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QUARTERLY eBULLETIN Your essential guide to the latest Mobile Money news and innovations ISSUE 4 SUPPORTED BY FEATURING QUARTERLY INDUSTRY REVIEW BY MOBILE MONEY REVOLUTION’S TIM GREEN mPOS: THE INTERSECTION OF PAYMENTS CUSTOMER SERVICE AND ENGAGEMENT QUARTERLY UPDATE: GLOBAL MOBILE MONEY LANDSCAPE MARKET STATS & FACTS
3 FOREWORD
4 mPOS: THE INTERSECTION OF PAYMENTS
CUSTOMER SERVICE AND ENGAGEMENT
INSIGHT FROM BRIJESH ARORA, AVP, STRATEGY AND
NEW PRODUCT DEVELOPMENT, MOBILE FINANCIAL SOLUTIONS AT MAHINDRA COMVIVA
MAHINDRA COMVIVA
6 THE WORLD OF MOBILE MONEY (PART 1)
mPOS & MOBILE INSTORE, WEB & APP PAYMENTS
8 INFOGRAPHIC: GLOBAL MOBILE MONEY LANDSCAPE
10 THE WORLD OF MOBILE MONEY (PART 2)
P2P MOBILE TRANSFERS & DIRECT OPERATOR BILLING
12 INDUSTRY STATS & FACTS
MEF MOBILE MONEY eBULLETIN #4 2
FOREWORD
RIMMA PERELMUTER
CEO, MEF
W
elcome to the fourth edition of MEF’s Mobile
Money Bulletin, a comprehensive round-up of the
news, industry analysis and insights that are
helping to shape the mobile money sector. In this
latest edition, we take a closer look at how mobile point-of-sale
(mPOS) has evolved from a convenient payment option for small
merchants to enabling whole new levels of customer engagement.
Mobile Money continues to be a key focus for MEF not least as it
exemplifies how the mobile ecosystem is embracing new sectors
and geographies whilst fueling FinTech innovation. Some great
examples of this diversity can be seen with the 2015 Meffys
finalists in the Mobile Money and FinTech categories, recognising
leading innovators from India, Brazil, the Netherlands and the
Philippines across banking, P2P transfers, NFC and cashless
payment solutions.
MEF’s Mobile Money Working Group is currently addressing the
pending PSD2 EU regulation as it applies to retail payments and
authentication. MEF guidelines on these essential regulations and
what they mean for different stakeholder groups has been
commissioned by MEF and are currently being advanced with
mobile financial services experts Mondato. It forms part of a full
programme of Mobile Money focused activities including
dedicated workshop and panel sessions at Apps World Europe and
South Africa which will highlight the strategies and innovations
across the industry that are accelerating mobile payments.
Please contact the editorial team if you’d like to be featured in the
next edition of this eBulletin. The news round-up is an essential guide
to what’s happening and together with MEF’s Global Mobile Money
Landscape provides a holistic snapshot into this thriving sector.
MEF MOBILE MONEY eBULLETIN #4 3
mPOS
THE INTERSECTION OF
PAYMENTS, CUSTOMER
SERVICE AND CONSUMER
ENGAGEMENT
BY BRIJESH ARORA
AVP, STRATEGY AND NEW PRODUCT DEVELOPMENT,
MOBILE FINANCIAL SOLUTIONS AT
M
obile-point-of-sale (mPOS) is disrupting the way payments
are accepted and opening up new levels of customer
engagement. Initially conceived as a low cost and
convenient solution for small businesses (that traditionally
weren’t able to process card transactions), larger
enterprises from high-street retailers to healthcare businesses are
experimenting with innovative use cases as the space matures. CUSTOMER ENGAGEMENT
The rapid growth of Internet retailing has posed challenges for many
Here, Brijesh Arora, AVP, Strategy and New Product Development, Mobile
traditional stores. Savvy shoppers have become more selective,
Financial Solutions at Mahindra Comviva discusses the growth of mPOS
comparing prices in high street stores with online deals for similar
and its crucial role in the mobile payment process.
goods. Many retail outlets have become victims of so-called
show-rooming and in-store purchase volume has stalled as a result.
As early as 2009, when mobile start-up, Square, launched arguably
In response, retailers are embracing omnichannel retailing and taking
the first mobile-point-of-sale system, the electronic payment
a holistic view across their entire businesses, and mPOS can be a
industry had its card marked as a sector
central plank in this strategy.
ripe for mobile disruption. Although still
in its infancy, the mPOS space has
moved beyond a convenient payment “…FROM CHECKING Perhaps the most significant benefit is
that mPOS allows the point of sale to
option for small merchants that had
previously been unable to process card
INVENTORY LEVELS AND become free roaming, playing to the
payments to enabling new levels of not ORDERING AN strengths and flexibility of the mobile
device. And that mobility allows staff to
just payments but customer
engagement from the market stall to the
UNAVAILABLE ITEM engage with customers completely
differently, not only outside the store,
aisle and beyond. IN-SITU, TO OFFERING but also around the store, from checking
Today the mPOS space is characterised CONTEXT-DRIVEN inventory levels and ordering an
unavailable item in-situ, to offering
by a mix of start-ups and incumbent OFFERS, TAKING context-driven offers, taking payments
point-of-sale providers alongside other
major players such as PayPal whom PAYMENTS AND and delivering an electronic receipt via
email - bringing the point of sale to the
have made the transition to offering
mPOS by captialising on their own
DELIVERING AN point of need.
