Mobile Commerce Strategies

Overview

-    Big Picture View of the mCommerce Market
-    7 Key Sectors Analysed and Forecast
-    Recommendations for All Players

This report provides the one stop solution for all players within the mobile commerce ecosystem.  It pulls together each of the detailed reports within the mobile commerce stream: Mobile Payments for Digital and Physical goods, NFC Mobile Payments, Mobile Money Transfer & Remittances, Mobile Ticketing, Mobile Coupons and Mobile Banking.

For each sector this report provides six year forecasts for transaction values in eight key regions of the world, as well as an analysis of a number of drivers and constraints, considering a number of business models issues as well as a discussion on operator churn and ARPU.

This up to the minute report provides the most recent evaluation at the mobile commerce market, including a look at current applications and services in each of these sectors, with content from the above reports refreshed and updated in the second quarter 2010.

Table of Contents

Executive Summary

1. Mobile Commerce Market

1.1 Report Scope & Objective   
1.2 Market Outline   
1.2.1 Synopsis   
1.2.2 Market Segmentation   
Figure 1.1: Mobile Commerce Market Segmentation   
1.3 Market Segment Definitions   
1.3.1 Mobile Payments   
i. Digital & Physical Goods   
ii. Contactless NFC   
iii. Mobile Money Person to Person Transfer   
1.3.2 Mobile Ticketing and Coupons   
i. Mobile Ticketing   
ii. Mobile Coupons   
1.3.3 Mobile Banking   
1.4 Mobile Commerce Drivers & Constraints   
Figure 1.2: Mobile Commerce: Top 3 Drivers and Constraints   
1.4.1 Top 3 Drivers   
i. User Demand and Requirements   
ii. Lower Churn for Mobile Operators   
iii. Increase in ARPU   
1.5.3 Top 3 Constraints   
i. Business Model Issues   
ii. Support Issues   
iii. User Experience and Security Concerns

2. Digital and Physical Goods

2.1 Introduction   
2.2 Classification of Payment Schemes   
Table 2.1: Mobile Payment Classification   
2.3 Digital Goods: Applications and Services   
2.3.1 CAN (African Cup of Nations)   
Figure 2.1: CAN (African Cup of Nations) Live Portal Screenshot   
2.3.2 Orange/HMV   
2.3.3 Yell 118 24 7   
2.3.4 Zong   
i. Business Update   
Table 2.2: Zong Country Coverage   
ii. Transaction Statistics   
iii. Aeria Games: Case Study   
2.4 Physical Goods: Applications and Services   
2.4.1 Amazon   
Figure 2.2: Amazon Mobile Payments Service   
2.4.2 eBay Mobile   
Figure 2.3: eBay iPhone App   
2.4.3 1-800Flowers.com   
Figure 2.4: 1-800Flowers.com Mobile Flower and Gift Center   
2.4.4 Ocado   
Figure 2.5: Ocado on the Go Screenshots   
2.5 Specific Drivers and Constraints   
Figure 2.6: Digital & Physical Goods: Specific Drivers and Constraints   
2.3.1 Specific Drivers   
i. Real Alternative to Cash   
ii. Larger Retail Transactions   
iii. Smartphone Growth   
2.3.2 Specific Constraints   
i. Resistance from Banks   
ii. Support Issues   
iii. Transactions Costs for the Retailer   
2.6 Digital & Physical Goods Market Forecast   
2.6.1 Digital Goods   
Figure 2.7: Total Remote Mobile Payment Gross Transaction Value for Digital Goods ($m) Split by 8 Key Regions 2010-2014   
Table 2.3: Total Remote Mobile Payment Gross Transaction Value for Digital Goods ($m) Split by 8 Key Regions 2010-2014   
2.6.2 Physical Goods   
Figure 2.8: Total Remote mPayment Gross Merchandise Sales Transaction Value for Physical Goods ($m) Split by 8 Key Regions 2010-2014   
Table 2.4: Total Remote mPayment Gross Merchandise Sales Transaction Value for Physical Goods ($m) Split by 8 Key Regions 2010-2014   
2.6.3 Digital and Physical Goods Combined   
Figure 2.9: Global Digital and Physical Goods Remote Mobile Payment Market: Gross Merchandise Sales Value ($m) Split by 8 Key Regions 2010-2014   
Table 2.5: Global Digital and Physical Goods Remote Mobile Payment Market: Gross Merchandise Sales Value ($m) Split by 8 Key Regions 2010-2014   
Figure 2.10: Global Remote mPayment Market: Gross Merchandise Sales Transaction Value (%) Digital vs. Physical Goods Comparison 2010-2014   
Table 2.6: Global Remote mPayment Market: Gross Merchandise Sales Transaction Value (%) Digital vs. Physical Goods Comparison 2010-2014

