Mobile Payments Three Winning Strategies for Banks

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Mobile payments Three winning strategies for banks

Executive summary technology is evolving with a need for partnerships, and where banks may Mobile payments are a hot topic in the feel they lack the expertise. financial industry and a top priority for This competitive and fast evolving banks, because: landscape creates doubt. Many banks — The ever growing ubiquity of the wonder what to do: just stand by and Seize the opportunity mobile phone: on a world population watch or respond more pro-actively? of 7 billion, there are 5 billion mobile What is our bank’s mobile payments phones, but only 2 billion people have strategy? a bank account; Our recommendation to banks regarding — Consumers are using their mobile mobile payments is two-fold: phones to make payments in over 130 1. Play to your strengths. Double- deployments with a 100 more planned guessing under these circumstances and several new initiatives announced can be costly. The path to success each week; Highlights is to use clear criteria: respond to Mobile payments are a top — It is a growing market predicted to an obvious customer demand, use priority increase to 900 million users and USD technologies that satisfy that need, and There is competition from non- 1 trillion in transaction value by 2015. decide based on a clear business case. banks Many banks have launched a mobile 2. Use mobile payments to bring your Banks can use mobile payments payments service or wallet, but this customers closer to your bank, in a to get closer to customers opportunity also brings specific new “experience banking model” (cf. challenges: In particular for mobile money SWIFT’s white paper on Correspondent 1 transfers, banks should — There are many new entrants investing Banking 3.0). collaborate to develop a global heavily in mobile payments: mobile We see three areas of strategic service network operators like Vodafone, opportunity for banks: e-commerce companies like Google, — Mobile banking: using a mobile retailers like Carrefour, payment phone to access a bank account service providers like PayPal, as well and make payments - can provide as money transfer operators and card more convenience to customers. companies; Banks should actively invest — It is still an immature business where and expand this channel now, in only a few initiatives have succeeded in particular for corporate treasurers; attracting a significant user base; — Mobile commerce: using a mobile — It is an unclear business case for many phone to buy products. This is banks who wonder what is the up-sell driven by e-commerce companies when a payment becomes mobile and looking to uplift their product who may see little value in a telco-led sales and generate revenue from model; advertising. This is more a 3-5 year — It is a complex matter where legal play as the customer/retailer value frameworks are not yet harmonised, still needs to mature. Banks should

— 1 partner with these companies to learn and offer their financial services as part of that shopping experience; — Mobile money transfers: using a mobile phone to send money to someone. This can provide a basic payments service to the un/under- banked in a developing country by converting cash to electronic transactions. Such services are currently often run on a domestic basis by mobile network operators, but they are now interconnecting to capture the higher margin international person-to-person remittances. Here, banks should consider bolder moves, individually set up a joint venture with a telco, Figure 1: Non-banks leading innovation in mobile payments as well as collaborate to launch their own global mobile money transfer This is a growing market. Mobile is the in India) have ended altogether. payment technology that will have the service. Unclear business case greatest growth over the next five years.4 Each area may present opportunities for For many banks the business case to Growth predictions for mobile payments collaborative solutions: offer a serviced do mobile payments is not clear. Mobile vary from 350 to 900 million users platform for mobile banking connectivity, payments and linked commerce will generating USD 430 billion to 1 trillion in provide a hosted application to distribute represent USD 20-25 billion in revenue by transaction value by 2015.5 payments services onto a mobile 2016 from new revenue opportunities and commerce wallet or develop a mobile Specific challenges for banks potential loss mitigation.6 But this a very payments service for international money different kind of payments opportunity for Many banks have launched a mobile transfers. banks to pursue as most of the revenue payment service or wallet. may be advertising related. Banks will need In conclusion, mobile payments are a This is a very competitive and fast evolving to compete for these new mobile value- strategic opportunity for banks, both as battlefield with specific challenges for added services and revenue streams. In a defensive play against new entrants, as banks. addition, banks need to determine which well as a growth prospect to convert cash role to play in these new value chains. In a into electronic transactions. telco-centric model for example, the bank’s New entrants revenue share from providing the trust Many non-banks have entered the mobile account function may be limited to 10% A top priority payments market, often with innovative whilst 55% goes to the mobile network Mobile payments are a top investment solutions. Mobile network operators like operator and 35% to the distributor.7 priority for