substantial user-bases. ELECTRONIC RECEIPT VIA Payment becomes just one part of a
It is estimated that mPOS accounts for
EMAIL - BRINGING THE range of services all capable of being
delivered through the same device.
at least 10 per cent of consumer POINT OF SALE TO THE mPOS services lie at the heart of these
physical transactions which implies that
the incumbent hardware vendors sold POINT OF NEED.” initiatives, integrating the
payment facility with an
some 2.5 million mPOS devices in 2014.
improved shopping experience
But that figure excludes many of the
for the customer, forming a key
mPOS specialists that pioneered the
component amongst a variety of
channel in the first place, such as Square and iZettle. Factoring in
technologies that, in combination,
these companies and their many peers around the world indicates
can radically transform the
that total sales of mPOS hardware in 2014 amounted to some 10
retail outlet and shopping
million devices.
experience.
Crucially mPOS card readers can be attached to any smartphone,
tablet or phablet and it is the ubiquity of mobile that has driven the
connected hardware side of this growth.
The way payment is accepted is changing in parallel, from
card to cloud-based services. This move is stimulated by
the wave of investment in mobile-device-based payment,
developments in NFC contactless technology, and the
emergence of host card emulation and tokenization technologies.
Next generation POS services will be increasingly cloud-enabled,
easing the transition from card initiated to smartphone-initiated
payments.
MEF MOBILE MONEY eBULLETIN #4 4
As the market matures, mPOS providers are seeking additional Looking at the numbers, card transaction volume in established
sources of income through the provision of further services. This economies has continued to show strong growth from 2009 onward.
might come via a range of software applications that help merchants Forecasts indicate that, in the 22 countries reported by the Bank for
run their businesses more effectively, whether it helps streamline International Settlements, cards will account for 273 billion
back office operations, improve front office tasks or engage with transactions at a combined value of some US$30 trillion by 2018.
customers better in the physical as well as digital space. Tools
include product catalogues, inventory management, linked Cards will remain the most important payment instrument for many
accounting software, customer relationship management and data years to come, their role supported and enhanced by mPOS.
analysis and reporting all aimed at various legs of the commerce
transaction rather than just focussing on payments. It will take time for mobile transactions to rival card transactions in
volume. Aite Group research indicates that from 2015 to 2018,
BEYOND RETAIL contactless mobile transactions have the potential to reach 4 to 5 per
cent of retail payments, with growth in transaction volume
Beyond retailing, mPOS is being enthusiastically adopted by a range accelerating after 2020.
of new industry verticals in the mobile ecosystem that had little need
for payment terminals in the past. Healthcare business, Insurance, Whilst much attention is placed on new mobile payment solutions
home-servicing companies (e.g., food deliveries, heating engineers, like Apple Pay and Android Pay, the balance is clearly in favour of
air conditioning service companies) and businesses that use cards in the short to medium term.
home-sales personnel find these services useful, eliminating the
need for agents to carry large amounts of cash or checks and bringing
the benefit of immediate The key business intelligence
electronic payment. lies in the mobile application,
“THE COMPANIES USING which not only provides a “WHILST MUCH
Ruggedised mPOS devices rich user experience, but also
mPOS ARE EXTREMELY are also proving popular in ATTENTION IS PLACED
is an effective channel to
VARIED, BUT THE sectors such as
transportation, allowing
render the various business ON NEW MOBILE
ATTRIBUTE THEY applications. Their flexibility
at-seat sales by airlines, allows the mobile app to be PAYMENT SOLUTIONS
SHARE IS THE ABILITY trains, and long-distance bus reconfigured over time to
operators. Courier and adapt to changing
LIKE APPLE PAY AND
TO USE MOBILE delivery firms use such
PAYMENT DEVICES TO terminals to receive payment
circumstances, payment ANDROID PAY, THE
methods, form factors and
upon delivery — still an this is another powerful BALANCE IS CLEARLY
TRANSFORM THEIR important service in many aspect of the new generation
RELATIONSHIPS WITH countries. mPOS devices can of mobile payment
IN FAVOUR OF CARDS
even be found in use for
THEIR END USERS OR payment of on-the-spot
acceptance. The flexibility of IN THE SHORT TO
mPOS mobile applications in
CUSTOMERS.” speeding fines by police an increasingly digital, MEDIUM TERM.”
forces. omnichannel payment
environment is a key
In all examples and more, security of payment is improved, with cash strength.
