The Business of Mobile Payment

The Business OF MOBILE PAYMENT We use oun cellphones for nearly everything.. music, movies, camera, calendar, and now making purchases. di ID 100% 25%- In fact, nearly 25% of the world's population owns and uses a smartphone, which is the leading platform for mobile payment So, what exactly is the business of mobile payment? let's finst take a look at the history: 1997 THE HISTORY OF MOBILE Coca Cola introduces ΡΑΥΜΕNT vending machines that accept payment via text message Coca Coa. 1999 1997 Merita Bank utilizes Cell phones used to buy movie tickets Merita bank text messaging for bank transactions 2000 2001 Cell phones used to book KLM Airlines flights Domino's Pizza Domino's Pizza accepts payment via mobile device KLM 2007 2003 The iPhone is released, making mobile payment even more popular 95 million people make mobile payments 10 million people NOWADAYS, MOBILE PAYMENT HAS EVOLVED INTO: 3 leading payment technologies («») Wi F NEAR-FIELD QUICK RESPONSE CODE (OR QR CODE) COMMUNICATION BEACONS (OR NFC) A bar code that can be scanned to make Small devices running on WiFi that communicate Wireless technology allows users to send mobile payments to retail stores and restaurants by placing their phone (or tablet, or watch) centimeters away from purchases via smartphone or tablet device with other devices when connected, allowing users to pay merchants via smartphone and tablet an NFC reader MOBILE PAYMENT COMPANIES FOUR COMPANIES THAT ARE TACKLING THE BUSINESS OF MOBILE PAYMENT ARE: APPLE PAY Pay How it morks Supported by 6 U.S. banks and accepts American Express, MasterCard and Visa Allows iPhone 6 users to make payments at over 220,000 retail locations NFC-based Utilizes payment information associated with users' existing $4 Apple doesn't charge users, merchants or developers for the service iTunes accounts =20000 retail locations Apple collects a fee from participating banks for each transaction 2 PAYMENT CODE PayPal Hom it morks Allows users to make Utilizes payment QR code and Beacon-based payments with their cellphones or tablets at retail locations information associated with users' existing PayPal accounts Supported by numerous banks and credit cards %) PayPal collects a percentage of each transaction 3 GOOGLE WALLET Google How it morks Allows Android users to make payments with their cellphones or tablets at retail locations Google charges 2.9% when adding money to Google Wallet from a credit or debit card NFC-based Supported by major credit cards There is no fee to receive money from Google Wallet 4 CURRENTC MCX How it morks MERCHANT CUSTOMER EXCHANGE Allows iOS and Android Consortium of the 70 largest U.S. retailers (including Wal-Mart, Target, CVS and Shell Oil) users to make mobile QR code-based payments at over 110,000 retail locations Eliminates credit card fees ACH by processing payments as Automatic Clearing House transactions with =10 retail locations smaller fees =10000 retail locations THE FUTURE OF MOBILE PAYMENT 200% - 200B $189B 10% – 8% 6% 100% 100B 5% 154%1 $1.8B 0% 2014 2019 2013 2018 2013 2014 Mobile payment industry projected to grow 154% over the next 5 years Percentage of U.S. adults using mobile payments From a $1.8 billion industry (2013) to a $189 billion industry (2018) has risen from 6% in 2013 to 8% in 2014 NFC-based payment technologies expected to become more widely used than QR codes Apple Pay, more than any other company, is expected to make mobile payment even more mainstream. Sources • businessinsider.com/the-mobile-payments-industry-update-2014-10 • techcrunch.com/2013/10/08/with-payment-code-paypal-taps-gr-codes-and-existing-hardwa re-for-retail-mobile-payments/ • mozido.com/mobile-payments-now/ • techcrunch.com/2013/09/09/paypal-debuts-its-newest-hardware-beacon-a-bluetooth-le-en abled-device-for-hands-free-check-ins-and-payments/ • techcrunch.com/2014/09/09/announces-mobile-payments-solution-called-apple-pay/ • bustle.com/articles/44654-how-does-apple-pay-work-exactly-all-your-questions-answered • pcmag.com/encyclopedia/term/61424/gr-code • bloomberg.com/news/2014-09-10/apple-said-to-reap-fees-from-banks-in-new-payment-sy stem.html • techcrunch.com/2014/10/25/currentc/ • paypal-community.com/t5/PayPal-Forward/PayPal-Introduces-the-World-to-Payment-Cod e-at-Money2020/ba-p/782756 • techtimes.com/articles/16140/20140922/apple-pay-vs-google-wallet-features-compared-wh ich-is-better-and-why.htm • forbes.com/sites/moneybuilder/2014/01/29/how-to-get-the-most-value-out-of-the-google-w allet-prepaid-card/ Brought to you by: A E t OHIO http://onlinemba.ohio.edu/ 180 4 UNIVERSITY %24 %24 %24 11