banks. Vodafone, MTN, Orange and airtel have deployed mobile payments services in In fact, the world’s biggest banks continue several countries or have set up joint A complex matter to focus most of their announced IT ventures between them, like Isis in the Deploying a mobile payments service is not initiatives on mobile financial services US or project Oscar in the UK. Money straightforward as legal frameworks across (including payments) and online banking.2 transfer operators like Western Union and countries are not harmonised, technology This is not surprising given the ever- MoneyGram, as well as card companies is still evolving, there is a need for multiple growing ubiquity of the mobile phone. like Visa, MasterCard and Amex all have partnerships, and in general banks may Out of a world population of 7 billion, over multiple mobile payments initiatives. feel they lack the expertise. 5 billion or 70% have a mobile phone, Payment service providers like PayPal whereas only 2 billion or 30% have a bank are throwing their full weight into mobile. account. Take India: on a population of E-commerce companies like Google are Three strategic opportunities 1.2 billion over 800 million have a mobile deploying wallets for contactless payments For many banks this competitive and fast phone and only 250 million have a bank using NFC (Near Field Communications). evolving landscape creates doubt. They account. wonder what to do: just stand by and

watch or respond more pro-actively? Consumers are increasingly using their An immature business mobile phones to make payments. A Only a handful of these mobile payments We see three strategic areas of opportunity global inventory lists over 130 live mobile services have succeeded in attracting a and actions for banks to use the mobile money deployments and nearly 100 more significant user base (over 1 million users). phone to forge closer relationships with are planned.3 Several new initiatives are New initiatives may fail to go beyond pilot their customers in a new “experience announced every week. trials and some services (like Nokia Money banking model” (cf SWIFT’s white paper on

——2 Correspondent Banking 3.0)1: — Mobile banking: using a mobile phone to access a bank account and make — Access bank account(s) — Receive debit/credit alerts payments; Mobile banking — Check balance, receive statements — Mobile commerce: using a mobile — Conduct bank transactions phone to buy products; — Mobile money transfers: using a mobile phone to send money to someone. — Remote payments (web site) Mobile commerce — Proximity payments (NFC) Let’s examine this in more detail as each — Physical/digital goods and services area comes with its own opportunities and challenges. — Airtime top-up Mobile banking Mobile money — Person-to-person remittances transfers Mobile banking is using your mobile — Cash-in/cash-out phone to access your bank account; receive debit/credit alerts and statements via SMS; check balances and recent Figure 2: Three strategic opportunities for banks in mobile payments transactions by browsing a simple mobile-enabled website; conduct basic The good thing here is that the bank is that bill is paid by a traditional payment operations via a menu; or transfer funds in total control: the mobile phone purely method like credit transfer or direct and pay bills using an application on a acts as a channel to access the financial debit. This practice is very successful smart phone (see box 1). Many banks application that is owned by and runs at however. Examples of companies that offer one or more of these options, like the bank. facilitate this are boku, Zong, mopay ICICI for example. and PaymentOne, each servicing 200 Our recommendation: Banks should million to 3 billion customers for 250- actively expand their mobile banking 300 carriers in 60-80 countries; offering, which today is often still Box 1: Technology options underdeveloped particularly toward 2. Mobile point of sale, where a card — SMS: communicate with payments corporates. A unique value proposition reader is attached to a mobile phone services via short messages; can can turn mobile banking into a cost saving or tablet to swipe a credit card. Whilst work with short codes. If a menu is (instead of contacting a call centre) and it has the potential to significantly required, access from a SIM card revenue generating channel (increase increase the number of points of sale, (after replacement) or an application loyalty, target marketing to cross-sell core the resulting payment is a traditional folder (loaded from Micro SD card). banking services). This means banks credit card transaction. Such card — USSD (Unstructured Supplementary should invest more in resources: a survey readers are provided by companies like Services Data): conversation-like of 150 banks across Europe indicates Square, Intuit and iZettle; that 70% are planning to add more telecom protocol to access menu 3. Mobile product scanning, where functionality, but the majority have fewer on server by sending short code a mobile phone is used to scan a than 10 people dedicated to mobile.9 (e.g. dial *525#). product’s bar code at an Apple store — WAP (Wireless Application Collaborative opportunity? Many smaller for example and links it to your iTunes Protocol): to access simple text- and medium-sized banks will be looking account. In that case, your iTunes bill is only web page (online). to deploy a mobile banking channel to settled by a credit card payment. connect their customers. Rather than There is currently a buzz around NFC — IVR (Interactive Voice Response): build one, they are more likely to buy a payments (see box 2). Used