1. White Paper by:
Let’s T@lk Payment$
& KnowledgeFaber
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2. Generic Information:
 SK Planet, SK telecom’s internet service arm,
launched the mobile wallet service in 2010.
 Supports array of functionalities like transport
tickets, movie tickets, loyalty programs but
lacks those of debit and credit cards.
 Reached 9 million subscribers with 2.5 million
active users per month in April 2013.
 220 service providers support the wallet.
 Can be used across 80,000 locations in South
Korea.
 In May 2013, the Korea Times had reported
that it is used by 75% of users having
smartphones with smart wallet functions.
Factors driving Success:
 Timing of launch as it was first of its kind back
then.
 The way it has been promoted to service
providers. SK telecom highlights its large
customer base as well as CRM capabilities to
attract service providers.
 Positive perception by customers towards
mobile wallet. They want a single medium to
store multiple storage cards.
 Annual growth in payment cards at a CAGR of
8% reaching volume upwards of 264 million
back in 2011. The surge in card ownership
increased access to banking services which
further increased mobile wallet adoption.
 Operators forging partnerships with banks and
payment networks. E.g. SK telecom partnering
with card issues to support both PayPass and
payWave standards.
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3. Generic Information:
 The words Osaifu-Keitai literally mean ‘Wallet
Mobile’.
 The mobile wallet service was launched way
back in 2004.
 It is based on FeliCa integrated circuit
developed by Sony which is a de facto
standard in Japan.
 Osaifu-Keitai include array of services like
loyalty card, identity card, electronic money,
public transit and credit card as well.
 The mobile wallet gets advantage from the
FeliCa platform to integrate contactless
payment technologies like NFC, QR code, etc.
Factors driving Success:
 The FeliCa platform helped it grow
exponentially in Japan.
 But the major factor attributed to its success
can be NTT Docomo being the market leader
in Japan among mobile operators.
 Although the mobile wallet service has
brought about other players as well including
banks and has witnessed collaborative models
as well.
 Very high penetration of mobile phones in
Japan at around 87%.
 Early adoption of mobile internet in Japan.
E.g. i-mode, the mobile internet service by
NTT Docomo, largest operator in Japan.
 Early adoption of prominent cellular
technologies in Japan like 3G and 4G.
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4. Generic Information:
 The wallet service was founded in October
2011 by four major mobile operators in
Sweden: Telia, Tele2, Telenor and 3.
 It paved the way for 97% of Swedish mobile
phone users to pay for goods at participating
businesses.
 It uses the simple SMS platform for
transactions using a mobile app.
 This enables it to function not only on Android
and iOS smartphones but also on older
phones based on Java.
 WyWallet provides a popular payment
mechanism called purchase-on-invoice.
 This mechanism facilitates card-not-present
(CNP) transactions in which customer can
inspect purchase upon receipt and pay for
them later.
Factors driving Success:
 The simple SMS platform makes it mobile OS
agnostic and has been a key factor behind its
wide scale adoption.
 The major reason behind its large customer
base is the collaboration of the four operators
which themselves hold majority of cellular
customer base.
 The collaboration among the operators has
provided cross-operator interoperability and
wide addressable market.
 High mobile penetration and mobile internet
penetration in Sweden.
 In Sweden, internet penetration is 94%,
mobile penetration is 150% and mobile
internet penetration is 92.7%.
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5. Generic Information:
 Founded in 2001, SEQR is a popular mobile
wallet in Sweden and across Europe too.
 Seamless, a 12 year old company based in
Stockholm, installs its system at the point of
sale with comes with stickers containing
either QR codes or having NFC capability.
 The SEQR app can be used to access the POS
systems.
 The methodology of transaction involves use
of card details and account numbers stored on
Seamless’s servers which is matched with
cashier identification code and value of
transaction stored at checkout system.
 SEQR is completely independent of PCI and
traditional card networks.
 The service is currently active across 30
countries with Seamless handling more than
3.1 billion transactions.
Factors driving Success:
 The launch of the service in early years of the
millennium gave it wide geographical reach.
 The independence on PCI and traditional card
networks has given it wide-scale reachability.
 The lower transactions charges compared to
card companies is also an influencing factor
behind adoption.
 Effective distribution of sale outlets across 30
countries, the no of outlets being 525,000.
 Highly developed telecommunications
equipment and handsets manufacturing
across Europe.
 Strong collaboration between payment
service providers and banks. E.g. PBS in
Denmark, BBS in Norway & Luottokunta in
Finland.
