Mobile FeliCa - i-mode Alliance Strategy Speech 2.pdf · 1. Establishment of new credit card brand...
Transcript of Mobile FeliCa - i-mode Alliance Strategy Speech 2.pdf · 1. Establishment of new credit card brand...
NTT DoCoMo
NTT DoCoMo ConfidentialCopyright ©2005 NTT DoCoMo, Inc. All rights reserved
Mobile FeliCa- i-mode Alliance Strategy -
Mobile Mobile FeliCaFeliCa-- ii--mode Alliance Strategymode Alliance Strategy --
Carl Atsushi HiranoCarl Atsushi HiranoExecutive Director Executive Director
Multimedia Services DepartmentMultimedia Services DepartmentNTT DoCoMo, Inc.NTT DoCoMo, Inc.
Sep, 2005
2Copyright@2005, NTT DoCoMo,Inc. All Rights Reserved.
Contents
1. i-mode Evolution
2. i-mode Alliance
3. Mobile Wallet – i-mode FeliCa –
4. E-money Case Study
5. New Marketing Initiatives for the IT Era
6. Entry to Credit Business
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NTT DoCoMo
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58.5%23.9%
17.5%
i-mode
EZweb
Vodafone live!
Facts about i-mode
Number of DoCoMo subscribers: Approx. 50Mil.Number of i-mode subscribers: Over 44Mil.
World’s largest ISP population)
Handsets enabled fori-mode FeliCa
Approx. 5.2 millionunits
(As of end of Jul, 2005 a prompt report / Total of number of mova subscribers + cumulative number of FOMA handsets sold)
Market Share of i-mode as much as nearly 60%
Handsets enabled for Infrared
Communications
Handsets compatible with Barcode Reader
Approx. 33 millionunits
Approx. 23 millionunits
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Mobile Phones Will Become A Lifestyle Infrastructure
Liberalization of handset sale
i-mode service launch
Emergence of the FeliCa service
Telecommunications Infrastructure
IT Infrastructure
LifestyleInfrastructure
Number of DoCoMo mobile phone subscribers
Number of i-mode subscribers
First Growth Stage -Explosion in the demand
for voice
Second Growth Stage – Introduction of
multimedia services Third Growth Stage
– Introduction of life tools
(Tens of thousands people)
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Number of wireless IP service subscribers as of the end of May. 2005
(equivalent to one-third of Japan’s
NTT DoCoMo
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FeliCaHTML Mail, Videophones …
Flash, Ir, Barcode reader…
IrMC, 3D Polygon…
ADPCM, MPEG , Camera phones …
JAVA, SSL, JPEG…
Color display units
GIF, MIDI ,C-HTML…
CorporateVenture Capital
5% of IPO companies are those related to Mobile Internet.
Ever-Smarter and Higher-Value Added Mobile Phones Usher in the Future
Vertical Evolution of i-mode– Perpetual Drive for More Advanced Technologies
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Convenience stores
Vending machines
Karaoke
Rental shops
Car navigation systems
Credit Settlement
e-tickets
Games
AV devices
Cash cards
WIN‐WIN
Horizontal Evolution of i-mode– Persistent Challenge to New Frontiers
NTT DoCoMo
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To make i-mode serve the User as “Controller in Every Scene of
Day-to-Day Life”
To create a Fresh Blend of “Virtual” with “Real”
i-mode Alliance – Objectives
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Commuter passes and tickets
Credit cards
Tickets
Mileage cards
Employee IDs
(entering/exiting rooms/buildings)
e-money
(multi-purpose/independent)
Membership cards
(ID authentication)
Keys
(Apartment keys/Locker keys)
Coupons
Reservation vouchers
Our “Mobile Wallet” Service Begins-Everything you have in wallet into mobile phone-
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NTT DoCoMo
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Mobile Phone Model with i-mode FeliCa chip
i-modeFeliCa
LineupNEW:901iS Lineup Security
Increasingly beefed up Security!
◆Remote Lock◆IC Card Lock◆One touch Lock◆Timer Lock
All 901iS Series Models enabled for Remote Lock & IC Card Lock function
N901iS F901iS P901iS SH901iS D901iS
All 901iS models are Mobile Wallet!All 901iS models are Mobile Wallet!
