Mobile Payment Magazine

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

Visa and Samsung Partner to Offer NFC Mobile Payments

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Samsung and Visa have announced plans to bring NFC payment technology to the market as part of their sponsorships of London 2012, enabling consumers to make mobile payments using the Samsung Olympic and Paralympic Games mobile handset.

Samsung Electronics Visa are combining their sponsorship assets and technologies to ensure that the Olympic and Paralympic Games mobile handset available to the general public will be equipped with technology that enables mobile payments, Near Field Communications (NFC) and Visa’s contactless payment technology. To make payments, customers simply select the Visa mobile contactless application, select pay and hold the phone in front of a contactless reader at the point of purchase.

Visa is working with banks and retailers worldwide to roll-out acceptance for Visa contactless cards, as well as mobile phones, as part of an industry wide roll-out of contactless technology. In London there are already more than 60,000 locations where contactless payments are accepted and contactless and electronic card payments will be available in the run-up to and during the 2012 Olympic and Paralympic Games. With the momentum to commercialize mobile payments globally, consumers will be able to make mobile contactless payments in the run up to and during the Games in many countries around the world.

Samsung and Visa will work together to provide the contactless enabled Olympics handset to Visa and Samsung sponsored athletes as part of this initiative. Samsung and Visa also plan to make the handset available for consumers to purchase through mobile network operators and other distributors. A Visa-enabled SIM card will be required for use with the device in order to make purchases at retailers who have the contactless payment system.

“Visa, like Samsung, shares the vision of leveraging our Olympic and Paralympic Games sponsorship to leave a lasting legacy in the market for banks, retailers, mobile operators and consumers. We are not only breaking new ground for Olympic partnerships, we are committed to enabling consumers to connect with mobile and contactless payments technology for 2012 and beyond,” said Peter Ayliffe, CEO of Visa Europe. “We look forward to working with financial institutions and mobile operators alongside Samsung to make this initiative a success.”

“Innovation is a key business driver for Visa and mobile payments are one of the main areas we’re focusing on. The Olympic and Paralympic Games enables us to accelerate our business goals and this partnership plays a large role in achieving them,” said Mariano Dima, Executive Vice President of Marketing and Payment Solutions at Visa Europe.

“As a pioneer in mobile technology, Samsung is striving for long term change in the way we use mobile payments. In London next year, we regard the greatest show on earth as the perfect opportunity to showcase how this technology can make a positive difference to people’s lives – enabling them to feel closer to the Olympic and Paralympic Games. This mobile payment device will be available in the UK initially, and we plan to expand the service to other countries in Europe and around the world where contactless payment facilities are available in the near future,” said Seokpil Kim, President & CEO of Samsung Electronics Europe.

Gyehyun Kwon, Vice President & Head of Worldwide Sports Marketing, Samsung Electronics added, “This marks the very first partnership between two Worldwide Olympic Partners of the London 2012 Games. We are delighted to be joining forces with Visa to make the Olympic Games more accessible and convenient for everyone. This fits extremely well with our ambition to enable more people to participate in the Games through our smart technology.”

Visa and Samsung will work with mobile network operators, financial institutions and retailers around the world to bring the convenience, security and reliability of Visa’s contactless technology to mobile users worldwide. Currently, Visa mobile payments are being rolled out in countries across the globe including Australia, Canada, Czech Republic, Brazil, France, Hong Kong, Italy, Malaysia, Poland, Singapore, Spain, Slovakia, Switzerland, Turkey, the UK and the United States.

Source: BusinessWire

Mobile Money Summit 2011 – Singapore: June 27-30, 2011

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As the Mobile Money industry continues to grow, this has led to increased access to financial services as well as the development of new financial instruments around the world. Now, more than ever before, Mobile Money products and services are on the rise.

Since its inception, the GSMA Mobile Money Summit has brought together key players from every sector of the industry, providing an environment to forge relationships, expand ideas and foster the growth of Mobile Money.

This year’s event will be held at the Marina Bay Sands, and will include:

  • Conference agenda focusing on the latest topics and developments within the Mobile Money ecosystem
  • Exhibition showcasing innovative Mobile Money products and services
  • Forum for Mobile Money networking and deal making with the C- Level leaders of financial services institutions, mobile network operators, development organizations and solutions providers, as well as regulators and policy makers

Mobile Money Facts

  1. More than 1 billion customers have access to a mobile phone but no access to formal financial services
  2. There are more than 90 live mobile money deployments around the world, 27 of which are in South Asia
  3. Over 80% of these deployments are in developing markets
  4. Research has shown that mobile money products and services create significant revenue benefits not just from transactions but also cost savings from airtime sales along with churn reduction and a rise in ARPU. Mobile Money generates profits.

