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Thin Is In The Future of Digital Wallets
October 18, 2011
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Christina Nguyen White User Experience Designer, Mobile & Multi-channel
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This is an inspirational talk on
Digital Wallets in the eyes of a consumer
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This is an inspirational talk on
Digital Wallets in the eyes of a consumer
3. How do we make it real?
4. How will it change the way we shop?
2. What questions should we be asking?
1. Who’s trying and succeeding?
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What’s your wallet personality?
✔
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What’s your wallet personality?
✔
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What’s in your wallet?
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What else?
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What is a digital wallet?
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Payment Method
Financial Management
Coupons Comparison Shopping
Tickets/ Passes/ ID
Digital Wallet
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Who’s trying? 1
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Devices
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What is an NFC Chip?
4”
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Devices
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Financial Management
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USAA Mint.com Chase Pageonce
Financial Management
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Coupons
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Best Buy Reward Zone Shopkick Groupon CardStar
Coupons / Check-In Incentives
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Comparison Shopping
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Red Laser Scan & Shop Lasoo Google Shopper
Comparison Shopping
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Tickets / Passes
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Japan Public Transit Pass
Japan Mobile Airline Check-In
Hong Kong Octopus Wallet Watch
Tickets / Passes / IDs
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Payment Method
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Payment Method
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Payment Method
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Who’s close?
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Who’s close?
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Who’s close?
+
+
=
30
% of respondents
Devices that will be replaced* by mobile phone users according to mobile phone users worldwide, June 2010
Note: Ages 18+, *within 5 years Source: Oracle, “Opportunity Calling-The Future of Mobile Communications”, Sept 22,2010
54%
54%
52%
31%
27%
27%
24%
22%
18%
5%
GPS
iPod or MP3 Player
Digital Camera
Credit Card
Personal Computer
Video Recorder
Car Keys
eReader
Personal ID card
TV
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What questions should we be asking?
2
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Who’s responsible for smartphone security?
Feel the individual is
55%
Feel the phone manufacturer is
15%
Feel the cellular carrier is
30%
Source: cellphones.org
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What’s in your phone?
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Are digital wallets safe?
$3.3-8.6Bn annually
US Credit Card Fraud est. range based on the use of mag-stripe credit card technology
Sources: Secret Service, Oracle Financial Services
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Are digital wallets safe?
France cut card fraud by more than 80%
by using PCI compliant EMV Chip technology and PIN number instead of mag-stripe and signature at the point-of-sale
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Will digital wallets reduce fraud?
Yes, digital wallets will help reduce fraud.
“Dynamic authentication is the key to securing payments into the future"
Ellen Richey, Chief Enterprise Risk Officer at Visa
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Who are the players?
Before
+ +
After
+ + +
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Who “owns” the digital wallet?
Financial Institutions Carriers Retailers
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Financial Institutions Carriers Retailers
What they
need to
adopt:
What they
bring to the
table:
• Customer-Centric perspective
• Technology to support
• Payment Processing
• Credit Card services
• Bank services
• Security Infrastructure
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• Payment Processing
• Credit Card services
• Bank services
• Security Infrastructure
Financial Institutions Carriers Retailers
What they
need to
adopt:
What they
bring to the
table:
• Customer-Centric perspective
• Technology to support
• Networks & Location Based Services & Messaging
• Drive Features & Standards for OEMs
• Mobile Payment Services
• Direct Carrier Billing
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Mobile Carriers The North American Conundrum
OS OS OS OS OS OS OS OS OS OS OS OS
OS OS OS OS OS OS OS OS OS OS OS OS
OS OS OS OS OS OS OS OS OS OS OS OS
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Financial Institutions Carriers Retailers
What they
need to
adopt:
What they
bring to the
table:
• Payment Processing
• Credit Card services
• Bank services
• Security Infrastructure
• Networks & Location Based Services & Messaging
• Drive Features & Standards for OEMs
• Mobile Payment Services
• Direct Carrier Billing
• Customer-Centric perspective
• Technology to support
• Standardized handset and OS
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Financial Institutions Carriers Retailers
What they
need to
adopt:
What they
bring to the
table:
• Customer-Centric perspective
• Technology to support
• Standardized handset and OS
• Shopping Experience & Customer Perceived Value
• Consumer Data
• Point of Sale
• Customer Perceived Value
• Reduction of Processing Fees
• Integrated Point of Sale “Everywhere shopping”
• NFC embedded phones
• Retail partnership
• Payment Processing
• Credit Card services
• Bank services
• Security Infrastructure
• Networks & Location Based Services & Messaging
• Drive Features & Standards for OEMs
• Mobile Payment Services
• Direct Carrier Billing
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Who “owns” the digital wallet?
Financial Institutions Carriers Retailers
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Who “owns” the digital wallet?
Financial Institutions Carriers Retailers
✔ ✔ ✔
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Who influences the consumer?
Financial Institutions Carriers Retailers
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Who influences the consumer?
Financial Institutions Carriers Retailers
✔
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What needs to happen?
Financial Institutions, Carriers, and Retailers need to work together to understand how to split up the transaction fees, etc. 1
Figure out how industry will get enough consumers to use the digital wallet and enough merchants to accept mobile payments. 2
Ensure that the user experience is still easy to use & intuitive 3
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Then what?
Consumers don’t want a new way to spend money faster.
vs.
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Then what?
They want a new way to spend money wiser.
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How will we make it 3 a reality?
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Remember the telephone?
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Evolution of the Phone
SMS Web
Caller ID
Camera
Mp3 Player
Note Book Games
Alarm Clock
GPS
Address Book
Apps, Apps, Apps
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Keep It Simple
Phone Wallet
vs.
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Remember running 1 application?
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Avoid clutter
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Coupons
Gradually Enhance
Financial Management
Comparison Shopping
Tickets/ Passes
Payment Method Financial Management Coupons Comparison Shopping
Tickets/Passes
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Gradually Enhance
“Stroud” Curve of Downloadability
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Your life is on your phone.
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Your life is on your Facebook feed.
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But your private, personal information is in your wallet.
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Where does social belong?
Community Feed
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Social Network = Digital Wallet
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Social Network influences Digital Wallet
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…by helping start the conversation
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…and continue the conversation.
LOYALTY
LOYALTY
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How will it change the way we buy? 4
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Mom Driving
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[Parking Lot Scene]
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[Kitchen Scene]
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What’s in your wallet?
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What is your wallet?
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The Takeaways
• Digital wallet is not JUST paying with your phone
• Think of consumer’s needs first
• Keep it simple. Gradually enhance.
• Make it easy, effortless, and convenient.
• Find its relevant place within the shopping eco-system
• Be patient
• Enable and continue the conversation
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Thank You
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Questions?