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Payment Wars

PAYMENT WARS The future of payments and the battle for your wallet. See that credit card in your wallet? It may soon be obsolete. Cash? Forget about it. Even your wallet may well be rendered unnecessary in the foreseeable future. Gartner Research predicted mobile payment users would surpass 141 million in 2011, a 38% increase from 2010. However analysts say that growth is slower than expected, as we seem too attached to plastic and cash. But for how long? Below, we take a closer look at the four leading models for mobile payments. Which one will prevail? Mobile as a Point of Sale KEY PLAYERS Square Ba Verfone intuit PayPal THE WA .TOPA y HOW IT WORKS Sign here VSIA S1.50 $15.33 Your credit card is swiped by a reader attached to a mobile device. Your payment is sent to the credit card company for authorization. You sign on the screen of the mobile device. $11.50 12/01/09 at 9:13:58 AM 2 cappuccinos, caramels Receipt is emailed to you. TIMELINE May 2010: Square launched Oct 2010: Verifone Nov 2010: ROAMpay launched Jan 2011: Intuit GoPayment launched 2001: First wireless POS system PAYware announced Mar 2012: PayPal reveals iPhone dongle 2010 2011 LILL LL By 2015, mobile POS will process nearly $670 billion in transactions. SUMMARY Sure, wireless POS systems have been around for more than a decade now, but it was Square's integration with smartphones that really opened this market up to small businesses and even individuals. With a low barrier to entry - the companies are handing out their card-reader devices for free and collecting a percentage of each transaction or a small monthly subscription. Contactless Payments/NFC KEY PLAYERS Visa payWave Every Other Bank ISIS paypass MasterCard Google wallet HOW IT WORKS Your credit card info, or that of any loyalty or gift card, is stored on your phone. Tap your phone to an NFC payment system and your info is sent to the merchant for authentication. Enter a PIN code prior to purchase. Google walle The merchant will provide receipt, but it will also appear on your device. Jack in the Box TIMELINE 1997: Mobile Speed- Mid-2012: ISIS pass uses RFID for contactless payment. 2005: Major banks release chip embedded con- tactless cars Sept: 2011. Google Wallet launches pilot program will launch in Salt Lake City "05 "07 10 "12 60. 80. Contactless payments are expected to reach $50 billion by 2014 and $320 billion by 2016. SUMMARY We've had contactless payment credit and debit cards for years, but for most of us, waving a card in front of a reader is hardly any different than swiping it the good old-fashioned way. By using your phone the innova- tion can truly begin linking up transactions with apps such as voucher codes. Google's participation in the market will no doubt play a big role in its growth. Direct Carrier Billing KEY PLAYERS ZONG|. boku openvarket. PAYFONE, mopay Billto Mobile HOW IT WORKS Pay with your moble phone y Crediswth your moble phone zonG reisnot your country cich.be seda e Ndee 2040 Please enter your mobile phone number 2 ZONG g 121231234 Enter PIN code BUY wmH MOBILE Continue A PIN code is sent to Click the available billing button on a merchant's site. Enter your phone number. your phone via SMS. Énter the PIN to com- plete the transaction. Account Service Detail - (Continued) Аmюunt Totals Taxes, Fees and Surcharges 5.79 The purchase will appear on your phone bill. TIMELINE 2011: Zong rolls out one-click billing. It is acquired by eBay. 2004: Carriers open up WAP billing 1998: The first 2009: T-Mobile paid ringtone is delivered via becomes the first carrier in the U.S. to offer direct premium-rate SMS. carrier billing for the Android Market. *07 '09 90. 