Mobile Payment Magazine

Research Report: 2011 Contactless Near Field Communication (NFC) Mobile Payments

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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.

Primary Questions

  • 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?

Report Index

  • Overview
  • Primary Questions
  • Methodology
  • 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
  • Appendix
  • 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

Mobile Banking and Payments Report: The Role of the Mobile Phone as a Banking Device

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With over 2 billion users worldwide, mobile phone usage penetrates every core demographic of the world’s population. Research and Markets has announced the release of a new report entitled “ Mobile Banking and Payments.” The report assesses the role of the mobile phone as a banking device as well as a payment function. The report provides readers with the ability to:

  • Assess the prospects for mobile banking and payments
  • Learn how additional revenue can be raised through value added services
  • Review the strategic and operational issues that face the mobile banking sector
  • Study the profiles of leading banks within the mobile banking arena

After abandoning initial roll-outs a few years ago following poor consumer take up, banks worldwide are now re-entering the market. Mobile banking is an opportunity and a threat to established retail financial players. The first section of this report provides the business case for successful mobile banking. It presents the short-term solutions and the longer-term strategy needed to create a successful program.

Key Points Addressed in This Report:

  • The mobile banking phenomenon explained.
  • Trends among emerging and developed markets.
  • Mobile banking and mobile payments defined.
  • Reasons for low adoption by banking customers.
  • Importance of mobile as a marketing tool and as a customer retention strategy.
  • Negotiating the relationship between banks and mobile carriers.

Case Studies and Examples Include:

  • Bank of America
  • Blaze
  • Charles Schwab
  • Citi
  • ClairMail
  • Co-op Bank
  • Elite mBanking
  • Facebook
  • Fi-Mobile
  • First National Bank
  • iTunes
  • Mfoundry
  • Microsoft
  • Mshift
  • MTN bank
  • Nokia
  • Paypal
  • Regalo Card
  • St George Mobile Banking
  • Sun mBanking
  • Twitter
  • Vancity CU
  • Visa
  • Wells Fargo
  • Wizzit bank

Key Topics Covered:

  • Business case for mobile banking
  • Business case for mobile banking
  • Generate revenue through value added services
  • Enhance other delivery channels
  • Marketing via the mobile channel
  • Banking the unbanked
  • Strategic and operational issues
  • Choosing the technology platform
  • Security considerations
  • Usability considerations
  • Marketing considerations
  • Market profiles
  • USA
  • South Africa
  • Key emerging markets

More information: Research and Markets – “Mobile Banking and Payments Report”

 

Source: Business Wire

375 Million+ Mobile Payment Users by 2015, Says Report

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Mobile payments are an emerging opportunity to make payment from or with a mobile handset. While a success in certain countries and with fringe audiences already, mobile payments have not yet achieved success on a global scale. However, it is anticipated that this will begin to change in 2011 as the number of mobile payment users starts a significant run up from 116 million to over 375 million in 2015, according to a recent research report from In-Stat.

“There appears to be consumer demand for mobile payments,” says Amy Cravens, Market Analyst. “Consumers do recognize pain points with current payment systems and indicate support for a cleaner, easier alternative. If mobile operators are able to push beyond the infrastructural challenges and introduce these services to the mass market, the transactional value of the mobile payments market is positioned to grow nearly tenfold over the next several years.”

Recent research findings identify the market’s preparedness including:

  • Significant smartphone penetration.
  • Consumer comfort level with purchasing goods with their phone through existing channels.
  • A desire among mobile operators to develop opportunities to generate revenue from mobile based commerce.
  • Infrastructural developments supporting contactless payments, including NFC-enabled mobile phones and Point of Sale (POS) terminals.

The In-Stat report, entitled “Mobile Payments: Is the Market Ready?” examines the mobile payment market structure, outlining the various elements in this multifaceted market. Discussion will include mobile payment types as well as the relationships comprised in this complex ecosystem.

The report also includes:

  • Market player profiles including: Bling Nation, Boku, Clairmail, Isis, mFoundry, and Obopay
  • Forecasts for the mobile payments market through 2015
  • Forecasts of anticipated usage and transaction volume
  • Detailed examination of the NFC market
  • All forecasts extend through 2015 and are segmented by geographic regions

Source: MarketWire

Fifth Third Bank to Offer Mobile Banking with ClairMail Solution

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Fifth Third Bank has selected ClairMail to power its new mobile banking technology and services.  ClairMail, Inc., a mobile banking and payments solution provider, will provide Fifth Third Bank with a solution to allow the bank’s customers better mobile access to their accounts, bill paying capabilities and real time personalized text alerts, thereby gaining greater control over their accounts and overall finances.

