NTT DATA Consulting’s annual mobile wallet analysis. Starting in 2013, we began analyzing some of the Mobile Wallet offerings leveraging a systematic view of the range of mobile payment capabilities and customer experience. With recent announcements from industry leaders such as Apple, Wal-Mart and the top financial institutions, we have updated our view on where each of the major mobile wallets fits in today’s market for 2016.

1. © 2016 NTT DATA, Inc.
Mobile Wallets Research and Analysis
May 2016

2. © 2016 NTT DATA, Inc. 2
What is a Mobile Wallet?
A mobile wallet is an “app” on a consumer’s smartphone that allows
them to purchase goods or services at a minimum
of one Point of Scale merchant location

3. © 2016 NTT DATA, Inc. 3
100+
POS transactions were
performed by participants at
more than 19 different merchants
Mobile Market Study Overview
Prior to this study, only a small
percentage of our participants
were utilizing a mobile wallet.
75%
Had never registered or used a
mobile wallet of any type.
DE | NC | FL | OH | TX | CT | GA
Testing was conducted
across 7 Geographic areas
18+
Financial Institution/Financial
Product/Payment Networks were
used
Issued by top 10 credit and debit
issuers
90% Participants used a variety of
POS enabled Apple, Andriod, or
Samsung devices spanning two
Operating systems*
(iOS 7+ and KitKat 4.4+)
11
active participants were
involved in our study
*A Windows phone was initially also included in our study, unfortunately, none of the wallets in scope support Windows compatible wallet.

4. © 2016 NTT DATA, Inc. 4
*Note: Indicates only partially tested due to provider constraints
Mobile Wallet Inclusion Criteria
NTT DATA evaluated a representative sample of 30+ Mobile Payment Applications for inclusion in our study.
MOBILE SELECTION CRITERIA
Mobile Wallet Sector Category Study Scope Not POS Capable
Pending Market
Launch
Accepting Location
Not Found
Lacked Wallet
Conditions
Apple Pay Digital Provider IN
MC PayPass Card Association IN X
Pay Pal app Tech Titan IN
Level Up Tech Titan IN
VS PayWave Card Association IN X
Samsung Pay Digital Provider IN
Android Pay Digital Provider IN
Walmart Pay Merchant OUT X
Chase Pay Financial Institution OUT X
Current C Tech Titan IN
Capital One Financial Institution IN* X
Dunkin Donuts Merchant IN
Starbucks Merchant IN
Burger King Merchant IN
Target Merchant OUT X
Payapp Wallet Tech Titan IN* X
Tabbedout Tech Titan IN
FreeBeePay Tech Titan OUT X
CorPay Tech Titan OUT X
Mobile Selection Criteria
Must be accepted
at a minimum of
one merchant
Compatible with at least one
smartphone device?
Must be able to
complete a
point-of-scale transaction
If only one merchant, must either be:
Top 50 Retailer
More than 2,500 retail locations
Support
1+ funding sources
‘in wallet’

5. © 2016 NTT DATA, Inc. 5
We evaluated a
representative
sample of
12 Mobile
Wallets covering
a variety of
sectors
Digital
Providers
Financial
Institutions
Merchants
Tech
Titans
EVALUTAION CRITERIA
User Experience Payment Capability
Device Capability
Ease of Set Up
Ease of Use
Rewards/Loyalty
Merchant Acceptance
Transaction Range
Supported Funding Types
Checkout Experience
Mobile Wallet Evaluation Criteria
Dimensions and Data for scoring wallets within each category.

6. © 2016 NTT DATA, Inc. 6
Starbucks and Paypal
lead due
to device compatibility
and Use features.
Digital Provider wallets
were stand outs in ease
and security in
Set Up and Use.
Lower scoring wallets
were impacted by poor
merchant acceptance
and less intuitive
set up.
Tech Titans received high
ranks for offering
merchant partners’
coupons or discounts
to incent use.
Burger King’s app was
very difficult to
understand; negatively
impacting it’s overall
User Experience score.
User Experience Rankings Across Provider Categories
Device Compatibility, Ease of Set Up, Ease of Use, Rewards/Loyalty
0
5
10
15
20
25
30
35
Starbucks
PayPal
AndroidPay
ApplePay
SamsungPay
CurrentC
CapitalOne
DunkinDonuts
LevelUp
TabbedOut
BurgerKing
PayApp

