ServicesBaxley, who joined Capgemini in 2010, is an international payments consultant with 20 years of consultingexperience. She has performed strategy work in 14 countries for eight top global issuers and payment brands, twotop payment processors and three top bank card acquirers, and has advised companies on product direction andcompetitive positioning. She was the IBM partner responsible for strategy and change consulting for financialservices in North America and led IBMs credit card strategy in China. She is current secretary and former chair ofthe Smart Card Alliance Payments Council.
Craig Erickson, creative director and designer, ArtefactEricksons experience spans large corporate environments and small startups, including data visualization, productUX, typography, games, advertising and identity. Prior to joining Artefact, a technology product design anddevelopment company, he was co-founder and creative director of design and development studio SectionSeven. AtArtefact, hes been instrumental in the design of award-winning product concepts, from the connected home of thefuture to patient-centered decision tools for physicians.
Rob Girling, co-founder and principal, ArtefactGirlingscareer started at Apple after he won the 1991 and 1992 Apple Student Interface Design Competition forconcepts around mobile and personal computing. He then spent 10 years at Microsoft, obtaining several patents andmaking innovative contributions to Microsoft Office and Microsoft Games, eventually becoming design manager forthe user interface, brand and user experience of Windows XP. After leaving Microsoft in 2002, Girling worked as asenior interaction designer for IDEO and as the lead game designer for Sonys MAG action game. He co-foundedArtefact, a technology product design and development company, in 2006.
Bill Maurer, dean of social sciences and professor of anthropology and law, UC IrvineA cultural anthropologist, Bill Maurer serves as director of the Institute for Money, Technology and FinancialInclusion and was founding co-director of the Intel Science and Technology Center for Social Computing. Heconducts research on law, property, money and finance, focusing on the technological infrastructures and socialrelations of exchange and payment. Maurer has particular expertise in emerging, alternative and experimentalforms of money, payment and finance, their legal implications, and how they have the potential to challenge thedefinition and nature of money itself. He received his B.A. from Vassar College and his M.A. and Ph.D. from StanfordUniversity.
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THANK YOU
J. Walter Thompson: J. Walter Thompson, the worlds best-known marketing communications brand, has been
inventing pioneering ideas for the past 150 years. Headquartered in New York, JWT is a true global network with
more than 200 offices in over 90 countries, employing nearly 10,000 marketing professionals. JWT consistently ranks
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leading edgefrom hiring the industrys first female copywriter to developing award-winning branded content today.For more information, please visit www.jwt.com and follow us @JWT_Worldwide.
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zeitgeist. Its aim is to bring the outside into help inspire ideas beyond brand, category and consumer conventionsand to
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CONTACT:THE FUTURE OF PAYMENTS & CURRENCY
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