Why everything we do

will be pay-as-you-go

Micro payments – what they look like at scale

The Internet of Things – the internet goes physical

What happens when the two come together?

bbc.co.uk/news

2

Mobile Payments

M-PESA was the first step to

International Remittances

$440 bn/yr in 2010

1/3 of global external finance

… breakthroughs are rarely

where you aim for

3

GSMA 2014

Within 1 year 10% of all

Kenyan’s had used the service

M-PESA now handles > 43%

of Kenyan GDP

Why was going mobile so

important for payments ?

4

Networks are Resilient

Presidential Election in 2007

– 600,000 people displaced

and 1,500 died

– For 5 days, all shops &

banks were closed

Safaricom continued to operate

– M-PESA allowed money to

move safely

– Less than 10 months after

launch, enough users to

meet 15% of airtimes sales

5

The M-PESA Well

Water in northern Kenya

– In the wet season wells run dry

through poor maintenance

Pump with an M-PESA Account

– Send payment to pump

– Get your water

Well earns money

– Pay back loan

– Maintain the well

– Earn money for the village

6

M-PESA Solar Power

~80% have no electricity

~90% use mobile phones

M-KOPA Solar

Charger with M-PESA account

Data analytics for payment risk

as well as device usage

M-Kopa.com

7

What has this meant

for Safaricom?

Delivers 18% of its revenues

Increased dominance in its

core (telecoms) markets

Protected against 2 new

network entrants

… made it essential to have a

Safaricom SIM

Safaricom

8

Platform or Ecosystem

We created a Platform –

infrastructure with APIs for

others to build on

Adopted by the business

community and now a

Platform for Social Innovation

But not yet an Ecosystem

The key that unlocks it all -

A reliable identity; maintained,

looked after and ever present

9

Nearer to home …

Banks and MNOs have fought

for ownership of the mobile

transaction

… both have lost

Square – a phone to phone

transaction by Bluetooth

iTunes – 800 million active

accounts globally

… PayPal, Amazon, Tencent,

Facebook, Google …

techcrunch.com/2014/10/07

10

The internet is open,

so it must be free

To whom?

We each see ~1,700 ads /m

Often, a real-time bid every

time we click

For content too – YouTube,

Netflix, and Facebook

From PC to Mobile in 3 years

(Facebook)

… “Context” unlocks the

migration to the physical world

11

The Age of Context

… a result of the internet going

physical

Sensors, Tags and devices

now cheap and ubiquitous

Appcessories, not just for

geeks, but anyone with a

mobile phone

12

The impact of ubiquitous

and low cost sensors

This is from just a single 3 axis

accelerometer

Algorithms identify “events”

– Engine start

– Door open/close

– Kerb strike

– Harsh breaking

– A rear shunt

Creating a “fingerprint” of

the journey

13

DropTag DRIVE

An appcessory for your car

which works out how you are

driving and, often, who’s at fault

The same tag we use for cold

chain management or logistics

And also on equipment usage

and condition monitoring

… you are wearing one today

droptag.com

14

A Tag for Context

An experiment … but in what?

Not really Sensors and BLE –

that’s engineering and we do all

the time

Mesh / Location / Events

How to infer “Purpose” from

“Context”

And how that might shape our

future technically and socially

CradleOfThings.com

15

Lizzie Loop

None of us are simple

We are different people in

different contexts

runner cook

mum

daughter

wife office

manager

diabetic r

care giver

16

Lunch-time runner

Calories burnt

Miles covered

Forefoot running technique

Training Programme to that

next half marathon trail run

Competition with someone who

did this in 1hr 32min last week

11.00

12.00

13.00

14.00

15.00

16.00

17

11.00

12.00

13.00

14.00

15.00

16.00

Concerned daughter

Keeping a quiet eye on her

father with Parkinson’s

Tracking his medicine regimen

Or simply, keeping in touch

18

11.00

12.00

13.00

14.00

15.00

16.00

Proud mum

Sporty son with asthma

Has he got his inhaler with him

How much has he used it today

When did he last use it

19

13.00

14.00

15.00

16.00

17.00

18.00

The bank of mum

Daughter out shopping

Needs a little extra money

(to get home)

We can limit the spend, can

we limit the purpose too?

Or, perhaps daughter is buying

something for mum and needs

some sizing / colouring

information

20

13.00

14.00

15.00

16.00

17.00

18.00

Lizzie the diabetic

Diet control for diabetes

Healthy Eating

Nutrition

Calorie Management

Or simply a keen cook following

a favourite TV chef

21

Lizzie Loop

How does she join this all up…

runner cook

mum

daughter

wife office

manager

diabetic r

care giver

22

Unified Ecosystem or

Separate Platforms?

The landscape is changing fast –

who does Lizzie go to?

Incumbents are being deposed

or battling to keep their position

– Banks vs MNOs vs Apple

– Hive vs Nest vs Samsung

– Polar vs Garmin vs Apple

Healthcare too is in their sights

Images from Apple

23

Just in case we were in

any doubt …

Announced last week,

… an active member of your

family conversations over

supper perhaps?

gizmodo.com

24

Everything we do will be

… a transaction within an

Ecosystem of your choice

A transaction we often won’t

know is happening

And not always monetary (yet)

Often simply information

But always in a bubble