Mobile Payment Magazine

Report: Mobile Wallets in the US – Review and Analysis

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Mobile Wallets US ReportA new report entitled Mobile Wallets: The U.S. Landscape by Mercator Advisory Group identifies U.S. mobile wallets by category and technology.

The physical wallet might someday go the way of the checkbook, used by few and no longer a necessity. Growing consumer use of smartphones is creating a market for mobile wallets capable of serving many of the same purposes physical wallets served for centuries but now are able to take advantage of a plethora of new functions made possible in an increasingly digital marketplace. [Read more…]

35 Million Phones Sold in 2011 Can Make NFC Mobile Payments

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According to a new report by IMS Research, a leading independent supplier of market research and consultancy to the global electronics industry the number of Near Field Communications (NFC)-enabled phones shipped in 2011 totaled 35 million globally. IMS Research forecasts that significant market events and the enablement of other cellular handsets will drive that number to nearly 80 million by the end of 2012.

“After seven or so years of false dawns and frequent disappointment, 2011 has proved to be something of a breakthrough year,” says Don Tait, senior analyst at IMS Research. Most of the leading cellular handset manufacturers have launched NFC-enabled handsets over the last 12 months. They include Samsung, RIM, Nokia and HTC. Apple is the main player yet to release an NFC-enabled handset.”

As well as a stream of launches of NFC-enabled handsets in 2011, there have also been an increasing number of joint ventures and collaborations between different players of the NFC ecosystem. Significant examples include:

  • The launch of Google Wallet in the US
  • The French Government funding NFC in the following cities in France (Paris, Bordeaux, Caen, Lille, Marseille, Rennes, Strasbourg, Toulouse and Nice). Orange plans to sell 500,000 NFC-enabled cellular handsets in France by the end of 2011
  • Orange UK and Barclaycard’s “Quick Tap” contactless payment solution, which was launched in May 2011 in the UK. Retailers that have signed up to this service includes McDonald’s, EAT, Pret-a-Manger and Boots.

Looking forward to 2012, the market for NFC looks even more promising. Sales of NFC-enabled cellular handsets are projected to accelerate during the next twelve months to reach 80 million handsets. Additionally, showcase events such as the Summer Olympic Games in London will help to promote the technology and its benefits. For instance, NFC will be available at the Olympic Park, with Everything Everywhere, Telefonica UK, Visa Europe and Samsung involved in the project. The launch of the ISIS-initiative in Austin Texas and Salt Lake City in Utah in the first half of 2012 will also boost the profile of NFC.

Source: IMS Research

Barclaycard US Names New U.S. Mobile Business Chief

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Dekkers Davidson has joined Barclaycard US, the payments business of Barclays in the United States, as Head of its US mobile business.  Mr. Davidson will report to Amer Sajed, Chief Executive of the Barclaycard US unit, and serve on the executive committee for the business.

As leader of the mobile business, Davidson will oversee all efforts to understand the US market potential of mobile payments and commerce, identify the right approaches, partnerships and technologies to leverage Barclaycard’s global leadership and experience in mobile banking and contactless technology – to allow consumers to shop and pay for things on the go and access unique shopping offers and experiences.

“We believe that mobile represents the future of payments and for commerce,” said Mr. Sajed.  “Mobile payments can be a competitive differentiator in attracting new customers and in making payments easier and more rewarding for existing customers.  We will combine the mobile telecommunications expertise and new business launch experience Dekkers brings with our understanding of the needs of the US consumer to create a powerful business.”

Davidson joins Barclaycard US from Oliver Wyman, a leading global management consulting firm that combines technology industry knowledge with expertise in strategy, operations, risk management, organizational transformation and leadership development.  While at Oliver Wyman, Davidson was practice leader for the North American telecommunications sector and worked with many of the leading mobile network operators (MNOs) and Smart Phone makers operating in North America and Europe.   He has had experience advising the ISIS consortium over the previous two years.

In January of 2011, Barclaycard and Orange announced the first contactless mobile phone payment solution for UK consumers.

There are now more than 11 million contactless-enabled Barclaycards and Barclays debit cards, helping retailers reduce queuing and cut the cost of card transactions.  Barclays and Barclaycard are the leading providers of contactless terminals in the UK with 56,000 live and accepting payment throughout the country for retailers such as Pret A Manger, Subway, and EAT.

