10. www.balatroltd.com
• 2,000,000 songs in the library (200,000 in 2003)
• largest music library in the world
• 82% US market share of song sales
• sold 1,000,000,000 songs by February 2006 (three years)
• estimate 5% of revenues (2006, $2 billion)
• 1,800,000 songs sold every day
• 10,000,000 user accounts with credit cards
• average account has purchased 60 songs
• iTunes is the largest internet store behind Amazon
13. www.balatroltd.com
about PayPal
• Founded, December 1998
• Purchased by eBay for $1.3 billion in October 2002
– after BillPoint / eBay Payments failed due to restriction to eBay only
– PayPal then had 20 million accounts in one market compared to 100
million accounts in 55 markets today
14. www.balatroltd.com
about PayPal
• Vision: The global leader for online payments
• Mission: Build the web’s most convenient, secure, cost-
effective payment solution
• Competitive Advantages: Convenience, Cost effectiveness,
Fraud and trust management, Network breadth
15. www.balatroltd.com
about PayPal
• $27.5 billion of transactions in 2005, up 45% year over year
– 2004, $18.5 billion
– 2003, $12.2 billion
• $1,021 every second
• 35.8% of revenues non-US
17. www.balatroltd.com
PayPal in perspective
Number of credit card-accepting merchants (millions)
Sources: Visa and MasterCard websites; Nilson Report; Business Week
5.6 5.6
4.2
3.5
11.1
PayPal Visa MC Discover Amex
* US Premier / Business Accounts, Q1 2005
18. www.balatroltd.com
this is why
• micropayments will be common
and will generate $39bn in
revenues in 2009
Source: Jupiter Media, 2004
20. www.balatroltd.com
this is why
• micropayments will be common
and will generate $39bn in
revenues in 2009
• the global mobile commerce
market will be a major industry
with revenues of $68bn by 2009
• retail mobile transactions will
be worth $29m by 2009
• an average consumer will make
28 mobile transactions a year
by 2009
• the average transaction will be
worth approximately $3
Source: Jupiter Media, 2004
25. www.balatroltd.com
Cellphone based e-money via secure text messaging allows P2P payments
and international remittances for 1.3million users processing $1.5 billion p.a.
28. www.balatroltd.com
Hong Leong Bank issue the Mobile Credit Card. The cardmember confirms
payment by Text Message rather than by MasterCard, VISA or AMEX.
32. www.balatroltd.com
When you activate your phone, you start off securely
You can only activate your phone for PayPal mobile on the PayPal website, and you must create a unique mobile PIN. Activation is only
completed after we call you back and you enter your PIN. This confirms that you actually own the phone you’ve activated.
Privacy is built in
Whether you’re on the phone or online, your credit card and banking information are never revealed when you use PayPal.
You control every transaction
You confirm payment details for every transaction you make. If you don’t confirm when you are called, no money is sent.
Incomplete payment details or dropped calls won’t cost you
If your call is dropped before you complete the payment details, you can send again without worrying about paying twice. No money is sent
until you fully confirm.
Your account’s safe, even if your phone is lost or stolen
You can only access your PayPal account by phone with your PayPal mobile PIN—just like your ATM/debit card. Plus, you can easily report
the number of your lost or stolen phone to PayPal either online or by calling our customer support.
Our online protection also covers PayPal mobile
With mobile, you get the same buyer protection programs and customer support that you get with PayPal online. And our proprietary fraud
models apply to secure PayPal mobile transactions.
36. www.balatroltd.com
JP Morgan Chase
www.chaseblink.com
• J.P. Morgan Chase has about 94 million credit cards in circulation
• aimed at purchases less than $25
• speed up a typical transaction by 15% to 20%
• cardholder transaction volumes up 12%
• average transaction size up 20% to 30%
"It's our intent to create this market by issuing millions of cards"
Tom O'Donnell, SVP
Sources: http://weblog.infoworld.com/techwatch/archives/001406.html
http://money.cnn.com/2005/05/19/news/economy/express_pay/?cnn=yes
http://www.contactlessnews.com/library/2005/08/23/thinking-blink-jpmorgan-chase-gets-a-jump-on-the-smart-card-market-one-blink-at-a-time/
40. www.balatroltd.com
London’s Oyster Card
• Launched 2002
• 2.5 million users
• 3 million journeys per day
• 8.5 million user potential
2005: tender to expand offer to
fast food, newspapers, cans, etc.
2006: no bank could tender at a
cost per transaction that was
sustainable … including PayPal!
