March 2015 Issue 333 www.electronicpaymentsinternational.com MOBILE BANKING FOR THE UNBANKED •REPORT: THE GATES FOUNDATION •ANALYSIS: SOUTH AMERICAN M-PAYMENTS •REVIEW: THE GSMA •COUNTRY REPORTS: BAHRAIN, BULGARIA & LUXEMBOURG EPI 333.indd 1 26/03/2015 11:30:57 Delivering innovative mobile & online financial services solutions to organisations that need to provide secure access To find out more about us please visit: www.intelligentenvironments.com We are an international provider of innovative mobile and online solutions for financial service organisations. Our mission is to enable our clients always to stay close to their customers. We do this through Interact®, our single software platform, which enables secure financial applications, engagement, transaction and servicing across all digital channels. Today these are predominantly focused on mobile, PCs & tablets. However Interact® can and will support other form factors, as and when they proliferate (as seen by our work to develop digital banking for the Smartwatch). We provide a ready alternative to internally developed solutions, enabling our clients with a faster route to market, expertise in managing the complexity of multiple devices and operating systems, and a constantly evolving solution. IE-Advert-Dec-2014.indd 1 16/12/2014 12:25:21 Electronic Payments International COMMENT: EDITOR’S LETTER CONTENTS 6 REPORT: THE GATES Can mobile be FOUNDATION The financial inclusion mobile banking could bring was one monitised? of the key takeaways from the Gates Foundation’s most recent letter, but why so? Patrick Brusnahan reports t is a topic I have been harping on to monetise app usage. 8 MARKETING: ONLINE ABANDONMENT about for a little time now: the scope It will be interesting to see if any banks in Emma Allen, head of merchant in the not too distant future for the UK, once mobile cheque deposit takes solutions at SIX Payment banks to monetise mobile banking off, consider charging a nominal fee for the Services, discusses options I new(to the UK) service. and mobile payments. to minimise online purchase Asked for suggested conference and Meantime, an outstanding report hits the abandonment roundtable suggestions by a couple of spon- inbox courtesy of the BBA and Accenture: 9 ANALYSIS: SOUTH AMERICAN sors recently, I proposed debates on how best ‘Digital Disruption’ M-PAYMENTS to monitise digital banking and payments. Crucially, the report looks at the oppor- Despite Brazil being one of the first countries in the world At various debates and conferences I have tunities created by digitisation. These are to introduce mobile payment asked for a show of hands asking if the time not just cost-saving opportunities but what regulations, the market is being has now come for banks in certain jurisdic- digital can offer customers in terms of new outpaced by Colombia and Peru. tions to consider charging for mobile bank- experiences. Robin Arnfield investigates ing and mobile payments. In 2014, 45% of UK customers surveyed 12 REVIEW: GSMA So I am obliged to the US-headquartered by Accenture who had purchased a banking The GSMA’s most recent report SNL Financial for undertaking a survey ask- product in the previous twelve months did so highlights the potential of mobile money in developing ing the key question: through the internet channel, with a further markets, so why aren’t people Would you pay $3 a month to use your 6% claiming to have done so via a mobile taking the bait? Patrick bank app? device. Brusnahan writes SNL Financial’s Mobile Money survey This trend will accelerate to the extent 13 COUNTRY REPORT: BAHRAIN was conducted in February in the US across that within a few short years, we will see the As the amount of payment cards a nationwide random sample of adults that majority of all consumer purchases of bank- in Bahrain has just exceeded included 4,371 smartphone bank app users: ing products taking place through digital one million, we examine the card market in depth one-in-four said that they would pay $3 a channels. month. One simple example from the report will 14 COUNTRY REPORT: BULGARIA Interestingly,the super-rich and those with suffice as regards the opportunities created The global financial crisis hit Bulgaria hard, but how has the a low income were least likely of bank app by digitisation. Step forward Nationwide card market recovered? users surveyed to want to pay for their bank and take a bow: In June 2014 Nationwide app. The most willing to pay $3 per month launched two innovative new features for its 15 COUNTRY REPORT: LUXEMBOURG Luxembourg’s credit cards have of the four income groups surveyed was the app, Quick Balance and Impulse Saver. a larger market share than upper-middle income bracket ($75,000 - Both features have proved to be incredibly before. How does this affect $149,999) at 30%. popular with a third of active users opting in debit and mobile payments? As SNL suggests, making money from to Quick Balance and on average using the 16 COMMENT: DOES AGE MATTER? mobile banking apps might take a more service six times a week. < Bethan Cowper examines the nuanced approach than a monthly subscrip- differences between age groups tion fee, for instance, charging a percentage and their viewpoints towards Douglas Blakey new and established payment fee per mobile cheque deposit could be a way [email protected] services Editor: Douglas Blakey Sub-editors: Nick Midgley, Kev Walsh For more information on timetric, visit Tel: +44 (0)207 406 6523 Director of Events: Ray Giddings our website at www.timetric.com. As a Email: [email protected] Tel: +44 (0)203 096 2585 subscriber, you are automatically entitled Email: [email protected] to online access to Electronic Payments Financial News Publishing, 2012 Senior Reporter: Anna Milne International. 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Douglas Blakey looks at the prospects of the incoming Apple Watch in the United Kingdom. Will it be as popular as everyone is expecting, despite the steep price point? And what will be the repercussions for banks? I am obliged to Intelligent Environments Admittedly, the soar-away success of half of Apple mobile users are set to shell (founders of The Digital Banking Club) the iPhone 6 resulted in Apple winning its out £300-£400 for a watch? for commissioning research into the sales highest ever share of new smartphone sales I do agree with Intelligent Environments’ prospects for the eagerly awaited and much in the last quarter of 2014, roughly 40% Clayton Locke that wearable technology is hyped Apple Watch. of all sales. becoming more integrated into consumers’ According the Intelligent Environments But as things stand, if my understand - lives. survey, 12% of UK consumers expect to buy ing of the figures is correct, around 1-in- I also get the fact – a tad reluctantly as a an Apple Watch as soon as it goes on sale, 4 smartphone owners currently have an committed Android user – that the Apple The figure is certainly headline-grabbing Apple handset. brand has phenomenal appeal. and at first glance seems to the writer to be So call it about 12.5 million adults. But are one half of them going to rush quite astonishing. Now go back to the Intelligent Envi - out to buy an Apple Watch? Consider some quick stats. ronemnts survey: 12% of UK consumers If they do, banks big and small, estab - Of the UK population of 64 million, will buy an Apple Watch so roughly six lished and new challenger brands, are roughly 50 million are aged 18 or over: million. going to have no option but to offer com - 12% of this figure is 6 million. As the Apple Watch is only of any use pelling wearable tech banking apps. As of November 2014, Apple accounted of Apple phone users – the aforementioned With launch on 10 April, it will be fasci- for roughly 25% of smartphones in the UK. 12.5 million – that means that almost one- nating to watch and learn. < Google to launch US mobile network Simon Cadbury examines Google’s most recent foray into the payments sector and what this will mean for banks Sundar Pichai, the search Google’s vice pres- explained the bank is closely monitoring tech 40% said it was because they trusted the ident of Android and Chrome announced companies such as Google and is focused on brand.