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…]

Mobile Payment Strategies Report: Opportunities & Markets 2011-2015

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Mobile Payment ReportA new study from Juniper Research has determined that the total value of mobile payments for digital and physical goods, money transfers and NFC (Near Field Communications) transactions will reach $670bn by 2015, up from $240bn this year. These forecasts represent the gross merchandise value of all purchases or the value of money being transferred.

The new Mobile Payment Strategies report revealed that all segments will exhibit 2x to 3x growth over the next five years. This growth will be driven by the rapid adoption of mobile ticketing, NFC contactless payments, physical goods purchases and money transfers as people in both developed and developing countries use their devices for everyday transactions. [Read more…]

Mobile Industry Predictions Report: 2012

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The Yankee Group has just released its free 17-page 2012 Annual Predictions Report, which looks into what the future has in store for the ever-growing mobility landscape.

Overview:

The world is in transition and in the year ahead, mobile will be both the protagonist and the subject of this instability. During the last five years, networks and the information they carry have plugged more than 2 billion new participants into the mobile economy. The winners in this landscape will be those players that can scale quickly and treat each user as a unique customer.

Report Highlights:

  • The mobile gold rush is global in scale a and touches all customers. In the last five years, 2 billion new users joined the mobile revolution. Looking ahead, mobile workers and consumers will embrace tablets, mobile content and personal cloud services. At the infrastructure level, the operator imperative to monetize all-IP networks will drive investment in policy solutions.
  • Asia-Pacific takes the lead in tablet sales. Yankee Group forecasts U.S. tablet sales will total 17 million in 2011 and almost 25 million in 2012. Similarly, tablet sales in all of Europe will exceed 15 million in 2011 and reach more than 26 million in 2012. And tablet sales in the Asia-Pacific region will total 20 million this year and reach almost 39 million in 2012, more than 50 percent above the U.S.
  • Diameter signaling is taking off. Yankee Group has seen significant request for proposal/request for information (RFP/RFI) activity and expects spending on IP-based Diameter signaling to more than double between 2011 and 2012—growing from U.S.$22 million to U.S.$45 million. And overall, we see the market mushrooming to U.S.$212 million in 2015, for a whopping CAGR of 57.2 percent.
  • Personal cloud services are hitting the high-growth phase. We forecast 17 percent of professionals with three or more devices will adopt a personal cloud service for online storage, backup and synching.
  • Economic woes threaten operators. Western European operators will see churn increase from approximately 2.3 percent per month today to 2.4 percent by the end of 2012, despite operators’ ongoing efforts to migrate customers to postpaid services and long-term contracts linked to new smartphone purchases. The world is in transition and in the year ahead, mobile will be both the protagonist and the subject of this instability. During the last five years, networks and the information they carry have plugged more than 2 billion new participants into the mobile economy. The winners in this landscape will be those players that can scale quickly and treat each user as a unique customer.

For more information and to download the report: 2012 Annual Predictions Report: Mobile

New Report Focuses on NFC and Mobile Payments Landscape

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There is much buzz around the growth of mobile payments in the United States, with predictions that it will hit $214 billion by 2014, according to Aite Group.  But which of the many possible approaches — including integrated NFC, non-integrated contactless, bar codes, cloud-based solutions, and text messaging — is the best choice?

The Smart Card Alliance today released a white paper entitled, “The Mobile Payments and NFC Landscape: A U.S. Perspective.”

The white paper provides an overview of the current state of the market for mobile payments and NFC-enabled payment applications in the U.S., and evaluates the advantages and disadvantages of different mobile payment approaches.

“Technology is always changing, especially within the mobile and payments industries, so it is difficult to predict when and how mobile payments will become commonplace in the United States,” said Randy Vanderhoof, executive director of the Smart Card Alliance. “The goal of this white paper is to help industry stakeholders understand the current mobile payments landscape, anticipate how mobile payments are likely to change, and appreciate the opportunities that mobile payments, and particularly NFC-enabled mobile contactless payments, present.”

Some of the topics covered in this snapshot of mobile payments include:

  • A description of the different types of mobile financial applications in use today
  • Discussion of the different mobile payments approaches with implementation examples
  • A summary of the merchant, consumer, issuer, and mobile operator requirements for NFC mobile proximity payments and the attendant benefits
  • An update on the status of Near-Field Communications (NFC) mobile proximity payments infrastructure
  • Evaluation of how different mobile payment approaches fulfill overall market requirements

Payments Council members involved in the development of this white paper included: Accenture; American Express; Apriva; Bank of America; Capgemini; Capital One; Connexem Consulting; CPI Card Group; Datacard Group; DeviceFidelity; Discover Financial Services; Gemalto; Giesecke & Devrient; Heartland Payment Systems; Infineon Technologies; INSIDE Secure; JPMorgan Chase; LTK Engineering Services; MasterCard Worldwide; NACHA; NagraID Security; NXP Semiconductors; Oberthur Technologies; Quadagno & Associates; Thales e-Security; WatchData Technologies USA; VeriFone; Visa Inc.; ViVOtech; and Mike Kutsch; Dale Laszig; and Chandra Srivastava.

