http://www.worldlinkintegration.com/

TYPES OF MOBILE PAYMENTS

Smart Phones

64% of current Mobile POS devices

Tablets

The number of retailers testing tablets reached nearly 11% in 2013 –RIS News

Wearable Tech

Applications on smart watches or connectivity to mobile payment

platforms with smart jewelry or glasses.

Beacons

Digital Check Presenters

http://www.fortmilltimes.com/2014/03/20/3363223/mobile-pos-set-to-grow-95-

worldwide.html

http://www.psfk.com/2014/03/tablet-optimized-retail-experience.html#!CLqXz

CONSUMER USE

Payment: Pay through mobile applications, in-store beacons, and digital

check presenters without having to pull out cash or a credit/debit card.

Receipt of Coupons: Pay with coupons downloaded on smartphones or

tablets through beacons, mobile applications, or internet browsers.

Price Comparison: Use internet capabilities of a smartphone or tablet to

compare prices of items online and in other stores before purchasing.

Place orders: Access a restaurants mobile application to place a food order

and pay in advance, so that it is ready upon arrival.

Check-in: Check in at restaurants on smart phones to reduce wait time or in

stores to receive discounts and promotions.

http://www.dmconfidential.com/m-commerce-spending-hits-4-7-billion-in-q2-2013-

could-reach-10-billion-in-q4-2013/

USE BY THE RETAILER

Receive Payment: Provide mobile applications, beacons, or digital check presenters to make receipt of payment faster and more secure for the consumer.

Manage Inventory: Instant updates from mobile devices whose data can be shared through WiFi or Bluetooth.

Reduce Wait Times in Restaurants

-Place orders at tables rather than having to return to POS stations. -Finish payments at tables for faster turnover.

Engage with Consumers in Stores

-Beacons can connect to shoppers’ smartphones based on location in the store, provide coupons, and locate items in different departments. -Tablets for employees can provide inventory information so that store associates may look up whether an item is available in the back of house inventory, online, or at a nearby branch without leaving the customer unattended or forcing them to wait impatiently which may result in a loss of sale.

BENEFITS FOR RETAILERS

“Mobile payment users, on average, spend approximately 2x as much

through all digital channels than those not using mobile payments.”

- Bain & Co.

Loyalty programs Reduce Transaction Costs

Inventory management

Product analytics

Customer analytics

Increased Conversion Rates

Faster Turnover Times

http://www.mobilecommercedaily.com/mobile-payment-users-spend-twice-as-much-report

http://www.mobilecommercedaily.com/how-retailers-should-select-their-mobile-payment-

platform

CONSUMER ADOPTION RATES

73% of consumers who use mobile wallets do so <5 times per month

Survey of 25,000 consumers

in five countries shows:

50% of consumers are aware of mobile payments

3-7% have used mobile payments in stores

Currently, the adoption rate of consumers and their consistent use of

mobile payments once adopted is low. The potential exists though, so as

more retailers and restaurants adopt the technology, it is likely that

consumers will make the switch as well.

http://www.mobilecommercedaily.com/mobile-payment-users-spend-twice-as-much-report

http://www.mobilecommercedaily.com/paypal-leads-the-way-for-mobile-wallets-but-adoption-flounders-

yankee-group

16-27% of

consumers are

willing to try mobile

payment

CONSUMER ADOPTION RATES CONTINUED

65% of U.S. consumers will continue to use credit and debit as primary payment methods in 2014 according to VeriFone

Mobile purchases by smartphone users by age group:

Age 18-34 = 37% have made purchase on their phone

Age 35-54 = 29% have made purchase on their phone

Age 55+ =14% have made purchase on their phone

Consumer Smartphone Purchases

Small purchases = 45%

Medium purchases = 44%

Large purchases = 29%

55% of consumers want mobile wallets

The potential exists and there is a demand for the technology.

http://www.chainstoreage.com/article/survey-consumers-want-mobile-wallets

http://blog.shop.org/2014/04/01/the-state-of-mobile-shopping/

Since 2010, M-Commerce Spending has drastically increased. Fourth quarter sales peak

each year due to the holiday seasons. If we compare the rates by the identical quarter of

each year, we see consistent increase in mobile purchases from 2010 to 2013.

http://mwpartners.com/mobilecommerce

INDUSTRY DILEMMAS

Lack of consolidation

• According to Eden Zoller, a Principal Analyst from Ovum (a technology consulting

firm), “Consumers will not adopt multiple digital wallets and instead will focus

their loyalty…with one or possibly two services. The best positioned will be those

associated with the financial branches that consumers trust most. It is digital

wallets of this kind that have the best chance of achieving scale.”

The large number of mobile payment options:

NFC (Near Field Communication)

QR Codes

Mobile applications

BLE (Bluetooth Low Energy)

Technology differentiation creates a disconnect between stores and

consumer preference.

PREDICTIONS

IHL Predicts:

In North America, 64.6% of all new Mobile POS will be on phablet (tablet-sized

phones) or larger screens in 2014.

Forrester Research:

Total worldwide sales of tablets will surpass 380 million units this year.

Goldman Sachs projections:

U.S. retail sales on smartphones will more than double from $70 billion this year to

$173 billion by 2018.

Tablet sales will more than triple from $130 billion this year to $453 billion in 2018.

http://www.psfk.com/2014/03/tablet-optimized-retail-experience.html#!CLqXz

http://blog.shop.org/2014/04/01/the-state-of-mobile-shopping/

http://www.fortmilltimes.com/2014/03/20/3363223/mobile-pos-set-to-grow-95-

worldwide.html

CONCERNS

Security:

• One of the biggest concerns of consumers is the security of their payment data.

Practicality and Inconsistency

There is a lack of incentives for customers to switch.

Not enough stores and restaurants provide mobile payment options.

Consumers can use their phone at some locations, but must pay with card or

cash at others.

Privacy:

Customers are uneasy about the possibility of being tracked or monitored by

stores for behavior profiles and analytics.

CONCLUSION

The current adoption rates of mobile payments by consumers, retailers, and

restaurants is slowly rising.

The willingness of buyers and consumers to provide and adopt new technology

is reduced due to security concerns.

The benefits of mobile platforms go beyond just payments:

-Customer engagement abilities

-Inventory analysis

-More efficient use of time for both parties.

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