80. It's difficult to sell anything but digital goods when the Carriers take 40% to 90% of every transaction. SUMMARY DCB may offer the path of least resistance for customers and appeals to those who want to pass along as little of their financial information as possible due to security concerns. But it comes with the highest price tag for merchants and ultimately, if merchants do not give their custom- ers the option, consumers have no way of using it. Online Wallets KEY PLAYERS PayPal Google amazon Checkout payments HOW IT WORKS PayPal PayPal PayPal balance: y Send ey Reat Men Atale Ant Canadian Personal Accou Date PayPal 2010/10/18 Click here to buy 2010/10/18 Caan Dula v 2010/10/18 Eahere Acco ovre cada Dete gate. 2010/10/18 ActhayMt What's New 2010/10/18 Your payment and shipping informa- tion is stored in your account. Click the available button on a merchant's site. Your credit card or account balance is debited. service@paypal.com receipts Receipt for Your Payment to Your receipt is available in your email and account. TIMELINE 2000: Confity and 2002: eBay buys X.com merge to form PayPal 2006: Amazon 2006: Google Payments PayPal for $1.5 Checkout billion. launches. launches. "01 "02 "03 "04 *05 '06 LO. Paypal alone processes $315 million a day in payments. SUMMARY When you're already shopping online, it seems, it's easiest to make the psychological leap beyond your physical credit card (already, your cash is completely irrelevant) and to a virtual wallet. It's no wonder those guys are so... well, big. How long it will be before mobile payments register similar success in our brick-and-mortar shopping world remains to be seen, but one thing is certain: the future "cash" register will look very, very different. 5 VoucherCodes.co.uk VoucherCodes.co.uk delivers the very best offers possible, helping shoppers spend their money smarter! Sources: Juniper Research, "Mobile Payment Strategies, Opportunities & Markets" Gartner Research, "Market Trends: Mobile Payments Worldwide, 2011." visual ly PAYMENT WARS The future of payments and the battle for your wallet. See that credit card in your wallet? It may soon be obsolete. Cash? Forget about it. Even your wallet may well be rendered unnecessary in the foreseeable future. Gartner Research predicted mobile payment users would surpass 141 million in 2011, a 38% increase from 2010. However analysts say that growth is slower than expected, as we seem too attached to plastic and cash. But for how long? Below, we take a closer look at the four leading models for mobile payments. Which one will prevail? Mobile as a Point of Sale KEY PLAYERS Square Ba Verfone intuit PayPal THE WA .TOPA y HOW IT WORKS Sign here VSIA S1.50 $15.33 Your credit card is swiped by a reader attached to a mobile device. Your payment is sent to the credit card company for authorization. You sign on the screen of the mobile device. $11.50 12/01/09 at 9:13:58 AM 2 cappuccinos, caramels Receipt is emailed to you. TIMELINE May 2010: Square launched Oct 2010: Verifone Nov 2010: ROAMpay launched Jan 2011: Intuit GoPayment launched 2001: First wireless POS system PAYware announced Mar 2012: PayPal reveals iPhone dongle 2010 2011 LILL LL By 2015, mobile POS will process nearly $670 billion in transactions. SUMMARY Sure, wireless POS systems have been around for more than a decade now, but it was Square's integration with smartphones that really opened this market up to small businesses and even individuals. With a low barrier to entry - the companies are handing out their card-reader devices for free and collecting a percentage of each transaction or a small monthly subscription. Contactless Payments/NFC KEY PLAYERS Visa payWave Every Other Bank ISIS раурass MasterCard Google wallet HOW IT WORKS Your credit card info, or that of any loyalty or gift card, is stored on your phone. Tap your phone to an NFC payment system and your info is sent to the merchant for authentication. Enter a PIN code prior to purchase. Google walle The merchant will provide receipt, but it will also appear on your device. Jack in the Box TIMELINE 1997: Mobile Speed- Mid-2012: ISIS pass uses RFID for contactless payment. 2005: Major banks release chip embedded con- tactless cars Sept: 2011. Google Wallet launches pilot program will launch in Salt Lake City "05 "07 10 "12 60. 