for example menu accessed by calling toll-free product. In that case, it could make sense in Japan: 65 million enabled handsets, number (“to transfer money, press to provide a serviced mobile platform that 15 million customers initiating 30-50 1”). can be white labelled. million transactions/month with 750,000 — Application on smartphone typically merchants; excluding transit.10 Several downloaded. Mobile commerce projects have been launched in some 35 Mobile commerce is using your mobile countries in Europe, the US and China11, phone to buy digital or physical goods but many have a long way to go to reach Mobile can fundamentally change the and services, remotely from a website or a mass market. Google Wallet is one retail banking experience and strengthen in proximity like a shop, metro station or example. customer-bank relationships. vending machine. Here, consumer and e-commerce Some banks also have mobile banking Not considered here as mobile payments companies are better placed than banks services for corporate treasurers8, are: to develop these solutions since they own but these are often basic services to the product or can enhance the shopping 1. Direct carrier billing, where purchase initiate and approve payments, receive experience: browse the web to find and of e.g. digital content like ringtones transaction alerts and view account compare products, locate a store nearby, is charged to a mobile phone bill and balances. select the product from a smart poster, ——3 receive a discount, and pay for it –all credit card services over the air onto increasing customer retention. They have with a mobile phone, in one experience. the mobile phone via a Trusted Service a large agency network that can be re- Their interest is in generating an uplift in Manager.13 used. They also have a better marketing business from a higher average ticket and consumer deployment experience Our recommendation: A few banks have spend and visitor frequency or from than many banks. engaged in mobile commerce, but in selling advertising, rather than in the general banks should remain realistic. Whilst successful in some developing payment itself. This is not an easy area to get into as it countries, these cannot be replicated requires a considerable investment that as such in developed markets because may not produce immediate returns. On of specific success factors: 1) a strong, Box 2: NFC the other hand, early involvement can latent demand for remittances; 2) in a (Near Field Communications) develop a good understanding of how country with low banking, high mobile — Two-way contactless this all works. Banks should therefore penetration; 3) with a legal framework communication over short distance look to partner with e-commerce that enables easy customer registration (few centimetres), between NFC- companies to gain experience, insert and is in proportion to the risk of very low enabled phone and reader (e.g. their financial services in the commerce value payments; 4) starting with domestic POS terminal or smart poster). transaction, and then enhance the remittances and mobile top-up; 5) by a business of their payments products dominant player, motivated to establish a — To enable a phone: 1) embed with better consumer insights. Another leading position in a closed system; and NFC chip, 2) glue NFC sticker at strategy for a large transaction bank can 6) supported by a large agent network15. back, 3) insert Micro SD card (for be to provide the back-end payments iPhone e.g. Wireless Dynamics or This agent network is key for people to infrastructure to these e-commerce DeviceFidelity provide a case). pay cash into their mobile wallet and to companies. cash money out. The service provider — NFC vendors: e.g. Innovision/ Collaborative opportunity? If this business must make sure the agents support Broadcom, NXP Semiconductors, further develops, many banks will need to its product and that there is sufficient INSIDESecure, Gemalto, ViVOtech use a Trusted Service Manager. Instead — NFC itself does not make a of each bank operating such a system, it payment, still need to load virtual could make sense to deploy a set of such Box 3: Key mobile wallet/platform credit card(s) on phone. applications as a hosted service in the vendors — NFC-enabled phones to grow from cloud to provide more choice and reduce the total cost of ownership. — Comviva: Ex-Bharti Telesoft; 7 million in 2011 to 203 million in provides value added services to 2015 (Yankee Group), mobile operators; deployments with — More in developed markets as Mobile money transfers Orange in Africa, Tigo in Africa and emerging markets generally have In developing countries with a low Latin Americas, and South East basic handsets. banking and high mobile phone Asia. penetration, mobile wallets14 can bring — More resources: Wikipedia NFC basic payments services to the un/ — Fundamo: HQ in South Africa, page, NFC forum. under-banked. Often starting with money acquired by VISA; mobile financial transfers, these services become more services provider; deployments with sophisticated over time to include paying MTN in Africa. Several telecom companies have started for bills and goods, pre-paid debit cards, — Gemalto: HQ in Amsterdam; mobile wallet initiatives, but some ATM withdrawals, salary disbursements, provides digital security solutions, have had to open up to reach a larger etc. incl. for NFC; platform for mobile audience, ask for regulatory approval or These are typically provided by mobile money transfers. delay projects12. Handset manufacturers network operators using a mobile wallet — Monetise: HQ in London; delivers may play a leading role by