Financial Services Market Research Bundle: Mobile and Alternative Payments in the U.S., 3rd Edition & Mobile and Alternative Payments in Canada
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Published Dec 7, 2012 |
328 Pages |
Pub ID: LA4921889
Mobile and Alternative Payments in the U.S., 3rd Edition
The mobile payments industry stands at the epicenter of tremendous innovation and change, with market participants introducing a slew of emerging payments solutions—from Square to Google Wallet to Popmoney to Serve to V.me. Thanks to the widespread adoption of smartphones, the consumer audience now has the means to use them; however, they still may not be accustomed to or even well informed about the new topography of the payment landscape.
The industry also serves as a nexus connecting the often competing interests of wireless carriers, phone manufacturers, payments networks, merchant acquirers, card associations, point-of-sale technology providers, nonbanking payment solution providers, banks, and retailers. At stake is the transformation of the consumer wallet—and the control traditional payment players have historically had over it—as well as the possibility of new revenue streams generated by data analytics, advertising, and other value-added products and services, above and beyond merchant payment fee revenue.
Even with mobile payments still in its nascent stage, Packaged Facts expects U.S. remote and point-of-sale mobile payments volume to grow by 275% in 2013, a testament to the impact of current product rollouts and consumer uptake already underway.
Mobile and Alternative Payments in the U.S. provides industry participants with the wealth of analysis and guidance they need to stay abreast of this quickly evolving market. Report coverage includes market sizing and forecast for U.S. mobile payments, as well as a comprehensive evaluation of competitor dynamics:
- Mobile payments strategies employed by the leading U.S. card associations, including American Express’ prepaid card innovation and Serve digital platform innovation, Discover Financial Services’ alternative payments strategy and PayPal and Google Wallet relationships, MasterCard PayPass and PayPass Wallet Services, and Visa V.me
- Mobile payment solutions developed by Digital Leaders, including online commerce behemoths Amazon, Apple, Google, Facebook, Groupon and PayPal; innovative offline commerce players LevelUp and Square; the Isis Mobile Commerce Network; and retailer mobile payment strategies
- Macro trends shaping the mobile payments landscape, including eCommerce growth, NFC payment growth. bill payment trends, P2P growth and associated metrics, and mobile payment fraud and security issues
- Mobile phone and smartphone ownership trends, app usage, and tablet ownership
- Mobile phone usage trends pertinent to mobile payments, including mobile phone usage trending over time and related demographic analysis
- Mobile payment methods (i.e. P2P, bill payment, etc.) and payment funding choices by demographic
- Mobile payers’ current and intended use of mobile payment, deposit and communication methods, broken out by smartphone users, non-smartphone users, mobile bankers, and mobile payers
- Recent and intended use of mobile phone financial, promotional & shopping tools
- Mobile phone and smart phone feature usage; smartphone share of mobile phone ownership by demographic; and voice, data and text plan penetration
Mobile and Alternative Payments in Canada
Mobile payments are gaining a foothold in Canada: Of an estimated 22 million Canadian adult mobile phone users, some 17% have made a mobile payment in past 12 months, according to Packaged Facts’ survey results. But in this very nascent-stage market, the issue comes down to the method of payment. Despite Canada’s solid contactless point-of-sale base, we see significant challenges for NFC-based mobile payments. However, mobile P2P has already taken hold, and we expect mobile P2P to continue to lead Canadian mobile payments growth, thanks in large part to PayPal and Zoompass, already popular P2P methods straddling online and mobile payments. While QR code awareness is low, our consumer survey results suggest that mobile payers are twice as likely to use a barcode scanning apps during the next 12 months than during the last 12 months. And with Starbucks’ Canadian rollout of its barcode scan-based mobile payment application, usage—and interest—could rise.
Packaged Facts expects Canadian E-Wallet and electronic P2P payments to grow at a compound annual growth rate of 62% during 2012-2015, on the heels of recent and expected mobile payments launches and subsequent consumer uptake.
Mobile and Alternative Payments in Canada provides industry participants with the wealth of analysis and guidance they need to stay abreast of this quickly evolving market. Report coverage includes market sizing and forecast for Canadian mobile payments, as well as a comprehensive evaluation of competitor dynamics:
- Canadian contactless and mobile payment strategies employed by American Express, Interac, MasterCard and Visa.
- Mobile payments strategies employed by non-banks: carrier-based payment strategies, led by Rogers Communications and Zoompass; alternative payments & emerging wallet payment strategies, led by Google, PayPal and Square; direct carrier billing, provided by Bango and Text2pay; and emerging mobile payment acceptance options, led by NetSecure Technologies and Payfirma.
- Mobile banking and mobile payment solutions of Canada’s Big 5 banks (Bank of Montreal, Canadian Imperial Bank of Commerce Royal Bank of Canada, Scotiabank and Toronto-Dominion Bank)
- Merchant perspective on Canadian mobile payments and analysis of the diverging mobile payment paths taken by Canadian QSR playersTim Hortons and Starbucks.
