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Mobile Payments Edition 2:10 Key Initiatives in 2014
Insight report covering key developments within
our commentary and analysis
© Mapa
the field over the last 12 months including trends,
Report structure:A. Executive SummaryB. Definitions and focus areas--------1. Mobile payments related stats and estimates2. Key findings3. Deep dive: Spotlight on 10 real world initiatives--------Conclusion
Objectives:The objectives for this research was to understand:
• What is the current state of play of the mobile payments
market (primarily POS) in relation to the first edition report?
• How have leading initiatives evolved over the last 12
months?
• What are the key trends and what does the future hold?
© MapaFebruary 2014 – Page 2
Methodology:As part of this report project we have researched Financial
services companies, telecom providers and other companies
that are active in the mobile payments space (primarily POS)
across eight European countries as well as Australia, Canada
and USA.
The report includes a deep dive into 10 key initiatives
spanning different types of providers, countries and
technological solutions. We give extensive insight on each
initiative including quick facts, business cases, our comments
and opinions. In addition we highlight how they have evolved
over the last 12 months.
Findings will feed into internal planning and decision making
processes providing inspiration as well as a tool to strengthen
business cases.
Exclusive insight into the POS mobile payments market
© Mapa
Samplepages from the
report
February 2014 – Page 3
2 Key findings
Mobile P2P payments inititatives evolvingDuring the last 12 months we have noticed a number of banking-
led initiatives, that were originally primarily P2P payments, now
introducing, extending or improving point-of-sale related features.
• Barclays Pingit (p.24) are extending features for business
customers and the way they can get paid via the app by
customers. Initially developments were largely aimed at small
businesses. One of the most recent additions is that users can
buy goods direct from adverts, billboards or at a counter by
scanning a QR code – a feature that Barclays have started to
promote to larger corporations.
• Commonwealth Bank (p.16): Have launched a new flagship app
combining a regular banking app with social P2P features,
including the option to make contactless payments at PayPass
terminals (NFC sticker on the back of the device required).
Furthermore users can now also pay paper bills in a more
simple manner by scanning a QR code.
• Danske Bank (DK): Launched a MobilePay initiative, similar to
Barclays Pingit, in May 2013. It has been a huge success and
now they are introducing P2B features including point-of-sale
features.
Telcom providers continue to collaborateWe see telcos continue to be active within the field. Existing
solutions are being extended or improved and also new ones
are coming to market.
• Isis Wallet (p.65) in the US being a joint venture between
AT&T, T-Mobile and Verizon rolled out nationwide in
November last year following a pilot in two cities.
• In Spain Telefónica, Vodafone and Orange have partnered
with La Caixa to launch Europe’s largest commercial mobile
NFC payments system. The service will go live in February
2014 As a result of all three telcos joining the service can
reach out to 80% of the Spanish mobile phone market.
the end of 2014. The initiative is a joint venture between UK’s
three largest mobile network operators EE, Telefonica UK
(O2) and Vodafone UK together representing more than 80%
of UK mobile customers.
February 2014 – Page 4 © Mapa
Sample page from report
• Weve (UK) is due to launch a mobile wallet solution before
1. Flagship app by Commonwealth Bank (AUS)
• NFC technology which requires an additional PayTag sticker
• P2P features including pay to mobile, email or Facebook
2. Pingit by Barclays (UK)
• P2P initiative evolving around payments and shopping
• Huge success with additional potential
3. Sixdots by BNP Paribas Fortis (BE)
• Strong collaboration between Belgium bank and telcos
• Adding a secure element to the MasterPass solution
4. V.me introduced by Nationwide (UK)
• First UK bank to launch V.me to new and existing customers
• Slick option for e- and m-commerce checkout
5. PayPal
• Ongoing developments to stay ahead of competition
• Focus on innovating the in-store shopping experience
6. Google Wallet (USA)
• Learns and evolves from initial experiences
• P2P payments, phsycial card and improved checkout is new
7. Isis Wallet by Isis (USA)
• Joint venture between operators AT&T, T-Mobile and Verizon
• The NFC wallet launched nationwide in the US during 2013
8. Square Wallet by Square
• Wallet links customers card to Square merchants
• Hands-free checkout option, view and redeem rewards
9. SEQR (SE)
• POS transactions made by scanning a QR code at the counter
• Solution uses Seamless transaction platform
10. LevelUp (USA)
• POS transactions made by scanning a QR code at the counter
• Focused small businesses providing relevant and timely offers
3
Introduction: We have identified 10 different initiatives spanning different types of providers, countries and technological
solutions. The key purpose of each service is explained below. On subsequent pages we give extensive insight on each initiative
including quick facts, business cases, our comments and opinions. In addition we highlight how they have evolved over the last 12
months. Where relevant we also include quotes and comments around the different initiatives.
