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Mobile Wallets "Success Stories"

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Title: Mobile Wallets "Success Stories"


1
Mobile Wallet Success Stories
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2
SK Telecoms Smart Wallet in South Korea
  • Generic Information
  • SK Planet, SK telecoms internet service arm,
    launched the mobile wallet service in 2010.
  • Supports array of functionalities like transport
    tickets, movie tickets, loyalty programs but
    lacks those of debit and credit cards.
  • Reached 9 million subscribers with 2.5 million
    active users per month in April 2013.
  • 220 service providers support the wallet.
  • Can be used across 80,000 locations in South
    Korea.
  • In May 2013, the Korea Times had reported that it
    is used by 75 of users having smartphones with
    smart wallet functions.
  • Factors driving Success
  • Timing of launch as it was first of its kind back
    then.
  • The way it has been promoted to service
    providers. SK telecom highlights its large
    customer base as well as CRM capabilities to
    attract service providers.
  • Positive perception by customers towards mobile
    wallet. They want a single medium to store
    multiple storage cards.
  • Annual growth in payment cards at a CAGR of 8
    reaching volume upwards of 264 million back in
    2011. The surge in card ownership increased
    access to banking services which further
    increased mobile wallet adoption.
  • Operators forging partnerships with banks and
    payment networks. E.g. SK telecom partnering with
    card issues to support both PayPass and payWave
    standards.

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2
3
NTT Docomos Osaifu-Keitai in Japan
  • Factors driving Success
  • The FeliCa platform helped it grow exponentially
    in Japan.
  • But the major factor attributed to its success
    can be NTT Docomo being the market leader in
    Japan among mobile operators.
  • Although the mobile wallet service has brought
    about other players as well including banks and
    has witnessed collaborative models as well.
  • Very high penetration of mobile phones in Japan
    at around 87.
  • Early adoption of mobile internet in Japan. E.g.
    i-mode, the mobile internet service by NTT
    Docomo, largest operator in Japan.
  • Early adoption of prominent cellular technologies
    in Japan like 3G and 4G.
  • Generic Information
  • The words Osaifu-Keitai literally mean Wallet
    Mobile.
  • The mobile wallet service was launched way back
    in 2004.
  • It is based on FeliCa integrated circuit
    developed by Sony which is a de facto standard in
    Japan.
  • Osaifu-Keitai include array of services like
    loyalty card, identity card, electronic money,
    public transit and credit card as well.
  • The mobile wallet gets advantage from the FeliCa
    platform to integrate contactless payment
    technologies like NFC, QR code, etc.

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4
WyWallet in Sweden
  • Generic Information
  • The wallet service was founded in October 2011 by
    four major mobile operators in Sweden Telia,
    Tele2, Telenor and 3.
  • It paved the way for 97 of Swedish mobile phone
    users to pay for goods at participating
    businesses.
  • It uses the simple SMS platform for transactions
    using a mobile app.
  • This enables it to function not only on Android
    and iOS smartphones but also on older phones
    based on Java.
  • WyWallet provides a popular payment mechanism
    called purchase-on-invoice.
  • This mechanism facilitates card-not-present (CNP)
    transactions in which customer can inspect
    purchase upon receipt and pay for them later.
  • Factors driving Success
  • The simple SMS platform makes it mobile OS
    agnostic and has been a key factor behind its
    wide scale adoption.
  • The major reason behind its large customer base
    is the collaboration of the four operators which
    themselves hold majority of cellular customer
    base.
  • The collaboration among the operators has
    provided cross-operator interoperability and wide
    addressable market.
  • High mobile penetration and mobile internet
    penetration in Sweden.
  • In Sweden, internet penetration is 94, mobile
    penetration is 150 and mobile internet
    penetration is 92.7.

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5
Seamlesss SEQR in Europe
  • Generic Information
  • Founded in 2001, SEQR is a popular mobile wallet
    in Sweden and across Europe too.
  • Seamless, a 12 year old company based in
    Stockholm, installs its system at the point of
    sale with comes with stickers containing either
    QR codes or having NFC capability.
  • The SEQR app can be used to access the POS
    systems.
  • The methodology of transaction involves use of
    card details and account numbers stored on
    Seamlesss servers which is matched with cashier
    identification code and value of transaction
    stored at checkout system.
  • SEQR is completely independent of PCI and
    traditional card networks.
  • The service is currently active across 30
    countries with Seamless handling more than 3.1
    billion transactions.
  • Factors driving Success
  • The launch of the service in early years of the
    millennium gave it wide geographical reach.
  • The independence on PCI and traditional card
    networks has given it wide-scale reachability.
  • The lower transactions charges compared to card
    companies is also an influencing factor behind
    adoption.
  • Effective distribution of sale outlets across 30
    countries, the no of outlets being 525,000.
  • Highly developed telecommunications equipment and
    handsets manufacturing across Europe.
  • Strong collaboration between payment service
    providers and banks. E.g. PBS in Denmark, BBS in
    Norway Luottokunta in Finland.