- Macro trends shaping the Canadian mobile payments landscape, including internet and mobile phone use trends; eCommerce and online merchant adoption trends; Payment method trends; mobile banking and payments usage versus future interest; and security and fraud.
- Mobile phone and smartphone ownership trends, feature usage, app usage, and tablet ownership
- Mobile payment methods (i.e. P2P, bill payment, etc.) and payment funding choices by demographic
- Mobile payers’ current and intended use of mobile payment, deposit and communication methods, broken out by smartphone users, non-smartphone users, mobile bankers, and mobile payers
- Mobile banking by demographic group; feature usage uptake among mobile bankers and mobile smartphone bankers.
- Current and intended use of mobile phone financial, promotional & shopping tools
- Mobile and Alternative Payments in the U.S., 3rd Edition
- Executive Summary
- Report Scope
- Market Size and Forecast
- Macro Trends Shaping the Mobile Payments Landscape
- Mobile Phone Usage Trends
- Mobile banking trends
- Mobile payments trends
- Consumer Interest in Mobile Phone Financial, Promotional and Shopping Enhancements
- Mobile Payments Strategies: Card Associations
- Mobile Payments Strategies: Digital Leaders
- Mobile Payments Strategies: Mobile Network Operators
- Mobile Payments Strategies: Retailers
- Chapter 1: Overview
- Mobile financial services: banking and payments
- Mobile financial services
- Mobile banking
- Mobile payments
- Mobile payment technologies
- SMS text messaging
- WAP
- RFID
- NFC
- 2D Barcode
- Mobile payment funding options
- Online and offline payment methods/players
- Chapter 2: Market Size and Forecast
- Summary analysis
- Mobile payments set for takeoff—but only after some dust settles
- Worldwide mobile payment growth
- The U.S. market
- Mobile payment usage is on the uptake
- But payment frequency remains low
- Table 2-1: U.S. Mobile Payment Transaction Value, 2012-2016
- Growth drivers
- Piggybacking on online banking and bill payment
- Giving merchant acceptance a shot in the arm
- Non-banking mobile payments players transitioning online account goldmine to offline arena
- Leapfrogging the near-term NFC hurdle
- Awareness and education set to rise
- Convenience/portability
- Greater payment flexibility
- Growth inhibitors
- Too many cooks spoil the broth
- Technology standardization
- Security and fraud
- On the fence
- Speed
- Financial service provider fees
- Chapter 3: Macro Trends Shaping Mobile Payments Landscape
- Mobile phone usage nears saturation
- Graph 3-1: Mobile Phone Users and Usage Penetration, 2004-2012
- Smartphone shares reaches majority status
- Smartphone share passes 50%
- Table 3-1: Consumer Mobile Phone Ownership, Smartphone Ownership and Ownership Share, 2012
- Past the tipping point—onward and upward
- Apps and more apps
- Graph 3-2: iTunes Music and App Store Downloads
- Tablet usage share triples in less than 18 months
- Table 3-2: Tablet Ownership, Spring 2011-Summer 2012
- Tablet and smartphone demographic synergy
- Table 3-3: Consumer Tablet Ownership, by Demographic, Summer 2012
- E-commerce gains
- Graph 3-3: Quarterly E-Commerce Retail Sales, Percentage Growth, and Percent of Retail Sales, 2003-2012
- NFC: low penetration to high penetration—but when?
- A small merchant footprint
- Contactless a small ripple in a big pond
- PayPass merchant adoption at 400,000
- Bottom line: incremental growth does not a revolution make
- Looking down the road: 2015 will tell a different story
- An EMV nudge
- Consumer bill pay methods: mail continues to dwindle
- Among alternatives, online bill pay rising fastest
- Graph 3-4: Consumer Bill Pay Preferences: Forms Used, 2007-2012
- Online banking and bill pay add more users
- Graph 3-5: Online Banking and Bill Payment: Household Usage, 2002-2011
- Eyeing P2P
- Players
- The P2P usage universe
- Table 3-4: Domestic and International Person-to-Person Money Sending/Receipt, 2010-2012
- U.S. mail dominates; Western Union, Money Gram and PayPal are key players
- Table 3-5: Domestic Person-to-Person Money Sending/Receipt: By Method, 2010-2012
- Lots of checks and cash left to convert
- 95% of dollar value in cash and checks!
- Mobile banking usage lags awareness
- Graph 3-6: Mobile Banking Feature Awareness vs. Use
- Security and fraud concerns holding adoption back
- Security concerns thwart use of mobile banking
- Specific mobile banking security concerns
- Graph 3-7: Mobile Banking Feature Awareness vs. Use
- But can mobile payments actually be more secure than traditional payments?