removed from the equation, and most transactions (such as many of
the transportation examples) are made with online rather than offline From its beginning as a single stand-alone service for small
authorization. This encourages efficiency, opens up new channels, businesses, mPOS has quickly evolved into a transformative set of
and removes or reduces certain categories of risk. technologies that will drive change across the entire payments value
chain. In the process, it is bringing new players into the market and
The companies using mPOS are extremely varied, but the attribute forcing incumbents to re-evaluate their methods of operation. The
they share is the ability to use mobile payment devices to transform world of payments is at the start of a process of change more
their relationships with their end users or customers. fundamental than it has experienced before. New
business models, much deeper customer
mPOS AS A CATALYST FOR MOBILE engagement and more flexible solutions with
PAYMENTS GROWTH payment acceptance at their heart are
Credit and debit cards, which are regarded by some as out-dated by the order of the day, but the key
smartphones (and their ability to make mobile payments), are in fact ingredient that weaves through the
central to the emergence of mPOS, and their importance is in turn rapidly evolving landscape is
reinforced by it. But as mPOS grows it will enable new forms of mobility; the ability to accept
payment to flourish, including via NFC-enabled mobile wallets and payments at the customer’s
devices. Newer mPOS devices have NFC capability, allowing convenience and at greater variety
contactless tap-and-go transactions from card or phone. of locations than ever before. mPOS
is moving from a niche service into
Much analysis focuses on the mobile phone’s potential to transform the mainstream of modern
payments and replace the plastic card, but within an mPOS commerce.
environment, both forms of payment can be accommodated, bringing
greater flexibility to the act of payment acceptance.
Mobile commerce developers gain meaningful traction with mobile
wallet services or in-app payments while merchants benefit from the
ability to capture a variety of payment methods without limiting the
options available to their customers.
MEF MOBILE MONEY eBULLETIN #4 5
THE WORLD OF MOBILE MONEY
(PART ONE)
TIM GREEN
TIM GREEN IS AN ACCLAIMED INDUSTRY COMMENTATOR ON MOBILE MONEY AND PAYMENTS
AND THE EDITOR OF MOBILE MONEY REVOLUTION INDUSTRY. HERE HE SUMS UP THE NEWS
THAT HAS BEEN SHAPING THE MOBILE PAYMENTS SPACE IN THE LAST THREE MONTHS
ACROSS MPOS, IN-STORE AND ONLINE MOBILE CHANNELS.
mPOS
The big news of the quarter in mPOS was mostly
financial. Sweden’s iZettle brought lifetime funding to
$168 million after a new round, eclipsing its rival
SumUp’s €10m fund raise.
Meanwhile Square resurrected rumours of an IPO again
a year after a previous mission to go public collapsed. It
all indicates enduring investor support for a sector that
is frequently doubted.
iZETTLE BAGS ANOTHER €60M AND MOVES INTO
SMALL BUSINESS LOANS
Sweden’s mPOS giant iZettle has raised €60 million to bring lifetime
funding to $168 million. The newest round values the firm at an
estimated $500m. The company plans to use the investment case to
expand into new areas – and it’s
already revealed one: small FLINT LAUNCHES mPOS APP THAT USES THE
business loans.
CAMERA RATHER THAN A PLUG-IN DONGLE
Its new Advance service gives
merchants access to cash advances, which they can pay back in small
increments based on a percentage of daily sales through credit cards. All over the world, micro merchants are signing up to use readers that
The advance comes with a fixed fee that is payable over a specified let them take card payments on a phone.
period, but rates are set on a case by case basis. The loan is be paid
back by increasing the fee taken on future transactions using the Typically, they require a dongle that either plugs into the phone or
iZettle terminal. links to it via Bluetooth. Now, Flint has launched something a bit
different. Its app uses optimal character recognition to read card
details. In other words the merchant scans your card to capture the
number. It only works on Android.
MEANWHILE INDIA’S ANSWER TO iZETTLE BAGS
The processing fee is 1.95 per cent for each debit card transaction
A $25M ROUND and 2.95 per cent per credit card transaction. It’s a nice and
convenient option, but one wonders how many customers would be
freaked at a vendor taking a photo of their cards.
Mumbai-based mPOS specialist Mswipe has announced Series C
funding of $25 million from Falcon Edge Capital, Ola Cabs and Meru
Capital as well as existing investors. The firm, which launched in India
in 2012, offers merchants a card reader and app combo for taking SUMUP RAISES A FURTHER €10M
payments on a phone. The card reading dongle attaches to the
phone’s audio jack.
One of Europe’s bigger mPOS players, SumUp, has closed a €10m
Mswipe is operating in a market in which just a small percentage of funding round. Investors includes BBVA Ventures, Groupon and
the population uses bank cards. But it’s a huge population, so the firm American Express. It’s only weeks since the firm bagged a Series D
reckons 12 to 15 million SMEs could benefit from mobile POS. Today investment, and it brings total cash raised to €50m.
fewer than 500,000 SMEs have any type of POS. Mswipe’s solution is SumUp says it will use the funds to add support for contactless
already in use with more than 25,000 merchants across India. payments to its dongles, and to extend into new countries.
MEF MOBILE MONEY eBULLETIN #4 6
PAYPAL LAUNCHES A CONTACTLESS mPOS MOBILE IN-STORE PAYMENTS
READER IN THE UK
And then there were three. One year ago, Apple set the
PayPal has been live with its PayPal Here dongle for two years now. template for the handset being the ‘home’ of the mobile
And in the UK it’s just upgraded the device to accept contactless wallet. Now Google and Samsung are in the process of
payments from Visa, Maestro and MasterCard as well as Apple Pay. rolling out similar services.