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6
T-Mobiles MyWallet in Poland
  • Generic Information
  • It started as commercial NFC payment service back
    in October 2012 in collaboration with MasterCard.
  • The service was launched with the participation
    of banks and allowed customers of T-Mobile to
    store credit and debit cards on their phones.
    Within a couple of months of its launch, it had
    already gained 5,500 NFC customers.
  • Currently, it works in collaboration with five
    major banks of Poland namely Eurobank, Raiffeisen
    Polbank, mBank, Getin and Noble Bank.
  • Factors driving Success
  • The collaboration with major banks of Poland has
    fueled MyWallets growth.
  • At the end of first quarter of 2013, there were
    120,000 NFC point-of-sales in Poland which
    further aided the adoption of MyWallet.
  • The high number of NFC portals can be attributed
    to MasterCard project towards deployment of its
    PayPass technology.
  • With MasterCard collaboration in tow and the
    support of five major banks of Poland, MyWallet
    truly is on a successful roadmap.

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Wallets?
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7
Rogers Suretap in Canada
  • Generic Information
  • In 2012, the mobile wallet came into existence as
    first of its kind collaboration between the
    Canadas biggest wireless carriers i.e. Rogers
    Communications Inc. and Canadian Imperial Bank of
    Commerce, among the five largest banks of Canada.
  • It allowed contactless purchases up to C50 using
    NFC-capable devices.
  • The mobile wallet service was SIM based and
    allowed payment card information to be securely
    downloaded to the SIM card.
  • Suretap was readily compatible at numerous
    point-of-sales (POS) including those of
    MasterCard PayPass and Visa wavePay.
  • Factors driving Success
  • Rogers had a large subscriber base (9 million as
    of 2012) and also Rogers got its banking license
    approved in 2013 which propelled easy adoption of
    surretap.
  • The SIM based feature provided highest level of
    security and more control to the customer thus
    creating better perception among its adopters.
  • Through collaboration with MasterCard, Rogers was
    able to bring about virtual Rogers prepaid
    MasterCard which further aided adoption of
    suretap mobile wallet.
  • The Canadian market is dominated by debit card
    usage. Back in 2011, around 78.8 million cards
    were in circulation. With EMV adoption already in
    its final phases, this has paved way for mobile
    wallet.

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7
8
NTT Docomos iD In 2005, NTT Docomo invested
US1billion in Japans no. 2 credit card company
at that time. This resulted in the launch of
Docomos very own credit payment scheme called iD
in the month of December. At the same time,
DoCoMo also gave subscribers places to tap their
phones to pay with iD, investing tens of millions
of dollars more for minority stakes in
convenience store chains. The telco also fronted
the cost of contactless terminals for smaller
merchants. Through its tens of millions of U.S.
dollars worth of investment in retail chains,
DoCoMo has managed to get the iD m-payment brand
accepted at scores of convenience stores and
other merchant locations450,000 terminals in
all. The high penetration of FeliCa chip enabled
phones fueled the growth of the iD service.
  • NTT Docomo and KTs NFC rollout
  • Commercial NFC services were introduced by
    Japans NTT Docomo and South Koreas KT at end of
    2012.
  • The services allowed subscribers to use a range
    of NFC mobile payments including mass transit
    ticketing, promotional couponing services, etc.
  • Facilitated customers travelling between Japan
    and South Korea to access the services with no
    constrains.
  • Further expansion of service through strategic
    tie-ups Visa Inc., Samsung Electronics Co. Ltd.
    and Gemalto.

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8
9
Other Wallets yet to see Sizeable Adoption
Isiss Mobile Wallet in USA Isis, the firm
behind this mobile wallet service, is a joint
venture between the three largest operators in
USA i.e. ATT Mobility, T-mobile USA and Verizon
Wireless. The mobile wallet service is thus
supported on more than 50 Isis Ready smartphones
under contract among the three operators. To use
the service, a consumer basically requires an NFC
capable smartphone and SIM based secure element.
In USA, more than 20 million smartphones in
market feature NFC technology with more being
shipped by the leading three carriers. Isis
mobile wallet has already had successful pilots
in states like Texas and Utah unveiling a no of
fruitful results. As many as 65 of consumers
testing the service revisited merchants often and
took advantages of mobile offers. Isis mobile
wallet has deals with four major credit card
companies Visa, MasterCard, American Express and
Discover. It has the support of six major handset
makers. Not to be forgotten is the backend
support of the leading cellular operators.
Recently it has partnered with big point-of-sale
system providers and financial institutions like
Chase, Capital One and Barclaycard leading to
incubation of more payment cards into Isis
wallet. Such deals have given access to about 50
of all consumers in USA.
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9
10
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