embedding (see box 3). Two examples are SMART mobile banking, payments and their NFC chip in the phone. Money in the Philippines (launched by commerce networks; VISA However, there is a large degree of SMART in 2000, over 9 million wallets, partnership. uncertainty about wide-scale adoption. connected to 9,000 ATMs, over 4,000 — Oberthur: HQ in France; provides Retailers and users need to be convinced cash-in/cash-out centers, 15 partner smart cards; partnership with Utiba; of its value over existing payments banks and 95,000 agents) and M-Pesa in deployed by e.g. airtel in Africa. alternatives. There are concerns about Kenya (launched by Safaricom in 2007, security: we must make sure that account 30,000 agents, 14 million users, 70% of — Sybase 365: HQ in the US; and credit card details will be safe if the all electronic transfers in Kenya, USD 1 SAP company; provides mobile mobile phone is lost or stolen. And there billion transferred/month). messaging and commerce including remittances; bought paybox. is a high degree of technology evolution: Mobile network operators see this as where, for example, does the secure an up-sell, a value-added service. Their — Utiba: HQ in Singapore; pioneer element sit to NFC-enable the handset business case comes from transaction or in mobile financial services with and store the financial application? A subscription revenues, reducing mobile G-Cash, deployments in Asia whole new business has emerged for subscription top-up distribution costs and Pacific, Latin America. banks to distribute their payment and

——4 liquidity in the network (if a person wants to cash out their salary, but the agent Not scalable Costly Complex Opportunity? does not have any money, the SMS on their phone has no value, except to make Multiple bilateral Conversion Common Common other mobile purchases). agreements hub communication service So where is the next big opportunity? protocol Several readiness and condition frameworks, as well as detailed country analyses are available.16 These, combined with population size (to develop a significant business), lead us for example to Nigeria, India, Pakistan, Brazil, Mexico and Colombia. — Multiple point-to- — Hub provides — Each end-point — Each end-point Our recommendation: Banks should point connections; connectivity, connects to Hub, integrates with Hub, consider making a bolder move in mobile integration effort protocol conversion using common using API money transfers. They should take an depends on power and value added spec — Each end-point opportunistic approach and individually — Multiple bilateral services — Multiple bilateral signs into common partner with a mobile network operator for business — Multiple bilateral business agreement, but can a specific deployment in one country, as agreements business agreements be brand neutral well as work together to deploy a global agreements and allow for mobile payments service for international differentiation money transfers and remittances. Figure 3: Options to achieve interoperability across mobile payments services Collaborative opportunity? If banks are to develop a global mobile payments Regulation with VimpelCom, Garanti Bank with service, it could make sense to develop In several countries there is already a Turkcell and Avea. this collaboratively. regulatory framework for e-money and mobile payments, while in others it is Interoperability still evolving. Conditions vary between Today, most mobile payments services Obstacles to growth in mobile countries on who can operate such a are closed-loop systems whereby one money transfers service, the transaction and wallet size, customer cannot send a payment to and the type of transaction allowed (see Let’s have a closer look at mobile a customer in another system, even box 4). money transfers. Whilst there are several within one country. Interoperability is the domestic deployments, many still need Regulators are concerned about metaphorical elephant in the room: all to build their customer base or create the mobile payments being used for money agree it can boost volumes, but with their basic service. We see three obstacles to laundering and fraud. Several have own company’s interests taking priority, further growth and global adoption: adopted a proportionate approach, nobody wants to let anyone in whilst balancing advancing financial inclusion expanding market share. with ensuring the stability and soundness Still, interconnectivity is growing. For Box 4: Differences in legal of the country’s financial system. example: G-Cash has bilateral agreements frameworks (examples) with several other systems. Western Union — MNO friendly: Philippines (MNOs Cooperation links to M-Pesa; BICS’ HomeSend is a can perform banking functions), Not one single bank or mobile network hub that includes communication protocol Kenya (wallet seen as transaction operator covers the whole world, so as well as FX conversion; India’s IMPS is accounts), Nigeria, Malaysia, there is a need for cooperation and multi-bank by design and underpinned by Thailand, Indonesia. partnerships.17 Joint ventures between the country’s ACH18 and we also see this — Flexible: Europe (e-money directive mobile network operators may not be model in the UK supported by VocaLink. – often taken as example, MNO obvious as they are very competitive By and large however, mobile systems do can get PSD license), US (MNO on their core voice and data business. not interconnect on a global basis. to register at FinCEN as money Joint ventures with banks may not be service business), Japan (non- obvious as parties have different business discriminatory rules, MNO to objectives, different perspectives on deposit money in bank account) revenue sharing, and different mind sets (mobile operators are more agile, banks — Banks only: South Africa (bank-led focus on robustness). except for agents, lower KYC/AML requirements), India, Bangladesh, Examples include Equity Bank with Tanzania, Uganda. M-Pesa, State Bank of India with airtel, Banamex with América Móvil, Alfa-Bank

