Rome , 6th October 2014 - Ercan Kilic, GS1 Germany

Rome, 6th October 2014 -

Ercan Kilic, GS1 Germany

How digital (especially mobile coupons)

will be

distributed and redeemed at the POS

(virtual and

physical POS)

GS1 Germany MobileCom project –

focuses on

Why is GS1 Germany active in Mobile

Commerce?

• GS1 has observed a world wide development of payment methods – they become

increasingly contactless.

• The way in which customers pay for goods, redeem coupons, collect points, etc. change

dramatically and more rapidly.

• These changes in customer behavior have an

enormous impact on the business models of our

clients and also in their investments in technology

• GS1 Germany assumes the responsibility to offer

solutions that enable its clients to benefit from the

potential resulting from these changes.

Mobile Payment

GS1 is not active in the payment eco-

system

• … but when it comes to Mobile Wallets then GS1 standards will be part

of the different POS scenarios and new processes

Banks

Payment

NetworksIAPs

MNOs

AcquirerTSM

Yesterday: Payment was manageable and easy to

understand

- Products via Banks

- Manageable product portfolio

- Distinction between payment at POS and Online – very clear

Cash

Bank transferDebit entry

Debit CardDirect DebitCredit Card

Credit Cards

Rea

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orl

dp

hys

ica

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OS

Vir

tual

Wo

rld

E-C

om

mer

ce

Online Banking(Vorauskasse, Rechnung)

Lastschrift

ILLUSTRATIION

Convergence of Payment

The Wallet Hype

ILLUSTRATION

Bank transferDebit entry

Cash

Debit CardDirect DebitCredit Card

Credit Cards

Rea

l W

orl

dp

hys

ica

l P

OS

Vir

tual

Wo

rld

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Banktransfer

Online Banking

(Vorauskasse, Rechnung)

mWallets

eWallets

1

2

© 2011 Brightcove Inc.

Mobile Wallet

Source: Vodafone

• OTTs, Internet Giants, Banks, MNOs, Handset Manufacturers, Retailers want to

provide Mobile Wallets by offering value-add services to customers

Mobile Wallet –

the Google Wallet

Abbildungen: Google.com

• It is complex to set up, maintain, enrich and drive broad acceptance

of mobile wallets!

Apple Pay - a late start to the market

but with an innovative set-up

Factsheet:

• Integrated into Apple Passbook on IOS 8

• Cards already stored in Itunes can be used

• Alternatively cards can be added by taking a photo

• Supports NFC-based POS payments and one-click

payments in apps and online stores

• Authorization of transactions via fingerprint sensor

• No credit card data is forwarded to the merchant, no

transaction records are kept by Apple

• Launches first in the US in October 2014

• Will support the Apple watch after launch in 2015

Apple Pay - Passbook

The impact of Apple Pay

The break-through will come with Apple Pay

• Apple Pay will clearly raise the awareness forcontactless payments worldwide

• Customer demand will be driven by Apple Pay(contactless payments might become cool)

• Apple unlocks the access to a well-funded groupof customer with affinity to new technologies

Apple Pay’s one-click-payment feature for apps and online stores will open up a severe battle between Apple and e-wallet providers like Paypal

The market for mobile payment will benefit in general

What`s the strategy of retailers in US

• A Network of America`s favorite merchants

ISIS-Wallet - Credit Cards, Loyalty Cards, Coupons, Deals & Offers

20.000 ISIS-Wallet daily activations

68 NFC-Smartphones support the Wallet across three operators

Preloaded on 14 Smartphones

Over 270.000 redeemed Coupons at Jamba Juice in Q1. 2014

14. Mai 2014

Isis hits 20,000 daily wallet activations – per day

Savings always with you ….

Mobile Wallet contains different Services

Mobile Wallet

Debit CARDEC Card (national Debit)

Credit CARD

Coupon

Loyalty

Retailer CARD (Payment, Coupon, Loyalty)

Digital Receipts Refund Receipts Productinformation Interaction with

Smart-Shelfs, Smart-Posters

….

