Mobile Payments Market Guide 2012 INSIGHTS IN THE WORLDWIDE MOBILE FINANCIAL SERVICES MARKET

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2 Mobile Payments Market Guide 2012 INSIGHTS IN THE WORLDWIDE MOBILE FINANCIAL SERVICES MARKET Introduction The upcoming Mobile Payments Market Guide 2012 put together by The Paypers aims to provide a comprehensive overview of the global m-payments market, mapping out on-going initiatives, success stories and industry players, be they MNOs, banks, technology providers, phone manufacturers and payment processors. Moreover, the Mobile Payments Market Guide 2012 will feature valuable insight from key players in the banking & telecom industry, retailers and standardization bodies. The Guide will have a three-part structure, with Part 1 dedicated to insight from industry stakeholders and associations involved in the global mobile payments ecosystem in. Part 2 is a section dedicated to regional (per continents) initiatives in the field of mobile financial services, while Part 3 will present in-depth company profiles mapping out over 150 key players in the global mobile money industry. The Paypers is already well-versed in producing and distributing such Guides, as proven by the success of our related initiative in the field of online payment service providers (The PSP Buyer s Guide 2011). The latter was endorsed by the Merchant Risk Council, the merchant-led trade association focused on electronic commerce risk and payments globally. The Mobile Payments Market Guide 2012 is endorsed by two very powerful industry associations with global reach: The Mobey Forum and Efma. The Mobey Forum is a non-profit, global, financial industry driven forum, which brings together leading financial institutions, mobile network operators, mobile handset manufacturers, payment processors and vendors. Efma is a not-for-profit association specialising in retail financial marketing formed in 1971 by bankers and insurers, with over 3,000 brands in 130 countries as active members. It complements the recently-issued Mobile Payments 2012 My Mobile, My Wallet? report issued by our contents partner, Dutch independent payment & related transactions consulting company Innopay. One of The Paypers senior editors specializing in mobile payments-related issues contributed as co-author to this report. What the Mobile Payments Market Guide 2012 aims to do The Mobile Payments Market Guide 2012 will include a state-of-the-art list featuring the most relevant on-going initiatives in the field of mobile financial services, be they mobile wallets, contactless mobile payments ventures, mobile banking deployments or else cutting-edge mobile technology trials. For leading market players who wish to provide their successful initiatives with increased market exposure, the Guide offers the chance to present their products and services more in-depth (in Part 2) and share their vision on success in the mobile financial services industry with The Paypers global readership. We aim to provide an arena where voices from all across the industry regulators, MNOs, technology companies, banks, payments processors and suppliers can expose their vision, previous and current experiences with mobile financial products / services implementations, successful partnerships in the area, etc. 1 MOBILE PAYMENTS GUIDE 2012

3 Top reasons to offer your company increased visibility via the Mobile Payments Market Guide 2012 Unique opportunity to communicate your unique selling points and differentiated product offering to the regional and global mobile financial services market Gain valuable exposure via the Mobile Guide, which will be promoted & distributed via media partnerships at all relevant global and regional mobile payments / mobile banking / retail banking events in 2012, among which are the NFC Payments Global Summit 2012 and Mobile Payments and NFC 2012 Increased social media exposure via Twitter & extensive LinkedIn postings Added visibility via your own online searchable company profile, complete with keywords & company logo Increased exposure for your company, as the Mobile Payments Market Guide 2012 will be made available for download via the websites of The Paypers and its endorsement partners (Mobey Forum among them) What it takes to get the most out of the Paypers Mobile Payments Market Guide 2012 OPTION 1 OPTION 2 OPTION 3 Thought Leader Package Editorial words and 2-4 visuals Company profile and full page Advertisement Company Profile + full page Ad Company Profile EUR EUR EUR 895 Option 1 All-Inclusive Thought Leadership Package This package includes a twofold proposition. The first element is an article / expose / success story in Part 2 (max 1,000 words, 2 4 visuals, the exact subject matter is entirely at your company s discretion) that reflects your company s experience with mobile financial services initiatives. It could highlight, for example, a successful business case, solution or model developed by your company. Alternatively, it could focus on exposing your company s more general views on the global / regional mobile payments ecosystem and its perspectives for development within the coming years. For an ideea on how this would look like please consult Annex I below. The second element is a company profile plus full-page A4 (color) advertisement in Part 3 of the Guide (please see Annex II below). Option 2 Company Profile and full-page (color) Advertisement This package includes a full one-page listing for you your company in Part 3 of the Mobile Guide 2012 plus a full-page A4 advertisement. The company profile includes detailed information about a company s core services, USPs, user experience, its technology and the market segments in which it is active. For a detailed view of what a full company profile looks like, scroll to the end of this brochure. Option 3 Company profile You can also opt to have your full company profile listed in Part 3 without the A4 advertisement. MOBILE PAYMENTS GUIDE

