Mobile Payment Strategies

Overview

- Entire Ecosystem Analysed
- Expert Industry Intelligence
- Fully Updated Third Edition

This report provides the definitive big picture view of the entire mobile payment market, delivering detailed vendor analysis and forecasts for three segments of this rapidly developing landscape; mobile payments for digital and physical goods, NFC retail marketing and mobile payments; and mobile money transfer & remittances (domestic and international).

This invaluable market sizing tool delivers an insightful synopsis of the opportunity for each of the mobile payment segments projecting gross mobile payment transaction values for eight key regions up until 2015.  For more in-depth sector focused forecasts, please see each of three related reports within the mobile commerce stream.

This fully updated third edition defines the current mobile payments market structure, exploring a number of vendor applications and services, central to emerging trends within the value chain over the past 12 months.

Table of Contents

Executive Summary

Mobile Commerce & Payments Market

1.1 Market Outline    15
1.1.1 Synopsis    15
1.1.2 Market Segmentation    16
Figure 1.1: Mobile Commerce Market Segmentation    16
1.2 Market Drivers and Constraints    17
Figure 1.2: Mobile Payments: Summary of Market Drivers & Constraints    17
1.2.1 Drivers    17
i. Convenience & User Demand    17
ii. Increase in ARPU    18
iii. Larger Retail Transactions    18
iv. Cash Replacement    18
v. Developing World    18
vi. Lower Churn    19
vii. Smartphone Growth    19
viii. SMS    19
ix. eCommerce    19
x. Migrant Worker Remittances    20
xi. Transaction Efficiency    20
xii. Success Stories & PR    21
xiii. Future Services    21
xiv. One to One Marketing    21
1.2.2 Constraints    22
i. User Experience    22
ii. Business Model & Payouts    22
Figure 1.3: NFC Ecosystem Top Level View    23
iii. Smartphone Proliferation    24
iv. Regulatory Hurdles    24
v. Transaction Costs    25
vi. Disclosure    25
vii. Inadequate Local Agent Networks    25
viii. Device Availability    26
ix. Service Complexity and Management    26
Figure 1.4: NFC Ecosystem Detailed View    27

Mobile Payments: Market Structure and Trends

2.1 Definition    29
Figure 2.1: mCommerce Payment Process    29
2.2 Market Segmentation    30
2.2.1 Top level Segments    30
Figure 2.2: Mobile Payments Market Segmentation    31
2.2.2 Market Segment Detail    31
i. Remote Payments    31
ii. Proximity/POS Payments    32
2.2.3 Market Segment Boundaries    32
i. Mobile Money Transfer Service Expansion    32
ii. Variation Within Segments    32
Figure 2.3: Arriva Buses Mobile Ticketing Service    33
iii. Platform & Service Extension    34
iv. Emerging Segments    34
2.2.4 Report Focus: What is Included?    34
2.3 Classification of Payment Schemes    35
Table 2.1: Mobile Payment Classification    35
2.3.1 Mobile Phone Bill – “D2B” (Direct to Bill) Payment    35
2.3.2 Premium Rate SMS (PSMS)    36
i. Advantages of PSMS Payment    36
ii. Disadvantages of PSMS Payment    37
2.3.3 Mobile Web & WAP Billing    37
2.3.4 SMS/Java/SIM Toolkit    38
Figure 2.4: PayPal Mobile “Text To Buy”    38
Figure 2.5: PayMate Purchase Process    39
2.3.5 Person-to-Person (P2P) Payment    39
2.3.6 Smartphone Apps    40
Figure 2.6: SBB Swiss Railways iPhone App    40
2.3.7 NFC Contactless Payment    40
i. NFC Technology    40
Figure 2.7: Typical NFC Implementation    42
ii. NFC Implementation    42
Figure 2.8: Oyster Card Using MIFARE Technology    42
Figure 2.9: Uses of NFC    43
Figure 2.10: N Mark Logo    43
iii. NFC in the Device    44
iv. Interim NFC Form Factor Solutions    44
Figure 2.11: Integration Phase Comparison – NFC and Mobile Broadband    45
Figure 2.12: Twinlinx My-Max NFC Sticker    45
Figure 2.13: Giesecke & Devrient NFC SD Card    45
Figure 2.14: NFC Case for iPhone    46
Figure 2.15: VeriFone PAYware Mobile Enterprise    46
v. Further Vertical Markets    47
2.3.8 In Store    47
Figure 2.16: Mocapay Mobile Commerce Platform    47
2.4 On Deck & Off Deck    48