41. www.balatroltd.com
Hong Kong’s Octopus Card
• Launched 1997
• the world's leading and most
extensive smartcard payment
system
• >300 service providers across
different businesses in Hong
Kong including public
transport, parking, retail,
vending, kiosks, schools,
leisure facilities and access
control for residential and
commercial buildings
• over 12.4 million Octopus cards in circulation
• 95% of 16-65 year olds have one
• handles over 9 million transactions a day with transactions value
exceeding HK$66 million
47. www.balatroltd.com
wireless wallets
• launched in 2001
• 5.1 million users by July 2004
• 10 million users by July 2005 after
FeliCa phones launched
• i-mode FeliCa can be used at 30,000
outlets from convenience stores to
vending machines, railways, taxis,
movie theatres and karaoke bars
• users can charge their phone with up
to ¥ 50,000 ($450) per visit to a
reader/writer machine
• average amount per purchase is ¥630
($5.50¢) on a mobile wallet compared
with ¥500 ($4.50¢) for cards
• users can lock the mobile wallet to
prevent payments being made
49. www.balatroltd.com
1. National chain store - Easy to recognize
2. Redevelopment area – Many stores around the area
Inside office buildings In the Airport
In Tokyo
Shiodome Marunouchi
Roppongi Aoyama
Shinagawa Osaki
targeted partners
50. www.balatroltd.com
World’s First, Transfer “Mileage” to “e-Money”
Advantages
User Increase Mileage Value, activate Edy Usage
ANA Increase Card Holders & Usage
Edy Merchant Increase Customer & Sales
bitWallet Increase Card Holders & Edy Merchant
10,000 miles = 10,000yen
Shopping by using
Web
Call
Transfer mile to
at home
at Airport, etc.
Apply on Web
or Call Center
Mileage Center
Shopping by AMC Card
affiliates
Transfer Mileage to Edy
Earn Mileage by using Edy card
200yen = 1 mile
Data Center
Edy on ANA mileage club membership card
AMC Edy Card
ANA Edy Card
51. www.balatroltd.com
Result
… from many …
Application Railway
Parking
Card
MileageCredit
Card
ID ・・・Member
Point
Bus
Credit Card + Edy Membership Card
+ EdyID Card + Edy
Suica
Parking Card
+ Edy
+ Credit Card
+ Bus Card
IC Card FeliCa
52. www.balatroltd.com
Result
… to few …
Integrated
Card
Mobile
Phone
Osaifu-KeitaiOsaifu-Keitai
Application
Railway
Parking
Card
MileageCredit
Card
ID ・・・Member
Point
Bus
IC Card FeliCa
cybernetics area Common area
Linkage
70. www.balatroltd.com
roll on biometrics
“At 115 U.S. airports and 14 seaports
foreign visitors will undergo digital
fingerprinting and will have their pictures
taken as well. The information will be
matched against various watch lists and
will become part of a permanent record.”
Bob Franken, CNN Anchor,
January 5 2004
76. www.balatroltd.com
Japanese banks deploy palm scanners
How it works
• three infrared pictures of the
palm, with veins as dark patterns
• pictures are loaded onto a smart
card
• palm scan at ATM identifies the
user
• scan takes seconds
Why Palm?
• most people do not like retinal
scans
• women responded badly to
hygiene implications of
fingerprint scanners
77. www.balatroltd.com
biometrics for the unbanked
• Unique biometric customer ID
• Foolproof mechanism to establish
identity
• Enabler for offline transactions
• Unified store of data coupled with
processing engine
• Multi-product delivery platform
C
O
N
C
E
P
T
V
A
L
U
E
Physical presence compulsory for
access; free of PIN / password
that could be stolen
Enfolds the grass-root customer
into the banking loop
Identity proof backed by
documents
E-passbook for multiple
relationships
11001000…
Image
Template
Code
78. www.balatroltd.com
biometrics for the unbanked
SmartCards for illiterate clients
Swipe the card
Customer’s profile appears
A thumbprint skips signing
11001000…
Image
Template
Code
79. www.balatroltd.com
biocellphone
Samsung presents the SCH
S370 with fingerprint
recognition. The handset will be
able to store and recognise up
to 5 individual fingerprints.
Depending upon how strictly
you have set the privacy
controls, the handset could get
locked up if it does not
recognise the print repeatedly or
it could simply prevent usage.
Source: http://www.phoneyworld.com/newspage.aspx?n=1444
