top of app, top of wallet - sequent of app, top of wallet how banks succeed in the mobile payments...

TOP OF APP, TOP OF WALLET How banks succeed in the mobile payments game

2How Banks Can Win the Wallet Wars

CARDS ARE THE HOTTEST NEW CONTENT CATEGORYON MOBILE DEVICES

In the mobile ecosystem, content is everything. Consumers make decisions as to what services and products to use based on the content available to them. Just as ringtones, digital music and videos before it, cards are now becoming one of the hottest new content categories on mobile phones. Issuers, like artists and studios are the content creators, and many channels are now becoming available for consumers to access this content.


DISTRIBUTION CHANNELS TO MOBILE DEVICES FINALLY AVAILABLE BY TECH GIANTS

Tech giants are finally providing banks with channels to provision their cards to their customers’ mobile devices. Consumers are finally able to perform mobile payments anywhere using NFC technology at any enabled merchant in multiple countries.

Android Pay will support 13 financial Institutions atlaunch in the U.S

With Apple Pay, a Push Into Mobile Payments

Apple Pay to launch in UK in July

Android Pay vs. Apple Pay: What Are the SimilaritiesAnd Differences

Apple Pay vs.Google Pay: The Digital Wallet War


BUT WHAT IS MISSING?

Unlike other content providers, banks have a history of direct one-on-one relationships with their customers. Through bank-owned channels such as the branch, ATMs, internet, social media or mobile, banks provide a complete omni-channel experience to their consumers. It is through these channels that banks provide a seamless brand experience that constantly connects them to their customers and educates them onnew products and services.

Internet Mobile

Branch Social


THE MOBILE PHONE IS THE BEST CONNECTION A BANK EVER HAD WITH THEIR CUSTOMER

Banks have invested millions in theirmobile presence which is quickly becoming the best connectionbanks ever had with their customers.Apps provide almost unlimitedpotential for new services andfunctionality while being at the sametime one of the lowest cost channelsfor banks to reach consumers.


MOBILE PHONES ARE THE NEW BANK “BRANCH,” WHERE VALUE-ADDED SERVICES WILL BE SOLD

Banks have kept their mobile presence relevant by constantly adding new functionality like remote deposit or bill pay. As the number of people interacting with their banks only through their apps increases, the number of branch visits is decreasing. The result is that banks are counting on mobile phones to be the future channels to sell all kinds of new services such as loan origination, investing and wealth management, effectively becoming the new “bank branch.”


BUT HOW CAN BANKS COMPETE IN THE MOBILE PAYMENTS GAME?

But the competition in the mobile ecosystem is nothing but savage. On average, a whopping 80% of mobile apps are downloaded, used only once, and eventually deleted.

Even well financed banking and wallet apps from banks and retailers face the prospect of poor usage if they don’t have the most desired functionality. That is especially true if the keys to the kingdom are delivered to a third party or “intermediary” wallet app that will perform the desired functionality for the bank.


PAYMENT, LOYALTY AND OFFERS: THE KEY FUNCTIONALITY FOR MOBILE WALLETS

In the world of mobile apps, functionality is essential to make an app an indispensable part of a consumer’s life. Different app categories focus on specific functionality to make them a repeat-use tool for consumers. For those entities taking part in commerce, payment, loyalty and offers are THE key functionality. Payment, the redemption of offers, and the collection of loyalty points, are the key functionalities a wallet must have to compete.


Partners provide banks with the scale needed to compete!

Banks may feel they need to surrender to big tech giants because they don’t have the scale to compete, but they forget their main assets: their existing relationships with merchants and their account holders. Banks can compete by leveraging their strong merchant relationships for processing, lending and other services and create a network of partners that can be leveraged to deploy a mobile payments solution.

RetailersMerchants

Transit


How banks win?Step 1: Deploy a full-featured mobile wallet

Sequent allows banks to turntheir banking apps into powerfulrepeat-use mobile wallets fortransactions in the physical world.With Sequent banks control allaspects of the consumer experience,end-to-end. Communication with theconsumer can start at home, beforethey even leave for the store.


How banks win? Step 2: Create a new network of partners

Banks can use the Sequent platform to create an entirely new network for their merchants and partners. By extending payment functionality via simple APIs to thousands of apps, banks bring their cards to the top of every app and enable their merchants and partners to also power their apps for payment.

API


How banks win? Step 3: Tap into new revenue opportunities

Banks can leverage the network of apps enabled with their payment functionality to tap into brand new revenue opportunities available in the mobile ecosystem. Facilitating the exchange of coupons and promotions to in-store transactions, enabling in-app and online purchases and selling value-added services to app owners such as consumer purchase behavior inside the bank’s network of enabled apps.

