Discover today announced an agreement with Apple that will allow Discover cardmembers in the U.S. to make contactless payments in participating stores through Apple Pay. [Read more…]
FIME advances end-to-end transaction solutions and mobile services, enabling market security and interoperability.
As an independent worldwide leader in consulting and testing services, FIME ensures the compliance of mobile devices and chip-based applications to industry standards. Its international team works with manufacturers, banks and authorities within the EMV payments, mobile near field communication (NFC), telecom, transport and e-identity sectors. [Read more…]
We are at the beginning of a new technology cycle as consumer adoption of mobile and social media extends the reach of the web and integrates those media into the physical world.
Facebook is only eight years old, and yet its planned $5 billion IPO is the largest Internet IPO ever. As in every new technology cycle, network effects make room for new players and the creation—and destruction—of vast amounts of wealth.
The Gang of Four—Apple, Amazon, Facebook, and Google—is a group of network players entering the banking and payments environment. How will the strengths and weaknesses of the Gang of Four play against those of major financial institutions, payment networks, and wireless carriers? Surprisingly, PayPal rates on equal footing with the Gang of Four when it comes to innovation and emerges as a possible leader in the next tech cycle.
Research & Markets recently released a report entitled Positioning for Payments in the New Mobile-Social Technology Erathat focuses on the relationship of brands to consumer perceptions of trust, innovation, and privacy in order to identify opportunities and threats.
- What is the newest technology cycle? Which brands are positioned to take advantage of the next cycle?
- What models are developing that will intersect with the financial services space?
- How will the strengths and weaknesses of the Gang of Four play against those of major financial institutions, payment networks, and wireless carriers?
- How well do consumers trust the Gang of Four compared with the major financial institution, payment network, and wireless carrier brands when it comes to their financial information?
- How do consumers rate the Gang of Four compared with the major financial institution, payment network and wireless carrier brands when it comes to protecting their private information?
- Which brands are viewed as most innovative?
- How do customers of the primary financial institutions rate their own institutions on the issues of trust, innovation, and privacy?
- How should brands position themselves to best compete in the new technology cycle?
The report is based mainly on data collected online from a random-sample bank benchmark panel of 5,878 consumers in December 2011. The survey targeted respondents based on proportions of gender, ethnicity, age, and income representative of those of the overall U.S. online population. The margin of sampling error is ±1.28% at the 95% confidence level.
It is also based on a survey of 5,211 consumers conducted online in October 2011 on KnowledgePanel. This sample is representative of the U.S. census demographics distribution and is recruited from the Knowledge Networks panel. Data is weighted using 18+ U.S. Population Benchmarks for age, gender, race/ethnicity, education, census region, and metropolitan status from the September 2011 Current Population Survey (CPS) and household Internet access from the October 2010 CPS Supplement. The margin of sampling error is ±1.73% at the 95% confidence level.
Table of Contents
- Executive Summary
- Platforms That Are Able to Gather the Biggest User Base Usually Gain the Most Power and Wealth in Each
- Technology Cycle
- Mobile + Social Defines the Newest Technology Cycle
- Wealth Is Created—and Destroyed—During Each New Technology Cycle
- Apple, Amazon, Google, and Facebook
- Platforms That Gather the Biggest User Base Usually Gain the Most Power and Wealth in Each Technology Cycle
- Mobile Platform
- Two Diverging Views of Mobile Success—Open (Google) vs Protected (Apple)
- Social Media Platform
- Mobile-Social Integration Opens Opportunity for Competitor to Move on Facebook
- Game-Changing Business Models Rapidly Emerge During Times of Technological Upheaval
- Alliances Can Use Mutual Strengths and Weaknesses Can Fill Gaps to Respond Faster and with Better Products
- Javelin TIP Model for Mobile Wallets
- Apple Leads in Innovation—at Least for Now
- Don’t Count out the Financial Institution’s Primary Relationship with the Consumer
- No Brand Reaches the Gold Zone—Without an Alliance
- Related Research
- Companies Mentioned
– Amazon, American Express, Apple, AT&T, Bank of America, Chase, Citibank, Discover, Facebook, Google, MasterCard, Microsoft, PayPal, Research In Motion, Sprint, Twitter, U.S. Bank, Verizon, Visa, Wells Fargo, zvelo
More information: Research and Markets
Javelin Strategy and Research has release a new report entitled “2011 Contactless Near Field Communication (NFC) Mobile Payments: Framing Mobile Payments on the Foundation of Mobile Banking.”
