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Mobile Payments
Smart Card Alliance / NFC Forum Joint Workshop
2010 Smart Card Alliance Annual Conference
NFC Applications for Retailers
Mohammad Khan
President and Founder, ViVOtech
ViVOtech is the leading enabler of Next Generation Mobile Payments, Loyalty & Marketing Solutions – Contactless NFC readers
– NFC mobile provisioning and wallet software
– Mobile applications software
ViVOtech has a strong market lead and first mover advantage – Uniquely offers end-to-end NFC solution from triggering to provisioning to redemption
– 660,000+ NFC reader customer touch points shipped to 35 countries 75% market share
– Participant in most global NFC mobile payment trials – including the world’s largest to date in India
ViVOtech has built strong relationships with all major ecosystem players – merchants, carriers, payments
Attracted market leading strategic and financial investors – Citi, FDC, NCR, Motorola, Nokia, Sprint
– Alloy Ventures, Draper Fisher Jurvetson
NFC Solution Provides a Personalized, Dynamic Location-Based Connection to the Customer
From Back Pocket to Front Pocket
From Expensive to Preferred Payments
From Paper to Mobile Offers
From Mass to Personalized
Near-Store to In-Store Experience
NFC Getting Enabled in Three Phases
Phase 1 2005 Contactless Card
Merchants • Quick pay ticket lift • Faster lines • Lower fraud handling costs
Payment Providers • Cash displacement • Lower cloning fraud costs
Consumers • Single virtual wallet • In store personalized offers
Merchants • 1 to 1 marketing in store • In store up and cross sell
Payment Providers • Lower lost/stolen fraud costs
Mobile Operators • New revenue sources • Lower churn
Consumers • Personalized offers and rewards
Merchants • More targeted/effective promotion/loyalty spend • Lower card costs
Payment Providers • Penetrate developing markets • Mobile prepaid and loyalty revenues
Phase 2 2009
Add-On NFC Phone Chip
Phase 3 - 2010
Integrated NFC Chip UICC and/or Embedded
A Wide Variety of Merchants Enabled with NFC
Retailers with All of Their Locations Installed in United States:
Selected Geographies/Locations in United States:
Wide Range of Contactless/NFC Appliances for Wide Variety of POS Environments
In-Store Countertop & Drive Thru Taxi Cabs, Vending, Kiosks, ATMs, Transit, Buses, Parking
Countertop / Mounted / Integrated and Integrated PINpad
Existing Kiosk / ATM
Taxi Cabs / Drive-Thru
For New Kiosk/ATM
NFC Wallet & Application Platform Allow Variety of Use Cases & Services
• NFC phones allows: – Consumers to enjoy their day to day lifestyle experience
– At home, going to work/school, shopping, entertainment, socializing..
– Enjoying convenience, fun, discounts, time savings, options,…
– With real time & personalized services
– Multiple brands of payments: MasterCard, Visa, American Express, Discover and Merchant Cards
– Multiple payment schemes: Credit, debit, prepaid, e-cash, gift cards, and transit cards
– Manage loyalty programs, coupons, promotions, and instant rewards
• NFC Wallet allows consumers to Over the Air (OTA) download cards and promotions into their wallet:
– Push Provisioning : Card issuer initiated
– Pull Provisioning : Consumers initiated
• Works with Add-On, Embedded, or UICC Secure Elements
• NFC Wallet software/library for NFC phones interact with physical world – Payment at physical point of sale environments
– Pick up & redeem coupons electronically
– Electronic redemption of tickets
– Local provisioning of cards
• To Benefit both banked and un-banked consumers
NFC Delivers Unique Revenue Generating Applications
With Current Phone and Add-on Sticker: Mobile Loyalty & Marketing Program: Revenue from Merchants & Advertisers
Up Sell: Revenue from Merchants
With NFC Enabled Phones: Mobile marketing: Revenue from Advertisers
Use case 1: Deliver one-on-one mobile marketing
Customer acquisition: Revenue from Issuers Use case 2: Sign up a new cardholder through smart poster
Up Sell: Revenue from Merchants Use case 3: Convert in-store browsers to online shoppers Use case 4: Up sell with time-limited offers
Shopping assistance: Revenue from Merchants Use case 5: Make informed shopping decisions & receive personalized offers Use case 6: Receive product & sales information to mobile phone
Preferred payment acceptance for Merchant: Revenue from Merchants and Issuers Use case 6: Drive stronger loyalty program tracking
Or
Example of An Add-On NFC Solution with ViVOapps Driving Targeted Mobile Offer & Loyalty Programs
Using existing contactless devices and merchant infrastructure
Collect customer behavior and purchase patterns
Instant promotion and coupon based on purchase and personal preferences
Existing Merchant Promotion System
SPECIALTY RETAILER’S
Congratulations you just got 20%
OFF your next purchase,
COUPON CODE 15244
ViVOpay-enabled Kiosk
Or
SPECIALTY RETAILER’S
Thank you for Shopping with us!
