Future of Payment for Retailers and Consumers

Transcription

1 Future of Payment for Retailers and Consumers Retail Forum Store, Göteborg, 13 November 2013 Tatjana Apanasevic, PhD student Communication systems and KTH Royal Institute of Technology Stockholm, Sweden 1

2 Maybe you have noticed? 2

3 3

4 Agenda Introduction Mobile payment solutions Driving forces Obstacles Future mobile payment 4

5 Tatjana Apanasevič PhD student at Communication Systems, KTH Royal Institute of Technology Research theme: Design and analysis of services and infrastructure for mobile payments A techno-economic study on mobile payment services including technical and business related aspects Supervisor: Associate professor Jan Markendahl 5

6 The main research problem: Despite available technology and approved usability, mobile payment does not take-off on a large scale in Europe How to make mobile payment happen? Is that technical issues? or business related problems? or consumer acceptance related obstacles? Focus of research on: B2B2C context Analysis of business networks: - Who are the main parties? - What are their roles and responsibilities? - Who is doing what? 6

7 Main Trends High mobile smartphone penetration Change in consumer behaviour: Less voice communication Less SMS Increase in mobile traffic Mobile applications 7

8 Banks Main Trends Mobile operators Payment service providers SMS payment companies Many actors New payment providers Local transport companies Retail chains 8

9 Main Trends Traditional types of payment: Credit/ Debit cards E-payments Cash. And new solutions. 9

10 Who have tried? 10

11 Who have tried? 11

12 Who have tried? 12

13 New mobile payment solutions 13

14 Main Trends Many types of payment: Person to person (P2P) Point of Sales (PoS) E-commerce Combined with transport tickets Combined with parking 14

15 Who is doing what Actors & solutions P2P POS E- commerce Transport Parking Banks X X - ME X X SEQR X X x WyWallet X - x x X Payair - x x - Mobill X X Mobitime X - Tele-P Easypark X 15

16 Agenda Introduction Mobile payment solutions Driving forces Obstacles Future mobile payment 16

17 Focus today Actors & solutions P2P POS E- commerce Transport Parking Banks X X - ME X X SEQR X X x WyWallet X - x x X Payair - x x - Mobill X X Mobitime X - Tele-P Easypark X 17

18 Debit / credit card payment Secure Convenient Ubiquitous payment infrastructure Acceptability by merchants Highly popular solution 18

19 Debit / credit card payment Issuing bank Consumers Card operator Acquiring bank Merchants. Why mobile payment?. 19

20 Debit / credit card costs Card costs for consumers: Cash payments Visa card: 12 free ATM cash withdrawal, cost of others 5 SEK/time For other cards cash withdrawal cost 35 SEK / time Consumers might perceive the cost = 0 SEK Card payments Yearly fee: about SEK Loan fees Cards have costs Card costs for retailers: Cash payments A long chain: "cash payments are more expensive than card payments, but difficult to quantify. It includes labor, cash system, cash in transit and more. " Cards payments A long chain: "About 1 SEK per transaction on average ' Around 0.8 to 1.5% of the purchase price (depends on payment and client) Opportunity for new payment solutions to compete 20

21 Mobile payment Not only about payment. And more. 21

22 Mobile payment solutions for retail 22

23 Separate service account based solutions: SEQR Payment provider: Seamless Payment: - SEQR application - QR-code based - Separate service account and billing Trials and deployment: 380 shops of Axfood chains 220 McDonalds restaurants Webhallen online shop 91 store Ur&Penn.. 23

24 Separate service account based solutions: SEQR Direct transfers from one service account to another, without link to bank cards Issuing bank Consumers Smartphones with the SEQR App Seamless Acquiring bank Merchants System integration QR-codes 24

25 Debit / credit card payment Issuing bank Consumers Card operator Acquiring bank Merchants 25

26 Bank card based solutions: Payair Payment provider: Payair Payment: QR-code based Directly related to credit card of bank accounts Trials and deployment: Davids online shop Best of Brands printed ads 26

27 Bank card based solutions: Payair Issuing bank Smartphones or NFC phones with the Payair App linked to cards Consumers Card operator Payair server Acquiring bank Merchants System integration QR-codes/NFC-tags 27

28 Debit / credit card payment Issuing bank Consumers Card operator Acquiring bank Merchants 28

29 Situation on the market Fragmentation: 29

30 Situation on the market Retailers strategies: 30

31 Agenda Introduction Mobile payment solutions Driving forces Obstacles Future mobile payment 31

32 Mobile payment two sided market Consumers Retailers 32

33 Driving forces For retailers: Direct communication channel New marketing tools, loyalty programs and opportunity of direct marketing Cheaper transactions Faster sales -> reduced queuing-> time saving, reduced costs of service 33

34 Driving forces For consumers: All-in-One mobile wallet Easy, quicker service Reduced queuing time Personalization of services Direct communication channel Additional services Personalized offers Cheaper transactions 34

35 Driving forces For consumers: vs. 35

36 Agenda Introduction Mobile payment solutions Driving forces Obstacles Future mobile payment 36

37 Obstacles For retailers: Problem to reach a critical mass of consumers Cost Lack of standards Security issues Uncertain profitability and return on investment Several competing mobile payment solutions Personnel training costs 37

38 Obstacles For consumers: A need to change behavior habits Insufficient infrastructure Cost of service Trust in service provider Security and privacy issues Lack of consumer awareness and education Attractiveness of alternative payment solutions Quality of service, its complexity 38

39 Agenda Introduction Mobile payment solutions Driving forces Obstacles Future mobile payment 39

40 Future of payment It is not only about payment: More added value services Mobile phone as a platform 40

41 Future of payment 41

42 Future of payment Unified global solution vs. Many competing solutions? 42

43 Future of payment New type of stores 43

44 Future of payment New type of purchasing experience (shop&pay on-the-go) 44

45 Future of payment New type of purchasing experience (p-commerce) 45

46 Thank you Tatjana Apanasevic, 46