Source: MarketWire

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

DeviceFidelity’s In2Pay Announced as Visa’s First Official Contactless Payment Solution – and It’s MicroSD

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DeviceFidelity In2Pay

Photo from DeviceFidelity

Following in the buzz from the recent Isis initiative announcement, Visa has announced the availability of mobile contactless payments enabled by DeviceFidelity’s In2Pay microSD solution.

In2Pay is the first mobile contactless payment solution included in the list of Visa compliant products available for potential commercial deployment by financial institutions in the U.S. and select markets. There are approximately 5 billion mobile handsets in market around the globe, and according to IDC3, smart phone shipments globally are expected to increase 24% in 2011, helping drive continued growth in more robust and powerful mobile devices that are capable of supporting contactless payment. [Read more…]

DeviceFidelity

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DeviceFidelity solution suite works by simply plugging into a customer’s mobile device. Issuers don’t need to change a thing, allowing them to offer a simple contactless function to their customers.

Once activated, the customer taps any merchant’s contactless terminal with the phone. Transactions are conducted and approved over existing contactless networks utilizing the networks approved standards. Issuers can rely on their preferred networks for security, speed and reliability.

The entire user experience is controlled by the issuing financial institution and allows the issuer to offer value added services on top and connected to the contactless function.

Open Application Platform

DeviceFidelity provides a portable application distribution platform that is designed to integrate with current and future issuer applications.

  • Open API for application integration.
  • Simple web based design for platform independence.
  • Updateable through mobile web or PC.
  • Fully customizable user interface.

More information: DeviceFidelity

DeviceFidelity and SpringCard Launch Moneto NFC Phone Cases as Mobile Wallet Solution

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Moneto, developed by DeviceFidelity, Inc. and Spring Card Systems, announced today the launch of its mobile payment solution–the moneto iPhone wallet, which is powered by MasterCard PayPass technology and linked to a general purpose reloadable MasterCard prepaid card.

“For over a decade, MasterCard has led the transformation of mobile phones into secure mobile payment devices,” said James Anderson, senior vice president, Mobile and Emerging payments at MasterCard. “We are excited to partner with moneto so that iPhone users can enjoy the convenience of paying for purchases with a simple ‘tap’ at thousands of PayPass locations around the globe.”

The moneto mobile payments technology uses a NFC-enabled microSD chip embedded in a patented, protective iPhone case. iPhone users sign up at moneto.me to receive the case, install the moneto app from the app store, and activate their account. Users can launch the moneto app to view their account balance, check transaction history and make everyday in-store purchases with a tap of their iPhone at any PayPass-enabled contactless payments reader at the point of sale. Users can fund their moneto prepaid account through direct deposit, ACH transfer or cash/credit/debit card-enabled third-party money transfer services such as MoneyGram, Western Union, PayPal or GreenDot.

“As this breakthrough mobile wallet launches in the US, it not only makes mobile payments available to iPhone users for the first time but it also opens the door for consumers to adopt NFC while pushing mobile commerce forward,” said Deepak Jain, DeviceFidelity President and CEO. “We are excited to partner with MasterCard and SpringCard to break the barriers for a rapid effective rollout that will spur both consumers and merchants to adopt this new wave of electronic commerce.”

moneto also comes with a companion prepaid MasterCard to give users the ability to access cash at ATMs and make online purchases, pay bills or shop at merchants that do not accept contactless payments. moneto also enables card-to-card and wire-fund transfers from a secure internet portal accessible via moneto.me.

“Consumers have been hearing about NFC and mobile wallets for years, now with moneto they can finally start using it and with the most popular smartphone device on the planet. The moneto mobile wallet app is focused on delivering a faster and easier shopping experience that is consumer friendly,” said Kevin Haddad, president of SpringCard. “Our vision is simple: People who use our applications should not have to worry ‘Will this work with my phone?’ as consumers can easily make secure purchases regardless of their phone, carrier, or bank.”

Safety and Security

Moneto users can prevent unauthorized access to their account using a PIN that is safely stored in a secure chip inside the microSD. The sleek and durable case design protects the iPhone and the NFC enabled microSD securely stores and encrypts the card information. Additionally, the moneto account is backed by MasterCard’s Zero Liability, which protects consumers against unauthorized purchases.

Availability

moneto for iPhone will be available for online ordering in the U.S. immediately at moneto.me for $79.95 which includes $10.00 of pre-loaded funds. The moneto mobile wallet is available in limited release on the iPhone 4S, iPhone 4, iPhone 3GS, and iPhone 3. A number of Android models will also be supported by 2Q12. Additional phone support will be added throughout the year.

The moneto prepaid MasterCard card is issued by University National Bank, member FDIC, pursuant to a license from MasterCard International Incorporated. MasterCard and the MasterCard Brand Mark are registered trademarks of MasterCard International Incorporated.

Source: PR Web