The Future of Mobile Payments. Presented By: Mark Berman, CEO Horsetail Technologies

Transcription

1 The Future of Mobile Payments Presented By: Mark Berman, CEO Horsetail Technologies

2 Mark Berman Passionate CU Junkie! Introduction Co-Founder & CEO, Horsetail Technologies IT services, Managed Services, Cloud Services and Customer Mobile and Software Development. CU Sprout Credit Union Collaboratively Consumed Software Coming June 2015! Continuous Compliance NCUA and State Regulatory Compliance Software Platform

3 What Are We Going to Discuss? Why you and all CU s need to be thinking mobile. The mobile frontier and where it is headed. The member s perspective. Potential roles for credit unions in the mobile space. Why real CU collaboration will be critical.

4 Mobile Payments, Why Should My CU Care? The Growth of Mobile Loss of Income Expected Experience Data Reach a broader set of customers with more diverse services Reach beyond payments transactions to manage the customer s entire digital wallet (by, for example, optimizing loyalty awards and special offers, payments terms, and instruments). Millennials Growth Influence

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11 $$$ Behind the Swipe Merchant FI CU

12 Don t Be Blackberry! The average member interacts with their credit union twice a day That s 80% of the member s interactions! If they are coming to you use it! They are on your turf. Don t take it for granted. People used there Blackberry s everyday, UNTIL they didn t. Opportunities for Cross-Selling and Social Engagement abound today.

13 Mobile Payment Frontier Convenience Monumental Shift Fun, Early Stage

14 Where Do We Sit on The Frontier Bridging the gap between early stage and convenience Adoption will rise with convenience but it will take the monumental shift to see mass adoption. Why??

15 What s In it for Me? Merchants have no desire, especially those smaller organizations. Users may or may not find phones convenient, cards aren't that bad. Security benefits of mobile can be misleading or misunderstood. Card associations and issuers are now splitting their share. Just not that different, experience isn t significantly better. TSN s are honed to today s products, not tomorrows

16 Lets focus on the member Not technology

17 Who Do Members Pay? Biller Merchant Individuals

18 The System Today P2P is mature Bill pay is mature

19 The System Today Not the Merchants Antiquated card payment system today

20 The System Today Left wallet (non payments) needs improvement Access to flexible products at POS no available

21 What Would Improve the Member Experience? Monumental shift to the payment system Merchant payment options that include lower cost and greater experience Cooperative and local experience Greater access to lending and data Left wallet options with security- CU s are perfect

22 Okay, What Should My CU Do? Go talk to the member Go talk to the community and other cooperatives Define your ideal member s desired experience Build for flexibility Diversify Pay attention

23 What s Trending Starbucks Payment systems that integrate data and rewards Payment systems that break the mold Collaborative consumption Cooperation

24 What is Now? Friend Payment Request: Facebook Moving into P2P Payments MENLO PARK, Calif.--Facebook has introduced a new application that allows person-to-person payments... Fiserv Completes First Tokenized Transactions BROOKFIELD, Wis. Fiserv reported that it has completed its first tokenized transactions via its Accel debit payments network... Square Launches Square Cash For Businesses; Competes With Apple Pay And PayPal Square introduces its Cash service to compete in the increasingly competitive mobile payments market Samsung Pay can be introduced to Korean market as early as early July 85% of iphone 6 Owners Don't Use Apple Pay: Should Apple Inc. Be Worried? By Leo Sun March 22, 2015 Alibaba to introduce Smile to pay technology that will allow users to pay using Selfie China s Amazon teams with Alipay China s largest online and mobile payments service

25 The Battlefield Who s the Enemy? Digital built for speed Who do you need? Digital built for innovation Weaponry Armed with deposit accounts, lending relationships, an enduring reputation for security, and a robust infrastructure for clearing and settling, CU s are currently THE players with the ability to achieve the scale required for mobile payments. Gotta Use It CU s also enjoy huge advantages as digital-payments service providers, to the extent that they leverage these strengths against digital attackers.

26 The Swimming Pool and the Cat and the Mouse

27 Leverage the COOP You are a cooperative financial company Millennials care! Cooperate and build TOGETHER What is my CU? Fast Follower Catalyst Leader

28 Where Can You Get Involved Many places. Need to be flexible, nimble and aware of member needs. Diversify. Focus on creating a consistent experience.

29 YOU VE NAILED IT When you understand the financial needs of your member as conveniently as Square as collaboratively as Zipcar as intimately as Spotify Trust through Intimacy

30 Thank You! Questions