P506iC SH506iC SO506iC F900iC SH901iC F901iC N901iC
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Mobile Wallet Alliance
Public transport ticketEmployee ID and membership cardMembership card
and credit card
i-mode FeliCa Platform
FeliCa platform
ElectronicMoney/
Credit card
Various point services Ticket sales
Public transport tickets
Membership card, etc
Mobile Suica Mobile Suica
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Integrating i-mode with FeliCa allows us to add services only available over i-mode to the benefits offered by FeliCa.
Simple one-pass action ①
Speedy data transmission and reception ②
High security ③
Benefits of FeliCa
Services using networks
・Addition of cash to users’ account balances ・Issuance of tickets to mobile handsets, etc.
¥10,000 added to
account balance
Possible to check the content of the contactless IC chip installed on your mobile phone
Viewer function
Remaining balance: ¥12,000
Purchase history 7/30 ¥3.000 8/01 ¥4.000
Information is shown on the display
Services unique to i-mode FeliCa
Benefits of i-mode FeliCa
Server
Internet
DoCoMo network
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Network Network
○○Bank
Mobile account
Regular savings account
Cash can be added to IC cards via the network
I have to top up my account because it’s empty.
I have to top up my account because it’s empty.
Remaining balance is 300 yen. How much do you want to add?
○○yen
●Linkage of site and store services will lead to increased communication with customers, customization in accordance with individual needs and the capturing and keeping of customers
Example) Edy, Suica, etc.
Server
② ”Card” + Network② ”Card” + Network ③ Your mobile phone will become a “service tool”
③ Your mobile phone will become a “service tool”① Your mobile phone will become a
“handy card”
① Your mobile phone will become a “handy card”
・・Enhanced retention due to higher usageEnhanced retention due to higher usage・・Linkage of site services and store servicesLinkage of site services and store services
Travel
Users can enterand exit stations just by passing their mobile phone over the IC ticket gate
Check remaining account balance
Remaining balance is ○○yen
Railway card
Employee ID 総務部
Clocking in
09:15Employee number
0123456
Check content
Viewer function ○×concert ticket July 23, 17:00 start ・・・・・・・・・・
*Currently, there is no card reader function
What Can Be Achieved by Integrating Contactless IC Cards with i-mode
Linkage with point services
・Points reward for visiting a store・Improved convenience
・Transmission of information within the site
・CRM e-mail distribution・Incentives to visit a store
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Implementation Benefits
Through i-mode + FeliCa, implement the smooth linkage of storefront and website!Via email delivery, CRM such as store visit encouragement and premium customer services can be supported!
• Can distribute information based on a buyer’s purchase history• Can deliver information and coupons limited to loyal customers via email
→ Encourages store visits and customer retention
“Use” the mobile when visiting a website; settle bills, collect points, download coupons!
• Electronic money settlement at i-mode sites is possible.• Linkage of point accumulation between the store and the site.
→ Improves convenience and customer retention
• Can reduce storefront operating costs.• Can reduce the cost of issuing new cards.• Users can shop with just their mobile phones. “Pass over” the mobile at the
storefront PC, and settle your bill, collect bonus points, and receive coupons.
●CRM using email and other means
●Linkage with i-mode sites
●Mobile takes care of everything including cash payments and point-card processing
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How Customers like i-mode FeliCa
Source: Questionnaire conducted by NTT DoCoMo (August 2004: BefoSource: Questionnaire conducted by NTT DoCoMo (August 2004: Before use samples = 204, After use samples = 62)re use samples = 204, After use samples = 62)
Anxious about
Anxious about
securitysecurity
15151313
22
2525
1717
88 8844 33
1133
88
22
1919
3737
1515
5522 33
55
00
1010
2020
3030
4040
Anxious about
Anxious about
disappearance disappearance or theftor theft
Looks hard to Looks hard to operateoperate
Convenient
Convenient
Cutting
Cutting -- edge
edge and highand high -- tech
tech looklook
Smart and cool
Smart and cool
Looks like Looks like attracting attracting attentionattention
Looks Looks friendly and friendly and easy to useeasy to use
(%)(%)
Before useBefore use
After useAfter use
Negative ImagesNegative Images Positive ImagesPositive Images
No care about
No care about
forgetting to forgetting to carry m
y carry m
y pursepurse
Maybe I can
Maybe I can
save some
save some
time
time
Questionnaire to those customers who purchased i-mode FeliCaWhat image did you have before using it? How do you like it now after using it?(Please select only one out of the choices).