80. Contactless payments are expected to reach $50 billion by 2014 and $320 billion by 2016. SUMMARY We've had contactless payment credit and debit cards for years, but for most of us, waving a card in front of a reader is hardly any different than swiping it the good old-fashioned way. By using your phone the innova- tion can truly begin linking up transactions with apps such as voucher codes. Google's participation in the market will no doubt play a big role in its growth. Direct Carrier Billing KEY PLAYERS ZONG|. boku openvarket. PAYFONE, mopay Billto Mobile HOW IT WORKS Pay with your moble phone y Crediswth your moble phone zonG reisnot your country cich.be seda e Ndee 2040 Please enter your mobile phone number 2 ZONG g 121231234 Enter PIN code BUY wmH MOBILE Continue A PIN code is sent to Click the available billing button on a merchant's site. Enter your phone number. your phone via SMS. Énter the PIN to com- plete the transaction. Account Service Detail - (Continued) Amount Totals Taxes, Fees and Surcharges 5.79 The purchase will appear on your phone bill. TIMELINE 2011: Zong rolls out one-click billing. It is acquired by eBay. 2004: Carriers open up WAP billing 1998: The first 2009: T-Mobile paid ringtone is delivered via becomes the first carrier in the U.S. to offer direct premium-rate SMS. carrier billing for the Android Market. *07 '09 90. 80. It's difficult to sell anything but digital goods when the Carriers take 40% to 90% of every transaction. SUMMARY DCB may offer the path of least resistance for customers and appeals to those who want to pass along as little of their financial information as possible due to security concerns. But it comes with the highest price tag for merchants and ultimately, if merchants do not give their custom- ers the option, consumers have no way of using it. Online Wallets KEY PLAYERS PayPal Google amazon Checkout рayments HOW IT WORKS PayPal PayPal PayPal balance: y Send ey Reat Men Dver A d w Atale Ant Canadian Personal Accou Date PayPal R sat No:Caw 2010/10/18 Click here to buy 2010/10/18 nce a I acde Caan Dula v 2010/10/18 Eahere Acco ovre cada Dete 2010/10/18 ActhayMt What's New 2010/10/18 Your payment and shipping informa- tion is stored in your account. Click the available button on a merchant's site. Your credit card or account balance is debited. service@paypal.com receipts Receipt for Your Payment to Your receipt is available in your email and account. TIMELINE 2000: Confity and 2002: eBay buys X.com merge to form PayPal 2006: Amazon 2006: Google Payments PayPal for $1.5 Checkout billion. launches. launches. "01 "02 "03 "04 *05 '06 Paypal alone processes $315 million a day in payments. SUMMARY When you're already shopping online, it seems, it's easiest to make the psychological leap beyond your physical credit card (already, your cash is completely irrelevant) and to a virtual wallet. It's no wonder those guys are so... well, big. How long it will be before mobile payments register similar success in our brick-and-mortar shopping world remains to be seen, but one thing is certain: the future "cash" register will look very, very different. 5 VoucherCodes.co.uk VoucherCodes.co.uk delivers the very best offers possible, helping shoppers spend their money smarter! Sources: Juniper Research, "Mobile Payment Strategies, Opportunities & Markets" Gartner Research, "Market Trends: Mobile Payments Worldwide, 2011." visual ly PAYMENT WARS The future of payments and the battle for your wallet. See that credit card in your wallet? It may soon be obsolete. Cash? Forget about it. Even your wallet may well be rendered unnecessary in the foreseeable future. Gartner Research predicted mobile payment users would surpass 141 million in 2011, a 38% increase from 2010. However analysts say that growth is slower than expected, as we seem too attached to plastic and cash. But for how long? Below, we take a closer look at the four leading models for mobile payments. Which one will prevail? Mobile as a Point of Sale KEY PLAYERS Square Ba Verfone intuit PayPal THE WA .TOPA y HOW IT WORKS Sign here VSIA S1.50 $15.33 Your credit card is swiped by a reader attached to a mobile device. Your payment is sent to the credit card company for authorization. You sign on the screen of the mobile device. $11.50 12/01/09 at 9:13:58 AM 2 cappuccinos, caramels Receipt is emailed to you. TIMELINE May 2010: Square launched Oct 2010: Verifone Nov 2010: ROAMpay launched Jan 2011: Intuit GoPayment launched 2001: First wireless POS system PAYware announced Mar 2012: PayPal reveals iPhone dongle 2010 2011 LILL LL By 2015, mobile POS will process nearly $670 billion in transactions. SUMMARY Sure, wireless POS systems have been around for more than a decade now, but it was Square's integration with smartphones that really opened this market up to small businesses and even individuals. With a low barrier to entry - the companies are handing out their card-reader devices for free and collecting a percentage of each transaction or a small monthly subscription. Contactless Payments/NFC KEY PLAYERS Visa payWave Every Other Bank ISIS раурass MasterCard Google wallet HOW IT WORKS Your credit card info, or that of any loyalty or gift card, is stored on your phone. Tap your phone to an NFC payment system and your info is sent to the merchant for authentication. Enter a PIN code prior to purchase. Google walle The merchant will provide receipt, but it will also appear on your device. Jack in the Box TIMELINE 1997: Mobile Speed- Mid-2012: ISIS pass uses RFID for contactless payment. 