Financial Services Market Research Bundle: Mobile and Alternative Payments in the U.S., 3rd Edition & Mobile and Alternative Payments in Canada

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

Facebook

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

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

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