Mobile wallet presentation

Mobile Wallets
Current Trends and Future Prospects
October 24, 2013

Wednesday, October 23, 13

What Exactly is a Mobile Wallet?
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An application on the mobile phone that processes electronic
payments.
A mobile device that has a secure element associated with it
that allows important ﬁnancial and personal data to be stored
on the phone.
A service that lets users integrate payment, loyalty, account
history, and ﬁnancial instruments all in one application.
A service that is usually targeted to cardholders, although
some offers do focus on merchants.
Mobile Wallet Presentation, October 24, 2013 I © All rights Reserved


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www.paytroniks.com I info@paytromiks.com I 469-271-4774

Currently over 150 mobile wallet initiatives in the world!


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Let’s Simplify it a Bit...
Merchant focus

Holistic focus


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Cardholder focus


Agenda
‣ Recent Announcements and Their Implications
‣ Consumer Attitudes and Apathy
‣ The Mobile Wallet Simple Matrix
‣ Trends for the Future


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Agenda


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Recent Announcements
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Loop rolling out mobile wallet that works at 90% of retailers

‣ Boston Business Journal, October 21, 2013

How Will the Isis Mobile Wallet Stand Out?

‣ All Things D, October 16, 2013

Central Bank approval awaited for mobile wallet

‣ GulfNews.com, October 22, 2013

Mobile wallet progress stalled in 2013, but could heat up in 2014

‣ American Banking Journal, October 15, 2013

Google Wallet Gets an Update

‣ The Street, October 17, 2013


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Agenda


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Consumer Attitudes
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79% of consumers remain concerned with security of payment
information stored on wallet
Identiﬁcation of Drivers - 34% of overall respondents would use
a mobile wallet to originate payments
First Data Universal Commerce Tracker Study, 2013

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UK Study FC Business Intelligence LTD, 2013

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49% for 25-34 year olds

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55% for 18-24 year olds

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46% for smart phone users

51% when incentive is offered

However, studies in the US indicate that over 60% of consumers
are not interested in a mobile wallet. Why the apathy?
Consult Hyperion, 2013


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Why the Mobile Wallet Apathy?
We have established that security is one key reason for low interest in mobile
wallets...but maybe a stronger reason is in front of us in plain sight....could it
be that 100% of smart phones already have a mobile wallet on them? The
simple answer is YES!

Beyond safety issues, consumer apathy is due to two reasons:
✓ Mobile wallet offers are too many and too fragmented
✓ Value offering is not yet strong enough

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Agenda


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Mobile Wallet Simple Matrix
Alternative (Cash or other method)
Cimbal

Western Union

Dwolla
MCX

YeCel

PayPal P2P

Cardholders

Merchants

PayPal Here

GoPago
Square Register

MocaPay

Tabbed Out

Square Cash
PayPal Prepaid
Paydiant
KuaPay

Level Up

Roam X4

Google Wallet

Corduro

Isis

Square Reader
Mobile Pay

Square Wallet

Corduro

Traditional (Visa / MC)

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Mobile Wallet Simple Matrix
Cimbal

Western Union

Dwolla
MCX

YeCel

Legend
Competition Clusters

PayPal Here

PayPal P2P

Niche Solutions

GoPago

Omnicommerce Players
Cardholders

Merchants

Square Cash

Solutions on Y
axis are P2P
focused

Square Register
Tabbed Out

MocaPay
Square Cash
PayPal Prepaid

Paydiant
KuaPay

Level Up

Roam X4

Google Wallet

Corduro

Isis

Square Reader
Mobile Pay

Square Wallet

Corduro


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Agenda


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Future Trend # 1
Cimbal

Western Union

Dwolla
MCX

YeCel

Legend

PayPal Here

PayPal P2P

Niche Solutions

GoPago

Cardholders

Merchants

Square Cash

Solutions on Y
axis are P2P
focused

Square Register
Tabbed Out

MocaPay
Square Cash
PayPal Prepaid

Paydiant
KuaPay

Level Up

Roam X4

Google Wallet

Corduro

Isis

Square Reader
Mobile Pay

Square Wallet

Corduro


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Future Trend # 1
Consolidation of vendors in competition clusters
Cimbal
Dwolla

