TSM perspective on future of mobile payments
Mobey Forum Lauri Pesonen June 18, 2010, Helsinki CEO, Venyon Topics for the presentation
Enablers and drivers for Mobile Financial Services Role of TSM in the Mobile Payment Ecosystem Where are we now, future outlook Questions & Answers
Mobey Forum 18.6.2010 Page 2 Consumers carry multiple credential for their daily services
Mobey Forum 18.6.2010 Page 3 Mobile phone consolidates consumer’s credentials as the ultimate device to use and conduct services Mobile Financial Services are an essential part of this evolution
Pay Communicate
Identify
Mobey Forum 18.6.2010 Page 4 Common mobile enablers supporting Mobile Financial Services
Common mobile enablers Mobile subscriber penetration Consumer acceptance of new services Stickiness, mobile phone always with you Advances in mobile technologies IP convergence
… supporting mobile financial services Payments at point-of-sale Online payments Person-to-person, money transfer Account management, bill payments
Mobey Forum 18.6.2010 Page 5 Advances in mobile technologies cater for implementation of compelling Mobile Payment services
Online Application Life-Cycle Management Wallet Mobile Multiple Branding IP channel Applications Network Bandwidth Rich Application Environment SMS channel
Online Services
Secure Element
Multi-application Smart Card chip: - Secure storage and ISO 14443 NFC processing of credentials - Compatibility with existing infrastructure
Proximity Services
Mobey Forum 18.6.2010 Page 6 Mobile Payments is new playing field for established and new schemes
Established payment schemes ESTABLISHED PAYMENT Plug into the existing infrastructure and extend to mobile SERVICE PROVIDERS Acquire new users for payment service -> more transactions Leverage the mobile channel to introduce new services More efficient operations New payment schemes ACQUIRER ISSUER
PAYMENT Establish a new payment service leveraging the existing SCHEME mobile subscriber base, such as mobile money services for unbanked Develop a suite of mobile financial services
MERCHANT CONSUMER Merchant involvement Mobile will play an important role as a new channel to drive NEW consumers to merchant outlets & sites ENTRANTS
Mobey Forum 18.6.2010 Page 7 NFC is an essential part and driver for Mobile Payments and other contactless services
MOBILE OPERATORS TRANSPORT OPERATORS CONSUMERS Leverage existing contactless ticketing Role of multi-application Secure with NFC phone Element issuer infra to introduce mobile ticketing NFC as a new channel to existing Cost efficient OTA ticket issuance operator services More customers, less free riders New NFC based services Mobile channel – new and convenient New customer acquisition, retention services to commuters of existing customers
BANKS MERCHANTS
Leverage existing contactless Leverage the investments in acceptance infra to introduce mobile contactless acceptance payments • Always with you Mobile loyalty and CRM Mobile channel – portfolio of mobile • Online connected programs – enhanced consumer financial services supported by profiling with opt-in usage • Proximity interactions frequently used payments More customers, more New customer acquisition, retention • Customized UIs transactions of existing customers • Multiple services
Mobey Forum 18.6.2010 Page 8 Mobile environment is fragmented
Multiple mobile phone platforms Symbian, Android, iPhone OS, Windows Mobile, RIM OS, Maemo, Series 40, different Java implementations, …
Multiple Secure Element products from different vendors SIM, microSD, embedded SE, SE/NFC accessories, passive and active stickers, …
Multiple service schemes and service providers Applications from different schemes and service providers are to “co-exist” in the consumer’s mobile phone, with distinctive requirements and features of their own
This complexity needs to be managed for all consumer services using secure credentials, such as Mobile Financial Services
Mobey Forum 18.6.2010 Page 9 TSM’s primary role is to provide post-issuance SE application provisioning and life-cycle management services as a neutral and trusted service aggregator
Transit
MNOs SEI TSM Secure TSM Banks, FIs Element for SPs Service Issuers Providers Other SEI Retailers SE Issuers TSM
Over The Air Other
+
Consumer’s Devices
Mobey Forum 18.6.2010 Page 10 TSM and Mobile Payments
TSM provides the following core services to Mobile Payment schemes Secure OTA provisioning and personalization of payment applications Secure OTA life-cycle management of payment applications GlobalPlatform type of LCM services – lock, unlock, delete Application specific LCM services, such as OTA counter reset, PIN management, top-up etc. Notifications between Secure Element Issuers and Banks / FIs To support different schemes and service providers TSM service must be Highly flexible to support different business process and interface requirements Technology agnostic to support all mobile devices and secure elements Secure, proven by relevant payment industry standard certifications Scalable to grow with service ramp-up Future-proof Not only for Mobile Payments TSM support for Mobile Payment applications should not be done in isolation from other services (e.g. loyalty, transit), as consumers will demand and use applications from all verticals with their mobile phones
Mobey Forum 18.6.2010 Page 11 Where are we now with Mobile Payments?
NFC based contactless Mobile Payments
NFC handset availability Still limited Gap partially bridged by NFC/SE add-ons Contactless infrastructure Sufficient for service launch, and expanding
TSM services Commercial grade TSM services available
Stakeholder involvement Substantial activity in many countries Business models being refined
Customer acceptance Excellent, as proven by numerous trials
Standards In place to support service launches
Other Mobile Financial Services
Mobile Money Commercial services up and running
Mobile Banking Commercial services up and running
Mobey Forum 18.6.2010 Page 12 How does the future of Mobile Payments look like?
EVERYBODY HAS IT
MANY SERVICES
STRONG GROWTH
ALREADY HAPPENING
Mobey Forum 18.6.2010 Page 13 Questions & Answers
[email protected] www.venyon.com
Mobey Forum 18.6.2010 Page 14