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6. Generic Information:
 It started as commercial NFC payment service
back in October 2012 in collaboration with
MasterCard.
 The service was launched with the
participation of banks and allowed customers
of T-Mobile to store credit and debit cards on
their phones. Within a couple of months of its
launch, it had already gained 5,500 NFC
customers.
 Currently, it works in collaboration with five
major banks of Poland namely Eurobank,
Raiffeisen Polbank, mBank, Getin and Noble
Bank.
Factors driving Success:
 The collaboration with major banks of Poland
has fueled MyWallet’s growth.
 At the end of first quarter of 2013, there were
120,000 NFC point-of-sales in Poland which
further aided the adoption of MyWallet.
 The high number of NFC portals can be
attributed to MasterCard project towards
deployment of its PayPass technology.
 With MasterCard collaboration in tow and the
support of five major banks of Poland,
MyWallet truly is on a successful roadmap.
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7. Generic Information:
 In 2012, the mobile wallet came into
existence as first of its kind collaboration
between the Canada’s biggest wireless
carriers i.e. Rogers Communications Inc. and
Canadian Imperial Bank of Commerce, among
the five largest banks of Canada.
 It allowed contactless purchases up to C$50
using NFC-capable devices.
 The mobile wallet service was SIM based and
allowed payment card information to be
securely downloaded to the SIM card.
 Suretap was readily compatible at numerous
point-of-sales (POS) including those of
MasterCard PayPass and Visa wavePay.
Factors driving Success:
 Rogers had a large subscriber base (9 million
as of 2012) and also Rogers got its banking
license approved in 2013 which propelled
easy adoption of surretap.
 The SIM based feature provided highest level
of security and more control to the customer
thus creating better perception among its
adopters.
 Through collaboration with MasterCard,
Rogers was able to bring about virtual Rogers
prepaid MasterCard which further aided
adoption of suretap mobile wallet.
 The Canadian market is dominated by debit
card usage. Back in 2011, around 78.8 million
cards were in circulation. With EMV adoption
already in its final phases, this has paved way
for mobile wallet.
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8. NTT Docomo’s iD
In 2005, NTT Docomo invested US$1billion in Japan’s no. 2 credit card company at that time.
This resulted in the launch of Docomo’s very own credit payment scheme called iD in the month
of December. At the same time, DoCoMo also gave subscribers places to tap their phones to pay
with iD, investing tens of millions of dollars more for minority stakes in convenience store
chains. The telco also fronted the cost of contactless terminals for smaller merchants. Through
its tens of millions of U.S. dollars’ worth of investment in retail chains, DoCoMo has managed to
get the iD m-payment brand accepted at scores of convenience stores and other merchant
locations–450,000 terminals in all. The high penetration of FeliCa chip enabled phones fueled
the growth of the iD service.
NTT Docomo and KT’s NFC rollout
 Commercial NFC services were introduced
by Japan’s NTT Docomo and South Korea’s
KT at end of 2012.
 The services allowed subscribers to use a
range of NFC mobile payments including
mass transit ticketing, promotional
couponing services, etc.
 Facilitated customers travelling between
Japan and South Korea to access the
services with no constrains.
 Further expansion of service through
strategic tie-ups Visa Inc., Samsung
Electronics Co. Ltd. and Gemalto.
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9. Other Wallets yet to see Sizeable
Adoption
Isis’s Mobile Wallet in USA
Isis, the firm behind this mobile wallet service, is a joint venture between the three largest
operators in USA i.e. AT&T Mobility, T-mobile USA and Verizon Wireless. The mobile wallet
service is thus supported on more than 50 Isis Ready smartphones under contract among the
three operators. To use the service, a consumer basically requires an NFC capable smartphone
and SIM based secure element. In USA, more than 20 million smartphones in market feature
NFC technology with more being shipped by the leading three carriers. Isis mobile wallet has
already had successful pilots in states like Texas and Utah unveiling a no of fruitful results. As
many as 65% of consumers testing the service revisited merchants often and took advantages
of mobile offers. Isis mobile wallet has deals with four major credit card companies: Visa,
MasterCard, American Express and Discover. It has the support of six major handset makers.
Not to be forgotten is the backend support of the leading cellular operators. Recently it has
partnered with big point-of-sale system providers and financial institutions like Chase, Capital
One and Barclaycard leading to incubation of more payment cards into Isis wallet. Such deals
have given access to about 50% of all consumers in USA.
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10. THANK YOU
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