Case Studies: Applications and Services

3.1 Introduction    49
3.2 Digital Goods Case Studies    49
3.2.1 Greater Copenhagen Traffic Companies (Denmark)    49
Figure 3.1: Mobile Ticketing in Copenhagen – 1415.dk    50
3.2.2 Badoo & Ericsson    50
3.2.3 TDC Denmark & Aepona    51
3.2.4 Virgin Media & OpenMarket (UK)    51
3.3 Physical Goods Case Studies    52
3.3.1 Danal (Korea)    52
Figure 3.2: Danal Mobile Payment Service    52
Figure 3.3: Danal Mobile Payment Transaction Value 2001-2010 (KRW 100m)    53
3.3.2 Brooks Brothers & Digby (US)    53
Figure 3.4: Brooks Brothers Mobile Site    54
3.3.3 Amazon    54
Figure 3.5: Amazon Mobile Shopping    54
3.3.4 eBay Mobile    55
Figure 3.6: eBay “Store in Your Pocket”    55
3.4 NFC Case Studies    56
3.4.1 France Telecom Orange    56
i. Orange Strategy    56
ii. Cityzi Pilot    56
Figure 3.7: Cityzi Mobile Ticketing    57
3.4.2 Telefonica, Visa & La Caixa (Spain)    58
Figure 3.8: Sitges Mobile Shopping    58
3.4.3 Osaifu-keitai (Japan)    59
i.    FeliCa Services    59
Figure 3.9: Osaifu-Keitai Service Concept    59
ii.    NTT DOCOMO and KT    60
3.4.4 MasterCard, Gemalto, Garanti Bank and Avea (Turkey)    60
3.5 Mobile Money Transfers and Remittances    61
3.5.1 Safaricom M-PESA    61
i. Service Description    61
ii. Service Statistics    61
Figure 3.10: M-PESA Tariff    62
iii. Service Developments    62
3.5.2 Smart Money    62
Figure 3.11: SmartMoney Service Features    63
Figure 3.12: Smart Money Online Stores    64
3.5.3 Western Union    64
Figure 3.13: Western Union Product Development Strategy    66
3.5.4 mService (Vietnam)    66

Vendors and Solutions

4.1 Aepona    69
Figure 4.1: Aepona NaaS Concept    71
4.2 C-SAM    71
4.3 Digby    72
Figure 4.2: Digby Rich Retailer Branded App    74
4.4 eServGlobal    75
Figure 4.3: eServGlobal Product Overview    76
4.5 Ericsson    77
Figure 4.4: Ericsson IPX Ecosystem    78
4.6 Fundamo    79
4.7 Gemalto    81
4.8 MoreMagic    83
4.9 Seamless    84
4.10 tyntec    85
4.11 Utiba    86
4.12 VeriFone    88
4.13 ViVOtech    89