- Mobile phone as fraud reducer
- Dynamic authentication
- Password-protect phone and payment app
- Facial recognition
- Am I protected? It depends on the funding
- If protection level is not tied to phone, then what’s the problem?
- Security in the Cloud
- Pros
- Cons
- Reducing fraud
- Google Wallet vulnerability: fire flared up, then put out
- Reaching the unbanked
- Mobile phones can help them connect more deeply to financial services
- It’s more a question of data plan and internet usage, not access
- Table 3-6: All Consumers vs. Unbanked Consumers: Cell Phone Usage, Cell Phone Text Messaging, Web Browsing, Data Plan, App and Operating System Usage/Population, Tablet
- Ownership/Population, and Online Banking Usage/Population, 2012
- And the underbanked
- Convenience a mobile banking driver
- Chapter 4: Mobile Phone Usage Trends
- Summary analysis
- Mobile phone ownership nears saturation point
- Graph 4-1: Mobile Phone Ownership and Ownership Penetration, 2004-2012
- Increasing variety of features making their way onto mobile phones
- Texting usage nears 60%
- Camera/picture phone use bodes well for remote check deposit
- Table 4-1: Mobile Phone Features and Services Penetration, 2007-2012
- Feature engagement
- Downloading apps, GPS and camcorder phone engagement above 50%
- Graph 4-2: Mobile Phone Feature Usage and Engagement: By Feature, 2012
- Data plans attached to a third of mobile phones
- Graph 4-3: Share of Mobile Phone Owners with Limited and Unlimited Voice, Data and Text Plans, 2012
- Mobile phone usage and smartphone usage share
- Smartphone share passes 50%
- Youth, higher income consumers and racial/ethnic minorities lead the way
- Table 4-2: Consumer Mobile Phone Ownership, Smartphone Ownership and Ownership Share, 2012
- Smartphone users vs. non-smartphone users: feature usage, bill and downloads
- Texting carries across smartphones and non-smartphones
- Data-driven feature usage is smartphone dependent
- Strong feature-driven user base for mobile payments providers to target
- Table 4-3: Feature Usage, Phone Bill and App Download Frequency: Smartphone Users
- vs. Non-Smartphone Users, 2012
- 25-34s drive usage, but internet, text and e-mail penetration implies broad target population
- Table 4-4: Smartphone User Feature Usage, Phone Bill and App Download Frequency: By Age Bracket, 2012
- Usage consistent across incomes despite significant billing differences
- Table 4-5: Smartphone User Feature Usage, Phone Bill and App Download Frequency: By HH Income, 2012
- Chapter 5: Mobile Banking Trends
- Summary analysis
- Mobile bankers
- 25-34s and non-whites pivotal demographics
- Table 5-1: Mobile Banking: Usage Penetration, 2012
- Mobile banking features and services
- Almost 50 million using phone to check account balance/recent transactions
- Remote check deposit is quickly gaining traction
- Table 5-2: Mobile Banking Features and Services Usage Penetration and Population: U.S. Population, Mobile Phone and Smartphone Users, 2012
- Mobile bankers = smartphone users
- Table 5-3: Mobile Banking and Mobile Banking Frequency: Mobile Phone, Smartphone and Non-Smartphone Users, 2012
- Chapter 6: Mobile Payments Trends
- Summary analysis
- Mobile payers
- Gaining a foothold
- Table 6-1: Mobile Payments Usage Penetration, 2012
- But marked by infrequent use
- Table 6-2: Mobile Payments Per Month, 2012
- Mobile payment methods
- Bill payment has widest usage footprint
- P2P taking hold
- 1 in 10 tapping phone at POS; using virtual wallets
- Table 6-3: Mobile Payment Methods, 2012
- It’s a generational issue more than a financial one
- Table 6-4: Mobile Payment Methods: Analysis by Gender, Age and HH income, 2012
- Payment cards prevailing funding option, followed by bank account and PayPal
- Table 6-5: Mobile Payments Funding Sources, 2012
- Youth and money
- Table 6-6: Mobile Payments Funding Sources: Analysis by Gender, Age and HH income, 2012
- Past 12 months vs. next 12 months: mobile payment, deposit and communication methods
- Current state of affairs
- Future state of affairs
- Graph 6-1: Mobile Payers’ Mobile Payment, Deposit and Communication Methods:
- Current vs. Intended Use, 2012
- Interest during next 12 months
- Interest more prevalent among smartphone users
- Table 6-7: Interest in Mobile Phone Payment, Deposit and Communication Methods in Next
- 12 months: Mobile Phone, Smartphone and Non-Smartphone Users, 2012
- Mobile bankers and mobile payers express similar interest
- Table 6-8: Interest in Mobile Phone Payment, Deposit and Communication Methods in Next