This is in addition to standard Chip and PIN payments.
In the UK, its main rivals already offer contactless support, while the Android Pay and Samsung Pay – in slightly different
option is just starting to appear in the US where PayAnywhere ways – let phone owners safely ‘de-materialise’ their
recently launched a new NFC integrated reader. bank cards into software on a phone. They’re contactless
so users can tap to pay in shops. But, as with Apple Pay,
the greater impact may be in-app, where users can
THIS TIME SQUARE REALLY WILL TRY FOR AN check out with a fingerprint.
IPO. MAYBE.
Jack Dorsey’s mPOS pioneer Square is to go public, say people who
ANDROID PAY GOES LIVE AT MORE THAN 1M US
have the inside track from investment banks. Reports say Square, LOCATIONS
which processed $30 billion in payments in 2014, is ready to file for
an IPO.
Two months after formally announcing Android Pay system, Google
The news comes after a tricky period for Square, which launched the service across the US.
was supposed to IPO last year but didn’t because of Android Pay will work on any
poor results. Square has been criticised in the past for NFC-enabled Android device running
not having sustainable business model (taking a cut of KitKat 4.4 on all US mobile carriers.
ever-decreasing card fees) while various efforts to offer It also works across the four major
other services - like Pay By Square - have been payment networks: American
unsuccessful. Express, Discover, MasterCard and
Visa.
But it’s still a huge business with loads of customers.
And its Square Capital business-lending program is said The concept is, of course, pretty
to have advanced almost $25 million in capital in April alone. similar to Apple Pay in that in-store transactions are made via NFC
and the actual card number isn’t shared with merchants. Instead, it
transfers tokens. The crucial difference with Apple Pay is in the
storage of the ‘secure element’. While Apple keeps all the sensitive
data in a secure enclave inside the device, Android Pay puts some of
it in the cloud (using host card emulation).
UK CONTACTLESS PAYMENTS UP 560%
New stats from Barclaycard and MasterCard say contactless
payments tripled in the last year in the UK. Transactions were up 457
per cent. MasterCard said spending by British consumers on its cards
rose by five – up 560 per cent year-on-year. Barclaycard said its
users raised their spending by 150 per cent by value and 134 per cent
by volume. The average purchase amount has also risen dramatically,
reaching £7.29 by July.
MEF MOBILE MONEY eBULLETIN #4 7
MOBILE PAYMENTS CAN GENERATE $1TRN BY 2017 SAMSUNG PAY LAUNCHES IN KOREA; DAYS
FROM LAUNCH IN US AND EUROPE
Here it is: the first 12 zero estimate for the mobile payments space.
Yes, IDC says the market will be worth one trillion dollars by 2017. South Koreans have begun using Samsung Pay, while Europeans and
That’s 1,000,000,000,000. Americans will get their hands on the service imminently. The launch
comes as Google gets ready to launch Android Pay, and Apple Pay
Asia Pacific markets will drive the rise as emerging nations come looks to consolidate in the UK and US where it is live.
online for the first time and do their ecommerce via smartphones.
Samsung Pay, like
That and the lack of credit/debit card adoption, which will shift Apple Pay and Android
transactions to bank account linked mobile wallets. Pay, will let users
assign a credit card to
an app, store tokenised
account details inside
SHELL AND PAYPAL BRING MOBILE PAY AT the phone and then
pay with a tap in
PUMP TO MOTORISTS
stores. The crucial
difference is that,
thanks to tech Samsung acquired from LoopPay, users can tap to pay
Shell and PayPal have announced Fill-Up & Go, which lets drivers use even at stores with old-fashioned mag stripe terminals.
a QR code, mobile app and smartphone to refuel. Users can download
the app and link it to a PayPal account. Then they select they amount This is because LoopPay created a proprietary technology called
of fuel they need, enter it into the app, then scan the code by the Magnetic Secure Transmission (MST), which supports contactless on
any reader – there’s no need for merchants to change their systems.
ONE IN FIVE STARBUCKS TRANSACTIONS IS
NOW MOBILE
pump. The scan turns on the pump and fills the tank to that sum.
Funds are deducted from the PayPal balance or linked account. Coffee chain Starbucks processes more than 9
million mobile transactions a week. That’s 20
per cent of all in-store payments. The
company is often cited as the US leader in
SMARTWATCHES AND WRISTBANDS COULD mobile payments, and its CEO Howard
DRIVE MORE THAN $500 BILLION IN Schultz says there’s no sign of that
TRANSACTIONS BY 2020 changing.
Now, Starbuck’s is moving into order-ahead
services by mobile. Its Mobile Order & Pay is
A report by Tractica predicts that wearable payments could grow
available at more than 4,000 US stores.
from $3.1bn in 2015 to a staggering $501.1bn by 2020. That will be
20 per cent of all mobile proximity transac-
tions and one per cent of all cashless
transactions in retail. Quite a claim given that
there’s a question mark over mobile TD BANK USERS ARE TESTING ‘PAY BY
payments in store and the wearable device HEARTBEAT’
market full stop.