Market Forecasts

5.1 Methodology    91
5.1.1 Approach and Assumptions    91
Figure 5.1: Market Forecast Methodology    92
5.2 Global Mobile Subscriber Forecast    93
Figure 5.2: Mobile Subscriber Base (m) Split by 8 Key Regions 2011-2015    94
Table 5.1: Mobile Subscriber Base (m) Split by 8 Key Regions 2011-2015    94
5.3 Mobile Payment Market Forecasts    95
5.3.1 Digital and Physical Goods    95
i. Digital Goods    95
Figure 5.3: Total Remote mPayment Gross Transaction Value for Digital Goods ($m) Split by 8 Key Regions 2011-2015    96
Table 5.2: Total Remote mPayment Gross Transaction Value for Digital Goods ($m) Split by 8 Key Regions 2011-2015    96
ii. Physical Goods    97
Figure 5.4: Total Remote mPayment Gross Merchandise Sales Transaction Value for Physical Goods ($m) Split by 8 Key Regions 2011-2015    97
Table 5.3: Total Remote mPayment Gross Merchandise Sales Transaction Value for Physical Goods ($m) Split by 8 Key Regions 2011-2015    98
iii. Digital and Physical Goods Combined    98
Figure 5.5: Global Remote mPayment Market: Gross Merchandise Sales Transaction Value ($m) Split by 8 Key Regions 2011-2015    99
Table 5.4: Global Remote mPayment Market: Gross Merchandise Sales Transaction Value ($m) Split by 8 Key Regions 2011-2015    99
Figure 5.6: Global Remote mPayment Market: Gross Merchandise Sales Transaction Value (%) Split by 8 Key Regions 2011-2015    100
Table 5.5: Global Remote mPayment Market: Gross Merchandise Sales Transaction Value (%) Split by 8 Key Regions 2011-2015    100
Figure 5.7: Global Remote mPayment Market: Gross Merchandise Sales Transaction Value (%) Digital vs. Physical Goods Comparison 2011-2015    101
Table 5.6: Global Remote mPayment Market: Gross Merchandise Sales Transaction Value (%) Digital vs. Physical Goods Comparison 2011-2015    101
5.3.2 NFC    102
Figure 5.8: Total NFC Ticketing and Retail Payments Transaction Value ($m) p.a.  Split by 8 Key Regions 2011-2015    102
Table 5.7: Total NFC Ticketing and Retail Payments Transaction Value ($m) p.a.  Split by 8 Key Regions 2011-2015    102
Figure 5.9: Total NFC Ticketing and Retail Payments Transaction Value (%) p.a.  Split by 8 Key Regions 2011 & 2015    103
Table 5.8: Total NFC Ticketing and Retail Payments Transaction Value (%) p.a.  Split by 8 Key Regions 2011 & 2015    103
5.3.3 Mobile Money Transfers    103
Figure 5.10: Total Value of All Mobile Money Transfers ($m) p.a. Split by 8 Key Regions 2011–2015    104
Table 5.9: Total Value of All Mobile Money Transfers ($m) p.a. Split by 8 Key Regions 2011–2015    104
Figure 5.11: Comparison of Domestic, Sophisticated Financial Services & International Mobile Money Transfer Transaction Values (% of total) 2011-2015    105
Table 5.10: Comparison of Domestic, Sophisticated Financial Services & International Mobile Money Transfer Transaction Values (% of total) 2011-2015    105
5.3.4 Total Mobile Payment Market    105
i. Regional Split    105
Figure 5.12: Total Mobile Payment Market ($m) Split by 8 Key Regions 2011 – 2015    106
Table 5.11: Total Mobile Payment Market ($m) Split by 8 Key Regions 2011 – 2015    107
Figure 5.13: Total Mobile Payment Market (%) Split by 8 Key Regions 2011 – 2015    107
Table 5.12: Total Mobile Payment Market (%) Split by 8 Key Regions 2011 – 2015    108
ii. Market Segment Split    108
Figure 5.14: Total Mobile Payment Market ($m) Split by Digital & Physical Goods, NFC & Mobile Money Transfers 2011 – 2015    108
Table 5.13: Total Mobile Payment Market ($m) Split by Digital & Physical Goods, NFC & Mobile Money Transfers 2011 – 2015    109
Figure 5.15: Total Mobile Payment Market (%) Split by Digital & Physical Goods, NFC & Mobile Money Transfers 2011 – 2015    109
Table 5.14: Total Mobile Payment Market (%) Split by Digital & Physical Goods, NFC & Mobile Money Transfers 2011 – 2015    109