4 20% EARLY BIRD DISCOUNT AVAILABLE FOR ORDERS PLACED BY 15 DECEMBER 2011! Reach & Availability Via endorsement partners websites, events, mailings, etc. Via media partnerships with all relevant mobile payments /mobile banking / retail banking events worldwide Via our daily and weekly headlines newsletters (total circulation > ). Posted in the relevant mobile financial services groups on LinkedIn Via network / database The Paypers: 25% Suppliers of transaction applications and services 24% Banks 20% Consumer Services companies / merchants / billers 15% Payment Service Providers 9% Payment watchers (government, analyst and consultants) 7% Other The Paypers readership includes: Head of transaction banking / Head of m-commerce / Head of mobile financial services Product management / Business development Topical experts (cards / e-commerce / online-mobile payments/fraud/e-identity) CEOs / CFOs / CMOs / COOs / E-commerce managers / Sales & Marketing The Mobile Payments Market Guide 2012 has a global circulation of copies per year 3 MOBILE PAYMENTS GUIDE 2012

5 Designed as an all-encompassing industry overview, the Paypers Mobile Payments Market Guide 2012 aims to The Paypers Mobile Payments Market Guide 2012 aims to provide its (global) audience with a in-depth look at how the various parties involved in mobile financial services & mobile payments implementations contribute to making these two areas a reality worldwide. Terms & conditions These are the terms and conditions for booking a listing in the Mobile Payments Market Guide 2012: all bookings are handled by The Paypers at: editor@thepaypers.com all amounts in EUR, excl 19% VAT, if applicable invoicing upon order confirmation, due date for ordering: 17 FEBRUARY 2012 due date for content delivery: 24 FEBRUARY 2012 due date for payment: 29 FEBRUARY 2012 Mobile Payments Market Guide 2012 published: MARCH 2012 LATE ORDERS, PAYMENT OR CONTENT DELIVERY WILL RESULT IN LISTING OF ONLY BASIC COMPANY DETAILS. MOBILE PAYMENTS GUIDE

6 Mobile payments at a tipping point? Annex I - Sample company entry in Part II of the Guide A tipping point is defined as the moment of which a previously rare phenomenon rapidly and dramatically becomes more common. The attention for mobile payments has been rising steadily over the past years. Undeniably, mobile payments continue to be hot perhaps hotter than ever. Advances in handset technology have also allowed m-payments to be carried out in new ways, while predictions for m-payments growth have continued to be aggressively optimistic. However, in developing markets, despite favourable conditions for mobile payment, growth is not as strong as was anticipated. Many service providers have yet to adapt their strategies to local requirements, and successful business models from Kenya and the Philippines have proven difficult to translate to other markets. While developing markets have favourable conditions for mobile payments, such as high penetration of mobile devices and low banking penetration, this is no guarantee of success, unless service providers adapt their strategies to local market requirements. If mobile payments are finally set to become the norm rather than the exception, the current global m-payments Figure 2: Global volume of mobile payment transactions. Source: IE Market Research, Q United States Mobile Payment Market Forecast, , ecosystem needs to evolve towards a state of consistent development. To arrive there, certain development areas must be give significant attention. Most urgently, these are regulatory compliance and a reduction of fragmentation and complexity through standardization (to be addressed in chapter 3). On top of this, success will take a thorough understanding of existing payment infrastructures, consumers payment behaviour and the diversity of existing channels at the moment of payment. This chapter aims to provide an overview of the main drivers for mobile payments describing the rise of smartphones, the advent of new technology and the changing customer needs. The chapter concludes with a discussion whether we now face a tipping point in mobile payments. The rise of smartphones The rise of smartphones is unquestionable, and smartphones are touted to have the potential to completely transform the mobile payments space. Smartphone sales showed strong growth worldwide in According to IDC (February 2011), total shipments in 2010 were million units up 74.4% from This makes smartphones 21.8% of all handsets shipped. The top mobile smartphone manufacturers, by 2010 global sales, are Nokia, RIM (Blackberry), Apple, Samsung and According to IE Market Research, the global volume of mobile payment transactions is expected to grow from USD 37.4 billion in 2009 to over US 1.13 trillion in 2014, which means a CAGR of 94.8%. In addition, the number of mobile payment users worldwide is predicted by Gartner to surpass 141 million in 2011, a 38.2% increase from This number of mobtile payment users would represent merely 2.1% of all mobile users worldwide, which suggests there is still much room for growth. Especially regions where there is a lack of alternative payment methods are seen to have strong potential. 5 MOBILE PAYMENTS GUIDE 2012