- 12 months: Mobile Phone Users, Mobile Bankers and Mobile Payers, 2012
- 65+ smartphone users could benefit from barcode scanning app
- Table 6-9: Interest in Mobile Payment by Text, Barcode Scan and Web Browser in Next 12 Months: Smartphone Users vs. Non-Smartphone Users by Demographic, 2012
- Hispanic intention to tap phone at POS lags average
- Table 6-10: Interest in Mobile Payment by App, POS Tap and Picture Bill Payment in Next 12 Months: Smartphone Users vs. Non-Smartphone Users by Demographic, 2012
- Intended use of picture check deposit among 35-44s lag average
- Table 6-11: Interest in Picture Check Deposit and Two-Way Alerts in Next 12 Months: Smartphone Users vs. Non-Smartphone Users by Demographic, 2012
- Chapter 7: Consumer Interest in Mobile Phone Financial, Promotional and Shopping Enhancements
- Summary analysis
- Introduction
- Mobile Phone Financial and Promotional Organization
- Mobile Financial and Promotional Organization Tools: Current Use and Future Use
- Graph 7-1: Mobile Payers: Current and Future Use of Mobile Financial and Promotional Organization Tools, 2012
- Non-smartphone users interested, too
- Table 7-1: Interest in Mobile Financial And Promotional Organization Tools in Next 12 months:Mobile Phone, Smartphone& Non-Smartphone Users
- Mobile bankers most apt to express interest in variety of methods
- Table 7-2: Interest in Mobile Financial and Promotional Organization Tools in Next 12 Months: Mobile Phone Users, Mobile Bankers and Mobile Payers, 2012
- Mobile Phone Shopping Enhancements
- Mobile Shopping Tools: Current Use and Future Use
- Stop using that cell phone to find a better offer and then shop elsewhere!
- Keep them in the store and upsell them
- Comparing prices while shopping a popular phenomenon
- Graph 7-2: Mobile Payers: Current and Future Use of Mobile Shopping Tools, 2012
- Non-smartphone users interested, too
- Table 7-3: Interest in Mobile Shopping Tools in Next 12 months: Mobile Phone, Smartphone and Non-Smartphone Users, 2012
- Mobile banker interest suggests platform development route
- Table 7-4: Interest in Mobile Shopping Tools in Next 12 months: Mobile Phone Users, Mobile Bankers and Mobile Payers
- Chapter 8: Mobile Payments Strategies: Card Associations
- American Express
- Payment diversification
- Prepaid moves
- Filling a void
- Strong consumer value proposition
- Bluebird takes flight
- Part of the digital wallet
- Serve
- Tapping younger, affluent customers
- Building use base via partners with large customer bases
- Ticketmaster
- Verizon
- Funding agnostic
- P2P and other nifty things
- Bridging online and offline
- Personalized offers
- My Offers personalizes daily deals
- Go Social
- Location-based SMS text messaging for feature phone users
- Location-based offers for iPhone on the way
- Loyalty automation
- Serve revenue
- Table 8-1: Serve Revenue Drivers and Cost Drivers
- Discover Financial Services, Inc.
- Discover building significant relationships
- Alternative payments strategy
- PayPal card
- Google Wallet card
- MasterCard
- PayPass
- Security
- PayPass Wallet Services
- PayPass network remains very small
- MasterCard inControl: Security, financial control and awareness
- The bigger picture: EMV is the key
- Strong on security
- Weak on adoption
- Visa
- Priority 1: driving consumer adoption
- Rollout with major banking and retail partners
- V.me makes huge splash abroad
- Visa mobile payments relationship building
- Chapter 9: Mobile Payments Strategies: Digital Leaders
- Introductory competitive analysis
- The mobile payment solution with the most users wins?
- Table 9-1: Leading E-Commerce Mobile Payments Players: Consumer Usage Metrics
- Who has the fee edge?
- Table 9-2: Leading E-Commerce Mobile Payments Players: Merchant Processing Fees
- And how/where do I pay?
- Table 9-3: Leading E-Commerce Mobile Payments Players: Payment Options
- New technologies at the point of sale
- Table 9-4: Leading E-Commerce Mobile Payments Players: POS Payment Method
- Amazon Payments
- Drawing from an enormous consumer usage base
- Table 9-5: Amazon.com Website Monthly Usage Penetration and Visits per Month, 2007-2012
- Checkout by Amazon
- Checkout by Amazon Mobile
- Amazon Simple Pay
- Amazon WebPay
- Amazon Mobile Payments Service
- Flexible Payment Services
- Pricing and fees
- Table 9-6: Amazon Payments: Fee Structure, 2012
- Apple
- Passbook
- Dipping a toe in offline space
- NFC still not on the menu, but perhaps fingerprints are?