But Tractica believes Apple Pay in a smart
Canada’s TD bank is working with biometrics firm Nymi on securing
watch offers a good indication of how things
payments using customer heartbeat patterns. The scheme in
will go. And it’s also mindful of projects such
Toronto, Ottawa and
as Barclays contactless payment bands.
Regina will gauge the
feasibility of using the
Nymi Band to ID users.
US MICRO-MERCHANTS GET THE OPTION TO The band uses ECG
ACCEPT APPLE PAY sensors to pick up the
wearer’s unique heart
rhythm. It then verifies
Apple has teamed up with North American Bancard to launch a new the user is authorised
version of the latter’s PayAnywhere card reader. It means that small and sends a message
merchants taking magnetic stripe card payments on one of these by Bluetooth to the
mPOS dongles can now do Apple Pay transactions too. There are no users phone to open
monthly or setup fees. The dongle will cost $39.95, while the the connected banking
PayAnywhere Mobile app is free in the App Store.
MEF MOBILE MONEY eBULLETIN #4 7
MCX TO START TESTING CURRENTC WITH MOBILE WEB AND APP PAYMENTS
PUBLIC IN WEEKS?
Ever since the dawn of mobile web and app commerce,
The Wall Street Journal reported that MCX’s CurrentC service will the fundamental challenge has been exactly the same:
begin its first public tests in September. MCX is the consortium how to make buying as easy on a small screen as it is on
comprising Wal-Mart, Target and other giants. It was founded to the desktop?
provide a closed mobile payment solution based around convenience
and rewards. Significantly, it
links to checking accounts Even today, it’s far from solved. But the market’s big
and thereby avoids the fees players keep trying. In the last few weeks, Stripe and
these retailers have to pay Google have each launched services to give consumers
to credit card giants.
easier ways to buy on mobile.
It was unveiled in 2013, but
has been hampered by Stripe’s Relay lets merchants embed a checkout in third
resignations, tech hiccups party apps (notably Twitter) so shoppers can buy
and internal wrangling. without interrupting the session. Meanwhile Google is
Famously, it mandated its members should not use rival payment
systems like Apple Pay, but many have done so anyway. experimenting with buy buttons in mobile banner ads.
STRIPE’S RELAY SERVICE PUTS ‘BUY’ BUTTONS
BILL-SPLITTING APP – PAID EASY – GETS INTO THIRD PARTY APPS
FUNDING
US firm Stripe is well known
New York’s PaidEasy for giving developers card
has just bagged $2m payment API they can drop
to help acquire new into their apps. It means they
merchants, fund tech don’t have to bother with the
and add people. The hassle of dealing with payment
app lets users open, processors.
view, split, tip and pay
their bills in real time. Apparently, no new hardware is needed, just a And the checkouts are modified for mobile so they’re quick and easy
software upgrade to the merchant’s existing POS. for consumers to use too. This is great when consumers are coming
to your app. But what about when they’re interacting with your brand
Still, there are so many other ‘bill splitting’ firms out there. They somewhere else?
include TabbedOut, Cover, Zapper, Dash, Mycheck, FlyPay, Settle,
QikServe, Cake and more. That’s what Stripe Relay is trying to solve. The new service gives
merchants an API they can use to put buy buttons into third party
apps. At launch they are: Twitter, ShopStyle, Spring and InMobi.
It means that instead of clicking on a link in the Twitter app and going
off to an e-commerce site, you just click to buy inside Twitter. Of
DROPLET SIGNS UP 25 RETAILERS IN LEEDS UK course, Twitter doesn’t have your credit card info and neither does
TO ITS M-PAYMENT APP the merchant. Stripe does. And the more merchants sign up to it, the
easier it will be to shop this way.
UK startup Droplet is slowly rolling out its app-based in-store
payments system across the country. Its latest target is Leeds, where
Café 164, Tall Boys and BangWok are testing it out.
INDIA’S MOMOE BRINGS PAY-BY-APP FOR
These merchants will get the chance to accept fee-free payments TAXI RIDES
and create their own loyalty schemes for a low cost. The move
represents a big push
on rewards for Bangalore-based Momoe is targeting taxi drivers in its home town
Droplet: the firm with its card-based mobile payment system. Its app lets users load
always wanted to up a credit or debit card, then
make the payments enter the mobile number of a
free and charge for participating merchant to connect
added-value services to it. They can then enter the cash
on top. More than amount to pay.
1000 merchants
across the UK do It started out as a bill-splitting app
accept Droplet, with for restaurants but is now
150 offering rewards expanding into other sectors.
MEF MOBILE MONEY eBULLETIN #4 7
KASHING! USES CROWDCUBE TO FUND WIRECARD UNVEILS NEW MOBILE CHECKOUT
‘PAYMENTS ANYWHERE’ IDEA PLATFORM FOR RETAILERS
UK startup Kashing has turned to crowd funding Retailers can dramatically improve the
to launch a platform that gives micro-merchants capabilities of their apps thanks to a
one platform for all their payments new offering from Wirecard. Its
platform gives merchants the option to
It reckons they need a pain-free way to move add contactless payments, peer-to-peer gifting and loyalty offers.
from cash and old-school card readers to Several European retailers are already piloting closed-loop payment
properly synchronised system that takes any services built on it.
kind of payment: mPOS, mobile site, mobile app,
and even voice over the phone. The firm signed up 300 merchants in Traditionally the issue around these kinds of extras was integrating
its first month. them with a retailer's existing loyalty programs. But this is what
Wirecard says it can do. The platform can also take payments via
QR-code, NFC/HCE, NFC/SIM card.