P2P cluster

GoPago

Big retailer cluster

Google Wallet
Square Register

Isis

Tabbed Out

Square Wallet

Corduro

Cardholder cluster

Paydiant

Small retailer cluster

KuaPay

Level Up

Roam X4

Corduro

Square Reader
Mobile Pay

Activities and Comments

Square to strengthen market position via increased acquisition of vendors / vendors run out of money
and fall out / one or two key competing players by cluster / fewer new mobile wallet offerings / PayPal
absent in clusters

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Future Trend # 2

YeCel

Merchants

Cardholders


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Future Trend # 2

Strongest opportunity for
new mobile wallet
development lies in this
quadrant

YeCel

Merchants

Cardholders


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Future Trend # 2
Expect new solutions that focus on the consumer but that offer
alternative means of payment outside of traditional card products.

Strongest opportunity for
new mobile wallet
development lies in this
quadrant

Activities & Comments

Mobile wallets focused on direct carrier billing / non-payment mobile wallets offering payment wallets /
cross offering of non-payment wallets with mobile payment wallets / barriers to entry are lowest in this
quadrant

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Future Trends # 3
Cimbal

Western Union

Dwolla
MCX

YeCel

Legend

PayPal Here

PayPal P2P

Niche Solutions

GoPago

Cardholders

Merchants

Square Cash

Solutions on Y
axis are P2P
focused

Square Register
Tabbed Out

MocaPay
Square Cash
PayPal Prepaid

Paydiant
KuaPay

Level Up

Roam X4

Google Wallet

Corduro

Isis

Square Reader
Mobile Pay

Corduro

Square Wallet

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Future Trends # 3
PayPal and Square battle it out to become the de facto mobile
wallet of choice for merchants, however there may be room for
other players in certain merchant categories
PayPal Here

Square Cash

PayPal P2P

Square Register

Corduro

PayPal Prepaid

Square Reader

Corduro

Square Wallet


Both companies continue to expand their offering / solutions increasingly technology agnostic / Square
issues a prepaid card / PayPal looks to gain strength via differentiation from other solutions / Square
purchases clones in emerging and mature markets / PayPal most likely to become dominant over Square

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Future Trend # 4


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Future Trend # 4
From an end consumer perspective, mobile wallets will not exist as
stand alone, payment only services.


Financial institutions extend mobile banking services to include mobile payments / partnerships between
FI’s and non-FI’s increase / Apple Passbook integrates payment / exception with P2P services

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Future Trend # 5
Cimbal

Western Union

Dwolla
MCX

YeCel

Legend

PayPal Here

PayPal P2P

Niche Solutions

GoPago

Cardholders

Merchants

Square Cash

Solutions on Y
axis are P2P
focused

Square Register
Tabbed Out

MocaPay
Square Cash
PayPal Prepaid

Paydiant
KuaPay

Level Up

Roam X4

Google Wallet

Corduro

Isis

Square Reader
Mobile Pay

Square Wallet

Corduro


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Future Trend # 5
A few solutions will establish themselves in niches

MocaPay

MCX

Western Union

PayPal P2P

PayPal Here

YeCel
Square Cash

PayPal Prepaid


Solutions mostly targeted to end users and not merchants / heavy focus on alternative forms of payment
outside of Visa, MasterCard, and American Express / tied to prepaid cards or gift cards

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Emerging Markets Focus
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Emerging markets are laggards in mobile wallet adoption
Key Drivers:
‣ Smart phone availability (currently at less than 40%)
‣ 3G availability
‣ WiFi availability
‣ Sound regulation by government entities - ex: Brazil

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Solutions will be driven by mobile operators and merchants
Secure element most likely on SIM Card or Cloud Based
Expect these markets to catch up to mature markets in 3 to 5
years


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Thank&you!&&¡Gracias!&&Obrigado!&

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Mobile Wallets
Current Trends and Future Prospects
October 24, 2013


Mobile wallet presentation

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