- Missing pieces
- The iTunes connection
- 400 million accounts worldwide
- Millions of highly engaged U.S. users
- Who align well with smartphone demographic
- Table 9-7: iTunes Annual, Weekly and Daily Usage Population and Demographic Analysis, 2012
- Key mobile technology groups likely to use iTunes
- Table 9-8: iTunes Annual, Weekly and Daily Usage Penetration and Population Universe: By Cell Phone Owners, Cell Phone Data Plan, Android and iOS Users, App Downloaders, Tablet Owners, and Online Bankers, 2012
- Graph 9-1: iTunes Annual, Weekly and Daily Usage Penetration: By Cell Phone Owners, Cell Phone Data Plan, Android and iOS Users, App Downloaders, Tablet Owners, and Online Bankers, 2012
- Google Wallet
- Wallet 1.0: lots of fanfare; little success
- Wallet 1.5: putting it in the cloud
- Calling all cards
- Save to Wallet feature
- Online/offline integration: Enter the virtual prepaid card
- Online purchases: ubiquity, courtesy of MasterCard
- In-store purchase limited by NFC
- Security enhancement
- Wallet 2.0: Leapfrogging NFC with a physical card
- Thank you, Discover
- The interchange issue: Google loses on transaction revenue
- Direct to carrier billing payments strategy; digital content focus
- Providing opportunity for Facebook App Center
- 15% of revenue from payments
- Mobile active users set to top 500 million
- Graph 9-2: Facebook Mobile Active Users and Average Revenue Per User, 2011-2012
- Groupon Payments
- Very attractive pricing
- LevelUp
- The best pricing: no interchange
- Incentive programs, merchant partnerships and user base
- LevelUp makes its money from added-value analytics
- Merchant-driven customer discounts
- Addressing security concerns
- Table 9-10: LevelUp Security Summary
- PayPal
- Bill Me Later
- Zong
- 100 million accounts and counting
- The PayPal P2P usage base
- Online and mobile capability
- PayPal Wallet
- PayPal Here: POS solution
- The Discover network connection
- The card you use to pay matters: lower interchange = better for PayPal
- Location-based mobile advertising
- Addressing fraud
- Square, Inc.
- How much it costs
- Table 9-12: Square Pricing Options and Fees
- How it works
- Open tab feature
- Loyalty tracking
- Security
- Tools
- Square Card Reader
- Square Register
- Starbucks breaks it wide open
- Starbucks
- Chapter 10: Mobile Payments Strategies: Processors and
- POS Solution Providers
- Heartland Payment Systems
- Going Mobuyle
- Penetrating higher education
- Fiserv
- Leveraging relationships to build an integrated platform
- Table 10-1: Fiserv Customer Relationships, by Payment Method and Device
- Electronic banking
- Electronic bill payment and presentment
- Digital channels
- P2P opportunity
- 2010 P2P launch
- 2011 Popmoney integration
- Demand surging
- Fast transaction execution
- Integration with bill payment
- Spot Pay: Setting sights on Square and PayPal
- Windows 8 Digital Banking
- Verifone
- 1 million NFC terminals shipped
- Terminal upgrades coming
- Straddling emerging wallets
- Chapter 11: Mobile Payments Strategies: Mobile Network Operators
- Isis
- 230 million accounts is a nice start
- Table 11-1: Verizon, AT&T, Sprint and T-Mobile Subscribers, ARPU and Service Revenue, 2009-2011
- Isis
- A challenge to the payment networks
- Open wallet approach
- Table 11-2: Isis: What’s in the Wallet and How It Works
- Off the ground after delays
- Chapter 12: Mobile Payments Strategies: Retailers
- Merchant Customer Exchange
- Wal-Mart testing
- Starbucks
- Starbucks takes the barcode route
- 100 mobile million transactions and counting
- Stored value card foundation
- Benefits
- Square partnership—a Square investment
- Restaurant chains
- McDonald’s
- Dunkin Donuts
- Appendix
- Consumer survey methodology
- Market size and forecast
- Report table interpretation
- Abbreviations
- Terms and definitions
- Explanatory tables
- Table: Appendix – 1: Mobile Phone, Smartphone, Non-Smartphone, Mobile Banking and
- Mobile Payments Users: 2012
- Table: Appendix – 2: U.S. Cell Phone Ownership/Use, by Demographic: 2012 Survey Comparison
Mobile and Alternative Payments in Canada
- Executive Summary
- Report Scope
- Overview
- Market Size and Forecast
- Macro trends shaping Canadian mobile payments landscape
- Internet and mobile phone use trends
- eCommerce and online merchant adoption
- Payment methods
- Mobile banking and payments usage versus future interest
- Security and fraud concerns
- Canadian Mobile Phone Usage Trends
- Canadian Mobile Banking Trends
- Summary analysis
- Canadian Mobile Payments Trends
- Summary analysis
- Canadian Interest in Mobile Financial, Promotional & Shopping Tools
- Summary analysis
