How mobile payments will revolutionize the way we buy.

Ben Gaddis12/23/2010

Welcome to a tap-and-Go World.

Yvonne Lydick. Copyright All rights reserved by YvonneKnitsKnots

today, everyone in the U.S. pays

today, everyone in the U.S. pays

with cash

with cash

or credit.

today, everyone in the U.S. pays

with cash

or credit.

not by phone.

today, everyone in the U.S. pays

that’s going to change.

that’s going to change.

aBrUptly.

that’s going to change.

aBrUptly.dramatically.

in ways we can’t even imagine.

that’s going to change.

aBrUptly.dramatically.

Before you know it, everyone will be paying with their mobile phone.

it sounds like the future, right?

it sounds like the future, right?

it’s not.

Using your mobile device to make payments is closer than you think.

it’s already happening in many parts of the world.

many point-of-sale systems in the U.S. already work on similar principles.

near Field communication (nFc) is the wireless technology driving this revolution.

nFc redefines what’s possible by enabling mobile ticketing, mobile payments, smart posters, Bluetooth pairing, e-keys and more.

nFc redefines what’s possible by enabling mobile ticketing, mobile payments, smart posters, Bluetooth pairing, e-keys and more.

to make paying for things faster, easier and more secure than ever before.

introdUcinG tap-and-Go.

Copyright All rights reserved by duncandavidson

the mobile payment movement in the U.S. will be led by early adopters

Copyright All rights reserved by tow_adam

who are paSSionate and Vocal.

they’ll start ditching their wallets and using their phones instead.

For entertainment.

and romance.

For big stuff.

and small.

For the greater good.

and for the better left unsaid.

Photograph by hillary h

and they won’t be shy about showing friends how easy it is.

and they won’t be shy about showing friends how easy it is.

or how safe it is.

Safer than credit cards ever dreamed of being.

Photograph by Infidelic Thomas

How safe?

Safer than cash.

Safer than cash. pin number safe.

Safer than cash. pin number safe. remote lockdown safe.

encryption safe.

Safer than cash. pin number safe. remote lockdown safe.

Photograph by Neeku

So WHere iS tHe tippinG point?

10 years ago,

music looked like this.

10 years ago,

enter the ipod.

now everyone and their mom listens to digital music.

enter the ipod.

Photograph by Dave White

3 years ago,

this was an app.3 years ago,

Copyright All rights reserved by nickbilton

enter the iphone.

now, there’s an app for everything.ow, there’s an app

enter the iphone.

today,

practically no one in the U.S. makes mobile payments.

today,

enter the iphone 5.

rumored to be nFc enabled.

my prediction

my predictionWithin 6 months of the nFc-capable

iphone 5’s release, there will be 250 million mobile payment transactions in the U.S.

my predictionWithin 6 months of the nFc-capable

iphone 5’s release, there will be 250 million mobile payment transactions in the U.S.

Here’s the math:

Here’s the math:

5 million iphone 5’s sold

Here’s the math:

X 50 (transactions in 6 months)5 million iphone 5’s sold

250 million mobile payments

Here’s the math:

X 50 (transactions in 6 months)5 million iphone 5’s sold

250 million mobile payments

Here’s the math:

X 50 (transactions in 6 months)

(that’s a lot of mobile payments.)

5 million iphone 5’s sold

Photograph by misterbisson

Sound crazy?

Are you willing to bet against Apple sparking another revolutionary change?

Sound crazy?

the truth is

the truth is

mobile payments are going to happen with or without an nFc-capable iphone 5.

Google is already in.

Google is already in.

nokia is in.

nokia is in.

Worldwide Smartphone Sales by Operating Systems in 3Q10 (Thousands of Units)

3Q10 Market Share 3Q09 Market ShareCompany Units (%) Units (%)Nokia 29.480.1 36.6 18,314.8 44.6Android 20,500.0 25.5 1,424.5 3.5Apple 13,484.4 16.7 7,040.4 17.1

Blackberry 11,908.3 14.8 8,522.7 20.7Microsoft Windows 2,247.9 2.8 3,259.9 7.9Linux 1,697.1 2.1 1,918.5 4.7

Other OS 1,214.8 1.5 612.5 1.5

Total 80,532.6 100 41.093.3 100Source: Gartner (November 2010)

Android + Nokia = 62% smartphone share

carriers never do anything together.

yet 3 of the top 4 have formed a joint venture called iSiS to—you guessed it—

build out a nationwide nFc system.

carriers never do anything together.

in the U.S., we’re way behind.

in Kenya, people can use their mobile phones to buy livestock.

In Japan, people have been using their mobile devices to pay for goods and services.

For years.

In Japan, people have been using their mobile devices to pay for goods and services.

Copyright All rights reserved by liane.ng

Worldwide, there are fewer than 1 billion bank accounts. and 4 billion cell phones.

Worldwide, there are fewer than 1 billion bank accounts. and 4 billion cell phones.

clearly, change is coming.

Worldwide, there are fewer than 1 billion bank accounts. and 4 billion cell phones.

clearly, change is coming.

count on it.

Worldwide, there are fewer than 1 billion bank accounts. and 4 billion cell phones.

clearly, change is coming.

count on it.

plan for it.

So, WHy SHoUld marKeterS care?

Because mobile payments will revolutionize how people buy things.

and how you market to people must change accordingly.

First things first.nFc isn’t just about people leaving their credit cards behind.

it marks the beginning of a complete marketing ecosystem.

it means location-based offers are always on the table.

it means customers can see an ad, download a coupon and redeem it.

it means customers can see an ad, download a coupon and redeem it.

all on one device.

anytime.

anywhere.

it means loyalty programs can be built into the purchase path.

it means customers can be rewarded and motivated to buy as they’re shopping.

in more relevant ways than ever.

tHe FUtUre iS

The fuTure is Thisclose.

once upon a time,

once upon a time, shopping was just shopping.

then came online shopping.

then price-comparison apps made it easy to find the best deals.

then amazon one-upped that approach with price check and 1-click mobile payments.

What’s happening now will pale in comparison to what’s possible with nFc.

consider how the internet has changed our society in the last decade or two.

Copyright Eric IsselÈe

multiply

those

changes

by 100

multiply

those

changes

by 100

500

by 100

multiply

those

changes

by 100

500

1,000

changes powerful enough to make personalized one-to-one marketing a reality.

powerful enough to tie in location, browsing history and verified check-ins.

powerful enough to change the way we buy things.

powerful enough to change the way we buy things.

Forever.

Ben GaddisVp – Growth and innovation ben.gaddis@t-3.com

ready to talK nFc?