The Absa unit of Barclays was the first bank in South Africa to introduce mobile banking – allowing customers to conduct banking transactions such as payments, account transfers and balance checks while on the go.

“With device manufacturers, software developers and payments providers all aligned toward the same future, the US market is ready for mobile payments,” said Davidson.  “Barclaycard’s global expertise and know-how will help our existing and future co-branded card partners successfully transition into mobile, as we work with leading solution partners to pave the way for consumer and merchant adoption. I feel fortunate to have joined one of the world’s leading mobile payments companies at such an exciting time in the payments space.”

Prior to his time at Oliver Wyman, Davidson held several executive leadership roles in the mobile, networking and retail sectors.   Davidson was a Venture Partner at Fidelity Ventures where he focused on wireless retailing, mobile payments and commerce investments.  Before that, he was Chief Executive Officer at Cetacean Networks, a next generation data networking startup funded by leading venture capitalists.  At Rogers Cantel, Inc., Canada’s largest wireless carrier, he was President of the Ontario region responsible for driving s business turnaround – and helping to launch the first wireless prepaid service in North America.  Davidson launched Sprint PCS in the New England Market as Area Vice President and directed the startup wireless operation in the New England area.  Earlier in his career, Davidson was a Visiting Instructor at Harvard Business School and Domestic Telecom Advisor to the Assistant Secretary of Commerce.  Davidson began his career with AT&T as an account executive.

Davidson holds a master’s degree in business administration from Harvard University and a bachelor’s degree from St. Lawrence University.

Source: PR Newswire

Visa Introduces Digital Wallet

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Visa Inc. has  announced the a number of new offerings, including a secure cross-channel digital wallet and a range of customized mobile payments services.

“Our new solutions deliver greater consumer choice, convenience and control while helping our clients grow their businesses. By helping to reduce abandoned online shopping carts and bringing new account holders into the Visa network, we create a win-win-win for merchants, consumers and financial institutions,” noted Joseph W. Saunders, Chairman and Chief Executive Officer of Visa Inc. “In addition, we believe Visa’s new payments products and services will help expand financial inclusion to the billions of mobile subscribers today who currently lack access to traditional financial services.”

In certain countries with established electronic payments infrastructures, expansive Internet usage and broad mobile network penetration, Visa will be introducing a digital wallet and services platform. The digital wallet will store Visa and non-Visa payments accounts, support NFC payments through the innovative Visa payWave application and deliver a wide range of transaction services to accommodate multiple commerce scenarios–including eCommerce, mobile commerce, micropayments, social networks and person-to-person payments.

Visa is working with various leading payments card issuers, community banks, credit unions, acquirers, payments processors and merchants to launch the digital wallet. Among the financial institutions and organizations supporting Visa’s wallet strategy are:

  • Barclaycard US
  • BB&T Corporation
  • Card Services for Credit Unions (CSCU)
  • ICBA Bancard
  • First Financial Bank of Ohio
  • Nordstrom fsb
  • Pentagon Federal Credit Union
  • PNC Bank
  • PSCU Financial Services
  • Regions Bank
  • Royal Bank of Canada
  • Scotiabank
  • TD Bank Group (US and Canada)
  • US Bank

Visa expects to launch the digital wallet in the U.S. and Canada in fall 2011.

Key features of the wallet are expected to include:

  • Click-to-buy: Consumer enters an email address, alias or online ID and password, instead of a billing address, account number and expiration date. In addition, Visa is exploring dynamic authentication technologies that will bring added layers of security to online purchases.
  • Cross-channel payments solution: The wallet consolidates multiple Visa and non-Visa payments accounts and can be used in mobile, eCommerce, social network and retail point-of-sale environments.
  • Preference management: A menu that enables consumers to set preferences for how their wallet will work, allowing them to customize and control the features of their personal wallet from privacy settings to designating which account will be accessed based on merchant type or purchase amount.
  • Merchant offers: A service that allows consumers to personalize their shopping experience by opting-in to receive money-saving discounts or promotions from participating merchants.