- Canadian Mobile Payments Strategies: Card Associations
- American Express
- Interac
- MasterCard
- Visa Canada
- Canadian Mobile Payments Strategies: Nonbanks
- Carrier-Based Payment Strategies
- Alternative Payments & Emerging Wallet Payment Strategies
- Emerging mobile payment acceptance options
- Mobile Payments Strategies: Canadian Banks
- Tim Hortons & Starbucks Canadian Mobile Payment Strategies
- Retailer perspective
- Tim Horton’s opts for NFC
- Starbucks Canada takes the barcode route
- Chapter 1: Overview
- Canadian payments infrastructure
- Payment methods
- Canadian payment laws
- Payments industry undergoing significant change
- The Task Force for the Payments System Review
- Code of Conduct for the Credit and Debit Card Industry
- Application to mobile payments
- Merchant payment choice
- Competing domestic debit applications
- Principle of equal branding
- Debit and credit comingling
- CBA Mobile Payments Reference Model
- Competition Bureau
- Huge discrepancy between credit and debit fees
- Challenging practices as anti-competitive
- Chapter 2: Market Size and Forecast
- Summary analysis
- Mobile payments are gaining a foothold in Canada
- E-Wallet and electronic P2P payments growing robustly
- But represent a tiny sliver of retail payments
- Zoompass and PayPal
- Going forward: 62% 2012-2015 CAGR
- Table 2-1: Canadian E-Wallet/P2P Transaction Value, 2011-2015
- NFC mobile payments at POS: significant challenges ahead
- NFC mobile payment growth inhibitors
- Limited acceptance
- Limited access
- Limited transaction value amounts
- Limited payment flexibility; no loyalty flexibility
- Fee & competition concerns
- Payment growth context
- Cash and check garner largest value share
- Credit and debit gain
- Contactless card growth
- Prepaid use also rises aggressively, but total value remains very small
- Graph 2-1: Canadian Retail Payments Value, by Payment Type, 2008-2011
- Chapter 3: Macro Trends Shaping Canadian Mobile Payments Landscape
- Internet and mobile phone use trends
- Mobile phone usage nears saturation
- Mobile phone coverage virtually universal
- Table 3-1: Canadian Wireless Subscribers, Revenue, Availability and Penetration, 2010 and 2011
- Smartphone share nears 60%
- Graph 3-1: Quarterly Canadian Smartphone/Feature Phone Share, 2011
- Smartphone share passes 50%
- 100% penetration by 2014
- Apps and more apps
- Graph 3-2: iTunes Music and App Store Downloads
- Tablet penetration exceeds U.S. rate
- Broadband internet availability nearly universal
- Table 3-2: Residential Internet, Broadband and High-Speed Broadband Metrics, 2011
- Household internet access at 80%
- Graph 3-3: Percentage of Canadian Households with Home Internet Access, 2010
- Online banking highly penetrated
- eCommerce and online merchant adoption
- E-commerce lags
- Table 3-3: Canadian Electronic Commerce, Number and Value of Orders
- Credit cards dominant online payment option, but online payment services have foothold
- Small- and midsize- businesses
- Small business online penetration very high
- Online banking penetration high; online selling is low
- PayPal leading internet payment choice
- Table 3-4: Internet payment solutions used by SMEs
- Less than half can accept online payments
- Table 3-5: Small- and Medium-Size Business Payment Acceptance Rates, Preferred Payment, and Share of Dollar Sales
- And mobile platform adoption very low
- Social networking not significant
- Justifying cost of electronic payment equipment a challenge
- Graph 3-4: Obstacles to Accepting Electronic Payments
- Payment methods
- NFC and contactless
- Is 80,000 enough to drive a revolution?
- PayPass merchant adoption passing 20,000
- But only 5% terminal penetration?
- An urban skew
- Table 3-6: MasterCard PayPass Terminals & Terminals per Capita:
- Top 10 Canadian Cities by Population, 2012
- payWave skewed heavily to major chains; narrow retail segment scope
- Table 3-7: Visa payWave Merchant Category Penetration: Top 10 Canadian Cities by Population, 2012
- Don’t count out QR codes
- Eyeing P2P
- Lots of checks and cash left to convert
- Online/mobile opportunity: P2P transactions skew to cash
- Table 3-8: Percentage of Consumer Transactions by Method of Payment & Payment Channel
- Card-and phone-based opportunity: Most micropayments made in cash
- Table 3-9: Percentage of Consumer Transactions by Transaction Value Range & Method of Payment
- Mobile banking and mobile payments use and interest
- Awareness is relatively high
- Usage foundation is forming
- Mobile payments gaining a foothold
- NFC and wallet penetration is low
- But mobile P2P has taken hold
- Future intent suggests pent up demand for mobile payments. . .