2005: Major banks release chip embedded con- tactless cars Sept: 2011. Google Wallet launches pilot program will launch in Salt Lake City "05 "07 10 "12 60. 80. Contactless payments are expected to reach $50 billion by 2014 and $320 billion by 2016. SUMMARY We've had contactless payment credit and debit cards for years, but for most of us, waving a card in front of a reader is hardly any different than swiping it the good old-fashioned way. By using your phone the innova- tion can truly begin linking up transactions with apps such as voucher codes. Google's participation in the market will no doubt play a big role in its growth. Direct Carrier Billing KEY PLAYERS ZONG|. boku openvarket. PAYFONE, mopay Billto Mobile HOW IT WORKS Pay with your moble phone y Crediswth your moble phone zonG reisnot your country cich.be seda e Ndee 2040 Please enter your mobile phone number 2 ZONG g 121231234 Enter PIN code BUY wmH MOBILE Continue A PIN code is sent to Click the available billing button on a merchant's site. Enter your phone number. your phone via SMS. Énter the PIN to com- plete the transaction. Account Service Detail - (Continued) Amount Totals Taxes, Fees and Surcharges 5.79 The purchase will appear on your phone bill. TIMELINE 2011: Zong rolls out one-click billing. It is acquired by eBay. 2004: Carriers open up WAP billing 1998: The first 2009: T-Mobile paid ringtone is delivered via becomes the first carrier in the U.S. to offer direct premium-rate SMS. carrier billing for the Android Market. *07 '09 90. 80. It's difficult to sell anything but digital goods when the Carriers take 40% to 90% of every transaction. SUMMARY DCB may offer the path of least resistance for customers and appeals to those who want to pass along as little of their financial information as possible due to security concerns. But it comes with the highest price tag for merchants and ultimately, if merchants do not give their custom- ers the option, consumers have no way of using it. Online Wallets KEY PLAYERS PayPal Google amazon Checkout рayments HOW IT WORKS PayPal PayPal PayPal balance: y Send ey Reat Men Dver A d w Atale Ant Canadian Personal Accou Date PayPal R sat No:Caw 2010/10/18 Click here to buy 2010/10/18 nce a I acde Caan Dula v 2010/10/18 Eahere Acco ovre cada Dete 2010/10/18 ActhayMt What's New 2010/10/18 Your payment and shipping informa- tion is stored in your account. Click the available button on a merchant's site. Your credit card or account balance is debited. service@paypal.com receipts Receipt for Your Payment to Your receipt is available in your email and account. TIMELINE 2000: Confity and 2002: eBay buys X.com merge to form PayPal 2006: Amazon 2006: Google Payments PayPal for $1.5 Checkout billion. launches. launches. "01 "02 "03 "04 *05 '06 Paypal alone processes $315 million a day in payments. SUMMARY When you're already shopping online, it seems, it's easiest to make the psychological leap beyond your physical credit card (already, your cash is completely irrelevant) and to a virtual wallet. It's no wonder those guys are so... well, big. How long it will be before mobile payments register similar success in our brick-and-mortar shopping world remains to be seen, but one thing is certain: the future "cash" register will look very, very different. 