Will mobile phones replace your wallet? An exploration of the state of mobile payments today, the major players leading the transformation, and the technology that's making it possible.

1. Will mobile phones
replace your wallet?
The State of Mobile Payments Today
June 2012
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2. Is cash becoming obsolete?
• A recent Pew Research study
suggests mobile payments may
replace cash by end of 2020
• 65% of respondents said they
believe most consumers will
have embraced “smart-device
swiping” vs. cash for purchases
• However, 33% said they do not
trust devices with Near Field
Communications (NFC)
technology Source: http://mashable.com/2012/04/17/mobile-payments-2020/
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3. Terms You Need to Know
• Mobile payments
Financial transactions being processed wirelessly through mobile phones, via
apps, NFC (see below), and other technologies
• Near Field Communication, or “NFC”
Technology that allows data to be transferred by tapping a phone on the surface.
In the case of mobile payments, transactions can be made by tapping your NFC-
capable phone at a merchant rather than handing over your credit card.
• Digital wallet, or “e-wallet”
General term describing the shift toward digital payment solutions, such as
mobile payment transactions, versus physical cash
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4. Who are the major companies leading
the mobile payments transformation?
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5. Some of The Major Players…
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6. What Google is Doing
Google Wallet
• Google’s answer to mobile
payments is Google Wallet, an
app that enables mobile
payments and loyalty cards
using NFC
• Citi, MasterCard, Sprint and
First Data partnered with
Google for this product launch
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7. What Amazon is Doing
Amazon Mobile Payments Service
• Amazon offers MPS – Mobile
Payments Service
• The NFC-based service enables
consumers to pay for goods at
brick-and-mortar stores using
their smartphones + Amazon’s
MPS app
• Amazon is pushing to become
one of the biggest players in
mobile commerce
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8. What PayPal is Doing
PayPal + Bling
• PayPal has partnered with
Bling Nation, a startup that
has been installing contractless
payment terminals at local
merchants since 2008
• When users attach an NFC-
enabled sticker to their
phone, they can swipe to make
payments & receive rewards
• Users now have the option to
pay using their PayPal accounts
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9. What Major Credit Card Companies are Doing
• Contractless payment
stations that use credit
cards can easily accept
payments that use
• Most major credit card
companies have started
the process of distributing
payment stations to
provide “tap-and-go”
payment processing
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10. What Major Mobile Carriers are Doing
• Verizon, AT&T, and
T-Mobile have partnered
to launch an NFC-
powered contractless
payment network called
“Isis”
• Initially it was partnered
with just Discover, but
recently Visa, MasterCard,
and American Express
have also signed on
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11. Let’s see some real world examples…
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12. VeriFone Leading Mobile Innovation
“ The buses in Turkey are equipped with GPS tracking and are
constantly reporting their location to Verifone’s system in the cloud.
“
VeriFone then sends messaging to signage at various bus stops to
inform travelers that their ride is only four minutes or so away.
—Paul Rasori
VeriFone’s Senior Vice President of Marketing
• VeriFone is one of the most innovative mobile payment
providers currently testing the mobile payment waters
• They recently deployed validator technology on bus
systems in Turkey which allows travelers to tap a pre-
paid, contractless card issued by the country’s
transportation authority to make bus travel easier & more
efficient
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13. Major Cities Adopting Mobile Payment Solutions
• The city of Denver uses
Parkmobile, an app that
handles parking payments and
alerts you when your meter will
expire
• If you take the light rail around
Denver, you can use the app to
pay for parking your car at the
nearest station
• The app is available for
iOS, Android, BlackBerry and
Windows phones
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14. Taxis Already Using Mobile Payments
• GetTaxi is a simpler, faster
way to order a taxi from
your mobile phone
• Watch your taxi on a map
in real time
• Travelers can also use the
app to pay their taxi fares
instantly and earn rewards
• GetTaxi is popular in the
UK, Israel, and Russia
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15. MasterCard PayPass
• MasterCard recently unveiled a new brand identifier
called MasterCard PayPass Ready
• It certifies NFC-capable phones, such as the LG Viper, HTC
One X & others as “tested and certified by MasterCard”
for use with its PayPass technology
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16. Flash Valet
• Flash Valet is a cloud-based solution that enables valet
parking operators to track vehicles, manage multiple
locations, and keep track of employee time & attendance
as well as accept mobile payments from customers
• It’s currently only available for iOS, but
BlackBerry, Android and Windows versions will be rolled
out soon
How Flash Valet Works:
When customers drop off their cars they are given a ticket with a
phone number. When they are ready to retrieve their car, they
send a text message to the number along with their ticket number
which alerts the valet parking attendant through the Flash Valet
mobile app. When the car is ready for pickup, the customer
receives a text message and can pay for their parking with a credit
card or PayPal.
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17. The next generation of smartphones
that give you the power to pay.
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18. Which phones are NFC-capable?
Here are just a few of the new breed of smartphones with
built-in NFC technology, enabling mobile payment
processing:
Samsung
LG Viper HTC One X Galaxy Nexus
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19. Where do Apple & Microsoft stand?
• One of the most popular • Not to be left out of the
Apple rumors of late is party, Microsoft is also
that the iPhone 5 will be rumored to be planning
NFC-enabled – the same NFC capabilities for its
rumor turned out to be next Windows phone
false regarding the iPad 2. releases
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20. iWallet: Coming Soon to the iPhone?
• Apple recently filed for a
new patent hinting at an
“iWallet” NFC-powered
mobile payment capability
for the iPhone
• The patent describes a
Parental Controls system
that would enable parents
to control how their
children are spending
money via their phones
Source: http://mashable.com/2012/03/09/iwallet-apple-patent-iphone/
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