——5 The ideal model for The case for a global bank- 4. Increasing competition: a regulator interoperability owned service may initially facilitate one operator to thrive in order to develop a basic Interoperability may be required, but Today, most domestic mobile money payments infrastructure, but before what does it actually mean and how transfer services are run by mobile long the system will be opened up can it be achieved? For end-customers network operators that have begun to other providers to avoid excessive interoperability simply means that it works to target the international remittance market power, drive further financial and is easy, fast, safe and cheap. market. For example, Vodafone Money inclusion and allow customers the Transfer in Qatar, which has nearly 1.7 For service providers, interconnecting choice of service provider. Over 70% million expatriates, can send money means a lot of acrobatics behind the of mobile network operators expect transfers to 10 countries. Mobile network scenes: 3-5 competitors in their market in 3-5 operators also link together or connect years.20 Some have applied for a bank — Technical: establish secure real-time with money transfer operators and credit or payment service provider licence, connectivity between service providers, card companies: e.g. G-Cash and Maxis, such as Rogers in Canada or O2 in conversion of communication protocols MoneyGram and SMART Money, Western the UK. They thereby become bank (from SMS in one system to USSD in Union and M-Pesa, MTN and VISA. competitors. the other); Card companies are also creating their 5. Interoperability: to further grow — Customer product features: the cost own international P2P services: e.g. Visa volumes, telecom companies will have of making a mobile payment, the acquired Fundamo, American Express to interconnect their mobile payments maximum amount allowed, product created Serve. services, but making them globally types supported (just payments or also Should banks stand by and watch? Aren’t interoperable is quite complicated. micro-credits), feature compatibility money transfers, mobile included, the (send payment or also beneficiary business of banks? initiated, possibility to include A good business for banks? notification text, specific features A sustainable business for telcos? International money transfers are a core present in one system but not another, In the long run, mobile money transfers business of many banks. Banks have possibility to create a viral wallet or may not be as profitable as some mobile reason to protect and grow that business not); operators thought: with innovative services, mobile payments — Commercial conditions between included: 1. Not a core activity: mobile network service providers: split of revenues operators see mobile payments as a 1. This is a sizeable business for banks. and costs, FX conversion, charges value added service, whereas for banks Over 215 million people live outside to customers (deducted from initial it is a core service. This will impact their country of birth. Worldwide or received amount), providing resource allocation. recorded remittance flows are transparency upfront of these charges, expected to reach USD 536 billion by amounts and execution timeframes to 2. Limited revenues: the business case for 2013; detailed information about top customers; a telecom company to deploy a mobile emigration countries and migration remittance corridor can have a quick 21 — Legal: contractual agreements, corridors is available. Banks currently and strong payback albeit with limited responsibility and liability, ensure have 30% of this business; there is revenue. Only 10% of mobile operators minimum level of KYC and AML by market share to be gained. see this service as accounting for more each party, recourse procedures; than 10% of their bottom line.19 2. This is a high margin business, where — Clearing and settlement and related willingness to pay is much greater than 3. Increasing costs: as volumes rise and liquidity and risk management. in domestic or face-to-face transactions become systemically important or go at point of sale. In addition to person- There are several options to achieve this, cross-border, regulators will impose to-person (P2P) payments, banks can ranging from multiple bilateral agreements higher KYC/AML checks, compliance use their existing relationships to attract to a conversion hub, a common conditions, business continuity, more additional volumes from businesses communication protocol, or a common frequent and detailed reporting, etc., (B2P) and governments (G2P) for salary service where companies adhere to the thereby increasing the operator’s cost and social payments. same set of rules. and reducing margins. For banks, this 3. Instead of playing a secondary role in It is not clear which model will prevail, but cost is already part of their operating a telco-led model, banks can capture it is worth exploring the opportunity of a model. 65% of the value if they run the mobile common service. payment service (still likely needing an agent network). For banks, the transactional payments business may not be the end-game, but a way to build relationships and up-sell more banking products, such as savings, credit and insurance.