Companies Referenced

1-800 Flowers.com, Absa Bank, accells, Access Group, Aepona, Air Kenya, airG, Airtel, AIS, Alloy Ventures, Alternet, Amadeus, Amadeus Capital Partners, Amazon.com, Appium, Apple, Arriva Bus, Aruba Networks, AT&T, ATMU, Avea, Axis, Axis Bank, Babies “R” Us, Badoo, Banco de Oro Universal Bank, Bango, Bank of Ceylon, Bank of Commerce and Development, Barclays, Battery Ventures, Bell Canada, Bell ID, Bharti, Bharti Airtel, Bharti Telesoft, BICS, BilltoMobile, bitWallet, BKM, BlackBerry Partners Fund, Bouygues, BPI, Brooks Brothers, BSI, BT, Cabela’s, Cebu Pacific, Celpay, Central Bank, CHARGE Anywhere, Citi, Citibank, Ciudad Mexico, Claro Group, Comviva, Copenhagen Metro, Cosmote, Crédit Agricole, Credit Saison, C-SAM, Danal, Daylight Partners, DBS Bank, DeviceFidelity, Digby, Digby Chengdu Technology, Digital China, DN Capital, Draper Fisher Juvertson, DSB, DSB S-trains, Eagle Eye Solutions, EastNets, Easypaisa, eBay, eBay Mobile, EnStream, Equity Bank, Ericsson, Ericsson IPX, eServGlobal, EVN, EZ-Link, Ezuza, Facebook, Faulu Kenya, FINNAIR, First Data Corporation, France Telecom, Fundamo, G&D, Gameloft, Garanti Bank, Gemalto, Giesecke & Devrient, Globe, Globe Telecom, Golfsmith, Google, Gtel, HBD Venture Capital, Hutch, Hypercom, IBM, ICC, ICICI, Idea, Indosat, ING, Ingenico, Intuit, IPX, Jamster, Jet Airways, JR East, JR West, KASIKORNBANK, KDDI, Kenya Airways, KPN, KT, la Caixa, LG, Liberty Mutual, LINK Mobility, LMT, Lufthansa Systems, Luup, Maldives Monetary Authority, Maritz Real-Time, MasterCard, Maxis, MCB Bank, McDonalds, MCell, mChek, Meditel, Metro Company, MFIC, MGL, Minick, Miven, Mobifone, Mobilink, MobiVending, Mocapay, Monitise, MoreMagic, Morpho, Motorola, Movaya Chengdu Technology, Movaya Wireless, Movia, Movincom, Mozido, mService, mSolutions, MTN Group, MTS, MTV, Multiply, Myway, Naivas, NCR, Nearbuy Systems, NETS, Netsize, Neustar, NFO Hold, ngpay, Nokia, Nokia Siemens Network, NRJ Mobile, NTT DoCoMo, NXP Semiconductors, Obopay, OpenMarket, Oracle, Orange, Orange Group, Orascom, Orient Corporation, Orvis, PayForIt, PayMate, PayPal, PayPal Mobile, Paytong, PesaPoint, PETCO, Philippine Airlines, Playphone, PLDT, Polaris, Polaris Ventures, PPC, PROSA, Quest Diagnostics, Rakuten, Reliance, Remgro, RIM, RiskSecure, Rogers Communications, S1 Corporation, S3 Ventures, Safaricom, Safarilink, Samsung, Sanlam, Santander, SAP Ventures, SBB, SEAIR, Sfone, SFR, Skype, SMART, Smart Communications, SmartPay, SoftBank, Softbank Mobile, Sony, Sony Ericsson, Sprint, StarHub, State Bank of India, State Bank of Vietnam, Sulake, Sumitomo Mitsui Card Co., Sun Oracle, Sybase 365, T+, TATA, Tata AIG Insurance, TDC, Tech Process Solutions, Telcel, Tele2, Telefonica, Telefonica O2, Telenor, TeliaSonera, Telma, Telus, TELUS Corp, Tetherball, The Home Depot, The NASDAQ OMX Group, The World Bank, Tigo, TIM, Toys “R” Us, Transoft, Tre, TRUE, True Move, TSYS, Twinlinx, Twitter, Uchumi, Ugg Australia, Uninor, Unwire, Utiba, Utiba Americas, Vagverket, Valista, Venda, VenFin, Venyon, VeriFone, Verisign, Vietcombank, Vietnamobile, Viettel, Vimpelcom, Vinaphone, Virgin Media, Virgin Mobile, Visa, Vision Capital, ViVOtech, Vodafone, Vodafone Qatar, Watchdata, Western Union, WIZZIT, World Bank, Yahoo!, YellowPepper, Yoigo, ZAPA, Zest Airways, Zong