GOOGLE TO LET MOBILE WEB USERS PAY
DIRECT FROM BANNER AD
EX-GOOGLER LAUNCHES SHOPPING-ENABLED
APP STARTUP, PREDICTSPRING
The search giant has begun testing mobile banner ads with check-
outs embedded inside. The concept lets viewers see a ‘pay now’
button on an online ad, click on it, buy it, then go back to their Nitin Mangtani, former manager of Google
browsing. Shopping, has raised $2 million to start
PredictSpring, a firm that lets people create
Google will let users store credit card info to make the payment shopping-enabled apps without writing any
process smooth and fast. The merchants will still handle the code. He says he launched the firm because -
fulfilment, but the checkout page will be hosted by Google (though even today - a huge number of mobile
with merchant’s branding). shoppers have to switch to the desktop or
mobile site when they want to pay.
Thus PredictSpring will enable retailers to
AMEX LAUNCHES ITS OWN DIGITAL build apps that incorporate buy buttons. The
CHECKOUT WALLET firm says it’s already working with brands like Cole Haan, Eddie
Bauer, Bluefly and Woodcraft.
Card network American Express has joined the race to dramatically
simplify online payments. It’s unveiled a wallet that users can sign
into once. Then when they check out at a compatible merchant, they STRIPE ADDS SUPPORT FOR ALIPAY ACCOUNTS
can do so with just a PIN while Amex auto-fills the checkout fields.
The information is transferred to the Merchants using Stripe’s payment API
merchant via a token, so it’s safe as well as may now have access to 300m new
speedy. The wallet is available at BarkBox, customers because of a deal with Alipay.
Burberry, Ledbury, Newegg, Sabon,
Ticketmaster, Warby Parker and The Wall San Francisco-based Stripe lets mobile
Street Journal. merchants take credit card payments just with a simple API. And then
it embeds a friendly checkout UI to increase the rate of conversions.
It’s been testing the payment platform on Alipay for well over a year.
Now, it’s officially launched. Thus, western merchants using Stripe
could quickly extend the buy buttons to Alipay’s 300 million users.
ZAPP SIGNS FIVE YEAR DEAL WITH
FEATURESPACE ON FRAUD DETECTION
INMOBI UNVEILS MIIP SHOPPING PLATFORM
UK firm Zapp - the VocaLink-developed service that
lets mobile web and app users pay for their purchas-
es direct from their own bank app will use behaviour- India’s InMobi is a giant in mobile advertising, but with Miip it’s
al analytics to spot fraudulent users when it launches moved closer to m-commerce. Miip sits inside thousands of native
its ‘pay by bank app’ services in a few weeks. apps and uses big data to present shopping options for users. InMobi
has already announced a partnership with Amazon.in, India’s largest
It’s signed a five-year agreement with Featurespace, online store, to start pilots on the platform. It’s also working with
whose machine learning adaptive algorithms spot Paytm, the largest mobile wallet in India to launch a “Buy with
subtle changes at individual account level. Following Paytm” button to enable it.
launch, the system will process thousands of events
every second.
MEF MOBILE MONEY eBULLETIN #4 8THE WORLD OF MOBILE MONEY
(PART TWO)
P2P MOBILE TRANSFERS
YES BANK AND TAISYS INVENT A NEW WAY OF
DOING M-PAYMENTS: STICK-ON SIMS
While people remain a little suspicious of using mobile
wallets to pay in shops, they seem very happy to pay
their contacts by phone. Juniper Research says there will YES Bank, India’s fifth largest private
be more than 13bn mobile P2P transactions in 2015 – sector bank, is working with chip
thanks to the growing influence of chat apps like WeChat specialist Taisys on a new kind of
payments idea. The two firms will
in the east and Venmo in the west. issue an ultra-thin mobile payments
wafer SIM, which the user attaches to his or her
The stats reflect a dynamic market and a multiplicity of existing SIM Card. The sticker installs the
options for consumers. This quarter, for example, saw bank’s mobile wallet application on the phone
the emergence of a new bank-backed service for Swiss in the SIM tool kit.
consumers: Paymit. Once done, the user can make secure
(encrypted SMS at the back end) mobile
payments from anywhere, anytime without
internet connectivity. They can do so no
KENYA’S MOBILE PAYMENT VOLUMES JUMP matter what kind of phone they use or which
18% IN A YEAR operator they are with. YES Bank reckons the
service will be used to transfer money, pay bills,
check balances and see transaction history.
The world’s mobile money powerhouse -
Kenya - is showing no sign of slowing down.
New stats from the Central Bank of Kenya
revealed that the value of mobile payments MOBILE MONEY TRANSFERS SET TO RISE BY 150 %
hit Sh1.3 trillion ($12.3bn (in 1H2015). That’s THIS YEAR
up 18.2 percent year on year.