3. Mobile Ticketing

3.1 Introduction   
3.2 Mobile Malls   
3.2.1 ngpay (India)   
Figure 3.1: ngpay Mobile Shopping Partners   
3.2.2 Telecom Italia and Movincom (Italy)   
3.3 Rail, Metro & Bus Mobile Tickets   
3.3.1 Arriva Buses (UK)   
Figure 3.2: Arriva Buses Mobile Ticketing Service   
3.3.2 Helsinki City Transport (Finland)   
Figure 3.3: Helsinki City Transport Mobile Ticketing Service   
3.3.3 Trenitalia (Italy)   
3.4 Airline Mobile Tickets & Boarding Passes   
3.4.1 American Airlines   
Figure 3.4 American Airlines Mobile Boarding Pass   
3.4.2 China Southern Airlines   
3.4.3 Lufthansa (Germany)   
Figure 3.5: Lufthansa Mobile Portal   
3.5 Sport Mobile Tickets   
3.5.1 Pittsburgh Pirates Baseball: Tickets.com (US)   
Figure 3.6: Tickets.com Home Page   
Figure 3.7: Mobile Tickets at Pittsburgh Pirates   
3.5.2 Red Bull Salzburg (Austria)   
3.6 Entertainment and Events Mobile Tickets   
3.6.1 Kodu (US/Canada/UK)   
Figure 3.8: Kodu Moviesnow! Screenshots   
3.6.2 eSeats.com (US)   
Figure 3.9: eSeats.com iPhone App   
3.6.3 Fandango (US)   
3.7 Specific Drivers and Constraints   
Figure 3.10: Mobile Ticketing: Specific Drivers and Constraints   
3.5.1 Specific Drivers   
i. Cost Savings   
ii. One to One Marketing   
iii. Enhanced Security   
iv. Environmental Benefits   
v. Mobile Value Added Services (MVAS)   
vi. Queue Busting   
vii. Last Minute Sales   
3.5.2 Specific Constraints   
i. Handset Supply   
ii. MMS Issues   
iii. Mobile Barcode Reading Issues   
iv. Operators Excluded?   
v. Multi Ticket Scheme Environment   
3.8 Market Forecast   
Figure 3.11: Total Mobile Ticketing Transaction Value ($m) by 8 Key Regions 2010-2014   
Table 3.1: Total Mobile Ticketing Transaction Value ($m) by 8 Key Regions 2010-2014   

4. Mobile Coupons

4.1 Mobile Marketing Growth   
4.2 Coupon Campaign Strategies   
4.2.1 Alcoholic Beverages: Coors Brewers (UK)   
4.2.2 Pharmacy: DocMorris (Germany & Netherlands)   
4.2.3 Coupon Service: NTT DoCoMo Toruca (Japan)   
Figure 4.1: NTT DoCoMo ToruCa in Use   
Figure 4.2: NTT DoCoMo ToruCa in Use   
4.2.4 Cinema: Orange Wednesdays (UK)   
Figure 4.3: Orange Wednesdays   
4.2.5 Clothing & Household Goods: JCPenney (USA)   
4.2.6 Supermarket: Spar (South Africa)   
4.2.7 Coffee Shops: Starbucks (USA)   
4.2.8 Leisure: Sunglass Hut (Australia)   
Figure 4.4: Sunglass Hut \"Look Famous\" Mobile Coupon Campaign   
4.2.9 Smart Posters: Mass Transit - BART (USA)   
4.3 Specific Drivers and Constraints   
Figure 4.5: Mobile Coupons: Specific Drivers and Constraints   
4.3.1 Specific Drivers   
i. Cost Savings   
ii. Smartphone Growth   
iii. One to One Marketing   
iv. Enhanced Security   
v. Environmental Benefits   
vi. Mobile Value Added Services (MVAS)   
vii. Higher Redemption Rates   
viii. Convenience   
4.3.2 Specific Constraints   
i. Handset Supply   
ii. MMS Issues   
iii. Mobile Barcode Reading Issues   
iv. Operators Excluded?   
v. Ecosystem Incentivisation   
vi. Retailer Participation   
vii. Managing the Coupon on the Phone   
viii. Danger of Spam   
4.4 Market Forecast   
4.4.1 Mobile Coupons   
Figure 4.6: Total Mobile Coupons Redemption Value ($m) Split by 8 Key Regions 2010-2014   
Table 4.1: Total Mobile Coupons Redemption Value ($m) Split by 8 Key Regions 2010-2014   
4.4.2 Smart Posters   
Figure 4.7: NFC Smart Poster Total Fee Value ($m) Split by 8 Key Regions 2010 - 2014   
Table 4.2: NFC Smart Poster Total Fee Value ($m) Split by 8 Key Regions 2010 - 2014   