Week at a Glance
The Conference and Exhibition will be held on 28-29 June, with invitation only events occurring on the 27 and 30 of June. While the event schedule is still being finalized, the week’s events will include:

Monday, 27 June 2011

Executive Regulatory Workshop
This workshop, led by Bankable Frontier Associates, explores the link between regulation and strategy and explains the most important regulatory concepts of mobile money. Attendees work through a case study (similar to Harvard Business School case studies) and participate in a role-play with a Central Bank. In the role-play, participants have to convince a Central Bank to change a given regulation and receive honest and worthwhile feedback from the regulator on the effectiveness of their argument. This workshop is invitation only.

7th Mobile Money for the Unbanked (MMU) Working Group
The GSMA MMU Programme is designed to extend the reach and reduce the cost of Mobile Money services for the unbanked in developing countries. MMU Working Groups gathers the key players within the mobile money industry – mobile network operators, financial institutions, development organisations and mobile money technology providers – so that they can share their latest insights and best practice. This is an invitation only event.

Tuesday and Wednesday, 28-29 June 2011

Conference Agenda
This year’s Conference Agenda will address the most current and cutting edge topics affecting the Mobile Money marketplace. Topics include:

  • Business Models: A look at Emerging Asia
  • Untapped Markets & Opportunities for Mobile Money
  • Perspectives from Banks & Operators
  • Agent Networks: Successful Distribution for Mobile Money

Exhibition
The Mobile Money Summit Exhibition creates opportunities to meet face to face with key players in the Mobile Money eco-system. Here is a preview of some of the companies you’ll meet at Mobile Money Summit:

  • MegaPay
  • MoreMagic
  • Sybase365
  • VISA

Mobile Money Accelerator Classes
The Mobile Money Accelerator classes are back for Mobile Money Summit 2011. Once again these classes are designed for practitioners new the mobile money space with an interest in understanding the roadmap to commercial launch, the required partnerships, investment estimates and the business case. Special focus will be given to introducing and addressing the days conference agenda and providing background material on each of the topics.

This year we will also approach the topic from two angles; that of the mobile operator and that of the financial institution. The classes are open to all Mobile Money Summit Attendees and will run from 7.30am each morning before the main conference.

International Cocktail Reception, sponsored by VISA
Being held on Tuesday, 28 June from 17:30-19:00 after the last conference session.
Join your fellow attendees for a cocktail to continue discussing the topics of the day, make connections and expand your Mobile Money network.

Thursday, 30 June 2011

Leadership Forum – By Invitation Only

More information: Mobile Money Summit 2011

Visa Interested in Mobile Payment Company Square?

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There was a very complimentary and “loving” Valentine’s day post about Jack Dorsey’s mobile payment company Square on Visa’s corporate blog. Why is Visa posting such a piece? According to Venturebeat, there are several possible reasons:

“First, Visa may be starting to understand that businesses are continuing to tailor to the mobile consumer. If you want to sell to the mobile consumer, you may have to be mobile. Second, the blog was written by Visa Corporate Relations and might be looking to strike a partnership. Though interestingly, Square is using a Visa card in its demo image see image above. Enabling purchases to be versatile and available anywhere could greatly increase Visa’s attractiveness to both businesses and consumers.Lastly, perhaps Visa is looking to get on Square’s radar for an acquisition.”

via VentureBeat.

South African Mobile Payment Gateway Will Bypass Visa and Mastercard Systems

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A local technology company called Lidonga Technology says it will launch a mobile payment gateway, a first for South Africa. The system will circumvent the use of foreign-owned Visa and Mastercard payment systems, saving the country billions of rands that would normally go to these foreign switching companies.

Chief Technology Officer at Lidonga Technology Roan Murray said Visa and Mastercard were making billions from South Africans who used debit and credit cards to shop as the country does not have an alternative payment system. Murray said Lidonga had designed a system called mokotla (a Sotho name that can be translated to mean a carrying case or wallet in this situation) to change this.

via Moneyweb.

Visa and Wireless Dynamics to Introduce iPhone Contactless Payment Solution for Europe

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Visa Europe and Wireless Dynamics Inc. have developed a mobile contactless payment solution that will bring Visa contactless payments to iPhone users across Europe.

The solution relies on Wireless Dynamic’s iCarte accesory. iPhone users simply attach the Wireless Dynamics iCarte, available through their bank or mobile operator, to their iPhone and download the companion Visa Mobile application for iCarte App from the App Store.

The iCarte accessory contains an antenna and an embedded Secure Element where the Visa mobile card is safely stored. This “card”, in turn, works with an app from the App Store to enable payments on the iPhone. Once the Visa mobile card is activated, consumers can start making purchases by simply launching the app and touching their iPhone on any contactless-enabled point of sale terminal across Europe, without the need to enter their PIN.

The iCarte accessory is designed to equip iPhone users with the tools they need to buy goods using mobile contactless technology from a growing number of European retailers. Visa Europe’s first deployment has been launched in collaboration with Yapi Kredi bank and Turkey’s largest mobile operator, Turkcell. Yapi Kredi customers equipped with a Turkcell mobile plan will be the first who can purchase directly from their iPhone at 40,000 contactless point of sale terminals in Turkey using their iCarte payment accessory.