Customers make 21.5 per cent more There will be more than 13bn mobile P2P transactions in 2015, says
transactions though the average value per Juniper Research. The market watcher claims the push by social media
transaction reduced by 2.5 per cent to firms into the sector is powering growth in this relatively new space.
Sh2,500.
Among the stats backing the assertion were that Venmo moves
nearly $1 billion per quarter, while WeChat and Alipay powered more
than 3.3 billion P2P transactions in just 6 days over the Chinese New
Year period.
PAYPAL LAUNCHES PERSONALISED URLS FOR
REQUESTING MONEY
ING UPDATES ITS APP WITH VOICE BANKING
E-commerce giant PayPal has launched PayPal.me, which lets users
ask for money by sending a web link. Users in 18 countries can sign
up for a unique username and are then given a paypal.me ID. They
can then add the amount to the link (i.e. paypal.me/username/10) Mobile banking in the Netherlands just went hands-free. Local giant
and share it with anyone that owes them. ING has added voice control to its
mobile banking app, so now
The idea is that they can drop the link in selected customers can transfer
a message or email or whatever. They money just by speaking.
never have to open a P2P app. There’s no
fee to use it domestically. The firm reckons 1.9 million
customers currently use the
Supported countries are US, UK, app, logging in on average six
Germany, Australia, Canada, Russia, times a week. In a new pilot,
Turkey, France, Italy, Spain, Poland, trial users can use voice to
Sweden, Belgium, Norway, Denmark, check bank balances or make
Netherlands, Austria and Switzerland. payment orders. Logging on
MEF MOBILE MONEY eBULLETIN #4 10SIX BANKS SIGN UP TO SWITZERLAND’S P2P DAOPAY ACQUIRES BOKU’S ’PAY BY CALL’
PAYMENT APP: PAYMIT DIVISION
Major Swiss banks have signed up to a single collective P2P payment Austria’s DaoPay has added Boku’s pay buy call business for an
app. They are UBS, Zürcher Kantonalbank, Banque Cantonale de undisclosed fee. The firm reckons this makes it the largest processor
Genève, Banque Cantonale Vaudoise, Luzerner Kantonalbank and for pay by call payments worldwide.
Raiffeisen. DaoPay’s historic strength is in in-app virtual transactions. Its clients
include Facebook, IMVU, Innogames, Nexxon, Gameforge and others.
Paymit (created by SIX) lets users make payments without knowing
the recipient’s banking details - they only need the phone number. In
that sense it’s just like the many others in the space right now:
Venmo, Pingit, PayM, MobilePay, Swish, Facebook etc. 3 ITALIA TO OFFER CARRIER BILLING FOR APPS
ON GOOGLE PLAY AND WINDOWS PHONE
STORE
DIRECT OPERATOR BILLING
Over 10 million 3 Italia
The proponents of carrier billing want to see ‘pay by subscribers can now buy
mobile’ extend to a wide variety of product in mature games, music, videos and
markets. But in recent weeks the biggest news has been apps direct from the phone
bill. 3 Italia worked with
made by those extending it into developing economies.
Germany’s net-mobile to
make the option available. The
Two of the market’s pioneers Bango and Fortumo each MNO already offers the
made announcements along these lines. Bango brought payment method in Austria,
carrier billing to Google Play in South Africa for the first Hong Kong, Ireland,
Sweden, and the UK.
time, while Fortumo tied up with Huawei.
The deal represents a
further extension of the
carrier billing option to
TELKOM AND BANGO BRING OPERATOR BILLING Google Play users. But it’s far
TO SOUTH AFRICA FOR THE FIRST TIME from universal. Google seems to
work with individual operators on the
option, rather than opening it up for all to use.
Android users in South Africa can now pay for apps on Google Play
using their phone bills. It’s thanks to a tie-up between local MNO
Telkom and the UK aggregator Bango.
In Africa, Android represents 89 per cent of the smartphone market,
according to IDC, but card ownership is low. Carrier billing therefore
represents the best way to monetise apps. Bango already connected
hundreds of operators to app stores from Amazon, Samsung,
BlackBerry, Mozilla and Microsoft as well as Google.
MEF MOBILE MONEY eBULLETIN #4 11INDUSTRY TRENDS & STATISTICS
IDC FORECASTS WORLDWIDE MOBILE PAYMENTS WILL
1 ACCOUNT FOR $1 TRILLION USD IN VALUE IN 2017, UP
124% FROM THE LESS THAN $500 BILLION USD
EXPECTED IN 2015. ASIA/PACIFIC MARKETS WILL
CONTRIBUTE TO THIS GROWTH GREATLY AS MOBILE
COMMERCE TRANSACTIONS WITH REMOTE PAYMENTS
TAKE OFF ACROSS THE REGION.
RESEARCH FROM LLOYDS BANK SHOWS THAT 43% OF
2 BRITS SEE CONTACTLESS PAYMENTS AS THE PAYMENT
METHOD OF THE FUTURE, WHILST ONE IN THREE (34%)
EXPECT TO BE USING A MOBILE DEVICE ON A DAY-TO-DAY
BASIS TO MAKE PAYMENTS WITHIN THE NEXT FIVE YEARS.
