Deciphering Digital: Your Phone is Your Wallet

Transcription

1 Deciphering Digital: Your Phone is Your Wallet ICBA Live 2017 March 17, 2017 Paul Tomasofsky, Partner th Street, Northwest Suite 300 Washington, DC

2 The opinions expressed by Mr. Tomasofsky during this presentation are exclusively his own and subject to change. Copyright 2017 McGovern Smith Advisors, LLC. 2

3 Expert Payments Advisors Our unique combination of experienced industry veterans, deep understanding of the payments industry and comprehensive advisory services means you receive advice that is informed, efficient and actionable. 1. Decades of Experience Our veteran industry practitioners have an average of more than 25 years of relevant experience. 2. Industry Understanding Our focus on the payments industry means we have a deep understanding of our clients businesses. 3. Comprehensive Advisory Services We offer comprehensive advisory services that reflect the rapid changes impacting the payments industry.

4 McGovern Smith Advisors at a Glance Debit- & Prepaid- Cards HQ Washington DC Expert Payments Advisors Veteran Practitioners with Decades of Experience Merchant Acquiring Credit- & Commercial- Cards Government Relations Informed, Efficient and Actionable Advice Emerging Payments, Mobile, & EMV Compliance & Risk Management Comprehensive Advisory Services

5 SERVICES Service Areas PAYMENT PRODUCTS Credit Cards Commercial Cards Debit Cards Prepaid Cards Merchant Acquiring Emerging & Other Payments (Mobile, EMV) New Product Development & Evaluation Strategic Sourcing Partnership Formation Vendor RFPs, Evaluation, & Negotiation Portfolio & Profitability Optimization Marketing Strategies and Campaigns Compliance Assessments 3 rd Party Vendor Risk Management Cybersecurity Payments Program Controls Review Enterprise Risk Management & KRIs Mergers & Acquisitions Proactive Government Relations, Advocacy, & Consumer Campaigns Copyright 2017 McGovern Smith Advisors, LLC. 5

6 Agenda Some Mobile Statistics Consumer Attitudes How Wallets Work Why Should You Care Questions 6

7 Mobile Wallet Stats Copyright 2017 McGovern Smith Advisors, LLC. 7

8 Mobile Phones are Popular Source: YouGov 8

9 Mobile Aps are Popular Source: Fiserv 9

10 Mobile Wallet Users Source: Fiserv 10

11 Mobile Wallet Users Source: Fiserv 11

12 Mobile Wallet Users Source: Finder.com 12

13 Mobile Payments Are Still in Infancy Source: Edgar Dunn 13

14 Mobile Wallets Source: Criteo.com 14

15 But the Plot Thickens Amazon Payments: Users increased to 33 million from 23 million last year. Says payment volume doubled. ApplePay: Says payment volume grew 500% annually in the December quarter, and that it handled "hundreds of millions of transactions and billions of dollars in purchases PayPal reported for 2016: 197 million active accounts 6.1 billion payment transactions 2.0 billion via mobile $354B in payment volume $102B via mobile 15

16 Consumer Attitudes on Mobile Wallets Copyright 2017 McGovern Smith Advisors, LLC. 16

17 Mobile Wallet Attitudes Source: ING, July

18 Mobile Wallet Attitudes Source: ING, July

19 Mobile Wallet Attitudes Source: ING, July

20 Mobile Payment Applications Four major classifications Merchant - e.g., Starbucks, Target, Walmart Merchant Coalition - e.g., MCX Mobile Banking Apps e.g., ChasePay, BofA, etc. Universal Wallet Apps e.g., Samsung Pay, Apple Pay, Android Pay, PayPal, Amazon Payments, VISA Checkout, Masterpass, etc. 20

21 Processing Types 21

22 Apple Pay 22

23 Apple Pay 23

24 Apple Pay Share Web Share Source: TXN Solutions 24

25 Apple Pay Share Proximity Share Source: TXN Solutions 25

26 Why Should Community Banks Care Copyright 2017 McGovern Smith Advisors, LLC. 26

27 Why Care Consumers are adopting mobile and expect to be able to bank and make payments Merchants offering more ways to pay through mobile good and bad for FIs Fintech offering more mobile options good and bad for FIs Top of mobile wallet is a big advantage More data for servicing and marketing Beyond payments Account management, Cross-sell, P2P; ATM card-less access, IOT, AI 27

28 Questions? Thank You! Paul Tomasofsky Partner (201) For additional information, please visit Copyright McGovern Smith Advisors, LLC. 28