Post on 12-Sep-2014
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transcript
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Mobile Banking & Payment
QNB Retail Banking
25th of May 2011
Agenda
• Introduction: – Mobile put into perspective– From Mobile Banking to Mobile Payment
• Mobile Banking• Mobile Money• Mobile Payment:
– NFC Models– Business Model
• Outlook
Mobile put into perspective….
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1.2
2.8
5
Units (Bln)in 2010
2010 figures – Sources: Gartner, EMVco, QNB
1980 1965 1985 Launch year
Mobile put into perspective….
4
0
1
2
3
4
5
6
7
2008 2009 2010 2011 2012 2013
in B
ln
Developed Developing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012 2013
Smarphone Basic
Number of Mobile Subscribers SmartPhone Market Share in % of Handset Sales
Sources: Forecast: Mobile Devices, Worldwide, 2003-2013 (3Q09 Update)Portio Research Ltd: Worldwide Mobile Industry Handbook, 2009-2014
From Mobile Banking to Mobile Payment
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Cu
sto
mer
Valu
e
Mobile “Wallet”Mobile Access
Mobilized Website
Mobile Banking • “App”• Daily Banking
Transactions
Mobile Money“SMS/USSD”
Mobile Payment“NFC”
Mobile as Stand-aloneproposition
Low
High
Mobile as anadditional convenient channel
Mobile Banking
• From SMS based to smartphone application based• Fast evolution of mobile phone OS platforms:
– Symbian– Blackberry– Iphone, Ipad– Android
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• No standardized application OS on Smartphone (no equivalence of internet explorer as for internet banking)
• Race for banks to support latest consumer and mobile device trends
Source: Canalys.com
Share of worldwide 2010 Q4 smartphone sales
Windows Mobile, 1%
Android, 15%
Apple, 66%
RIM, 5%
Symbian, 13%
Apple Android SymbianRIM Windows Mobi le Others
Share of worldwide 2010 Q4 smartphone usage (internet browsing)
Source: http://marketshare.hitslink.com/
Mobile Banking @QNB
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• SMS based Banking since 2004• Mobile Banking (app) started in 2008• May 2010: new app with more
services, extended to iPhones and iPads– Convenience of ease:
• Registration from Mobile device• Same login as for internet
– Rich content:• On-line account and card information• Transfer of money to anywhere in the world• Payment of utility bills and top-ups with
real-time bill update
Mobile Money & Mobile Payment
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Diversity of payment services
2008 2010 2012 2014
Emerging(e-wallets, SMS)
Expanding(NFC pilots.)
EmergingBusiness Models
Maturing
Mobile Money : Remittances / P2P
• P2P type of payment• Business model is straightforward:
– Profitable remittance business model– No technology dependency (USSD, SMS type of
model)
• Main constraints:– Regulatory: license to operate payment business– AML screening and Central bank reporting
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Mobile Money at Teco’s: e-wallets
• Across the globe, leading telco operators are making inroads into the financial area by offering mobile e-wallets to consumers:– Vodafone (m-pesa in Kenya)– O2 (Telefonica group) in the UK– BICS (Belgacom Group): Remittance gateway– …
• Initiatives mainly targeting P2P payments, but also low value payments (parking, vending machines,…)
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Mobile Money at QNB
• EazyPay (2010):– QNB customer to QNB customer– Used to pay at Merchants– SMS based technology, operator independent
• EazyCash (May 2011):– Cash to anyone from
a mobile– SMS based technology,
operator independent
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eazycash: How it works
1. QNB customer (payer) sends SMS to payee in the following format:
cash <payee mobile number> <amount>
2. Payer receives QNB SMS to confirm transaction information
3. Payer replies with Ok to confirm or with C to cancel
4. Payee receives payment information via SMS upon payer’s confirmation
5. Payee cashes payment at any QNB ATM in Qatar
QNB EazyCash
Mobile Payment: Replacing plastic
• Opportunity to replace the plastic with mobile• Appeal is high: more mobile phones than
cards!• NFC as enabling contactless technology
BUT…• Business model is challenging: thin revenue margin on
retail payments• Technology: not deployed at merchants, not standardized
(i.e. NFC)
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Mobile Payment: NFC models
• Telco Centric (widest adoption so far):– NFC integrated in phone with SIM based application– SIM plug-in: N-flex from Gemalto (piloted in Singapore,
Turkey, Japan.. – Q4 2010)
• Telco agnostic:– SD memory stick– Dual chip NFC phone (in-built chip, in addition to the
SIM)– RFID sticker (transitional solution)
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Telco Centric: Challenges of the Business Model
• Classic card retail business model is involving 2 players, an issuer and an acquirer, sharing a very thin revenue margin from the merchant service fee
• Implementing mobile payment requires an open architecture to ensure the solution works for all issuers (banks) and with all telcos to ensure full benefits for the consumer
• Mobile payment (telco centric) is introducing a third critical player: the Mobile Network Operator (MNO), i.e the telco, which is also looking for some remuneration
Ecosystem overview (open model)
Source:EPC – GSMAMobile Contactless Payments Service Management RolesRequirements and SpecificationsDoc: EPC 220-08, Version 2.0October 2010
ContaclessNFC
Fulfilment
Payment Authorisation Payment AuthorisationPayment scheme(domestic/int’l)
ProvisioningValue Chain
3 industry players are looking at reaping the benefits… and more…
• In addition the a complex business model, the battle is about who will get more control over the core relationship with the customer (and his wallet ;-)
CustomerCurrent ACCOUNT
TELECOM OPERATORS
HANDSET MANUFACTURERS
BANK
“I own the SIM”“I own the NFC device”
“I own the payments”
Mobile Payment: Beyond payment…
• Beyond replacing the plastic card, another opportunity is there: integrating loyalty and couponing into consumer phones…
• Latest initiative announced by Google (with Ingenico)
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Outlook – the jury is till out…
• "NFC payments will certainly be quick, but I doubt they'll be much quicker than today's magstripe and smart cards. Does it really matter whether I swipe, dip, or tap my card? So why should anyone care about NFC?" David Dorf – Director of Technology Strategy at Oracle Retail - Oracle
• To succeed, Mobile payment at the check-out will need to embrace unique features that are not offered elsewhere…
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Thank You.