7. © 2016 NTT DATA, Inc. 7
Wallets scoring higher
were favored across
merchant acceptance,
funding, and
checkout experience.
Without
the exception of
Starbucks, merchant
wallets ranks were
lower due to
inconsistent acceptance
across merchant
locations, limited
transaction types, and
low security.
Burger King ranked low
due to restrictive funding
channels; PayPal or
BK gift card only.
Samsung Pay
fell slightly short for not
accepting on Card
Network and
unidentifiable at Point
of Sale as accepted
form of payment, as
our testers experiences
some failures.
Tech titans were
competitive in checkout
experience but ranked
lower for merchant
acceptance, transaction
types and funding
restrictions
Payment Capability Rankings Across Provider Categories
Merchant Acceptance, Transaction Range, Funding Types, Checkout Experience
0
5
10
15
20
25
AndroidPay
ApplePay
PayPal
SamsungPay
Starbucks
TabbedOut
CurrentC
DunkinDonuts
CapitalOne
LevelUp
Burger
ApplePay

8. © 2016 NTT DATA, Inc. 8
Current State of Mobile Wallets
LOW HIGH
HIGH
Consumer Experience
MobilePaymentCapabilities
LEVELUP

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Pros and Cons for all ProvidersConsPros
Digital Providers Merchants Tech Titans
• Direct relationship with
Financial Issuer
• Wallet application on
device by default
• Device security is
shared with wallet
• Directly funded from
existing accounts
• Rich rewards and
coupons
• Pre-ordering
capabilities
• Employee
Knowledgeable (aware)
• Compatible with device
wallets for easy access
• Device agnostic
• Subscribed merchants;
better working
knowledge
• Richer
features/functionality
offered
• Trusted security
• Ties to existing
reward programs
• Offers locator
services/alerts and
storage/payment with
some gift cards
• Limited to certain
financial institutions
• Lack of rewards/loyalty
redemption
• Limited to certain
device types
• Subject to their
technology platforms
• Limited to one
merchant
• Low security
• Fund restrictions (e.g.
pre-funding,
increments, PayPal)
• Limited merchants and
types
• Specific to Geographic
locations
• Low security
• Limited App support
• Limitations to
credit/debit card
through single FI; must
be a customer
• Full capability limited
to Android device only
• Multiple mobile
platforms (banking vs.
wallet)
Financial
Institutions
Apple Pay, Samsung Pay,
Andriod Pay
Starbucks, Dunkin Donuts,
Burger King
PayPal, LevelUp, Tabbed Out,
Current C, PayApp Capital One Pay

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Appendix

11. © 2016 NTT DATA, Inc. 11
Mobile Wallet Rankings – Merchants and FI
Wallet
Provider
OverallRank
OverallUser
Experience
Device
Compatibility
EaseSetUp
EaseofUse
Rewards/
Loyalty
Overall
Payment
Experience
Merchant
Acceptance
Transaction
Range
TypeFunds
Supported
Checkout
Experience
Summary
48 32 9 7 11 5 16 3 2 4 7
Strong rewards tie and consistent merchant experience
across all locations. Preordering, accept Apple Pay as
funding channel and compatible with apple wallet for
expedited purchasing, and partner marketing. However, if not
regular customer, little incentive to re-use.
37 25 9 8 7 1 12 2 1 2 7
Full functionality requires Android device & Capital One
product; partially tested. Open loop, limited funding
acceptance. High marks for security, location, and notification
features. Use search capability to store & pay with various
merchant gift cards.
35 23 7 5 8 3 12 3 2 3 4
Closed loop, location services, but inconsistent acceptance
across merchant locations. Linked to rewards /loyalty
program, ability to send gift card. Integrates with Apple Wallet
for expedited POS access. Low functionality compared to
competitor merchant wallet.
25 15 6 4 4 1 10 3 1 2 4
Closed loop with very restrictive funding options, requires
PayPal account set up, Offers in store coupons, but no
rewards. App not intuitive, location services supported,
however, unclear and inconsistent location acceptance. Poor
employee knowledge.