5 VoucherCodes.co.uk VoucherCodes.co.uk delivers the very best offers possible, helping shoppers spend their money smarter! Sources: Juniper Research, "Mobile Payment Strategies, Opportunities & Markets" Gartner Research, "Market Trends: Mobile Payments Worldwide, 2011." visual ly PAYMENT WARS The future of payments and the battle for your wallet. See that credit card in your wallet? It may soon be obsolete. Cash? Forget about it. Even your wallet may well be rendered unnecessary in the foreseeable future. Gartner Research predicted mobile payment users would surpass 141 million in 2011, a 38% increase from 2010. However analysts say that growth is slower than expected, as we seem too attached to plastic and cash. But for how long? Below, we take a closer look at the four leading models for mobile payments. Which one will prevail? Mobile as a Point of Sale KEY PLAYERS Square Ba Verfone intuit PayPal THE WA .TOPA y HOW IT WORKS Sign here VSIA S1.50 $15.33 Your credit card is swiped by a reader attached to a mobile device. Your payment is sent to the credit card company for authorization. You sign on the screen of the mobile device. $11.50 12/01/09 at 9:13:58 AM 2 cappuccinos, caramels Receipt is emailed to you. TIMELINE May 2010: Square launched Oct 2010: Verifone Nov 2010: ROAMpay launched Jan 2011: Intuit GoPayment launched 2001: First wireless POS system PAYware announced Mar 2012: PayPal reveals iPhone dongle 2010 2011 LILL LL By 2015, mobile POS will process nearly $670 billion in transactions. SUMMARY Sure, wireless POS systems have been around for more than a decade now, but it was Square's integration with smartphones that really opened this market up to small businesses and even individuals. With a low barrier to entry - the companies are handing out their card-reader devices for free and collecting a percentage of each transaction or a small monthly subscription. Contactless Payments/NFC KEY PLAYERS Visa payWave Every Other Bank ISIS раурass MasterCard Google wallet HOW IT WORKS Your credit card info, or that of any loyalty or gift card, is stored on your phone. Tap your phone to an NFC payment system and your info is sent to the merchant for authentication. Enter a PIN code prior to purchase. Google walle The merchant will provide receipt, but it will also appear on your device. Jack in the Box TIMELINE 1997: Mobile Speed- Mid-2012: ISIS pass uses RFID for contactless payment. 2005: Major banks release chip embedded con- tactless cars Sept: 2011. Google Wallet launches pilot program will launch in Salt Lake City "05 "07 10 "12 60. 80. Contactless payments are expected to reach $50 billion by 2014 and $320 billion by 2016. SUMMARY We've had contactless payment credit and debit cards for years, but for most of us, waving a card in front of a reader is hardly any different than swiping it the good old-fashioned way. By using your phone the innova- tion can truly begin linking up transactions with apps such as voucher codes. Google's participation in the market will no doubt play a big role in its growth. Direct Carrier Billing KEY PLAYERS ZONG|. boku openvarket. PAYFONE, mopay Billto Mobile HOW IT WORKS Pay with your moble phone y Crediswth your moble phone zonG reisnot your country cich.be seda e Ndee 2040 Please enter your mobile phone number 2 ZONG g 121231234 Enter PIN code BUY wmH MOBILE Continue A PIN code is sent to Click the available billing button on a merchant's site. Enter your phone number. your phone via SMS. Énter the PIN to com- plete the transaction. Account Service Detail - (Continued) Amount Totals Taxes, Fees and Surcharges 5.79 The purchase will appear on your phone bill. TIMELINE 2011: Zong rolls out one-click billing. It is acquired by eBay. 2004: Carriers open up WAP billing 1998: The first 2009: T-Mobile paid ringtone is delivered via becomes the first carrier in the U.S. to offer direct premium-rate SMS. carrier billing for the Android Market. *07 '09 90. 80. It's difficult to sell anything but digital goods when the Carriers take 40% to 90% of every transaction. SUMMARY DCB may offer the path of least resistance for customers and appeals to those who want to pass along as little of their financial information as possible due to security concerns. But it comes with the highest price tag for merchants and ultimately, if merchants do not give their custom- ers the option, consumers have no way of using it. Online Wallets KEY PLAYERS PayPal Google amazon Checkout рayments HOW IT WORKS PayPal PayPal PayPal balance: y Send ey Reat Men Dver A d w Atale Ant Canadian Personal Accou Date PayPal R sat No:Caw 2010/10/18 Click here to buy 2010/10/18 nce a I acde Caan Dula v 2010/10/18 Eahere Acco ovre cada Dete 2010/10/18 ActhayMt What's New 2010/10/18 Your payment and shipping