Your 20% off coupon has been redeemed, you saved 34.50!
Triggering & Issuance
Electronic Redemption at POS
Acquirer Transaction Gateway
Success Story: Zapa Technology
Company overview • Leading providers of managed NFC solutions in Europe • Delivers innovative technology solutions for loyalty, prepaid, gift cards • Headquartered in Dublin, Ireland
ViVOtech delivers • mLoyalty platform for mobile loyalty and gift card processing service for European retailers • ViVOtech’s secured contactless technology for ZAPA TAG sticker that is placed inside or outside of an existing mobile phone
Business results • Rolls out community loyalty program - “Irish town launches local loyalty programme using mobile sticker” - http://www.nearfieldcommunicationsworld.com/2009/11/30/32376/irish-town-launches-local-loyalty-programme-using-mobile-stickers/
Business drivers • Increase customer retention for multiple retailers • Deliver innovative technology that can replace multiple multiple loyalty cards and stamped paper points
“ZAPA has chosen ViVOtech because of their experience in loyalty, contactless and mobile technologies. Our goal is to provide exciting new services enabled through real time and location based loyalty programs using NFC technologies", said John Nagle, CEO of ZAPA Technology. "With the ability to support multiple retailer programs in one ZAPA TAG, we expect to have great adoption for our program."
Retailer Solutions with NFC Enabled Phones - Delivering Strong CRM Solutions to Shoppers & More
Strategic Touch Points Entice High Usage Kiosk Price Checker NFC Smart Posters Contactless/NFC POS
Elite Customer
Deliver High Value Based On Location In-Store
Department Specific Product Specific
Near-store (mall food court) Away from store (concert venue)
Influence behavior Time-limited personalized offers:
“All Tommy Hilfiger 20% Off Today Only” Steer Macy’s card to top of wallet
Gather Data Redemption, Customer Analytics and Psychographics
1. Customer Taps NFC Smart Poster at Retailer
3. Marketing server issues personalized promotions to phone based on location, interest and personal profile.
Customer #1
Customer #2
Use Case 1: NFC Mobile Allows Location Based, Interactive, One-on-One Mobile Marketing Programs
Tag I.D. 2. Consumer and Tag ID info sent to Back-End
Consumer I.D.
User taps the NFC phone to the Retailer Smart Poster
Wallet will communicate with OTA server and download card
Card is successfully downloaded and ready to use by customer
Note: Banks can offer this service to retailers for co-branded cards or private level
User uses wallet to load money into the card
User sends gift card to recipient
Send Gift Card to Marcia
Deliver by: 04/24/09
Message: Happy Birthday!!
Sets delivery date Adds message And picture
In-store, Near-Store, Gift Card Malls, Airports, ANYWHERE
Use Case 2: Sign Up New Cardholder Thru Smart Poster*
* ViVOtech patent pending
Use Case 3: Online Purchase While Shopping at a Physical Retail Store
User taps the NFC phone on Retailer smart shelf tag
Wallet will provide product information based on Shelf Tag
Customer selects card for payment in wallet
Wallet will show the confirmation page with the check out basket
Product will be shipped to customer ship to address.