——6 4. Research shows financial institutions — Adopt a pragmatic approach. Although Banks can seize mobile payments as have the most trust, consideration and bank-owned, the service could be run an opportunity, provided they define a preference for mobile payments among as a commercial company to have the clear strategy and invest accordingly. To consumers versus mobile network necessary execution and deployment that purpose, we recommend a series operators, hand manufacturers or agility. of actions for banks to pursue in mobile mobile ecosystem/OS providers.22 banking, mobile commerce and mobile money transfers. Who can bring banks together? A bold yet pragmatic approach In particular regarding mobile money Rather than trying to achieve “Let’s just all use SWIFT, because it transfers, banks should look to make interoperability between multiple mobile works”. That was a proposal in the a bolder move and develop a global ecosystems, which will take forever opening of a conference panel discussing person-to-person payments service that is and can be quite costly, banks should the interconnectivity of mobile payments mobile-enabled. consider developing a global service for services. In doing so, banks will pro-actively shape mobile person-to-person payments that There are some initiatives where banks the future of mobile payments. each bank can plug into. collaborate on a domestic level, like Key characteristics of such a service clearXchange in the US or IMPS in India. would be: Who can bring banks together to work on mobile payments on a global level? — Transparent and compelling. Not built on a platform that converts a — The mobile network operator patchwork of multiple bilateral systems, community? The GSMA, for example, but a single and consistent offering; has global coverage and is actively driving mobile payments, but as it — Open. An API allows banks to insert represents the interests of mobile their mobile money transfer services, operators, banks at large may not be may be open to other providers as willing to join. well; — The interbank world? SWIFT, for — Simple to use. Money is sent to the example, operates globally and has a receiver’s mobile phone number, rather track record of interoperability. Mobile than to an account number and bank payments initiatives, however, tend to code; be driven by banks’ retail organisations — Work off existing bank accounts which are not very familiar with SWIFT- replenished via ACH or direct debit. related transaction processes. This is similar to PayPal, but now the — A mobile payments association? money is kept in the banking system; Mobey Forum, for example, is bank- — Brand neutral, allowing for led, but can it gather a global execution differentiation. Whilst providing a capability? common infrastructure, each bank can — An international standards body? brand and differentiate the service for ISO, for example, has a global, cross- its customers; industry representation, but as they are — Include agency networks and cash chiefly concerned with standardisation, out capabilities. In particular at the could they drive commercial adoption? receiver’s side, typically in a developing — A platform vendor? Can they ever be country without bank accounts but inclusive enough? with mobiles (e.g. HDFC Bank in India’s partnership with Vodafone).The mobile wallet can be combined with a A shaping role for the banking pre-paid card to make a POS purchase industry or withdraw money at an ATM; In conclusion, mobile payments have a — Buy instead of build. The service strong growth potential. does not need to be developed from Many banks have developed a mobile scratch, as there are several wallet payments service or wallet. But many systems and providers out there to non-banks have also entered the mobile choose from; payments market, often with innovative solutions.