Mobile payments have been the source of much excitement for over half a decade, with the latest focus being on near field communication (NFC) payments, which uses short-range wireless technologies to allow a consumer to tap or wave a supporting mobile phone to complete an in-store payment.
Late 2010 experienced a flurry of NFC-related mobile payments announcements, detailing pilot initiatives from numerous financial institutions (FIs), payment networks, mobile phone carriers, technology giants, and third-party developers.
Despite this activity, mobile contactless/NFC is a payment option that is battling limited availability of contactless-ready merchant terminals and mobile technology, as well as low consumer demand. In order to ensure the greatest opportunity for success, FIs should integrate NFC mobile payments with their existing mobile banking platform. Javelin data shows that mobile bankers are the prime financial demographic to jumpstart mobile payments, and FIs should promote the service accordingly.
- What is the current state of the contactless payment market, and how has it changed from recent years?
- What are the key drivers preventing consumer adoption of contactless payments?
- How should FIs integrate mobile contactless pilots within their existing financial infrastructure, and who should the target demographic be?
- What are some of the current NFC programs in market today?
- What is the demographic makeup of today’s contactless payment population, and how can that information be utilized to boost mobile NFC adoption?
- How can FIs establish the value proposition of NFC among merchants, in an effort to increase merchant acceptance of the service?
- Primary Questions
- Executive Summary
- The State of U.S. Contactless and Mobile Commerce
- The Consumer Roadmap to Mobile Payments
- Mobile Banking as the Springboard for Mobile Contactless Payments
- Demographic Trends – Who Are the Likely Mobile Contactless Users of Today?
- Mobile Contactless Payments: The Proverbial Chicken and the Egg Dilemma
- Related Research
- Companies Mentioned
Table of Figures
Figure 1: Mobile Payments Ecosystem
Figure 2: Percent of Consumers Who Indicate That They Are Open to Using a Contactless-Enabled Card or Device, 2007-2010
Figure 3: Key Drivers Preventing Contactless Adoption, by All Consumers
Figure 4: Consumer Adoption Roadmap to Mobile Payments
Figure 5: Likelihood of Storing Credit or Debit Card Information on Mobile Phone to Complete a Mobile Payment, by Mobile Bankers and All Consumers
Figure 6: Factors That Drive Contactless Use, by Mobile Bankers and All Likely or Current Contactless Users
Figure 7: Last Time Made Purchase Using Mobile Device, by Mobile Bankers and All Mobile Phone Owners
Figure 8: Frequency of Mobile Purchasing in the Past Month, by Mobile Bankers and All Mobile Phone Owners
Figure 9: Average Mobile Purchase Amount, by Mobile Bankers and All Mobile Phone Owners
Figure 10: Desirability of Mobile Phone Functionality, by Frequent Mobile Bankers, Mobile Bankers (Past 90 Days), and All Mobile Phone Users
Figure 11: Likelihood of Using Mobile Contactless, by Gender, Generation, and All Consumers
Figure 12: Likelihood of Using Mobile Contactless, by Ethnicity and All Consumers
Figure 13: Likelihood of Using Mobile Contactless, by Smartphone Owners, Standard Mobile Phone Owners, and All Consumers
Figure 14: Likelihood of Responding to Mobile Marketing Coupons or Promotions, by All Mobile Contactless Users and All Mobile Phone Owners
Figure 15: Percent of Consumers Who Have Used Particular Contactless Payment Devices, 2009-2010
Figure 16: Likelihood of Using a Contactless-Enabled Card or Device, by Mobile Bankers and All Consumers
Figure 17: Average Times Per Month Consumers Use a Particular Payment Option Per Month for In-Store Purchases
Figure 18: Likelihood of Using Mobile Contactless, by Income and All Consumers
Figure 19: Likelihood of Using Mobile Contactless, by iPhone Owners, BlackBerry Owners, and Android Owners
More information: 2011 Contactless Near Field Communication (NFC) Mobile Payments
Discover card has announced that it will issue contactless credit cards and stickers, targeted at early adopters of its mobile technology. The cards, called Discover Zip were sent out to select cardholders during the first two weeks of November. More cards and stickers will be sent to additional cardmembers starting in January 2011.