Free

SALE

10pts

Sale

Fr

Apply

20%

$$59.99

Total

$

Facilitate coupons and promotions

Consumer purchase behavior data

Enable in-app and online


World Shipment of NFC-enabled Cellular Handsets(in Millions of Units Shipped)

2014

2,500

2,000

1,500

1,000

500

0

2015 2016 2017 2018 2019 2020

2.2B

756M440M

THE TIME IS NOW: NFC IS QUICKLY BECOMING UBIQUITOUS ACROSS HANDSET MODELS

Near Field Communication (NFC) is quickly becoming a standard technology on mobile phones. Annual shipments are growing at an incredibly fast pace, going from 440 million handsets in 2014 to 756 million in 2015 according to the research firm IHS Technology. IHS also projects that by 2020, 2.2 billion handsets will be shipped annually with the technology.


SEQUENT WORKS ACROSS OPERATING SYSTEMS REACHING MOST PHONES IN THE WORLD

First introduced into the KitKat version of the Android OS, Host Card Emulation (HCE) technology allows banks and merchants to control their mobile payment experience through their own apps without 3rd party permission. HCE is now supported in Windows and Blackberry as well.

HCE Support Expected in the Great Majority of Smartphones

Smartphone shipments per OS platform Q2 2015 – Source: IDC

13.9%

2.6%

0.3%

82.9%


ANDROID IS AN OPEN ECOSYSTEM and NO ENTITY CAN CONTROL IT

Android is an open ecosystem, multiple entities are part of it, including OEMs, MNOs, chip makers, and of course, Google. The open nature of Android ensures that no single entity can control it. There are multiple opportunities for players such as banks and other issuers to leverage Android’s capabilities and deploy their own mobile payment solutions.

Samsung

htc

LG

SONY

Google

NXP


Succeeding in the mobile payments game with Sequent

User Experience Security Scalability

Payment, loyalty, offers – all

credentials supported

Robust security for HCE payments

“Share” your cards with every app

API

Sequent provides banks with the best user experience, security and scalability for their mobile payment plans.


USER EXPERIENCE: PAYMENT, LOYALTY AND OFFERS – ALL CREDENTIALS SUPPORTED

Mobile payments is not about “payments” per se. Payments work perfectly well with any plastic card today. The major pain-point in commerce at brick and mortar merchants is the integration and management of paper-based loyalty, offers and coupons. Sequent Card and Wallet platform has complete support for loyalty, coupon and other credentials, plus patented single-tap redemption capabilities.

http://www.sequent.com/card_mobile-wallet-platform/

http://www.sequent.com/card_mobile-wallet-platform/


SECURITY: ROBUST SECURITY FOR HCE MOBILE PAYMENTS

Good security is hard. It takes time and resources away from designing and deploying the next BIG thing. But the consequences of not doing security right are massive. Sequent provides best-in-class security for card data sent to mobile devices by combining our Token Service Platform (TSP), hardware and software secure element, and dynamic server monitoring of usage and transactions.

As a recognized leader in mobile payment security, our products have bank-level security, providing customers with peace of mind so that they can focus on innovation and user experience. Sequent production systems are PCI-DSS and EMV compliant. Sequent is also one of just a handful of companies globally to have achieved over-the-air personalization approval from Visa.

http://www.sequent.com/tokenization_token_service_platform_tsp_hce/


API

SCALABILITY: Share your cards with every app

Sequent allows banks to leverage the power of APIs to improve their partnerships and bring their cards to the top of every app. Using Sequent, banks can open their platform and create a network of partners that can add payment functionality to their apps, all under the bank’s control. Banks can increase usage of their “shared cards” and tap into new revenue streams by becoming the default card choice - “top of app” - on multiple apps for both in-store and in-app payments.


SUMMARY: THE TIME IS NOW AND WE CAN GUIDE YOU THERE!

• Sequent Token Service Platform and on-device security enable banks to securely provision cards to any mobile device for use with NFC mobile payments.

• Sequent enables banks to deploy their own full-featured mobile wallet with payments, offers and loyalty and share their cards to every app in a network of merchant and other partners.

• The Sequent “Network Effect” enables banks to become “top of app” in every app and drive usage of profitable private label and prepaid cards, tap into new revenue opportunities, and gain valuable consumer insight while protecting customer data from competitors.


Why Sequent?

Global presence and endorsements• Multiple mobile payment deployments under the belt for

tier 1 banks, MNOs and card bureaus in 4 continents

Ironclad security• A recognized leader in mobile payment security, PCI-DSS

and EMV compliant and an approved OTA perso bureau by Visa with bank-level security in all products

Innovator par excellence• Product vision with multiple patents and the biggest

concentration of experts in the industry

No strings attached• Sequent doesn’t want your customer data or has any

strings attached. Sequent powers banks to be successful and independent in the world of mobile payments.

http://www.sequent.com

Thank Youwww.sequent.com • [email protected] • +1 650-419-2713

©2015 Sequent Software Inc, All rights reserved.

http://www.sequent.com

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top of app, top of wallet - sequent of app, top of wallet how banks succeed in the mobile payments...

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