February 2014 – Page 5 © Mapa
Deep dive: Spotlight on 10 key initiatives: SummarySample page from report
Quick factsFree app for iPhone, Android and Blackberry developed by
Barclays in the UK including the following key features:
• Available for both personal and business customers. Users
of Pingit do not have to be Barclays customers.
• Ability to make payments to individuals, businesses, and
charities via mobile telephone numbers, QR Codes and
Short codes.
• Personal customers can make payments P2P payments of
up to £1,500 and receive up to £5,000 a day. P2B and P2C
payments via QR or Short code can make payments of up to
£15,000 (£30,000 for joint accounts)
• Barclays Business customers can pay up to £3,000 per day
and receive an unlimited amount.
Pingit by Barclays (UK): Overview3
Business modelWhile initially rolled out as a platform for Barclays customers
only, extending Pingit to non-Barclays customers was
primarily undertaken as a means to acquire a banking
relationship with non-customers. The launch for non-
customers included an extensive above the line advertising
campaign, and this coupled with the fact that Pingit was the
first proposition of its kind in the UK, led to increased on-
boarding of non-Barclays customers (approximately 80% of
non-customers who received a payment registered for the
service).
Nearly 6 months after the launch, the average order value of
each transaction was £70, higher than NFC mobile payment
services at the time which was capped at £20. In the
September 2013 update the app was revamped to allow
customers to pay utility bills and buy goods direct from adverts
and billboards via QR code. When purchasing goods via a QR
code the journey involves six clicks, five of which are the digits
of the users pass code, making it a seamless payment
journey, which will surely increase volume.
Mapa commentsIn nearly two years Pingit has shifted from a P2P platform to
an all-encompassing tool that can facilitate mobile payments
for existing customers, serve as a direct sales channel, and
provide a high level of functionality for business users. The
regularity and quality of updates ensures it is always
catering to customers' needs, and above all its roll out as an
acquisition tool has been well utilised by the bank.
February 2014 – Page 6 © Mapa
Sample page from report
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The business version of Pingit points at it being ’Paymentsacceptance in the palm of your hand’. As one way to attractbusiness customers Barclays have included case studies ofexisting business users.
Features highlighted on the page include:• Get paid up to £1,500 per day per customer, or up to
£3,000 per day by your business customers• Business Directory Listing so that customers can find, pay
and call you from within the app• Use of shortcodes (get paid without providing mobile no.)• Customers to scan ’your’ QR code wherever you want• End of day reports and easy refunding
Pingit by Barclays (UK): Promoting the service to businesses
February 2014 – Page 7 © Mapa
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In September 2013 Pingit was updated with a new ‘mobile checkout’ feature. The service allows customers to scan a QR code atparticipating merchants which then shows the customer the price, delivery information and stock levels. Furthermore, customers canpurchase the product in just a few clicks. This can certainly add value to the app and is an opportunity for Barclays to approach largercorporations with a marketing and sales tool that can position companies as ‘cutting-edge and consumer-friendly innovators’.
The scan facility isaccessed via the lefthand side navigation.
Pingit by Barclays (UK): Mobile checkout feature
Additional insight:'For mobile-enabled businesses, this is a great way to increase
sales conversion by reducing payment input errors and
increased consumer assurance at checkout,' Mike Walters, head
of UK corporate payments at Barclays, said.