Discover Zip is an payment solution that enables quick, secure transactions using contactless technology. Consumers simply touch a payment device, which is in the form of either a plastic card or a sticker that can be applied to a mobile phone or any other item, to a Zip-enabled contactless reader to make a payment.
According to Discover, there are more than 100,000 U.S. merchants that offer contactless readers that accept Zip transactions at the point-of-sale, including quick service restaurants, gas station and convenient stores, retailers and pharmacies, and public transit agencies.
“At Discover, we put a high bar on value to the customer, and are always evaluating technology solutions that make things faster, safer, and more convenient for our cardmembers,” said Mark Scarborough, senior vice president of cardmember marketing at Discover. “Given how tied consumers are to their mobile devices, we know they will appreciate the tremendous value and convenience Discover Zip contactless cards and stickers provide.”
Source: Business Wire
A recent report from Aite Group forecasts that U.S. mobile bill payments will reach more than $200 billion in 2015.
Aite Group interviewed more than 60 companies in the Fall of 2010 and produced a 65 page report that defines and segments the mobile payment industry, and includes an analysis of the competitive and market trends.
Each one of the multiple categories of mobile payments defined in the report will experience double-digit growth, with mobile payments accounting for US$214 billion in gross dollar volume by 2015, up from US$16 billion in 2010–a 68% compounded annual growth rate (CAGR) between 2010 and 2015.
The report references the following companies: Allstate, Amazon, American Express, Apple, AT&T, Bango, Bank of America, Barclays, Bill2Mobile, BlackBerry, Bling Nation, BOKU, Brink’s, C-Sam, Cashedge, Cellfire, Chase, Chase Paymentech, Cimbal, ClairMail, coupons.com, Coupons Sherpa, Visa’s Cybersource, Device Fidelity, Diebold, Discover, Eagle Eye Solutions, eBay, Euronet, Facebook, First Data, FIS, Fiserv, Foursquare, Gemalto, Global Payments, Google, Gowalla, Green Dot, Groupon, Harland Financial Services, Heartland Payment Systems, Hipcricket, iLoop Mobile, Inside Contactless, Intuit, Jack Henry/iPay Technologies, Kubra, MasterCard, mFoundry, Mobile Coupons, Mocapay, MoneyGram, Monitise Group, mopay, MyWebGrocer, NCR, NetSpend, Nokia, Oberthur Technologies, Obopay, OfferIQ, Online Resources, PayPal, Plastyc, Pyxis Mobile, Research-in-Motion (RIM), Roam Data (Ingenico), Roamware, Rocketbuxx, SK C&C USA, Square, Starbucks, Sybase, T-Mobile, Tetherball, 3i Infotech, Tier Technologies, TransferTo, TSYS, Twitter, U.S. Bank, VeriFone, Verizon, Vesta, Visa, ViVOtech, Waspit, Way Systems, Western Union, Wincor Nixdorf, WirelessLoyalty, Xipwire, Yelp, and Zong.
More information: Aite Group Mobile Payment Report.
Source: Aite Group
Payment by mobile phone is one step closer now, as AT&T, T-Mobile, and Verizon Wireless have announced the launch of a joint venture called Isis, to build a national network for subscribers to make purchase in physical retail stores using their smartphones. [Read more…]