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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

Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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Page 1: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 2: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

  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

Page 3: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 4: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 5: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

A Wide Variety of Merchants Enabled with NFC

Retailers with All of Their Locations Installed in United States:

Selected Geographies/Locations in United States:

Page 6: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 7: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 8: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 9: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 10: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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."

Page 11: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 12: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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.

Page 13: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

  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

Page 14: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 15: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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.

Page 16: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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 

Page 17: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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 

Page 18: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 19: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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 

Page 20: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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

Page 21: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

Slide 21

ViVOtech NFC Software Has Enabled Dozens of NFC Field Pilots Successfully over Last 3 Years

Page 22: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

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 

Page 23: Smart Card Alliance / NFC Forum Joint Workshop · Smart Card Alliance / NFC Forum Joint Workshop ... – Participant in most global NFC mobile payment trials ... Visa, American Express,

Randy Vanderhoof Executive Director Smart Card Alliance 191 Clarksville Rd. Princeton Junction, NJ 08550 (800) 556-6828 [email protected] www.smartcardalliance.org