- . . . and for more holistic mobile financial & promotional organization tools
- Security and fraud concerns
- Need for robust digital identification and authentication
- Research In Motion to address mobile wallet security
- Chapter 4: Canadian Mobile Phone Usage Trends
- Summary analysis
- Mobile phone usage and smartphone usage share
- Smartphone share well above 50%
- Youth and non-Europeans lead the way
- Table 4-1: Canadian Mobile Phone & Smartphone Usage Penetration, 2012
- Operating system: still RIM territory
- Graph 4-1: Quarterly Canadian Smartphone Operating System Share, 2011
- Smartphone users v. non-smartphone users: feature usage, bill & downloads
- Texting carries across smartphones and non-smartphones
- Strong feature-driven user base for mobile payments providers to target
- Table 4-2: Table Feature Usage, Phone Bill & App Download Frequency: Smartphone Users V.Non-Smartphone Users, 2012
- Demographic analysis
- Table 4-3: Smartphone User Feature Usage, Phone Bill & App Download Frequency: By Gender, 2012
- Table 4-4: Smartphone User Feature Usage, Phone Bill & App Download Frequency: By Age, 2012
- Chapter 5: Canadian Mobile Banking Trends
- Summary analysis
- Mobile banker definition
- 18-29s a pivotal demographic
- Table 5-1: Mobile Banking: Canadian Usage Penetration, 2012
- Mobile banking features & services
- More than 4 million using phone to check account balance/recent transactions
- Mobile bill payment catching on
- Table 5-2: Mobile Banking Features & Services Usage Penetration and Population:
- Canadian Population, Mobile Phone & Smartphone Users, 2012
- Mobile bankers = smartphone users
- Moderate usage frequency
- Table 5-3: Mobile Banking & Mobile Banking Frequency: Mobile Phone, Smartphone
- & Non-Smartphone Users, 2012
- Chapter 6: Canadian Mobile Payments Trends
- Summary analysis
- Mobile payer definition
- Gaining a foothold
- Table 6-1: Mobile Payments: Usage Penetration, 2012
- But marked by infrequent use
- Mobile payment methods
- Bill payment has widest usage footprint
- P2P taking hold
- Online purchasing more prevalent than most mobile payment methods
- Less than 1 in 10 tapping phone at POS; even fewer using virtual wallets
- Table 6-2: Mobile Payment Methods, 2012
- Payment cards prevailing funding option, followed by bank account & PayPal
- Wallet solutions not relevant yet
- Carrier direct billing and iTunes
- Table 6-3: Mobile Payments: Payment Sources, 2012
- Past vs. next 12 months: mobile payment, deposit & communication methods
- In light of current use, NFC mobile payment interest is pronounced
- Picture check deposit and bill payment
- Graph 6-1: Mobile Payers’ Mobile Payment, Deposit and Communication Methods:
- Current v. Intended Use, 2012
- Interest during next 12 months
- Interest more prevalent among smartphone users
- Table 6-4: Interest in Mobile Phone Payment, Deposit & Communication Methods in Next 12 months:
- Mobile Phone, Smartphone & Non-Smartphone Users, 2012
- Mobile bankers more apt to express interest in mobile payment & deposit methods
- Table 6-5: Interest in Mobile Phone Payment, Deposit & Communication Methods in Next 12 months:
- Mobile Phone Users, Mobile Bankers & Mobile Payers, 2012
- Chapter 7: Canadian Interest in Mobile Financial, Promotional & Shopping Tools
- Summary analysis
- Introduction
- Mobile Phone Financial & Promotional Organization
- Mobile Financial & Promotional Organization Tools: Current Use & Future Use
- Graph 7-1: Mobile Payers: Current and Future Use of Mobile Financial &
- Promotional Organization Tools, 2012
- Non-smartphone users interested, too
- Table 7-1: Interest in Mobile Financial And Promotional Organization Tools in Next 12 months: Mobile Phone, Smartphone & Non-Smartphone Users, 2012
- Mobile bankers most apt to express interest in variety of methods
- Table 7-2: Interest in Mobile Financial And Promotional Organization Tools in Next 12 months:
- Mobile Phone Users, Mobile Bankers & Mobile Payers, 2012
- Mobile Phone Shopping Enhancements
- Mobile Shopping Tools: Current Use & Future Use
- Path to purchase
- An online shopping laggard
- Mobile purchase apps
- Comparing prices while shopping a popular phenomenon
- Barcode scanning demand
- Graph 7-2: Mobile Payers: Current and Future Use of Mobile Shopping Tools, 2012
- Non-smartphone users interested, too
- Table 7-3: Interest in Mobile Shopping Tools in Next 12 months: Mobile Phone, Smartphone & Non-Smartphone Users, 2012
- Mobile banker interest suggests platform development route
- Table 7-4: Interest in Mobile Shopping Tools in Next 12 months: Mobile Phone Users,
- Mobile Bankers & Mobile Payers, 2012
- Table 7-4: Interest in Mobile Shopping Tools in Next 12 months: Mobile Phone Users,
- Graph 7-1: Mobile Payers: Current and Future Use of Mobile Financial &
- Chapter 8: Canadian Mobile Payments Strategies: Card Associations
- Summary analysis
- American Express
- Interac
- MasterCard
- Visa Canada
- American Express Canada
- Payment diversification
- Prepaid moves
- Contactless chip technology migration
- Mobile banking website
- No Canada Serve yet
- Interac
- Non-profit status a boon and a bane
- Products and services
- Interac Flash: Canada’s first contactless debit payment function
- Interac Online
- Interac e-Transfer
- Low, low, low fees
- MasterCard
- Maestro take a bow—then leaves the stage
- PayPass
- Security
- New issuers
- PayPass Wallet Services
- PayPass global network remains small
- But Canada tells a slightly different story
- But only 3% terminal penetration?
