Mobile Payments in an International Perspective

Copyright © 2016 Capgemini Consulting. All rights reserved.

Mobile Payments in anInternational Perspective




Three key areas of focus today in mobile payments

2

LoyaltyEcosystem

wallets

Social messaging




Four key drivers of change in mobile payments

RegulationsPSD2

TechnologyData analytics, NFC, Biometrics, Robotics, API

ConsumersATAWAD

CompetitionGAFA, BAT, Fintech

3




Ecosystem wallets like Alipay are lifestyle “super apps” where customers can transact in a range of different applications

4

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS

Click for video (in slideshow mode)

http://www.alizila.com/how-alipay-works/

http://www.alizila.com/how-alipay-works/




Alipay has experienced great success with its ecosystem wallet

5

Source: Statista

400 million

active users per month

Integration with more than

460 000 businesses &

65 financial institutions

175 million

transactions per day

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS




Ecosystem wallets are extending value proposition from payment services to other areas – going beyond financial services

6

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS

Make paymentsMobile banking

Check and write reviews

Find & book restaurants, movie tickets etc.

Book flights, hotels and trips

Social messaging/networking




Social messaging is increasingly displacing social media as the biggest focus of consumers – and now includes payments

7

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS

Combined, the top four texting apps have over

3 billion users

Who sent over

90 trillion messages through 2015

The average person opens texting apps more

than 17 times a day

69%

8%

23%

77%

7%

16%

Facebook All other social Social messaging

Worldwide Europe

Source: Statista, Medium

Active users per month




The most popular messaging applications are also the ones with the most advanced payment and artificial intelligence features

8

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS

Whatsapp1000 MAU Facebook Messenger

900 MAU

800 MAU

Skype300 MAU

249 MAULINE Pay215 MAU

BBM Money100 MAU

Kakao Talk (Pay)48 MAU

Twitter (Buy)310 MAU

Snapchat/Snapcash150 DAU

300 MAU

Monthly Active Users

(in millions)

Telegram100 MAU

Messaging Payments Chatbots

Source: Statista, Bloomberg



https://player.vimeo.com/video/169605404?autoplay=1


AI-enabled chatbots give the user a better interface for messaging payments

9

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS

Source: Kasisto.com

https://player.vimeo.com/video/169605404?autoplay=1




Tencent has taken payment through social messaging one step further with its WeChatPay platform

10

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS

Image Source: Tech in Asia




The app-within-app functionality has proven to be successful for WeChatPay

11

Source: Statista, The Economist

More than 800 million

active users per month

Integration with more than

1.1 million merchants

ARPU at over $7

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS




Retailers try to leverage mobile payments to improve customer relationships and increase loyalty

12

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS

An increasing amount of retailers offer their own payment solutions

Use QR code or integration with bank/NFC/Masterpassetc.

With one click customers can pay and have access to all the functionalities of the loyalty program




Starbucks’ wallet creates a fast and smooth customer experience and enables a value-added loyalty program

13

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS

Source: Starbucks




Starbucks’ app has been very successful with more than 10 million active users

14

LOYALTY

SOCIAL

MESSAGING

ECOSYSTEM

WALLETS

Source: Starbucks Annual Report 2015, Bloomberg

More than 10 million active

users in the U.S

6.2 million loyal gold members

22% of all Starbucks transactions

happen through the app




These integrated solutions are starting to gain a foothold in Europe and America…

15

Source: DN, Facebook, Tech in Asia, Joe and the Juice, Apple

LOYALTY SOCIAL MESSAGINGECOSYSTEM WALLETS

“Our focus over the next few years will be providing finance to users all over the world”

- Miranda Shek, AliPay

Facebook Messenger




…and pose challenges as well as opportunities for Nordic mobile payment players

16

UX Design Compliance and security

Two-sided networks/platforms Innovation and Strategy

Large Scandinavian Bank

Impact assessment of key trends and themes on platform: PSD2, XS2A, Blockchain, Customer Self Service

UAE Consortium of Banks

Nationwide mobile wallet solutionA

French Banks Consortium

Wallet solution for French banks

Copyright © 2016 Capgemini Consulting. All rights reserved.Copyright © 2016 Capgemini Consulting. All rights reserved.

Jakob Bolgen BronebakkManaging Consultant

Karenslyst Allé 200278 Oslo

+47 [email protected]

Mobile Payments in an International Perspective

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