ClairMail’s  scalable mobile platform  also has the flexibility to allow Fifth Third Bank to connect to multiple financial systems and future-proof their mobile powered offerings.

“At Fifth Third we are committed to providing our customers with the most efficient and secure solutions to satisfy all banking needs,” said Larry McClanahan, vice president & director of digital delivery, Fifth Third Bank. “Due to increased customer demand in this rapidly growing market, we realized the need to adopt a comprehensive mobile solution. After extensive vendor evaluation, we chose ClairMail’s mobile platform to strategically grow our mobile initiative. Now our customers will have extended bank access through a service that goes everywhere and anywhere they are.”

The ClairMail mobile banking solution gives Fifth Third the ability to provide its customers with greater control over their personal finances through mobile web, SMS and a client application on most  mobile devices, including the iPhone.

The platform lets customers perform various activities including checking account balances, performing account transfers and viewing transaction history. They will also have the ability to sign up for personalized alerts over SMS, while defining preferences for alert triggers (low-balance thresholds or event occurrences that activate alerts) and frequency.

“Fifth Third is dedicated to providing the highest quality financial products and services to its customers and realized the necessity to utilize ClairMail’s mobile banking and payments platform to provide an effective, convenient vehicle that satisfies customer demand,” said Pete Daffern ClairMail CEO. “Fifth Third’s commitment to an extensible mobile banking rollout demonstrates their forward-looking commitment to improving customer acquisition and retention, reduce costs and drive new revenue opportunities through the mobile channel.”

Source: MarketWire

ClairMail Announces New Mobile Fraud Management Solution for Financial Institutions

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ClairMail has announced a new mobile fraud management solution for Financial Institutions (FIs) and their customers to oversee and quickly respond to fraudulent transactions directly through the mobile channel. ClairMail’s Fraud Solution works with existing FI fraud systems and processes to help mitigate card, Direct Deposit Account (DDA), online banking and identity fraud by leveraging all the capabilities of the ubiquitous mobile device and the robust alerting and orchestration capabilities of the ClairMail platform.

ClairMail’s Fraud Solution is the first release of a family of business-level solutions that demonstrate how the mobile channel can power new mobile capabilities, products and packages across the entire enterprise while bolstering the value and return on investment the mobile channel brings to the institution. Mobile banking has largely been viewed as an extension of online banking, but by implementing a solution that is scalable across bank functions and products, like ClairMail’s Fraud Solution, FI’s can drive new fee-based services, reduce servicing and risk management costs, enhance customer loyalty and acquisition and increase mobile banking adoption.

“While more consumers are adopting mobile banking, the full value of the mobile channel has yet to be realized. Consumers and FIs will gain the most benefit when they can leverage the unique features of the mobile device,” said Pete Daffern, CEO of ClairMail. “Enabling consumers to monitor, respond and resolve fraudulent transactions on their mobile device not only deepens the relational trust between that customer and their bank, it reduces costs for everyone by reducing false positives and minimizing the cost and time of fraud resolution. ClairMail’s Fraud Solution demonstrates our continual commitment to leverage the unique attributes of the mobile channel to help financial institutions strategically grow their mobile initiative to meet customer demand and achieve profitability.”

Recent studies have shown that a huge percentage of fraud loss to both consumers and the bank happen in a relatively short time window following an intrusion. While ClairMail’s Fraud Solution compliments existing fraud systems, it takes fraud prevention further by enabling FIs to generate and deliver real-time, consumer-defined alerts that allow customers to monitor account spending and identify fraudulent transactions more quickly. In addition, ClairMail’s Fraud Solution extends existing fraud detection and mitigation processes by using timely two-way alerts and workflow orchestration to verify potentially fraudulent transactions, more quickly detect false positives and bring to resolution any potential fraud incident – all from the mobile device. ClairMail’s reporting capabilities also provide pertinent information as to which alerts are being responded to and which are not, furthering the customizability, relevance and cost-effectiveness for the FI.