informa- tion is stored in your account. Click the available button on a merchant's site. Your credit card or account balance is debited. service@paypal.com receipts Receipt for Your Payment to Your receipt is available in your email and account. TIMELINE 2000: Confity and 2002: eBay buys X.com merge to form PayPal 2006: Amazon 2006: Google Payments PayPal for $1.5 Checkout billion. launches. launches. "01 "02 "03 "04 *05 '06 Paypal alone processes $315 million a day in payments. SUMMARY When you're already shopping online, it seems, it's easiest to make the psychological leap beyond your physical credit card (already, your cash is completely irrelevant) and to a virtual wallet. It's no wonder those guys are so... well, big. How long it will be before mobile payments register similar success in our brick-and-mortar shopping world remains to be seen, but one thing is certain: the future "cash" register will look very, very different. 5 VoucherCodes.co.uk VoucherCodes.co.uk delivers the very best offers possible, helping shoppers spend their money smarter! Sources: Juniper Research, "Mobile Payment Strategies, Opportunities & Markets" Gartner Research, "Market Trends: Mobile Payments Worldwide, 2011." visual ly PAYMENT WARS The future of payments and the battle for your wallet. See that credit card in your wallet? It may soon be obsolete. Cash? Forget about it. Even your wallet may well be rendered unnecessary in the foreseeable future. Gartner Research predicted mobile payment users would surpass 141 million in 2011, a 38% increase from 2010. However analysts say that growth is slower than expected, as we seem too attached to plastic and cash. But for how long? Below, we take a closer look at the four leading models for mobile payments. Which one will prevail? Mobile as a Point of Sale KEY PLAYERS Square Ba Verfone intuit PayPal THE WA .TOPA y HOW IT WORKS Sign here VSIA S1.50 $15.33 Your credit card is swiped by a reader attached to a mobile device. Your payment is sent to the credit card company for authorization. You sign on the screen of the mobile device. $11.50 12/01/09 at 9:13:58 AM 2 cappuccinos, caramels Receipt is emailed to you. TIMELINE May 2010: Square launched Oct 2010: Verifone Nov 2010: ROAMpay launched Jan 2011: Intuit GoPayment launched 2001: First wireless POS system PAYware announced Mar 2012: PayPal reveals iPhone dongle 2010 2011 LILL LL By 2015, mobile POS will process nearly $670 billion in transactions. SUMMARY Sure, wireless POS systems have been around for more than a decade now, but it was Square's integration with smartphones that really opened this market up to small businesses and even individuals. With a low barrier to entry - the companies are handing out their card-reader devices for free and collecting a percentage of each transaction or a small monthly subscription. Contactless Payments/NFC KEY PLAYERS Visa payWave Every Other Bank ISIS раурass MasterCard Google wallet HOW IT WORKS Your credit card info, or that of any loyalty or gift card, is stored on your phone. Tap your phone to an NFC payment system and your info is sent to the merchant for authentication. Enter a PIN code prior to purchase. Google walle The merchant will provide receipt, but it will also appear on your device. Jack in the Box TIMELINE 1997: Mobile Speed- Mid-2012: ISIS pass uses RFID for contactless payment. 2005: Major banks release chip embedded con- tactless cars Sept: 2011. Google Wallet launches pilot program will launch in Salt Lake City "05 "07 10 "12 60. 80. Contactless payments are expected to reach $50 billion by 2014 and $320 billion by 2016. SUMMARY We've had contactless payment credit and debit cards for years, but for most of us, waving a card in front of a reader is hardly any different than swiping it the good old-fashioned way. By using your phone the innova- tion can truly begin linking up transactions with apps such as voucher codes. Google's participation in the market will no doubt play a big role in its growth. Direct Carrier Billing KEY PLAYERS ZONG|. boku openvarket. PAYFONE, mopay Billto Mobile HOW IT WORKS Pay with your moble phone y Crediswth your moble phone zonG reisnot your country cich.be seda e Ndee 2040 Please enter your mobile phone number 2 ZONG g 121231234 Enter PIN code BUY wmH MOBILE Continue A PIN code is sent to Click the available billing button on a merchant's site. Enter your phone number. your phone via SMS. Énter the PIN to com- plete the transaction. Account Service Detail - (Continued) Amount Totals Taxes, Fees and Surcharges 5.79 The purchase will appear on your phone bill. TIMELINE 2011: Zong rolls out one-click billing. It is acquired by eBay. 2004: Carriers open up WAP billing 1998: The first 2009: T-Mobile paid ringtone is delivered via becomes the first carrier in the U.S. to offer direct premium-rate SMS. carrier billing for the Android Market. *07 '09 90. 