Wallet will display product cost when user clicks “Buy”
* ViVOtech patent pending
Use Case 4: Tap on Smart Poster to Up Sell with Time-Limited Offers
1. Consumer taps poster to save time and find matching accessories and outfits
2. Based on pre-defined matches, consumer profile and store inventory server replies with options in different categories
3. A follow-up message gives an incentive for the consumer to buy the combination today for a discount.
Use Case 5: Customer Makes Informed Shopping Decisions & Enjoys Personalized Offers
Tap here for detailed product information! - Specs - Reviews - Warranty
Customer Taps Phone on smart poster for additional product information
Product information is received on the phone accompanied with time-limited promotion
KitchenAid Stand Mixer, KSM150PS 5 Qt. Ar1san Reg. $399.99 Sale $299.99
More Next
Use Case 6: Customer Opts-in To Receive Product & Sales Information To Mobile Phone
Tap here to receive updates on Tommy Bahama new arrivals and upcoming sales.
Customer taps to stay informed about a product or brand name
Updated information is provided with Personalized Offers
Tommy Bahama Positano Floral Shirts
In Your Size! Many Colors Available
Orig. $110.00 Now $79.99 Un>l Aug 30
Overall Ra1ng 4.9
More Next
Case Study: Retailer
Incentives from card brands Lower cost payment alternatives
Reduced fraud
Chargeback/fraud protection
Cost Savings
Convert browsers into buyers Drive traffic to stores through strategic touch points
Generate up-sell & deliver convenience
Steer retailer-branded card to top of wallet
Revenue Growth
Offer personalized promotions & loyalty programs Deliver location-based real time offers
Generate high impact with “tap and go”
One-to-One Marketing
Collect demographic data Gather shopping habits and customer insight
Measure campaigns/product-placement effectiveness
Real-Time Customer Analytics
Benefits to Client
BART NFC Trial: An End to End Experience Delivered by ViVOtech
1. Tap your phone on “Find Your Burger” NFC Poster at a BART Sta1on in San Francisco
2. Get direc1ons to the nearest Jack in the Box on your phone screen
4. Pay for your meal with your Jack CA$H prepaid card on ViVOpay readers
Full OTA Provisioning of Transit and Merchant Cards
BART Card OTA Balance Check and Manual/auto Reload
3. Wave your phone on the Turns1le to ride the BART to your favorite Jack in the Box loca1on
Success Story: Vodafone-Citibank, India
Company overview
• Citi: Largest Issuer/Acquirer in India
• Vodafone (Hutch): 63M subscribers
ViVOtech delivers • Full OTA provisioning solution for multi-MC/
eCoupon management • Control Server integrated at Vodafone
Back-end; Issuer Server integrated at Citi • Fully Commercial Platform: 25M+ NFC
phones supported; • Customized wallet with fully integrated
account balances information • Enablement of 200 merchants in business
district
Business results • 3000+ Phones purchased & activated to-date • Commercial platform deployed that can support 25M+ consumers • Substantial increase in spend via phone • Substantial increase in carried charges
Business drivers • Large scale NFC project where
consumers keep NFC phones • Stats proof of Pay-by-Mobile value • Migration path to full scale service • Consumers pay for the phone
Slide 21
ViVOtech NFC Software Has Enabled Dozens of NFC Field Pilots Successfully over Last 3 Years
Slide 22
Results Highlights from ViVOtech-Enabled Projects
75% of Par1cipants Preferred Paying with NFC Phone vs. Card
Personalized eCoupons Very Popular and Highly Redeemed
87% of Par1cipants Want NFC Payments on Their Next Phone
Easy Security: Swipe Finger ‐‐ MasterCard is Ready to Pay
Users Asked for More Loca1ons to Make Purchases
Users Wanted All Their Cards and Tickets on Future NFC Phones
80% of Par1cipants Found the Mobile Wallet Easy to Use
9000 Transit Rides Taken on BART Using NFC phone
BART EZ‐Rider cards OTA Topped‐Up Over 800 1mes
Randy Vanderhoof Executive Director Smart Card Alliance 191 Clarksville Rd. Princeton Junction, NJ 08550 (800) 556-6828 rvanderhoof@smartcardalliance.org www.smartcardalliance.org
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