Many users dissipate concerns over possible disappearance and thMany users dissipate concerns over possible disappearance and theft eft by actually using it and in turn realize its convenience and smaby actually using it and in turn realize its convenience and smartness.rtness.
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About Credit-card Business
1 Objectives1 Objectives(i) Increase the number of the places where MobileWallet can be used(ii) Acquire new source of revenue other than traffic
revenue For early realization and penetration of
the service, DoCoMo
acquire34% of Sumitomo
Mitsui Card’s common shares
2 2 DoCoMoDoCoMo’’ss Core CompetenceCore Competence(i) 49 million customers(ii) Handset is always carried with users(iii) Launch of Mobile Wallet service (Jul,2004)
3 What are we going to realize?3 What are we going to realize?(i) Create and boost new micropayment market(ii) Increase utilization of credit-card usage rate which is
lower in Japan compared with those in US and Europe
(iii) Description of business a) Establish the new brand of credit business
(Establish open platform) b) Entry to credit business
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Credit Payment Service of Mobile Wallet
Mobile-wallet payment service
Payment Terminal
・DoCoMo・Sumitomo Mitsui Card・Others
Card Business
mobile wallet
Linked/converged services and credit
Shopping, etc. in Japan/Abroad
Magnetic Stripe/Contact IC*
Credit card capability
Shopping, etc.
【FeliCa】
Member Retail Shops
Future
e-money
Transportation
・・
*Contact IC =EMV compliant (international IC standard used in financial sector)
Enhance combination with other payment services
Brand Business
FeliCa capability
Develop and install unified terminal
Existing credit cards (incl.
international brands)
Payment Methods Usage
1. Establishment of new credit card brandEstablish a new credit card service using “Mobile Wallet” phones equipped with contactless IC
chip (FeliCa) as a credit brand holder2. Issuance of a new credit card
Issue a new credit card which is characteristic of mobile phone operator to lead the market.=>Create the new credit payment market in micropayment which is almost dominated by cash payment.
For early realization and penetration of the service, DoCoMo acquire34% of Sumitomo Mitsui Card’s common shares
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Developing Common Infrastructure for Suica e-Money and Osaifu-Keitai Credit Brand
A single reader/writer will be compatible with various settlement systems by developing reader/writer compatible with multiple services and creating and managing a common center that connects the reader/writer.
A single reader/writer will be compatible with various settlement systems by developing reader/writer compatible with multiple services and creating and managing a common center that connects the reader/writer.
Now
Nothing
Reader/Writer(Single)
Suica
Reader/Writer(Single)
New credit Card brand
Reader/Writer(Single)
Another FeliCaSettlement
Suica New credit Card brand
Another FeliCaSettlement
DoCoMo’sNew credit Card brand
Suicae-Money
Future
New credit Card brandSuica
Scope of joint venture
w/JR East
Common CenterCommon Center
Reader/Writer(Multiple)
Suica New credit Card brand
DoCoMo’sNew credit Card brand
Suicae-Money
Linkage with other services
(TBD)
Another FeliCaSettlement
Reader/Writer(Single)
Another FeliCaSettlement
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i-mode FeliCa Strategies
・・BrandingBranding・Retention EffectsRetention Effects・・Churn from Other Operators & Churn from Other Operators & Service ProvidersService Providers・・Communications FeeCommunications Fee・・Value Enhancement enjoyed by Value Enhancement enjoyed by Invested CorporationsInvested Corporations・・New Business ModelsNew Business Models
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Successful Services ⇒ Services with a FACE
・・FF –– Fun Fun
・・AA –– Anywhere, anytime Anywhere, anytime
・・CC –– Convenient, with user benefits Convenient, with user benefits
・・EE –– Easy for everybody Easy for everybody
20Copyright@2005, NTT DoCoMo,Inc. All Rights Reserved.
Thank you for your kind attention
Carl Atsushi HIRANONTT DoCoMo, Inc.
Executive Director,i-mode Alliances
Multimedia Services Department
e-mail:[email protected]
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