Digital Wallets In Depthinfo.co-opfs.org/rs/coopfs/images/MobileWallets_FINAL.pdf · or plan to...
Transcript of Digital Wallets In Depthinfo.co-opfs.org/rs/coopfs/images/MobileWallets_FINAL.pdf · or plan to...
1
Digital Wallets In Depth
What are they? How do they work?
And where do credit unions fit in?
1
2
Today’s Presenters
AMANDASMITH Senior Manager,
Technology & Innovation
CAROLINEWILLARD Executive Vice President,
Marketing & Strategy
3
Agenda
A Look Inside: Digital Wallets Demystified
Expectation: What Do Consumers Want?
Experience: What Do Consumers Experience Now?
Opportunity: Where Do Credit Unions Fit In?
Engagement: When Will Wallets Take Off?
Q&A
4
A Look Inside
Digital Wallets Demystified
5
What is a Digital Wallet?
Software that resides on a buyer’s
computer and holds digital cash,
and a digital certificate with a digital
signature, as well as billing, shipping,
and payment information for
online transactions.
Source: BusinessDictionary.com
6
Introducing the Mobile Wallet
• Contains “wallet-like” information
• Acts as payment and
shopping hub
• Integrates payment,
geolocation, merchant loyalty
• Eliminates the need for a
regular wallet
7
Wallets in Use
8
Mobile Wallet: Unpacked
Loyalty
Programs
ID &
Insurance
Info
Geolocation
Features
Tickets
Cardless
Payments to
Merchants
Mobile P2P:
Send &
Receive
Coupons
& Special
Offers
Electronic
Receipts
9
Mobile Wallet: Unpacked
Mobile Wallets Also Need These Attributes:
• Connect with merchants
and other wallets
• Integrate with shopping
and geolocation
• Secure, trustworthy
• Part of the financial
services package
10
Expectation
What do consumers want?
11
PayPal Study
of Americans would prefer to
leave their wallet at home.
WHO WANTS ONE?
of Americans have been
“stiffed” by friends, either
intentionally or not.
PAYBACK IS A HITCH
Source: PayPal Global Study 2013 – Survey conducted by Wakefield Research
12
Awareness Gap
50 percent of people are aware of what a mobile wallet is.
Of those, 22 percent look forward to adopting one.
FAMILIAR
WITH MOBILE
WALLET
FAMILIARITY VS. USAGE
FAMILIAR &
LOOKING
FORWARD
TO ADOPTING
Source: CMB Consumer Pulse, Spring 2013: The Mobile Moment: Barriers and Opportunities for Mobile Wallet
13
What actions did consumers take in past 6 months,
or plan to take in next 6 months?
Usage Gap
USED A MOBILE WALLET HAD NOT USED A MOBILE
WALLET BUT PLANNED TO
HAD NOT USED NOR
PLANNED TO USE
Source: CMB Consumer Pulse, Spring 2013: The Mobile Moment: Barriers and Opportunities for Mobile Wallet
14
Security concerns are the top barrier to usage
Which of the following reasons prevent you from
using a mobile wallet?
Worried about security
Don’t want to pay fees
Don’t want the store to have my wallet info
Credit cards have better rewards
Don’t know which app is best
Technology doesn’t always work properly
It’s too difficult on a small screen
Not as convenient as cash or credit cards
No single payment system across merchants
Not available at stores where I would use it
Source: CMB Consumer Pulse, Spring 2013: The Mobile Moment: Barriers and Opportunities for Mobile Wallet
15
Fantasy vs. Reality
in mobile payments this year
UP 69%
201 Million in 2012
UP FROM
Gartner, "Forecast: Mobile Payment, Worldwide, 2013 Update." Gartner, "Forecast: Mobile Payment, Worldwide, 2013 Update." Gartner, "Forecast: Mobile Payment, Worldwide, 2013 Update."
Gartner, "Forecast: Mobile Payment, Worldwide, 2013 Update
16
Experience
What’s the mobile wallet space like
right now?
17
Mobile Wallets
No dominant brand or identity
Rival technology with
no clear winner
Competition over
who’s in charge
Consumers confused,
not engaged
NO CONSENSUS
18
Split Personality
19
NFC Payment: So Cool, No One Uses It?
0
50
100
150
200
250
2012 2013 2014 2015 2016 2017
NFC Enabled Smartphones NFC Handsets in Use for Payments
NU
MB
ER
OF
DE
VIC
ES
(in
mill
ion
s)
NORTH AMERICAN NFC USAGE
Source: Juniper Research: NFC Mobile Payments Market update – Business Models &Forecasts 2012-2017
20
A Vicious Cycle?
The Vicious Cycle of NFC Rejection
Source: Juniper Research: NFC Mobile Payments Market update – Business Models &Forecasts 2012-2017
21
“The Cloud” via PayPal
NO NFC, BUT NOT UNIVERSALLY AVAILABLE
“FUN” ELEMENT IS SKETCHY
WORKS WITH YOUR EXISTING CARDS
NOT A GAME-CHANGER… YET
22
Who’s in Charge?
23
Apple and the Great Unknown
iPHONE APP
24
Usage is Up
0
25
50
75
100
125
2011 2012 2013 2014 2015 2016
ACTIVE MOBILE WALLET USERS MAKING DOMESTIC TRANSFERS (in millions)
NORTH AMERICA
INDIAN SUBCONTINENT
FAR EAST & CHINA
AFRICA & MIDDLE EAST
Source: Juniper Research: Mobile Money Transfer & Remittances – Business Models & Monetisation Opportunities 2011-2016
25
When Will We Reach Critical Mass?
SMARTPHONE USE Widespread and Growing
REAL BRANDS Unity Raises Awareness
MERCHANT AVAILABILITY Spotty and Confused
TECHNOLOGICAL CONGRUITY Fragmentation Everywhere
26
Opportunity
How Do Credit Unions Win Now?
27
CO-OP Recommendations
PARTICIPATE IN MANY PROGRAMS ENCOURAGE ADOPTION
WITH THE MARKET OFFER KEY FEATURES LIKE P2P
28
Be There!
Future Engagement of Members
Tied to Wallet Usage
To Incentivize Adoption
Mobile, Social, Online, Print, In-Branch
30
Reinforce Card Relationships
Revitalize your card
programs.
Promote rates, features,
benefits.
Use analytics to track
interest and usage.
31
Mobilize Now
• Real-time good funds model
• Digital account management
• Transactions between credit union accounts
• Me2You transactions within credit unions
• Remote deposit capture
• And more to come, including Me2Anyone
payments, “to ubiquity.”
32
Engagement
Will Wallets Take Off?
33
Mobile Wallets: A Work-In-Progress
A number of elements are in place, but mobile wallets
aren’t there yet.
MOBILE BANKING MOBILE P2P PROPRIETARY PAYMENT CARDS/APPS
?
34
The Shopping Suite
MOBILE SHOPPING LOYALTY CARDS & APPS COUPONS & OFFERS
E-RECEIPTS TICKETS
35
Geolocation
With a smartphone, you are (almost) never lost.
36
How effortlessly could the transition happen?
37
CO-OP is Here
37
38
More to Come!
38
39
Q&A
40
FOLLOW-UP EMAIL with link to recording of today’s webinar
UPCOMING WHITEPAPER also coming via email