“The widespread adoption of Internet and mobile technology is changing the way people connect and transact across the globe, so we’re focused on delivering locally-tailored payments products and services,” said Saunders. “We are introducing new solutions for eCommerce and mobile devices that provide the same ‘Visa-quality’ experience–convenience, reliability and security–people enjoy when using their Visa cards at a retail location. In doing so, we are accelerating the global shift to digital payments by harnessing our brand, products, network and 50-plus years of payments experience.”

Mobilizing Payments in Emerging Economies

In certain emerging geographic markets with significant mobile penetration, Visa will work with financial institutions and mobile-network operators to provide consumers with a secure, reliable and globally accepted form of payment and the ability to transfer and receive funds, manage financial accounts or top-up wireless air time using their mobile handset. The wide range of features and functions being developed for the digital wallet will allow Visa to pursue a number of strategies to tailor or bundle services to local needs.

  • In countries like India and Russia, where card issuance and mobile subscriptions are high, but card usage is relatively low, Visa will help drive account activation and usage by working with financial institutions and mobile operators to link existing card portfolios with mobile devices to give handsets payments functionality.
  • In countries within Africa and the Middle East where mobile device usage is high and traditional electronic payments infrastructure is less developed, Visa will work with mobile network operators to link new virtual mobile prepaid Visa accounts to mobile phone numbers to enable cash-in, cash-out, personal payments and mobile payments –including bill payments and wireless airtime top-up. Visa also intends to connect existing “closed loop” mobile money services that today provide basic mobile banking and payments services to unbanked and under-banked consumers to its global, open loop network–VisaNet. The integration will open closed loop systems, and provide consumers and merchants with unprecedented scale, functionality and acceptance beyond their existing local geographic footprints.

Across all emerging geographic markets, Visa’s payments technology and significant work in establishing global payments standards will aid in navigating the complexity of the myriad of network operators, handset models and operating systems in use globally, helping to enable millions of new and existing Visa account holders to simply use mobile technology for payments services.

Expanding Capabilities of Visa Network

Visa is developing its next generation services by integrating VisaNet, its global processing network, leading credit, debit, prepaid and commercial product platforms, new capabilities it has acquired through its subsidiaries CyberSource, Authorize.net and PlaySpan, and the unique expertise and services of key commercial partners. In deploying flexible solutions that are locally relevant and globally interoperable, Visa aims to attract more participants to its network and better enable them to connect and transact.

“Our build, buy and partner approach puts Visa in a unique position to deliver the speed-to-market and scalable solutions needed to stay ahead of new demands created by the convergence of Internet, mobile and electronic payments technologies,” said Saunders. “Visa and our subsidiaries are working with financial institutions, merchants, mobile network operators, and innovative technology providers to bring new ways to pay and be paid to more consumers and merchants around the globe.”

Source: Business Wire

Barclays Mobile Banking Service Launched

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Barclaycard has launched a new mobile banking service as an extension of their current online service platform called mybarclaycard.

The service, available across hundreds of handset models, allows Barclaycard customers can access their accounts, check their balance and view payment or transaction history  through their mobile browsers. The site integrates with the Barclaycard Freedom loyalty program to provide access to offers from nearby retailers, using geo-location technology.

The service’s interface provides an  web experience designed specifically for mobile platforms, which customers can access by using the same secure login details as their mybarclaycard account.

“As payment experts, our role is to make it easier, more convenient and incredibly secure for people to manage their money while on the move,” said David Chan, CEO of Barclaycard Consumer Europe. “Many of our customers are time-poor or simply don’t want to spend extra time on a PC checking their account. This mobile service allows our customers the flexibility and convenience to manage their finances whenever and wherever they choose.”

“With consumers spending a quarter of their time online connected through mobiles, providing a well designed service is essential to fulfilling our changing customer expectations. The service is a further realisation of Barclaycard’s commitment to provide mainstream mobile banking services by 2012,” added Chan.

Source: Barclays

NFC Mobile Payment System to Launch in UK Summer 2011

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Everything Everywhere, a and Barclaycard today announced the first contactless mobile phone payment solution for UK consumers will launch by early summer.