- An urban skew
- Table 8-1: MasterCard PayPass Terminals & Terminals per Capita, Top 10 Canadian Cities by Population, 2012
- Visa Canada
- Visa payWave
- payWave skewed heavily to major chains; narrow retail segment scope
- Table 8-2: Visa payWave Merchant Category Penetration, Top 10 Canadian Cities by Population, 2012
- CIBC mobile payment app
- Visa digital wallet
- Zoompass prepaid card option
- Co-badged debit foothold
- Chapter 9: Canadian Mobile Payments Strategies: Nonbanks
- Carrier-Based Payment Strategies
- Rogers Communications
- Graph 9-1: Wireless Carrier Mobile Phone Subscriber Market Share, Q3 2012
- Direct carrier billing
- Rogers-branded suretap solution
- Gemalto partnership
- Financial institution? A credit card?
- Zoompass
- Major partnerships
- Zoompass Tag
- Zoompass functionality
- Enrollment
- Loading the wallet
- Transferring money
- Prepaid card option
- Fee structure
- Table 9-1: Zoompass Account Fees
- Table 9-2: Zoompass Account Funding and Transaction Maximums
- Alternative Payments & Emerging Wallet Payment Strategies
- Google Wallet
- PayPal
- Square
- Google Wallet
- Not in Canada, for some time we expect
- But study it closely
- Wallet 1.0: lots of fanfare; little success
- Wallet 1.5: putting it in the cloud
- Calling all cards
- Save to Wallet feature
- Online/offline integration: Enter the virtual prepaid card
- Online purchases: ubiquity, courtesy of MasterCard
- In-store purchase limited by NFC
- Security enhancement
- Wallet 2.0: Leapfrogging NFC with a physical card
- Thank you, Discover
- PayPal
- 100 million accounts and counting
- Online and mobile capability
- Mobile payment apps
- In-store payment launching in U.S.
- Already a strong Canadian online player
- Mobile checkout enabled for hundreds of thousands of Canadian merchants
- PayPal Here: POS payment solution
- PayPal Here delays holding it back?
- Square, Inc.
- How much it costs
- Table 9-3: Square Pricing Options & Fees
- How it works
- Open tab feature
- Loyalty tracking
- Security
- Tools
- Square Card Reader
- Square Register
- Starbucks U.S. relationship does not extend to Canada
- Direct Carrier Billing
- Text2pay
- Bango
- Emerging mobile payment acceptance options
- NetSecure Technologies
- Like Square, but not like Square
- Kudos Slice
- Payfirma
- NFC in the works
- Fee structure
- Table 9-4: Payfirma Mobile Payment Pricing
- Chapter 10: Mobile Payments Strategies: Canadian Banks
- Summary analysis
- Bank of Montreal
- Mobile PayPass Tag
- Canadian Imperial Bank of Commerce
- Mobile banking leadership
- CIBC Mobile Payment App
- Who can use it
- Incentive to use it
- How they can use it
- Royal Bank of Canada
- Mobex Mobile Payment provides learning curve
- Mobile wallet launch on the horizon
- Scotiabank/ING Direct
- Passive social network banking on Facebook
- Remote check deposit
- Toronto-Dominion Bank
- Mobile banking app launches met with strong demand
- Chapter 11: Tim Hortons & Starbucks Canadian Mobile Payment Strategies
- Summary analysis: retailer perspective
- A Tale of Two Chains: Starbucks and Tim Horton’s
- Tim Horton’s opts for NFC
- Starbucks Canada takes the barcode route
- 100 mobile million transactions and counting
- Stored value card foundation
- Benefits
- Square partnership—a Square investment
- But Starbucks chooses PayPal in Canada
- Appendix
- Methodology
- Consumer survey methodology
- U.S. Cell Phone Ownership/Use, by Demographic: 2012 Survey Comparison
- Packaged Facts Canadian Survey Demographics
- Market size and forecast
- Report table interpretation
- Abbreviations
- Terms and definitions
- Explanatory tables
- Table A1: Mobile Phone, Smartphone, Non-Smartphone, Mobile Banking & Mobile Payments Users, 2012