CONTACTLESS MOBILE PAYMENTS WILL REACH 200 AND ACCORDING TO MARKETSANDMARKETS, THE ENTIRE
3 MILLION BY 2016 AS APPLE PAY BOOSTS AWARENESS, 9 AFRICAN MOBILE MONEY MARKET IS SET TO GROW FROM
EQUAL TO GROWTH OF MORE THAN 100% FROM THE $2.73 BILLION IN 2015 TO $14.27 BILLION BY 2020.
END OF 2014 – JUNIPER.
MOBILE PAYMENTS IN INDIA ARE PREDICTED TO GROW
STARBUCKS CONTINUES TO BE THE POSTER BOY FOR 10 200 TIMES OVER THE NEXT SEVEN YEARS TO $3
4 IN-STORE MOBILE TRANSACTIONS. ON ITS LAST TRILLION OR A FULL 10% OF THE TOTAL PAYMENTS IN THE
EARNINGS CALL (JULY 2015) CHIEF EXECUTIVE HOWARD COUNTRY, WHICH WAS JUST 0.1% IN FINANCIAL YEAR 2015.
SCHULTZ REVEALED THAT THE COFFEE CHAIN IS
PROCESSING NEARLY NINE MILLION MOBILE PAYMENTS A P2P MOBILE MONEY TRANSFERS WILL RISE BY 150%
WEEK ACROSS ITS US LOCATIONS, REPRESENTING 20% OF 11 THIS YEAR TO 13BN TRANSACTIONS BY THE END OF
ALL IN-STORE TRANSACTIONS. 2015. THAT’S ACCORDING TO JUNIPER RESEARCH
INDICATING THAT SOCIAL MEDIA AND MESSAGING FIRMS LIKE
SMARTWATCHES AND OTHER WEARABLES ARE JUST SNAPCHAT, WECHAT AND FACEBOOK THAT ARE PUSHING IN
5 GETTING STARTED. TRACTICA PREDICTS THAT TO THE SPACE ARE DRIVING THIS GROWTH.
WEARABLE PAYMENTS COULD GROW FROM $3.1BN IN
2015 TO $501.1BN BY 2020. APP STORES ARE ON BOARD – MOZILLA, GOOGLE PLAY,
12 AMAZON AND MICROSOFT APP STORES (THOUGH
THIS STUDY BY VISTA RETAIL INDICATES THAT 72% OF NOTABLY NOT IN APPLE’S) ALL OFFER CARRIER BILLING
6 CONSUMERS SURVEYED BELIEVE WEARABLE AS A WAY TO PURCHASE APPS AND THEIR RELATED
TECHNOLOGY IS THE FUTURE OF IN-STORE SHOPPING, CONTENT. THERE ARE 65 TELECOMS OPERATORS IN 32
MAKING IT EASIER TO ACCESS PRODUCT INFORMATION, COUNTRIES LISTED IN THE GOOGLE PLAY ALONE.
RECEIVE OFFERS AND NAVIGATE AROUND A STORE. A
FURTHER 81% CITE SPEED AT THE CHECKOUT AS THE MAIN GLOBAL CARRIER BILLING REVENUE IS EXPECTED TO
ADVANTAGE. 13 INCREASE TO $24.7 BILLION IN 2019 FROM THE $14.5
BILLION THE INDUSTRY SAW IN 2014, DRIVEN BY
THE WATCH WINS. 80% OF APPLE WATCH OWNERS IN INTEGRATION WITH APPS STORES ACCORDING TO THIS
7 THIS STUDY FROM WRISTLY HAVE USED THEIR WATCH STUDY FROM NEOMOBILE AND OVUM.
TO PAY FOR SOMETHING, WHILST JUST 20% HAVE USED
AN iPHONE 6.
MOBILE FIRST COUNTRIES CONTINUE TO LEAPFROG
8 ESTABLISHED ECONOMIES. STATISTICS FROM THE
CENTRAL BANK OF KENYA INDICATE THAT KENYANS USED
MOBILE DEVICES TO TRANSFER OVER KSHS 1 TRILLION
($9.5BN) BETWEEN JANUARY AND JUNE THIS YEAR.
MEF MOBILE MONEY eBULLETIN #4 12ABOUT MAHINDRA COMVIVA
Mahindra Comviva is the global leader in providing mobility solutions. It is a subsidiary of
Tech Mahindra and a part of the USD 16.5 billion Mahindra Group. With an extensive
portfolio spanning mobile finance, content, infotainment, messaging and mobile data
solutions, Mahindra Comviva enables service providers to enhance customer experience,
rationalize costs and accelerate revenue growth. Its mobility solutions are deployed by
over 130 mobile service providers and financial institutions in over 90 countries,
transforming the lives of over a billion people across the world.
For more information, please visit www.mahindracomviva.com
MEF MOBILE MONEY eBULLETIN #4 13Contact editorial@mobileecosystemforum.com
Keep up to date on the latest Mobile Money
trends& news via
WWW.MEFMINUTE.COM
Get involved in shaping the future of Mobile Money
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