Everything Everywhere is the name of a new company created last year when Orange and T-Mobile merged. Barclaycard and Orange, had announced their strategic partnership to bring contactless mobile payments to market in 2009.

Gerry McQuade, Chief Development Officer, Everything Everywhere, said: “This is the beginning of a revolution in how we pay for things on the high street. It’s a cultural shift that is as important as the launch of the personal credit card or ATMs.”

“We’re making something that’s been talked about for many years a reality and, very soon, using your mobile to buy a sandwich, a cinema ticket or, in time, even something bigger like a computer will simply be the norm.”

“As Britain’s biggest communications company, we’re proud to be delivering this technical and cultural innovation to the UK through the Orange brand. Orange and Barclaycard customers will be the first to be able to use their mobiles to make payments on the high street wherever contactless payments are accepted. This is part of our wider strategy to re-define what people use their mobiles for, with mobile payments being the start.”

David Chan, CEO of Barclaycard Consumer Europe, said: “Barclaycard is well known as a leader in helping consumers and businesses to make and take payments in their everyday lives. Finding new and better ways of doing this is what drives us, so it’s exciting, with Orange, to be giving consumers in the UK the choice to make contactless payments on their mobile phone as well as their card. Barclaycard is going to lead the innovation and explosive growth you’ll see in mobile payments.”

“I believe that future generations will find it surprising that early this century we were still carrying separate items to buy goods and to communicate with each other. As payment experts, our role is to make it easier, more convenient and incredibly secure for people to make purchases and manage their money while on the move.”

Working with the world’s leading handset manufacturers, the new offering from Orange and Barclaycard will enable customers to use their mobiles to pay for goods and services at more than 40,000 retailers that use contactless technology, by simply waving their mobile phone against a contactless reader.

The new contactless mobile payment technology has been developed to ensure customers’ transactions and personal data will be protected and secure. The launch proposition will focus on an industry backed, SIM-based approach to payments ensuring enhanced security for customers, as well as to initially provide a single point of customer care contact. MasterCard will provide the payment capability for the contactless mobile transactions.

Contactless mobile phone payments will feature as part of the wider Orange portfolio of products, developed in conjunction with Barclaycard, and which already features a contactless co-branded credit card as well as the forthcoming contactless Orange Cash prepaid payment card.

The move builds on existing contactless payment technology with 11.6m contactless credit and debit cards already in circulation, of which over 10m have been issued by Barclaycard and Barclays. There are also already 42,500 live Barclaycard contactless terminals in retail outlets including Pret a Manger, EAT, Little Chef and, soon, Co-Op.

Source: Barclays

Mobile Payments Research Report 2011: Battle in a Fragmented Market

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Research and Markets  has announced the addition of the “Mobile Payments – A Battle of Giants in a Fragmented Market” report to their offering.

This study spotlights the mobile payment market, provides details about the related services and their technological aspects, analyses the usages and the industrial structure with a drawn of the value chain. The report makes an in-depth look in examining several business models – for NFC, SMS, Fixed/mobile wallet & App Stores – their impacts and upcoming opportunities.

Key Questions

  • What are the different mobile payment services and which technologies are being used?
  • Who is using M-payment and how do they use it?
  • How are this emerging market and its value chain structured?
  • What are the existing business models and who is the furthest along with their deployments?
  • What are the market’s key figures and what are the main forces driving development?
  • What does the competition landscape look like?
  • What sustainable opportunities are available to the different kind of players?

Key Topics Covered:

  • 1. Executive Summary
  • 2. Introduction
  • 3. Market structure and key factors
  • 4. Organisation & Industrial Strategy
  • 5. Strategic analysis
  • Tables
  • Figures

Companies Mentioned:

  • Amazon Mobile Payments
  • American Express
  • Apple
  • BarclayCard
  • Billing revolution
  • Boku
  • Carrefour
  • Deutsche Telekom
  • Facebook
  • Gemalto
  • Google
  • McDonald
  • MoBeePay
  • NFC
  • Nokia
  • NTT docomo
  • Obopay
  • Orange
  • PayPal
  • PTC
  • Sprint
  • Starbucks
  • Subway
  • Telecom Italia
  • Telefonica
  • Venmo
  • Verifone
  • Visa
  • Zong

More information: Research and Markets