New services will come up soon - challenges for standardisation

GS1 Germany GmbH

POS Interaction – Increase of technologies

and interfaces at the retailer´s POS

NFC - reverse vending machine

cas

h r

eg

iste

r -

till

NFC-Terminal

NFC-Reader

Photo Scanner

QR Code Display

Laser Scanner

BLE Beacon

Retailers are uncertain and not willing to make large investments at the POS!

1D / 2D Barcodes Laserscanner Photoscanner Beacon / BLE Bluetooth RFID NFC-Terminal NFC-Reader separat etc.

Technologies / Interfaces

camera

NFC

BLE

QR Code

IFR

W-LAN

SMS

GS1 Germany GmbH

Confusion in today’s Digital

Coupon Landscape

• How to set up a successful couponing strategy?

• Which distribution channel should we use – wap, App, SMS, or others?

• How to set up cross-retailer campaigns?

• Is there a simple (self-service) tool that features performance measurement and real-time campaign management?

Brands Retailers

• What do consumers expect?

• Which technologies and interfaces exist and which ones are relevant for us?

• What does that mean for my investment in digital infrastructure at the POS?

• Threat: other players such as Cashback Couponing providers

Consumers

• Yes, I want coupons - but where can I redeem them and how?

• Which retailers support this coupon campaign?

• I do not want to download several coupon apps! Couponing has to be simple!

Couponing Landscape

Stakeholders

CouponDistribution

Media Agencies

Creative Agencies

Brand Owners

MNOs Consumer

Retailers

Clearing-houses

Validation

Others?

GS1 Germany GmbH

Mobile Couponing Landscape

Mobile

distribution

channels

Brands /

coupon

issuersProcesses Retailers

Clearing

Houses

Specialized Agencies

Media Agency

Lead Agency

GS1 Germany GmbH

Areas of tension in

Mobile Couponing

• Prerequisite for the broad acceptance of Mobile Couponing: Efficient

processes along the line from distribution to redemption!

Coupon

distribution

Coupon

redemption

GS1 Germany GmbH

Areas of tension in

Mobile Couponing

Receive coupon Redeem coupon

1 2

present

scan

BLE

Challenge: Redemption at POSDistribution: Not critical

NFC

GS1 Germany GmbH

Coupon distribution

Efficient coupon distribution across several distribution channels is limited today!

Coupon Issuer

KitKat Brand App

Consumer

GS1 Germany GmbH

Mobile Advertising Campaign 1.0 • No tracking possible – hoping for awareness! End of campaign!

100.000 Ad Impressions

10.000 clicks

10.000 Visits

CTR = 10%

Consumer

till

Measurement ???

banner placement

GS1 Germany GmbH

The Challenge - how to redeem mobile

coupons at the till

1D / 2D Barcodes Laserscanner Photoscanner Beacon / BLE Bluetooth RFID NFC-Terminal NFC-Reader separat etc.

Technology – Smartphone

cas

h r

eg

iste

r -

till

NFC-Terminal

NFC-Reader

Photo Scanner

QR Code Display

Laser Scanner

BLE Beacon

camera

NFC

BLE

QR Code

IFR

W-LAN

SMS

0,50€

0,50€ günstiger!

Frontend: POS / till:

GS1 Germany GmbH

Mobile Advertising 2.0 -

CXP solves the measurement issue

• CXP enables measurement along the whole coupon cycle!

Konsument

Banner placement

10.000 clicks

CTR = 10%

5.000 clicks

Measutrement = Redemption Rate, e.g. 1% Performance Marketing!

tillTill

integrationCoupon is

activated

1.000 redemptions at till

Distribution:100.000 Coupons

CXPDetailed reports

100.000 Ad Impressions

0,50€ off !

10.000 Visits

0,50€ off !

0,50€ off !

GS1 Germany GmbH

POS: Processing of digital coupons through the

backend of the retailer

Problem: lack of standards leads to incompatibility and less efficiency!

