Is the Future of Payments, Mobile? by Craig Kilfoil ExactConsult

Transcription

1 Is the Future of Payments, Mobile? by Craig Kilfoil ExactConsult

2 Or... Is the Future of Mobile, Payments?

3 the theory growing use of Mobile originated transactions there s an App for that everyone has a Mobile phone so it will be huge its a online device the mobile wallet must be the answer NFC must surely be the answer, too?

4 more and more is happening in the space some will stick

5 And we all thought this was dead...

6 and happening in Niger...

7 and Mali, Senegal and Cote d Ivoire

8 and Tanzania and Rwanda

9 and Zimbabwe will Tax it... LoL

10 something will stick when you got players with the muscle of... Vodafone Etisalat Tigo Orange MTN playing in your sandpit!

11 Banks should not be complacent... a la Kenya [French, short for à la mode de, in the manner of.]] Source: Accenture Digital Disruption in Banking Survey 2014

12 and these are the Companies Americans would bank with... Who the hell is Roger? Source: Accenture Digital Disruption in Banking Survey 2014

13 Source: Accenture Digital Disruption in Banking Survey 2014

14 Source: Accenture Digital Disruption in Banking Survey 2014

15 Source: Accenture Digital Disruption in Banking Survey 2014

16 Source: Accenture Digital Disruption in Banking Survey 2014

17 Gartner reckons...

18 some are predicting a mobile payments boom

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25 Uber disrupts the taxi industry

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27 what about the iphone 6 and Apple Pay? Cool biometric access control but nothing else is exciting

28 so will Apple Pay succeed? ios only had a worldwide penetration of 11,7% of smartphones sold in 2013 half of the worlds phones are not smartphones half of the customers won t sign up how many main-stream merchants are going to invest in a payment system for maybe 2.5% of the market... assuming there was a major problem being solved in the first place? not many

29 FAIL so this is even an easier prediction than the dismal takeup of the Google Wallet... its another non-event

30 did someone say Coffee

31 how about a trial run...

32 add my Starbucks Card

33 or get a digital one

34 have card... no money

35 ok... now link a credit card

36 add my Old Mutual Visa - OMCard

37 OMCard linked...

38 oops... my OMCard is Off... but the App works! more about OMCard later

39 sooper easy to sign up and use Touch to Pay but does it solve a problem?

40 what would make a Starbucks payment App successful? because they are so successful the payment process slows them down

41 and it s a win-win for the customer customers can track and spend their Rewards

42 and the numbers show it

43 closer to home

44 or does the square work just fine?

45 this ll do

46 and this looks sensible

47 and yet Snapscan won App of the Year 2013

48 certainly a cool App but is it solving a problem? having invested hundreds of millions in EMV Chip to solve card fraud... they launch a merchant acceptance product for real world transactions that turns, what would be Card Present transactions into e-commerce and with that the risks of Card-Not-Present fraud

49 what if I was a merchant?

50 vs high Coolness factor cardholder must enroll so merchant can only take payment from enrolled cardholders credit card only? card-not-present has more risk for the merchant no monthly fee MSC 3% functional, not so funky no cardholder enrollment thus any cardholder can be served debit and credit card present, chip & PIN almost no risk R50 p.m. MSC 3.2%

51 but this looks like a cool App

52 sounds promising

53 I ve gotta try this...

54 that sounds easy enough...

55 download MasterPass App

56 choose a password

57 add my OMCard

58 oops... Visa or non-sa card not supported?

59 added my Spar Prepaid MasterCard from SBSA lets go shopping!

60 hmmm... where to shop?

61 online shopping

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64 what was that about not having to register?

65 looking good

66 so where s my QR code?

67 more clicking... still no QR code

68 and now what?

69 FAIL

70 maybe its just that shop... lets try again

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74 shipping details again.....

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76 look familiar but this is new

77 FAIL

78 what people are saying about Wallets James Wester, global research director for mobile payments IDC Financial Insights Focus on... solving a problem enrollment is the biggest challenge don t make it any more complex that it is already

79 before I forget... OMCard from Old Mutual Namibia Visa classic mag-stripe hybrid international CNP allowed ubiquitous acceptance but what about the Risk?

80 before I forget... OMCard from Old Mutual Namibia Options: Add The Chip AND decline Fall-back (International) Deploy OTP or Secure Token to secure IB Add VbyV, force enrollment and decline non VbyV

81 before I forget... OMCard from Old Mutual Namibia solve the problem e-commerce fraud risk counterfeit fraud risk internet banking phishing risk most cardholders are scared to shop online

82 OMCard App - there s an App for that... or turn it off until needed

83 solve online fraud cardholder confidence

84 actually works

85 internet banking Phishing

86 most counterfeit fraud is international

87 whats good about the OMCard in this Wallet its the best of both worlds a magstripe card which has ubiquitous acceptance uses the mobile which is online, highly personal and is unequally identifiable

88 in summary is the Future of Payments, Mobile? certainly! is the Future of Mobile, Payments? hmmm... not so much by craig kilfoil

89 any questions?

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