5. NFC & FeliCa Payments

5.1 Introduction   
5.1.1 NFC Technology   
Figure 5.1: Uses of NFC   
5.1.2 NFC Implementation   
Figure 5.2: Moscow Metro Mifare Contactless Card System   
5.1.3 Interim NFC Solutions   
Figure 5.3: Integration Phase Comparison - NFC and Mobile Broadband   
i. NFC Stickers   
Figure 5.4: Twinlinx My-Max NFC Sticker   
ii. SD Cards   
Figure 5.5: Giesecke & Devrient NFC SD Card   
5.1.4 Further Vertical Markets   
Figure 5.6: NFC in the Automotive Industry   
5.2 Applications and Services Examples   
5.2.1 USA   
5.2.2 India   
5.2.3 Japan   
Figure 5.7: Osaifu-Keitai Service Concept   
Figure 5.8: Osaifu-Keitai in Various Scenes in Daily Life   
5.2.4 Malaysia   
Figure 5.9: Maxis FastTap Service   
Figure 5.10: Maxis FastTap Service Outlets   
5.3 Specific Drivers and Constraints   
Figure 5.11: NFC: Specific Drivers and Constraints   
5.3.1 Specific Drivers   
i. Transaction Efficiency & Growth   
ii. Infrastructure Availability   
iii. Success Stories and PR   
iv. Future Service Enhancements   
v. Widespread NFC Applications   
vi. One to One Mobile Marketing Opportunity   
5.3.2 Specific Constraints   
i. Business Model Uncertainties   
Figure 5.12: NFC Ecosystem Top Level View   
ii. Device Availability   
iii. Service Complexity and Management   
Figure 5.13: NFC Ecosystem Detailed View   
iv. Ecosystem Incentivisation   
v. Infrastructure Availability   
5.4 Market Forecast   
Figure 5.8: Total Value of NFC Transactions ($m) Split by 8 Key Regions 2010-2014   
Table 5.1: Total Value of NFC Transactions ($m) by 8 Key Regions 2010-2014

6. Mobile Money Transfer

6.1 Introduction   
Figure 6.1: Mobile Money Transfer Operator Types   
6.2 Operators and Initiatives   
6.2.1 GSMA Mobile Money Initiatives   
i. MMT (Mobile Money Transfer)   
ii. MMU (Mobile Money for the Unbanked)   
6.2.2 Safaricom M-PESA   
i. Service Description   
ii. Service Statistics   
6.2.3 Western Union   
i Strategy Insight   
Figure 6.2: Western Union Customers - Mobile Usage   
6.2.4 Nokia Money   
Figure 6.3: Nokia & YES BANK Mobile Money Service Offer   
6.2.5 MoneyBoxAfrica   
Figure 6.4: MoneyBox P2P Payment Process   
6.2.6 Belgacom ICS HomeSend Service   
Figure 6.5: Belgacom ICS HomeSend Solution   
Figure 6.6: HomeSend Information & Funds Flow   
6.3 Specific Drivers and Constraints   
Figure 6.7: Mobile Money Transfer: Specific Drivers and Constraints   
6.3.1 Specific Drivers   
i. Real Alternative to Cash   
ii. First-time Access to Payments for Many in the Developing World   
iii. Increase in International Money Transfers to Developing Countries   
6.3.2 Specific Constraints   
i. Resistance from Banks   
ii. Financial Regulations & Legislation   
iii. KYC (Know Your Customer) Requirements   
iv. Inadequate Local Agent Networks   
v. The Recession   
6.4 Market Forecast   
Figure 6.8: Total Value of All Mobile Money Transfers p.a. ($m) Split by 8 Key Regions 2010 - 2014   
Table 5.9: Total Value of All Mobile Money Transfers p.a. ($m) Split by 8 Key Regions 2010 – 2014

