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 Communicate Pay 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 Applications Branding Multiple Mobile Wallet IP channel Network Bandwidth SMS channel Rich Application Environment Online Services Secure Element Multi-application Smart Card chip: ISO 14443 - Secure storage and 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 � ACQUIRER ISSUER New payment schemes � 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 infra to introduce mobile ticketing Element issuer � � Cost efficient OTA ticket issuance NFC as a new channel to existing � operator services More customers, less free riders � � New NFC based services Mobile channel – new and convenient � services to commuters New customer acquisition, retention of existing customers MERCHANTS BANKS � � Leverage existing contactless Leverage the investments in acceptance infra to introduce mobile contactless acceptance payments � Mobile loyalty and CRM • Always with you � Mobile channel – portfolio of mobile programs – enhanced consumer • Online connected financial services supported by profiling with opt-in usage • Proximity interactions frequently used payments � More customers, more • Customized UIs � New customer acquisition, retention transactions • Multiple services of existing customers 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 SEI MNOs TSM Secure Banks, FIs TSM Element for SPs Service Issuers Providers Other SEI Retailers SE Issuers TSM Other Over The Air + 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 lauri.pesonen@venyon.com www.venyon.com Mobey Forum 18.6.2010 Page 14
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