Welcome to Mobey Forum’s Media and Analyst Webinar:
Taking Prepaid into Account
Tuesday 24 June 2014
The webinar will start at 3pm CET
All participants will be placed on mute for the duration of the presentation in order to reduce background noise.
Presented by:
Amir Tabakovic, Mobile Wallet Workgroup Chair, Mobey Forum Board member and Head of Market Development at PostFinance.
Sirpa Nordlund, Executive Director, Mobey Forum
• You are invited to submit written questions via the GoToWebinar question function.• Questions will be queued and addressed during a 15min Q&A session at the end of the presentation. • If there is insufficient time to address all questions, Mobey Forum will respond to each question individually within 24hrs.
Welcome to the Webinar
Most Important First
Prepaid is a major driving force in the near future of mobile wallets
‘a container into which valuables can be stored and retrieved using specific methods’
Prepaid is…
Source: MasterCard / partners in prepaid
Merchants
• Means of increasing the brand loyalty of customers
• Anticipation of future purchases in exchange for store discounts
Transport and ticketing services
• Hong Kong’s Octopus prepaid travel card
• London’s Oyster Card
MNOs
• Mainly airtime
• PAYG accounts have eclipsed their pay monthly counterparts
• Prepaid mobile money initiatives
Past: Simple but Effective Tool
Enhancing existing physical products via mobile channel• Mobile reload / top up• Additional channel to improve customer value• Interactive channel to get in touch with the users
Mobile Prepaid: A Future Full of Opportunities
Enhancing existing physical products via mobile channel• Mobile reload / top up• Additional channel to improve customer value• Interactive channel to get in touch with the users
Digitisation of existing physical prepaid solutions• Replacement or endorsement of the existing solution• Host card emulation (HCE)
Mobile Prepaid: A Future Full of Opportunities
Merchant has a Winning Combo:HCE + Closed Loop Prepaid
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Enhancement of existing physical products via mobile channel• Mobile reload / top up• Additional channel to improve customer value• Interactive channel to get in touch with the users
Digitisation of existing physical prepaid solutions• Replacement or endorsement of the existing solution• Host Card Emulation (HCE)
Development of new mobile-based prepaid solutions• Launching a new mobile-based prepaid solution• No need to produce physical cards anymore - is there?
Mobile Prepaid: A Future Full of Opportunities
Benefits of Mobile Prepaid
Customer Benefits
• Lower entry barriers
• More control
• More functionalities
• Perceived feeling of security
Business Benefits
• Lower entry barriers
• Lower operational costs
• More flexibility
• Business agility
• Less restrictive regulatory environment
• Different stakeholders - each of them holding a piece of the puzzle (control points)
• Each of them is vying to establish a commercially influential position in the value chain
Deadlock and market fragmentationReduced integrative potential and market adoption
Mobile Wallets 1.0: Digitising Leather Wallet
• Strengthening the brand loyalties of customers
• Uniquely pleasurable shopping experience
• Minimising the inconvenience of payment
Prepaid: a way to minimise payment disruption
Focus on unique advantages to conventional commerce
Mobile Wallets 2.0:Reinventing Commerce
Starbucks (US, Canada, UK)
Examples: Reinventing CommerceAtB
(Norway)
Apple / iTunes (Worldwide)
• Prepaid instead of current account
• Challenging the banks at their own game
• Integrated cashback, reward and loyalty schemes of high street and online retailers
Prepaid as a model for personal mobile banking
Progressive banking customers and NOT underbanked
Mobile Wallets 2.0:Reinventing Banking
Examples: Reinventing Banking
T-Mobile Google Wallet Amex BluebirdMobile Money
• Mobile or not, it must be ‘loaded’
• No credit, prescribe or interests facilities
• Not covered by any guarantee scheme (insolvency)
• No official board of appeal (customer complaints)
• Those that do not operate on the network of a major payment scheme, may be less frequently accepted by merchants
Limits of Prepaid (Mobile or not)
Prepaid Options for Banks
• Option 1: Deploy an invisible prepaid infrastructure in support of a new service
• Option 2: Establish a prepaid agent network and resell the products of high profile merchants
• Option 3: Use prepaid openly and actively
• Option 4: Play a supporting back-end role to new players in prepaid
Examples: Options for Banks
Option 1:Danske Bank
Option 2:PostFinance
Option 3:Use prepaid
actively & openly
Option 4:CBW Bank
Looking to the Future –What a Bank Should Consider
Mobey Forum predicts: Prepaid – a major driving force in the near future of mobile wallets
New forms of engagement with the merchant sector (compare to PayPal)
Start paying attention to possible disruption of current account and customer relationship
Question your own role in the ecosystem
Obstacles such as with regulation, operating procedures and legacy systems integration are no good excuse for missing the momentum
• Anne K. Shreiner American Express
• Hans S. Ildstad EVRY
• Thor Ragnar Klevstuen EVRY
• Sarah Kocianski Monitise
• Ville Sointu Ericsson
• Kasper Sylvest Olsen Danske Bank
• Kristian Thure Sørensen Nets
• André Zölch PostFinance
Special Thanks to the Core Team!
Q&A…
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