'It converts every bit of hard media the corporate has and can
advertise on, whether that is posters, flyers, leaflets, or even a
TV screen or web page, into a sales channel.‘
Link to article: dailym.ai/KwzU3GFebruary 2014 – Page 8 © Mapa
Sample page from report
© Mapa
Mapa insight series:
Reports schedule2014
February 2014 – Page 9
Introduction to the reports:These eight reports (two per quarter) are aimed to cover key hot topics within the field of digital financial services. The reportshave a global emphasis providing insight into the latest trends and developments.
The reports aims to support investment decisions within the field providing an independent view. In addition they provide as aninspirational resource as well as it helps to increase your overall understanding and awareness of different topics.
3. Mobile banking – state of the market 2014Three key questions to ask as part of the research1. What is the current state of play?2. What innovative ways have banks developed for mobilebanking users in the last 12 months?3. What are the key trends and what does the future hold?Three key points for the reader to take away:1. Up-to-date view on developments within the mobile banking2. Understand where developments take place and key trends3. Insight into leading initiatives
4. The evolution of digital PFM – 4th editionThree key questions to ask as part of the research1. What new digital PFM tools have been implemented in thelast 12 months?2. What have leading vendors accomplished over the last 12months and where do they see the market going?3. What are the key trends and what does the future hold?Three key points for the reader to take away:1. Up-to-date view on developments within digital PFM2. Understand where developments take place and key trends3. Insight into leading initiatives
1. Cross channel experiences- state of the market 2014Three key questions to ask as part of the research1. To what extent are experiences aligned (look and feel,functionality, security and communication)?2. What is the current state of play including key challenges?3. What are the key trends and where are we moving?Three key points for the reader to take away:1. Up-to-date view on the current state of play2. Understand where developments take place and key trends3. Insight into leading initiatives
2. Digital innovations: Selling within digital bankingchannels – 2nd editionThree key questions to ask as part of the research1. How do banks utilise the different channels from a sales andmarketing perspective?2. How have approaches evolved over the last 12 months?3. What are the key trends and what does the future hold?Three key points for the reader to take away:1. Understanding of different techniques and approaches used2. Get a feel for where the market is moving3. Insight into leading initiatives
© Mapa
4 Mapa insight series: Reports schedule 2014
February 2014 – Page 10
5. Digital innovations: Engaging and onboardingbusiness banking customers – 2nd editionThree key questions to ask as part of the research1. What are banks doing to segment their offerings and makethem more relevant and appealing to customers/prospects?2. What are banks doing to engage customers/prospects and bythat draw them into the website?3. How have techniques and approaches in relation to point 1-2evolved over the last 12 months?Three key points for the reader to take away:1. Understand how retail banks worldwide try to engageprospects in the digital space2. A review of niche features available to business bankingcustomers3. Insight into how retail banks worldwide utilise the digitalchannels to generate new customers
6. Tablet banking report series – 6th editionThree key questions to ask as part of the research1. What is the current state of play in relation to edition 1-5?2. What innovative features and experiences have banksdeveloped for tablet users in the last 12 months?3. What are the key trends and what does the future hold?Three key points for the reader to take away:1. Up-to-date view on developments within the tablet banking2. Understand where developments take place and key trends3. Insight into leading initiatives
7. Digital banking security report – 3rd edition3 key questions to ask as part of the research1. What innovative and different initiatives are currentlyavailable?2. How will these initiatives affect the customer experience?3. What are the key trends and what does the future hold?3 key points for the reader to take away:1. Up-to-date view on developments within the field2. Understand where developments take place and key trends3. Detailed insight into activity from banks worldwide
8. The evolution of point-of-sale mobile paymentservices – 3rd edition3 key questions to ask as part of the research1. What is the current state of play of the mobile paymentsmarket in relation to edition 1-2?2. What new services have come to market (and beingscrapped) in the last 12 months?3. What are the key trends and what does the future hold?3 key points for the reader to take away:1. Up-to-date view on developments within the mobile paymentssphere (point-of-sale only)2. Understand where developments take place and key trends3. Insight into a range of innovative and different initiatives
© Mapa
Mapa insight series: Reports schedule 20144
Next steps:If you are interested in finding out more about the reportsincluding purchasing options please do get in touch withEdward Chatham: edward@maparesearch.com
February 2014 – Page 11
© Mapa
About Mapa
February 2014 – Page 12
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About Mapa4