7 HTC. A similar study by Strategy Analytics (conducted in February 2011) found that shipments in 2010 were million units up 67.6% from This would make smartphones 21.5% of all handsets shipped. Gartner (April 2011) forecasts that Android is set to become the number one smartphone operating system in Gartner estimates that 468 million smartphones will be sold in 2011, a 57.7% increase from Of those phones, 38.5% will be powered by the Android operating system. By 2015, 631 million smartphones will be sold annually, nearly half of those will be based on Android. In a study carried out in March 2011 by IDC it is estimated that 450 million handsets will be sold by the end of 2011, a 49.2% increase from Of those phones, 39.5% will be powered by the Android operating system. Gartner (March 2010) predicts that in 2011, over 85% of handsets shipped globally will include some form of browser. In mature markets (for example Western Europe or Japan), approximately 60% of handsets shipped will be smartphones with sophisticated browsing capabilities, according to the same IDC study. In addition, non-smartphones could be able to access the internet. Research carried out by dotmobi (mobithinking s parent company) estimates that there are 6,500 distinct web-capable mobile devices models in use globally (not including handsets that have been renamed/ relabelled by operators). The majority of these are not smartphones. The specifications/features of these devices vary massively, in particular in screen sizes. Also, the majority of web-enabled phones are not smartphones (and have much smaller screens), causing large images to load slowly. Moreover, many technologies commonly used on websites, such as Flash, do not work on many handsets, including Apple s iphone. Mobile apps adding functionality The advent of smartphones and the emergence of app stores, such as Apple s App Store or Google s Android Marketplace, has proven to be a complete game-changer for the mobile ecosystem and for consumer perception of m-payments, particularly in developed markets. Mobile phone applications (apps) are built on top of existing infrastructure by both the companies themselves but also by independent, third-party developers. The result is more extensive and specific functionalities for the smartphone with greater user experience. This also has its effects on the payment industry: many financial service providers have opened up, offering application programming interfaces (APIs) for developers to create new, innovative mobile payment apps. One of the frontrunners in this area has been PayPal which launched a developer library for mobile payments in February The library, which is part of the PayPal X Payments Platform, enables app developers to accept inapp purchases directly via PayPal without having to store customers personal financial information. Customers will be able to make a payment from a merchant s or developer s app without ever leaving the application. In the months following the introduction of PayPal X, other payment networks launched innovation labs and open platforms. MasterCard Worldwide launched its proprietary payment and data services as an API and allowed thirdparty developers to build new payment applications in May Visa followed in October All in all, the growth of smartphones is unquestionable. This recent proliferation of web-enabled smartphones is expected to drive mobile payment transaction volume. In-Stat predicts that the number of annual mobile payment transactions is likely to increase to 45 billion in 2015 globally as consumers become more familiar with mobile payments and the number of retailers supporting this technology constantly increases. MOBILE PAYMENTS GUIDE

8 COMPANY Annex II - Sample company profile in Part III of the Guide Name Lorem ipsum Sample Logo Website Head office Country & Address Regional office(s) Global OR regional (specify: North/Latin America, Europe, Middle East/Africa, Asia/Pacific) OR local (specify country) Geographical presence North America, Europe, Asia/Pacific Contact details / person Name, address(es), telephone number(s) Company description Essin et fugia in re ped expla sam harciis es doloremquos min none veri nia qui estrunt ut aut la consed mintium ullabo. Et dolum et exped ut excestr umquodis. Company type e.g. Financial institution (bank) Market segments digital goods; physical goods; NFC / proximity payments; NFC loyalty / couponing / location-based marketing; mobile money transfer & remittances (domestic / international); mobile POS payments etc. Keywords lorem ipsum dolor sit amet consectetur adisciping est Partners e.g. Technology partners, fraud prevention, banks, MNOs, platform provider Initiatives 3 5 initiatives, name + website Active since 2010 SERVICES Types of services provided Target transaction size Core services Unique selling points Pricing Other services mobile wallet; mobile banking; mobile online payments, includes digital goods; mobile POS; mobile loyalty &couponing; direct carrier billing; mobile money transfers (P2P); mobile remittance; mobile airtime top-up; m-payment enabling technology Essin et fugia in re ped expla sam harciis es doloremquos min none veri nia qui aut estrunt ut aut la consed mintium ullabo. Et dolum et exped ut excestr umquodis. Essin et fugia in re ped expla sam harciis es doloremquos min none veri nia qui aut estrunt ut aut la consed mintium ullabo. Et dolum et exped ut excestr umquodis cone tur, voloruntum doluptatem facienes volorum assinciis entibus eos et, et ilictem asped min vellati inctotatet ipis et dolupti il moluptam. Fraud prevention (etc.) USER EXPERIENCE Signup and / or activation open web / mobile device / payment account / none Transaction initiation scan barcode / RFID / POS / mobile number provided at POS / other Transaction authorization PIN entry in-app / via mobile device / at the POS / verification code via SMS / other Transaction confirmation via mobile device / at the POS / via online account / other (specify which) Reporting Transaction overview in-app / via bank account / via dedicated online accolunt / other TECHNOLOGY Telecom Proximity Mobile applications App distribution Fraud Measures Voice / SMS / USSD / WAP / mobile internet / GPRS / UMTS, etc RFID / NFC / (2D) barcode / Bluetooth / WIFI etc SIM-based / SDcard-based / phone memory, n/a etc Dowloadable / over the air (OTA) / pre-loaded / install at MNO or bank branch 7 MOBILE PAYMENTS GUIDE 2012

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