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Mobile Wallet Rankings – Tech Titans
Wallet
Provider
OverallRank
OverallUser
Experience
Device
Compatibility
EaseSetUp
EaseofUse
Rewards/
Loyalty
Overall
Payment
Experience
Merchant
Acceptance
Transaction
Range
TypeFunds
Supported
Checkout
Experience
Summary
50 28 8 7 11 2 22 5 4 4 9
Open looped, sizeable merchant footprint, works across more
transaction types. High marks for wallet security, transaction
history and accepted funding. Detailed set up and requires
PayPal account and prefunding. Has functions for merchant
locator, pre-ordering, and loyalty card searching, storage, and
redemption. Exceptional employee knowledge where accepted.
39 25 7 5 8 5 14 4 1 2 7
Still emerging. Open loop, POS wallet only. Facilitates merchant
partnerships for acceptance; lack of employee education.
Restrictive funding sources; lacks trusted security. Offers
merchant partnering merchant coupons or discounts.
36 21 6 6 8 1 15 4 1 3 7
Open loop, no prefunding, specific to bars/restaurants. Limited
merchant footprint; location specific. More local restaurants
versus chains. High marks for employee education and
ease of use. Features include tipping, pay at the table or
after leaving, splitting the tab with others.
Level Up 32 22 8 4 8 2 10 3 1 2 4
Open loop, POS only, limited merchant footprint locator
service required. Good marks for funding accepted and
device compatibility. Offers wallet lock and supports
transaction history. Low marks for set up security and
monthly billing process and spend limits.
PayApp 12 10 2 5 3 0 2 0 0 2 0
Unable to complete set up and fully test due to wallet provider
technical constraints

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Mobile Wallet Rankings – Digital Providers
Wallet
Provider
OverallRank
OverallUser
Experience
Device
Compatibility
EaseSetUp
EaseofUse
Rewards/
Loyalty
Overall
Payment
Experience
Merchant
Acceptance
Transaction
Range
TypeFunds
Supported
Checkout
Experience
Summary
51 28 5 10 10 3 23 5 2 4 12
Open Loop; broader device compatibility, large POS merchant
footprint, across geographic locations; low In app presence. High
marks for accepted funding. Easy set up, portable from Google
Wallet. Excellent set up and transacting security; with itemized
transaction history. High marks for loyalty & gift card features.
NFC capability expedites POS.
49 27 6 10 9 2 22 5 2 4 11
Open Loop, limited device compatibility but more device types,
app native to devices. Largest POS and In-App merchant
footprint across all geographic locations. High marks for
accepted funding. Excellent market presence and brand
awareness @ checkout. Top rated for set up and use security;
transaction history supported. NFC capability and transaction
default settings expedite checkout @ POS and In-App. Limited
reward storage, lacks rewards/ loyalty card features/functions.
ng Pay 43 26 4 11 9 2 17 4 2 2 9
Open Loop, limited device compatibility, NFC/MST capable to
broaden merchant acceptance to however low brand awareness
@ POS and failures were still experienced. Easy set up and
access through home screen. High ranks for security, although
users reported biometric issues. Wallet app not pre-loaded on
device; requires download and separate set up. Inconsistent
support of transaction history. No differential in
checkout experience.

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Evaluation Criteria Definitions and Scoring Levels
Device Compatibility Ease of Set Up Ease of Use Rewards/Loyalty
Ability to work with multiple device
providers (e.g. iPhone, Android,
Windows, Samsung) and Device Type
Easy Customer Set Up / Intuitive
Interface, secures data, requires minimal
time, and entry shortcuts.
Intuitive Interface, Easy access,
Locations accepted, help/tutorials and
Expedited Purchasing
Rewards accrual /redemption supports
loyalty cards, and partner
loyalty/offer/marketing features/functions.
Not compatible with any major device
provider
Not able to set-up Not able to use. No Rewards or Loyalty
Compatible with only 1 major device
provider
Difficult interface, lengthy set up,
multiple apps required, limited entry
options, supports wallet lock only
Difficult to access at POS, not intuitive
and no merchant locator services,
worsened purchase timing
Stores 1 Loyalty / Rewards , no link or
features
Compatible with at least 1 major device
and smart phone only
Difficult interface, quick set up, limited
entry options, offers wallet password and
wallet sends notification to ‘out of wallet’
channel
Intuitive interface, easy access, offers
location service, some in app tutorials,
purchasing inconsistently expedited
Stores 1+ Loyalty / rewards Cards no
links thru wallet, no feature/function
Compatible with 1+ major device provider
and 1+ POS smart phone only
Easy intuitive interface, 1+ entry
shortcuts, minimal time, offers wallet
password/PIN, wallet sends notification in
‘out of wallet’ channel; requires
confirmation
Intuitive interface, easy access, no
tutorial or location service, but accessible
on internet accessible, purchasing
consistently expedited
Stores 1 Loyalty/Rewards,
access/redeem links thru wallet
Compatible with 1+ major device provider
1+ POS smart phone and other device
type
Easy intuitive interface, 1+ entry
shortcuts, minimal time, requires wallet
password/PIN and ‘Issuer’ notification in
other channel , requires confirmation
Intuitive interface, easy access, support
merchant location service and
help/tutorials, purchasing consistently
expedited.
Stores 1 or more Loyalty/Rewards, can
access/redeem links thru wallet, 1
feature/function
User Experience