80. It's difficult to sell anything but digital goods when the Carriers take 40% to 90% of every transaction. SUMMARY DCB may offer the path of least resistance for customers and appeals to those who want to pass along as little of their financial information as possible due to security concerns. But it comes with the highest price tag for merchants and ultimately, if merchants do not give their custom- ers the option, consumers have no way of using it. Online Wallets KEY PLAYERS PayPal Google amazon Checkout рayments HOW IT WORKS PayPal PayPal PayPal balance: y Send ey Reat Men Dver A d w Atale Ant Canadian Personal Accou Date PayPal R sat No:Caw 2010/10/18 Click here to buy 2010/10/18 nce a I acde Caan Dula v 2010/10/18 Eahere Acco ovre cada Dete 2010/10/18 ActhayMt What's New 2010/10/18 Your payment and shipping informa- tion is stored in your account. Click the available button on a merchant's site. Your credit card or account balance is debited. service@paypal.com receipts Receipt for Your Payment to Your receipt is available in your email and account. TIMELINE 2000: Confity and 2002: eBay buys X.com merge to form PayPal 2006: Amazon 2006: Google Payments PayPal for $1.5 Checkout billion. launches. launches. "01 "02 "03 "04 *05 '06 Paypal alone processes $315 million a day in payments. SUMMARY When you're already shopping online, it seems, it's easiest to make the psychological leap beyond your physical credit card (already, your cash is completely irrelevant) and to a virtual wallet. It's no wonder those guys are so... well, big. How long it will be before mobile payments register similar success in our brick-and-mortar shopping world remains to be seen, but one thing is certain: the future "cash" register will look very, very different. 5 VoucherCodes.co.uk VoucherCodes.co.uk delivers the very best offers possible, helping shoppers spend their money smarter! Sources: Juniper Research, "Mobile Payment Strategies, Opportunities & Markets" Gartner Research, "Market Trends: Mobile Payments Worldwide, 2011." visual ly PAYMENT WARS The future of payments and the battle for your wallet. See that credit card in your wallet? It may soon be obsolete. Cash? Forget about it. Even your wallet may well be rendered unnecessary in the foreseeable future. Gartner Research predicted mobile payment users would surpass 141 million in 2011, a 38% increase from 2010. However analysts say that growth is slower than expected, as we seem too attached to plastic and cash. But for how long? Below, we take a closer look at the four leading models for mobile payments. Which one will prevail? Mobile as a Point of Sale KEY PLAYERS Square Ba Verfone intuit PayPal THE WA .TOPA y HOW IT WORKS Sign here VSIA S1.50 $15.33 Your credit card is swiped by a reader attached to a mobile device. Your payment is sent to the credit card company for authorization. You sign on the screen of the mobile device. $11.50 12/01/09 at 9:13:58 AM 2 cappuccinos, caramels Receipt is emailed to you. TIMELINE May 2010: Square launched Oct 2010: Verifone Nov 2010: ROAMpay launched Jan 2011: Intuit GoPayment launched 2001: First wireless POS system PAYware announced Mar 2012: PayPal reveals iPhone dongle 2010 2011 LILL LL By 2015, mobile POS will process nearly $670 billion in transactions. SUMMARY Sure, wireless POS systems have been around for more than a decade now, but it was Square's integration with smartphones that really opened this market up to small businesses and even individuals. With a low barrier to entry - the companies are handing out their card-reader devices for free and collecting a percentage of each transaction or a small monthly subscription. Contactless Payments/NFC KEY PLAYERS Visa payWave Every Other Bank ISIS раурass MasterCard Google wallet HOW IT WORKS Your credit card info, or that of any loyalty or gift card, is stored on your phone. Tap your phone to an NFC payment system and your info is sent to the merchant for authentication. Enter a PIN code prior to purchase. Google walle The merchant will provide receipt, but it will also appear on your device. Jack in the Box TIMELINE 1997: Mobile Speed- Mid-2012: ISIS pass uses RFID for contactless payment. 