The Future of Payments. Federal Home Loan Bank Conference Presented by: Brian Day

Transcription

1 Mobile The Future of Payments Federal Home Loan Bank Conference Presented by: Brian Day

2 Who Is The Members Group? CARDS SOLUTIONS PAYMENTS SOLUTIONS RELOAD PHOTO CARD CUSTOM SOLUTIONS SPRINGBOARD

3 Agenda General Market Trends Market Trend Impact to Payments Technology Driving Payments What Does the Consumer See? TMG Strategy Strategy Ideas

4 Agenda General Market Trends Market Trend Impact to Payments Technology Driving Payments What Does the Consumer See? TMG Strategy Strategy Ideas

5 Market Trends Digitization

6 Market Trends Digitization

7 Market Trends Digital Relationships With people and businesses

8 Market Trends Digital Relationships

9 Market Trends Self Service Maybe instead of the idea of service meaning being really nice to the people that come into the branch, we should strive to equate service with how small we can make the amount of time people need to spend face-to-face with us. - Ron Daly, cusoapbox.com July 7, 2011

10 Market Trends Purchase Data Recognition of purchase data importance Search Shop Share

11 Market Trends Purchase Data The Power of Purchase Data Source:

12 Questions/Discussion

13 Agenda General Market Trends Market Trend Impact to Payments Technology Driving Payments What Does the Consumer See? TMG Strategy Strategy Ideas

14 Payments Where We Were

15 Payments Where We Are

16 Payments We are going through one of the most intense periods of innovation in payments really anything that surrounds the exchange of value between consumers and merchants that we ve ever had. - David S. Evans, payments guru ( April 2, 2012

17 Impacts of Payment Innovation Mobile payments are here and gaining steam New(er) players are emerging Early financial institution providers = innovators

18 Inflection Point for Payments?

19 Questions/Discussion

20 Agenda General Market Trends Market Trend Impact to Payments Technology Driving Payments What Does the Consumer See? TMG Strategy Belvoir Strategy

21 Mobile Payments Technology

22 Mobile Payments Technology

23 NFC Deep Dive NFC is to payments what religion and politics are to family parties: if you don t want to get into a debate, don t talk about it. Payments.com, January 25, 2013

24 NFC Deep Dive

25 NFC Deep Dive Strengths Similar consumer experience to swipe deeper? Broader usage than just payments Infrastructure growing through EMV re-terminalizing Potential to add transaction security with GPS Obstacles Lack of handset ubiquity Lack of merchant ubiquity New players in value stream Ownership of consumer What drives consumers to tap versus swipe

26 NFC Deep Dive Google Wallet Rumored that Google has spent nearly half a billion dollars on Wallet Shifted focus from FI channel to direct-toconsumer channel Use Prepaid card to facilitate transaction All about data

27 NFC Deep Dive Isis Controlled by Verizon, AT&T and T-Mobile Pilot in Salt Lake City and Austin, Texas 80% of spend at everyday spend locations 2/3 of users received offers from preferred brands Contactless terminals quadrupled during pilot Partnered with Amex (Serve) and Chase

28 Questions/Discussion

29 Mobile Payments Technology

30 Cloud Deep Dive

31 Cloud Deep Dive Strengths Can overcome phone hardware and create ubiquity Can create a consistent physical and online experience Payment credentials can be accessed by any device Obstacles Lack of standards and consistent consumer experience Create barcode versus scan barcode Built out of point of sale acceptance Security

32 Cloud Deep Dive PayPal Only major mobile payment initiative that doesn t use the phone Doesn t direct transaction activity over card rails as primary option Partnered with Discover to grow POS reach Beacon technology

33 Cloud Deep Dive Square Started with dongle offering Partnered with Starbucks Recently launched Square Market, which is an online shopping portal Project to process $15 billion in transactions (not including Starbucks)

34 Cloud Deep Dive FIS Comprehensive solution Mobile payments (restaurant) Bill payment ATM Accommodates merchant terminals Solution has full FI branding/integration

35 Cloud Deep Dive MCX Partnership of retailers Barcode offering Powered by FIS Not launched Checkout via merchant app or general app More broad Target Red Card?

36 Questions/Discussion

37 Other Notable Players

38 MasterCard Working to remove friction in the online space Taking on PayPal Must build merchant acceptance Road map includes POS integration Behind NFC as technology

39 Visa Working to remove friction in online space first Also behind NFC as a technology Beginning to focus on provisioning Are investigating QR codes

40 Apple Passbook 575+ million credit card accounts Patents Biometric security for payments Bypass NFC with technology ibeacons Source:

41 Apple

42 Apple Technology Applied

43 Clinkle Founded by Stanford student Investment from Salesforce.com and PayPal founders ($25m) Piloting on campuses Using sound to transmit information between devices

44 Questions/Discussion

45 Agenda General Market Trends Market Trend Impact to Payments Technology Driving Payments What Does the Consumer See? TMG Strategy Strategy Ideas

46 Segmentation Consumer Merchant Wallet FI Wallet Independent Wallet

47 Fragmentation

48 Fragmentation Carriers Isis Google Wallet Source:

49 Fragmentation Merchants Standard Contactless Source:

50 Fragmentation Devices Has NFC Chip No NFC Chip

51 Fragmentation Technology When to tap? When to scan? Source:

52 Questions/Discussion

53 Agenda General Market Trends Market Trend Impact to Payments Technology Driving Payments What Does the Consumer See? TMG Strategy Strategy Ideas

54 Strategies TMG Strategy 1. Align with traditional card offerings 2. Align with non-card based solution 3. Investigate mobile wallet build 4. Keep finger on pulse of the market 5. Partnership in data analytics

55 TMG Strategy 1. Align with traditional card offerings

56 TMG Strategy 2. Align with non-card based solution

57 TMG Strategy 3. Investigate mobile wallet build o o o Gap in market of FI branded wallet combination of banking and payments Technology questions NFC vs. Cloud Carriers Continue to look at vendors

58 TMG Strategy 4. Keep finger on pulse of the market o Secondary research o Conferences o Client Partnerships and feedback

59 TMG Strategy 5. Partnership in data analytics o Invested in and partnered with IQR

60 Questions/Discussion

61 Agenda General Market Trends Market Trend Impact to Payments Technology Driving Payments What Does the Consumer See? TMG Strategy Strategy Ideas

62 Strategy Ideas 1. Do something now V.Me, MasterPass, Google Wallet 2. Use data to segment and measure consumer data Measure & Learn: How are consumers responding? Who is adopting?

63 Strategy Ideas 3. Use data to create community merchant partnerships today? 4. Formulate strategy around merchant wallet and independent wallet 5. Keep your finger on the pulse of the market

64 Final Questions/Discussion

65 Thank You! Brian Day Senior Marketing Manager