——7 Some additional resources Footnotes: [12] http://www.finextra.com/news/fullstory. — Global M-Payment Report Update – 2009, Arthur D. [1] SWIFT white paper Correspondent Banking 3.0, aspx?newsitemid=23221 Little (a bit dated but still a good read) January 2012 [13] For more, see http://en.wikipedia.org/wiki/ — Mobile Payments: How can banks seize the [2] Top Banks and Their IT Plans and Investments, Trusted_service_manager or for instance http:// opportunity, 2011, Capgemini 2Q11, September 2011, Gartner www.gemalto.com/nfc/tsm.html and http://www. — White Paper Mobile Payments, 2nd edition, February [3] http://www.wirelessintelligence.com/mobile-money gemalto.com/technology/tsm.pdf, or eg http:// 2012, EPC (on mobile payments in SEPA) www.firstdata.com/downloads/thought-leadership/ [4] Global Payments Survey 2011, Edgar, Dunn & fd_mobiletsm_whitepaper.pdfsee, see http://www. — Mobile money 2011, Ernst & Young Company europeanpaymentscouncil.eu/documents/EPC220- — Green Paper - Towards an integrated European [5] See 08%20EPC%20GSMA%20TSM%20WP%20V1. market for card, internet and mobile payments, — https://www.iemarketresearch.com/Members/ pdf for specifications within the context of SEPA January 2012, European Commission Reports/3Q-2011-Global-Mobile-Payment- [14] For a more elaborate definition, see Mobile Wallet — Mobile Payments in the United States – Mapping Market-Forecast-2009--2015-Global-mobile- – Definition and Vision Part 1, November 2011, Out the Road Ahead, March 2011, Federal Reserve payments-users-to-hit-893-million-in-2015-with- Mobey Forum 945-billion-in-transaction-value-RID2639-1.aspx Bank of Boston and Federal Reserve Bank of Atlanta [15] For more on this, see: Bank Agents: Risk — Mobile Payments Adoption in Developed Markets, — http://yankeegroup.com/about_us/press_ Management, Mitigation, and Supervision, March 2011, IBM releases/2011-06-29.html December 2011, CGAP — 2011 KPMG Mobile Payments Outlook, KPMG and — https://www.visiongain.com/report_license. [16] See aspx?rid=443 Monetizing mobile, June 2011, KPMG — The Mobile Financial Services Development — Mobile Payments Market Guide 2012 – Insights in — http://www.juniperresearch.com/ Report, 2011, World Economic Forum viewpressrelease.php?pr=250 the worldwide mobile financial services, March 2012, — Mobile payments 2012 – my mobile, my wallet?, The Paypers — Market Trends: Mobile Payment, Worldwide, September 2011, Innopay June 2011, Gartner — http://www.paymentscardsandmobile.com/index. — Market Trends: Mobile Payment, Worldwide, php — Issues Monitor, Sharing knowledge on topical June 2011, Gartner and Banks Shouldn’t Try to — Mobile Commerce Guide 2012, Sybase issues in the Technology Industry, KPMG, Copy the Mobile Payment Success of Kenya and — GSM Association February 2012 the Philippines, November 2010, Gartner — Mobey Forum [6] Dialing Up a Storm: How Mobile Payments Will — Mobile Money Toolkit: Framework for Assessing Create the Most Significant Revenue Opportunities Market Opportunities & Developing The Business — CGAP, IFC of the Decade for Financial Institutions, October Case, IFC 2011, PwC and Where is your wallet? The looming battle for information and profits in mobile and — M-Payments in M-BRIC, 2010, Arthur D. Little emerging payments, February 2012. BCG [17] Mapping and Effectively Structuring Operator- [7] Greenwich consulting, October 2010 Bank Relationships to Offer Mobile Money for the Unbanked, January 2011, GSMA Mobile Money for [8] Corporate Mobile Banking: Revolutionizing Cash the Unbanked Management, December 2011, Celent [18] http://www.npci.org.in/aboutimps.aspx [9] The current state and future of mobile banking in Europe, August 2011, McKinsey & Company [19] CGAP Mobile Money Expectation Survey, September 2010, CGAP [10] Mobile Payments: Cooperate, Collaborate, or Abdicate, September 2011, Edgar, Dunn & [20] CGAP Mobile Money Expectation Survey, Company September 2010, CGAP [11] See [21] Migration and Development Brief #16, May 2011, World Bank; Migration and Remittances Factbook — http://www.nfcworld.com/list-of-nfc-trials-pilots- 2011, World Bank tests-and-commercial-services-around-the- world/ [22] Mobile Payments: The importance of trust and familiarity and the need for co-operation, May — http://en.wikipedia.org/wiki/Near_Field_ 2011, GfK; Wallet Wars, October 2011, Lexis; Communication#Project_trials_and_full-scale_ Mobile Moving Forward in 2012: Insights from Top- deployments Tier Financial Institutions, 2011, Fiserv; The Mobile Shopping Revolution, March 2012, AlixPartners.

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