The product is also being used in the UK with Visa staff in London with partners FIS, a leading provider of prepaid platforms, and Coventry Building Society. To further commercialize the accessory, Visa Europe will engage its member banks and partner mobile operators in Italy, France, Poland, Spain, Switzerland, Turkey and the UK, all of which have rapidly maturing contactless payment infrastructure.

Sandra Alzetta, SVP, Head of Innovation at Visa Europe said: “It’s clear from trials across Europe that mobile contactless payment is a strong and compelling customer proposition. Visa recognizes that consumers who use smart phones like iPhone are more likely to be early adopters of advanced payment technology. Given that the availability of a wide range of mobile devices supporting contactless services remains a key hurdle for take-up, we are overcoming this obstacle by bringing the capability to the iPhones already in their pockets.”

Ambrose Tam, President and CEO at Wireless Dynamics commented: “Working with Visa Europe to commercialize our iCarte accessories is a leap forward in increasing the number and types of mobile payment solutions. We’ve worked hard to design and build a feature-rich and appealing product for our partners and iPhone users across Europe.”

Recent consumer research of 4,200 people across Turkey, the UK, Italy and Poland confirms strong consumer demand for mobile contactless payments with 41 per cent of respondents stating that they “definitely would” or “probably would” sign up to use Visa mobile payments. Critically, this percentage increased to 57 per cent when directed to iPhone users, which demonstrates that the device is the ideal cross-over of target mobile users and consumers with positive attitudes to new payment technologies. The research also indicated that 87 per cent of this iPhone users surveyed would be willing to use an accessory to enable their device for mobile contactless payments.

The Wireless Dynamics iCarte accessory is compatible with iPhone 4, iPhone 3GS and iPhone3G on iOS 3.1 or higher. The iCarte Secure Element can be associated with multiple Visa accounts.

Source: Wireless Dynamics, Inc.

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

Visa Mobile App for Mobile Shopping Offers Now Available

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Visa has announced its Visa Mobile application for the iPhone. Through a tap of the finger, Visa account holders can access more than 50 unique merchant offers ranging from clothing and dining to entertainment.

Visa is working with a select list of popular merchants to deliver exclusive offers to Visa account holders, helping them save money on every-day purchases. More than 50 merchants including some of the most popular retailers in the U.S. such as 24 Hour Fitness, Jos. A. Bank, Meineke, New York & Company, and Zales are providing discounts through the Visa Mobile application, helping them reach more consumers with targeted offers. Offers are automatically delivered and stored in the application, can be tailored to consumers’ life styles and preferences, and can be redeemed either online or at physical retail locations. The application uses location-based technology to provide consumers with a map and directions to a nearby retailer where they can redeem merchant offers.

“Merchants are looking for new and more efficient ways to reach customers, while budget-conscious consumers expect a more rewarding and convenient shopping experience,” said Bill Gajda, Head of Mobile at Visa Inc. “The Visa Mobile application meets the needs of both merchants and consumer and brings one of the most trusted brands in payments to the iPhone.”

Visa is working closely with handset manufacturers, mobile network operators and technology providers around the globe to bring the reliability, scalability and trust of Visa payments to the mobile channel. The Visa Mobile application for the iPhone was developed in partnership with Monitise plc, a UK business which is a global-leading mobile banking and payments platform. Visa signed a global alliance with Monitise in June 2009 to custom-develop mobile services for Visa across a spectrum of handsets to ensure Visa account holders have a consistent, user-friendly, and secure mobile payment experience.

Visa Mobile Application Features

Visa account holders simply download the Visa Mobile application from the iTunes app store and immediately have access to more than 50 unique merchant offers. Key application features include:

Offers:

  • Visa Offers can be tailored to match consumer lifestyle and interest. Visa Account holders can select from several merchant categories such as clothing, dining, jewelry, travel, entertainment, or retail goods. This ensures consumers only get offers they want, and can help increase merchant traffic, loyalty and customer satisfaction.
  • Participating merchants include Planet Hollywood, Papa John’s Pizza, 24-Hour Fitness, Jos A Banks, Tourneau, New York & Company, Holiday Inn, Ramada, Crowne Plaza, Pearle Vision, Meineke, Buca di Beppo, Cold Water Creek, and Hard Rock Café.
  • Account holders with Visa Signature cards will receive special Visa Signature offers in addition to the standard offers.
  • Visa is continuously adding and enhancing merchant offers available through the Visa Mobile application.

Location-Based Services:

  • Using location-based technology, the Visa Mobile application will show consumers nearby merchant locations and provide directions to locations where they can redeem offers and allows them to find the nearest ATM.

The Visa Mobile application is now available as a free download from the iTunes app store.

Source: Business Wire

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…]

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