ClairMail’s Fraud Solution leverages the alert and orchestration engines of its  mobile platform:

  • Lowers fraud risk and associated costs for both the bank and consumer through early detection of fraudulent activity using ClairMail’s alerting engine that delivers timely, actionable consumer or FI-driven alerts enabling consumers to instantly identify suspect transactions, respond, and resolve potential fraud incidents right from the mobile device. Alert escalation and workflow capabilities ensure that user commands on the mobile device and required communication with the institution’s back-end systems are coordinated as part of a single set of detection and resolutions processes.
  • Reduces reputational risk and improves customer loyalty and acquisition by becoming a trusted partner with the consumer in the war against fraud and offering safer and more feature-rich card and bank services.
  • Create product differentiation and new revenue opportunities by introducing new fee-based products, services and offers driven by consumer alert preferences.

“The mobile channel has become an essential tool for financial institutions to combat increasing fraud rates seen across the United States and Europe, providing the ability for customers to proactively detect and prevent fraud activity on their accounts,” said Julie McNelley, senior analyst at Aite Group’s Retail Banking practice. “ClairMail’s new mobile fraud solution demonstrates the growing importance for FIs to take a strategic approach to mobile banking – extending mobile capabilities across the organization to create new fee-based services and products, help increase profitability, mitigate fraud losses and enhance the trust and relationship between the FI and its customers.”

Source: ClairMail

U.S. Mobile Payment Market to Top $200 Billion by 2015, Says Research Report

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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

ClairMail

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ClairMailClairMail provides mobile banking and payments solution for banks, credit unions, card services and payments. More than just a veneer for traditional online banking, ClairMail allows financial institutions to tap into the ubiquitous, real-time and actionable nature of the mobile phone to take have a more direct participation in customer interactions.

ClairMail has a comprehensive suite of mobile banking and payments applications built on a flexible, enterprise-ready mobile platform. Eight of the top twelve banks in North America use ClairMail to power their mobile banking offerings. Benefits to the financial institutions include lower costs, enhanced acquisition, improved retention, fraud reduction and generation of revenue.

ClairMail’s mobile banking and payments solution provide:

  • 100 Percent Coverage: Reach all customers, not just online banking customers.
  • Proactive 1:1 Conversations: Deliver personalized, high-value content that customers want.
  • Triple Play Convergence: Optimize the customer’s mobile experience and reduce TCO.
  • Cross-Product, Cross-Channel Orchestration: Extend mobile across the entire organization.

ClairMail is located in San Rafael, California. Investors include Norwest Venture Partners, Outlook Ventures, JAFCO Ventures, and Investor Growth Capital.

More information: ClairMail

Global Mobile Banking Customer Base to Reach 1.1 Billion by 2015

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Mobile banking is emerging as a key electronic channel for the global banking and financial services industry. The ubiquitous nature of mobile devices and services, and the ability of mobile banking services to reduce overall operational costs, streamline operations, and expand customer base are expected to boost prospects in the industry. Increasing adoption of mobile phones among general consumers, particularly among the younger generation in the 18-34 years age group, and rapid rise in demand for mobile payments are expected fuel demand for mobile banking services.

The industry is also expected to benefit from favorable government and regulatory specifications, which are aimed at providing banking services to unbanked customers to promote economic development.The United States, Europe and Asia-Pacific dominate the global mobile banking market, as stated by the new market research report on mobile banking. The market for mobile banking is set to achieve tremendous growth, with Asia-Pacific emerging as the predominant market in terms of customer base.

North America and Europe are characterized by high usage of mobile devices for Internet access, as a result of which mobile banking is an extension of online banking services. In Europe, mobile banking services are still in early stages, and regarded primarily as ‘convenience providers’ and ‘value additions’ rather than revenue generators. On the other hand, the Middle East and African markets are expected to benefit from the mobile banking technology’s ability to provide financial services to remote areas.Rapid growth of mobile banking services is driving banks to devise strategies to sustain presence in an intensely competitive market. Success of a bank’s mobile banking service is dependent on its ability to retain customer base and achieve cost reductions.

Key players profiled in the report include Bank of America, JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc., , ClairMail Inc, Firethorn Holdings LLC, Fronde Anywhere Ltd, Industrial & Commercial Bank of China Limited, Macalla Software Ltd, mFoundry, Monitise plc, MShift Inc., and Sybase Inc., among others.The report titled “Mobile Banking: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, competitive scenario, product introductions/innovations, and recent industry activity. The study analyzes market data and analytics in terms of number of customers for The United States, Canada, Europe, Asia-Pacific, and Rest of World.For more details about this comprehensive market research report, please visit – Mobile Banking Market Report

Source: PR Web