7. Mobile Banking

7.1 Introduction   
7.2 Applications & Services Types   
7.3 Applications and Services Examples   
7.3.1 North America   
i. Bank of America   
Figure 7.1: Bank of America Mobile Screens   
ii. USAA   
Figure 7.2: USAA Mobile Banking Services   
Figure 7.3: USAA iPhone App Mobile Remote Deposit Capture   
7.3.2 Latin America   
i. Bradesco   
Figure 7.4: Bradesco Mobile Services   
7.3.3 Western Europe   
i. Postbank   
Figure 7.5: Postbank Mobile Services   
7.3.4 Central and Eastern Europe   
i. BRD Groupe Societe Generale (Romania)   
ii. Russian Standard Bank   
7.3.5 Indian Sub Continent   
i. United Bank of India   
ii. MCB Bank (Pakistan)   
7.3.6 Far East & China   
i. Agricultural Bank of China   
ii. Jibun Bank (Japan)   
7.3.7 Rest of Asia Pacific   
i. National Australia Bank   
ii. OCBC Bank (Singapore)   
7.3.8 Africa & Middle East   
i. ABSA (South Africa)   
ii. Standard Chartered Bank (UAE)   
7.3 Specific Drivers and Constraints   
Figure 7.6: Mobile Banking: Specific Drivers and Constraints   
7.3.1 Specific Drivers   
i. Cost Savings   
ii. One-to-One Marketing Opportunity   
iii. Enhanced Security   
iv. Customer Retention and Acquisition for banks   
v. New Revenue Channel for Banks   
vi. New Revenue Channel for MNOs   
vii. Ecosystem Co-operation   
7.3.2 Specific Constraints   
i. Resistance from MNOs   
ii. Technology Issues and Standards   
iii. Financial Regulations & Legislation   
iv. Support Issues - Who Owns the Customer?   
v. Data Charges: User Bill Shock   
vi. 3G/Broadband & Device Availability   
vii. Application Slickness   
7.4 Market Forecast   
7.4.1 MBPP (Mobile Bill Payment and Presentation) \"Pull\" Service Transaction Value   
Figure 7.7: Total MBPP Transaction Value ($m) Split by 8 Key Regions 2010-2014   
Table 7.1: Total MBPP Transaction Value ($m) Split by 8 Key Regions 2010-2014

Glossary

Companies Referenced

1-800 Flowers, ABC (Agricultural Bank of China), Absa Group Limited, Aeria, Amazon, American Airlines, Arriva, AT&T, Bank of America,  Belgacom, Bradesco, BRD Groupe, CAN (African Cup of Nations), China Southern Airlines, Citi, DocMorris, Coors Brewers, eBay, eSeats.com, Fandango, FeliCa, First Data, GSMA, Helsinki City Transport, HMV, JCPenney, Jibun Bank, Kodu, Lufthansa, MasterCard, Maxis, mBlox, MCB Bank, mobilkom austria, MoneyBox  Africa, Movincom , NAB (National Australia Bank), Ngpay, Nokia, NTT DoCoMo, Ocado, OCBC Bank, Orange, Plusdial, Post Bank, Red Bull Salzburg, Russian Standard Bank, Safaricom, SoftBank, Spar, Standard Chartered, Starbucks, Sunglass Hut, Sybase 365, Telecom Italia Movicom , Absa Group Limited, Tickets.com, Trenitalia, USAA, United Bank of India, Visa, ViVOtech, Western Union, WIN plc,  Yell, YES BANK, Zong.