The Mobile Payments Revolution

Pragati Ogal RaiChief Technology Evangelist, PayPal

@pragatiogal

Technology + People = Technology Engagement

14+ development experience

Author of “Android Application Security Essentials”

Mobile & security expert

Thought Leader

Mobile Developer Relations, North America

A Revolution?

Founded in 1998, PayPal allows payments and money transfers through the Internet

Logos!

PayPal processed $14 billion in mobile payment volume in 2012 – more than

3 times the mobile payment volume of $4 billion it processed in 2011.

In 2012, eBay generated $13 billion through mobile devices, an overall

increase of 120% from 2011. eBay expects to transact $20 billion in 2013.

On Black Friday and Cyber Monday mobile commerce volume via eBay mobile in the U.S. more than doubled in 2012 compared to 2011. http://www.digitaltrends.com/

M-payments is a Global Phenomenon

In Q4 2012, 60% of eBay’s mobile purchases came from outside the U.Swww.centives.net

PayPal’s international business accounted for more than half of total revenue in 2012

Why?

Global Social

Mobile Local

DigitalService & delivery

Six Trends Shaping Consumer Behavior

Consumer Behavior is Changing Commerce

Promotions & coupons

Mobile commerce

Payments

Location-based services

In-store research

Self-scanning & self-checkout

Social commerce

Loyalty

Mobile shopping lists

Connected CommercePromotions &

coupons

Mobile commerce

Payments

Store location

In-store research

Self-scanning & self-checkout

Social CommerceLoyalty

Mobile shopping lists

Online commerce

Mail order

Offline commerce

A Closer Look

Infrastructure

Clients Merchants

Mobile Payments Ecosystem

Security

What are Mobile Payments?

• Consumer uses a mobile device

• Merchant uses a mobile device

• Both consumer & merchant use a mobile device

How do you define mobile payments?

Remote Mobile Payments

• Send and request money

• SMS based payments

• Mobile banking

• Application/ Browser based payments

• Carrier Billing

Fahad.com

Proximity Mobile Payments

• Barcode Scanning

• Point of Sale

• NFC

• Bluetooth

• RFID

• Accelerometer

Wikepedia.org

Your Definition of Mobile Payments

What does a Merchant want?

• Quick, easy, hassle free

• Security compliance

• Fraud prevention systems

• Current and up to date system

• Reliable

• Pricing

What does a Consumer want?

• Fast

• Secure

• Easy

• Choice of payment providers

Challenges?

Diverse & Evolving Mobile Ecosystem

Wireless Networks

Security

Developers

Carriers

OS VendorsOEMs

Services & Infrastructure

Diverse & Evolving Payments Ecosystem

payfirma.com

Security Issues

Device security Privacy Fraud & Risk Authentication Authorization Evolving Standards

http://mollythewally.blogspot.com/

http://mollythewally.blogspot.com/

Device security Privacy Fraud & Risk Authentication Authorization Evolving Standards

Security Issues

• Device security

• Privacy

• Fraud & Risk

• Client-merchant authentication

• Client authorization

• Evolving standards

Side-effects

Increased Collaboration among Mobile Payment

Stakeholders

M-payments is Spurring Innovation

http://pritamkabe.wordpress.comM-pesa Chipknip GeldKarte Royal Canadian Mint

Improvements in Payment Security

• Consumer awareness

• Improved device security

• Newer authentication techniques

• Evolving security standards like PCI Security Standards

PCI Standard Council

• Independent organization

• Develop common set of payment standards

– PCI-DSS v2.0

– PCA-DSS

– PCI-PTN

– PCI-P2PE

Innovation in Hardware Space

http://gadgetian.com/44495/google-lg-nexus-4-4g-lte-chip-inside-ifixit/

TrustZone: Trusted Execution Environment

www.arm.com

• Two domains: Normal & Secure

• Implemented as SoC

• Security extensions to processor

• Trusted OS

• Virtualization

Mobile brings New Use Cases

Promotions &

coupons

Location-based services

In-store research

Self-scanning & self-checkout

Global Social Commerce

Loyalty

Online Commerce

Mobile Wallet

Shopping Lists

Changing Form of Payments

• Money becomes more abstract• Digital goods• Anonymous payments: Bitcoin

Less cash society Cashless society

Future Predictions!

"We expect global mobile transaction volume and value to average 42

percent annual growth between 2011 and 2016, and we are forecasting

a market worth $617 billion with 448 million users by 2016,"

Sandy Shen, research director at Gartner, May 2012

Summary

• Mobile payments is a global phenomenon

• Define what mobile means to your business

• Think beyond the hype

• Security, trust, and safety is of paramount importance

Pragati.Rai@paypal.com

http://www.slideshare.net/pragatiogal

Thank you!