Inter-Clearing

Clearing

Clearing

Clearing

Industry / Coupon-Issuer

till

4

Clearinghaus 1

1

Clearinghaus 2

2

Clearinghaus 3

3

today

till3

till1

We address this challenge in our working groups!

till2

GS1 Germany GmbH

Standardized communication between retailers and

and coupon service providers

Standardized communication communikation leads to compatibility and optimized efficiency

Coupon issuer Clearinghaus 1

Clearinghaus 2

Clearinghaus 3

till

till

till

till

till

till

Standardized communication based on EPCIS

Clearing

Bilderquelle: Google

TOMORROW?

Clearing

Clearing

GS1 Germany GmbH

GS1 standards and data architectures in the

Coupon-Cycle

GLN

GTIN

GSRN

GCN

SGCN

Global Location Number: A unique identifier that refers to a specific location. A location could be an organisation, warehouse, retailer, platform or role.

Global Trade Item Number: A unique code, belonging to a specific organisaiton, that identifies a product at a packaging level.

Global Service relationship Number: A unique code relating to a relationship with a specific consumer. For example identifying a unique consumer.

Global Coupon Number:An identifier relating to a specific coupon and its use, business rules and creative. The GCN holds the generic information about that coupon (or series of coupons)

Serialised Global Coupon Number:This is a single, unique, instance of a GCN.

Mobile Payment - „NFC City Berlin“ | GS1 Germany GmbH | 33

Mobile Payment Pilot is based on NFC

and Mobile Wallet

• Mobile Payment Pilot based on NFC und Mobile Wallet

• Cross MNO and Cross Retailer model

NFC-City BERLIN

Mobile Payment - „NFC City Berlin“ | GS1 Germany GmbH | 34

Vision of “NFC City Berlin“

• The goal of “NFC City Berlin“ is to set up a lighthouse project that establishes the “Eco System“ of Mobile Payment. • A critical mass and an impulse for NFC will be achieved by joining forces at the issuance side and

at the point of acceptance.

• The Mobile Payment project will be established first at main market participants. Subsequently, the project will be extended by more participants and use cases.• That includes harmonization of different services and transaction types such as couponing and

ticketing but also parking, carsharing, access via NFC.

• The constant use of NFC services increases customer acceptance to use smartphones not only in retail but also in other services and Scenarios (different use cases).

• “NFC City Berlin“ considers basically:• Customer acceptance

• Technical interaction

• Business models

“NFC City Berlin“ is the first step towards an overall contactless communication and transaction at the physical POS.

Mobile Payment - „NFC City Berlin“ | GS1 Germany GmbH | 35

The participation in the development and in the implementation of a contactless payment infrastructure enables all parties to proactively form a strategic positioning within the ecosystem.

Goal of NFC City Berlin

• “NCF City Berlin“ delivers important insights about the interplay of the different parties and components:

• Customers

• Technique & processes

• Eco system & partner models

• That enables the participating companies to position themselves strategically early in the Mobile Payment field.

• On this basis, all parties are able to refine their products and services.

Customers• Acceptance• Usage• Behavior

Technique & processes• Complexity and functionalities of wallet & cash systems • Processes & interaction

Ecosystem & partner models• Development and testing of business models

Mobile Payment - „NFC City Berlin“ | GS1 Germany GmbH | 36

Key objectives of the NFC City Project• Support creating a partner model between the key stakholders• Building a sustainable eco-system together• Figuring out the ideal Mobile Payment Solution• Testing the soultion(s) - User Experience / Design• Optimizing the processes between the Stakeholders and especially

Consumer/Smartphone and Terminal/Cashier system / till of the Retailer

• Generating insights concerning the customer acceptance• Measuring transactions • Generating Reportings concerning performance and huser behavior• Genarate insights for all stakeholder - also for value added service providers

Couponing Loyalty Advertising and others

• Build focus groups to undestand customers needs – surveys in stores etc.• Preparing roll-outs • Developing and providing best practises and recommendations for the community• Defining standards

Contact

GS1 Germany GmbH

Ercan KilicHead of Mobile Commerce

GS1 Germany GmbHMaarweg 13350825 Köln

Tel: 0221-94714-218Mobile: 0171-561 44 84Fax: 0221-94714-7218E-Mail: kilic@gs1-germany.de