2005: Major banks release chip embedded con- tactless cars Sept: 2011. Google Wallet launches pilot program will launch in Salt Lake City "05 "07 10 "12 60. 80. Contactless payments are expected to reach $50 billion by 2014 and $320 billion by 2016. SUMMARY We've had contactless payment credit and debit cards for years, but for most of us, waving a card in front of a reader is hardly any different than swiping it the good old-fashioned way. By using your phone the innova- tion can truly begin linking up transactions with apps such as voucher codes. Google's participation in the market will no doubt play a big role in its growth. Direct Carrier Billing KEY PLAYERS ZONG|. boku openvarket. PAYFONE, mopay Billto Mobile HOW IT WORKS Pay with your moble phone y Crediswth your moble phone zonG reisnot your country cich.be seda e Ndee 2040 Please enter your mobile phone number 2 ZONG g 121231234 Enter PIN code BUY wmH MOBILE Continue A PIN code is sent to Click the available billing button on a merchant's site. Enter your phone number. your phone via SMS. Énter the PIN to com- plete the transaction. Account Service Detail - (Continued) Amount Totals Taxes, Fees and Surcharges 5.79 The purchase will appear on your phone bill. TIMELINE 2011: Zong rolls out one-click billing. It is acquired by eBay. 2004: Carriers open up WAP billing 1998: The first 2009: T-Mobile paid ringtone is delivered via becomes the first carrier in the U.S. to offer direct premium-rate SMS. carrier billing for the Android Market. *07 '09 90. 80. It's difficult to sell anything but digital goods when the Carriers take 40% to 90% of every transaction. SUMMARY DCB may offer the path of least resistance for customers and appeals to those who want to pass along as little of their financial information as possible due to security concerns. But it comes with the highest price tag for merchants and ultimately, if merchants do not give their custom- ers the option, consumers have no way of using it. Online Wallets KEY PLAYERS PayPal Google amazon Checkout рayments HOW IT WORKS PayPal PayPal PayPal balance: y Send ey Reat Men Dver A d w Atale Ant Canadian Personal Accou Date PayPal R sat No:Caw 2010/10/18 Click here to buy 2010/10/18 nce a I acde Caan Dula v 2010/10/18 Eahere Acco ovre cada Dete 2010/10/18 ActhayMt What's New 2010/10/18 Your payment and shipping informa- tion is stored in your account. Click the available button on a merchant's site. Your credit card or account balance is debited. service@paypal.com receipts Receipt for Your Payment to Your receipt is available in your email and account. TIMELINE 2000: Confity and 2002: eBay buys X.com merge to form PayPal 2006: Amazon 2006: Google Payments PayPal for $1.5 Checkout billion. launches. launches. "01 "02 "03 "04 *05 '06 Paypal alone processes $315 million a day in payments. SUMMARY When you're already shopping online, it seems, it's easiest to make the psychological leap beyond your physical credit card (already, your cash is completely irrelevant) and to a virtual wallet. It's no wonder those guys are so... well, big. How long it will be before mobile payments register similar success in our brick-and-mortar shopping world remains to be seen, but one thing is certain: the future "cash" register will look very, very different. 5 VoucherCodes.co.uk VoucherCodes.co.uk delivers the very best offers possible, helping shoppers spend their money smarter! Sources: Juniper Research, "Mobile Payment Strategies, Opportunities & Markets" Gartner Research, "Market Trends: Mobile Payments Worldwide, 2011." visual ly

Payment Wars

shared by visually on Mar 08
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The mobile payment market is growing, with more than 141 million users in 2011, a 38% jump from 2010. Just how long will it be until we finally give up our plastic and cash, if ever? Here, we take a c...

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