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Evaluation Criteria Definitions and Scoring Levels
Merchant Acceptance Transaction Range Fund Types Supported Checkout Experience
Number/types of accepting merchants,
consistent acceptance, identifiable as
form of payment accessibility across
geographic locations
Range of Transaction Types supported in
wallet
Funding options supported minus any
restrictions, e.g. Issuer, Card
Association, Spend limits, Transaction
fees
Calculated scoring based on expedited
purchasing, employee knowledge,
identified form of payment, transaction
history, and security
Not accepted at POS
n/a
No funding options
Lengthen purchasing, no employee
knowledge, identified payment, or
transaction history
Unrecognized, limited merchants, hard to
find in most geographic reasons
POS Only
1 channel
(Credit only)
No change in purchasing, lacks
knowledge, identified form of payment, or
transaction history
1 Merchant or Merchant type,
inconsistent location acceptance, no In-
App, limited access based on location
POS + 1
(e.g. In-App)
2 channels
(e.g. Credit, Debit)
No change in purchasing, lacked 2
amongst knowledge, identified form of
payment, or transaction history
1 Merchant or Merchant type, or variety,
consistent location acceptance, some In-
App, location based
POS + 2
(e.g. In-App, P2P)
3 channels
(e.g. Credit, PayPal, gift card)
Expedited purchase, lacked 1 amongst
knowledge, identified form of payment, or
transaction history
Variety of merchant types, POS and In-
App, consistence acceptance, across
geographic location
POS + 3+
4+ channels
(e.g. Google Wallet, Debit, Bank account)
Expedited purchase, knowledgeable
employee, recognized form of payment,
and Transaction history
Payment Experience

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Full Mobile Wallet Listing
Mobile
Category
Name
Device
specific
Issuer
Specific
Association
Specific
Transaction
Range
Merchant /
Location
Specific
Funding
Sources
Terminal Type
Addt'l
Cost
Digital Payment 1 Apple Pay Yes Yes MC, Visa, AMEX, Discover Online, POS, In App Credit, Debit NFC
Card Association 2 MasterCard PayPass No Yes NFC
Digital Payment 3 Pay Pal app No Online, P2P, POS Digital
debit/credit
card has 2.9%
transaction fee
Digital Payment 4 Level Up No No P2P, POS Digital, NFC, QR Code
Card Association 5 Visa Pay Wave Yes VS Online, POS?
Digital Payment 6 Samsung Pay Yes MC, VS, AMEX Online, POS, InApp Debit, Credit NFC, HCE, MST
Digital Payment 7 Android Pay Yes Yes MC, Visa, AMEX, Discover Online, POS, In App NFC
Merchant 8 Walmart Pay No No No POS, online Select Walmarts
credit, debit, pre-paid
or Walmart gift card
QR Code
Financial Institution 9 Chase Pay No Yes - Chase only POS, online, In-App Chase Debit/Credit QR Code
Digital Payment 10 Current C No Columbus, OH only
Financial Institution 11 Capital One Yes Yes MC, VS NFC
Merchant 12 Dunkin Donuts No
Merchant 13 Starbucks No No No Online, POS, P2P
Merchant 14 Burger King
Merchant 15 Target No
Digital Payment 16 PayApp Wallet No No POS Credit, Debit QR code
Digital Payment 17 TabbedOut no no no no
Digital Payment 18 Freebee Pay Yes No POS Yes
credit, debit, or
PayPal
Barcode Scan
Digital Payment 19 Corfire - CorPay No No No
including closed-
loop/open-loop gift
cards, credit, debit,
prepaid, and
companion payment
cards
NFC or Non NFC

17. Contact Us
NTT DATA Consulting, Inc.
704.936.1600 | ntt.data.consulting@nttdata.com
www.nttdata.com/usconsulting
@NTTDConsulting | LinkedIn: /NTTDATAConsulting
17
Prepared by Peter Olynick | Senior Practice Lead
Retail Banking
Peter.olynick@nttdata.com