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Comparing QR Codes vs NFC in the Battle for Your Mobile Wallet

OR-NFC VS. QUICK RESPONSE CODE NEAR FIELD COMMUNICATION Which will reign supreme in the battle to replace your credit card? QR CODES (Quick Response Codes) Mobile payment system: mobile devices' cameras scan a code to unlock the user's payment information and complete a transaction Subtotal 10.27 QR codes can be displayed at registers in stores The process can be used on any device running Apple ios or Google's Android software Tip Total Take this survey OO QR can be displayed on phone and scanned by POS or other smartphone or tablet Codes can be printed on restaurant bills Cash and credit cards never change hands NFC (Near Field Communication) Mobile payment system: enables radio connection from one device to another similar to Bluetooth technology Secure element for storing sensitive data that is separated from the rest of the system 2-way communication (real-time) between devices (payment and acceptance) Across a broader spectrum: devices must be within range of each other data transfers O keyless door entry EMV compliance Ensures usability/accessibility for NFC mobile payments NFC and QR Code Usage NFC usage One study shows an expected growth of NFC usage by 38% between 2011 and 2016 In 2016, the NFC market expected to reach more than 10 billion dollars By 2015, more than a quarter of all mobile devices will be NFC-enabled Worldwide mobile phones with integrated NFC capability Worldwide mobile phone shipments 2,076 1,971 1,854 1,718 1,557 545 405 290 26% 100 185 21% 16% : 6% 2011 2012 2013 2014 2015 QR Code Usage Only 9% of US adults used a QR code in 2012 While QR code usage is increasing, the overall percentage of smartphone users leveraging this technology has dropped US Adult Mobile Barcode Users and Penetration, 2011-2014 2011 2012 2013 2014 Adult Mobile barcode users (millions) 21.2 26.3 32.4 38.5 % change 146.9% 24.4% 23.2% 18.7% % of adult smartphone users 25% 25% 26% 27% % of adult mobile phone users 10.1% 12.4% 15% 17.6% % of adult population 8.9% 11% 13.4% 15.7% Apple: Betting Against the Industry Apple is the only major player in the mobile device industry that does not offer any products with an NFC chip. This could be a big roadblock for merchant adoption of NFC Possible reason #1: NFC security Possible reason #2: Apple often waits Security issues come from traditional wireless network attacks "Time and time again, Apple has lagged behind the vanguard of the industry in adopting the next big thing," Nikhil Bobb, former Apple file system engineer Another possible security problem Users can generate their own near field tags. Some tags can be activated passively Possible reason #3: Cost 2$ During manufacturing of the iPhone 5, one NFC controller cost about $5/unit $5/unit would have added about $125m to Apple's costs Possible reason #4: QR QR is already integrated with Apple iOS Passport uses QR to organize membership cards, boarding passes, event tickets and much more Major Players Leveraging QR Codes/NFC in the Battle for your Mobile Payments = Hardware Requirements General information ISIS National mobile commerce venture Merchants & Financial Institutions Backed by AT&T, T-Mobile and Verizon 1,000 participating merchants to date Isis is only active in Austin, TX & Salt Lake City, UT so numbers are small Software-based mobile wallet Organizes credit and debit cards, loyalty cards and special offers in one app Contactless payments through NFC Allows merchants to engage with customers via mobile NFC enabled terminals Will enhance merchant marketing programs Has been tested in Salt Lake City and Austin Plans to launch nationwide in 2013 O PayPal (2 General information Enables consumers to manage finances through mobile devices Merchants & Financial Institutions Allows for PayPal's "Bill Me Later" option to be used for mobile purchases Nearly 20 million PayPal Mobile users As of 2013: 23 national retailers accept Current versions allow easy flexibility for in-store payments PayPal payments in stores The "Shop" feature allows consumers to locate places where they can use their PayPal app For consumers: works on iPad, iPhone, Blackberry and any Android device For retailers: A free card reader and/or PayPal's Pay Here app can be used to process cards or checks Google wallet General information Users can store credit and debit information on the app Merchants & Financial Institutions Payments are made through NFC technology Any store that supports NFC payments Free and compatible with devices that are NFC enabled Over 200,000 merchants in the US Cloud-based version supports credit and debit cards from Visa, MasterCard, AmEx and Discover Drive the right traffic to merchant's stores NFC enabled terminals Retain more customers Merchants are featured on Google's "Where it Works" map 4 Paydiant) General information Paydiant is the only mobile wallet and payment platform that works with existing payment tools: PIN debit, credit, signature debit, prepaid cards Merchants & Financial Institutions • Paydiant is currently working with leading issuers, networks, acquirers, retailers, banks and credit unions There are no third-party apps Free and compatible with all Apple and Android devices • In September 2012, Bank of America launched a test cycle with Paydiant Paydiant keeps payment card numbers and cardholder data securely stored in a certified data center • In August 2013, Pulse announced a partnership with Paydiant that will include all of its retail partners and financial institution participants Paydiant offers a more convenient way to pay Allows merchants to engage with customers mobily Options for loyalty, offers & discounts QR codes at POS Users can use Paydiant to redeem offers at POS Level Up General information Operates on the premise that mobile payments should be easy and free for merchants and consumers Merchants & Financial Institutions 2012: stopped charging merchants for payment processing Within a year of launch: LevelUp had over 3k merchants and 20k consumers using the product Consumers credit or debit cards are associated with a unique QR code Average users make 2-3 LevelUp purchases/week Strictly QR code based. Works for iPhone, Android and Blackberry Looking to the Future 50% of smartphone users say they will use their mobile wallets for daily transactions Estimates for 2017: 1.5 billion US mobile consumers will spend $90 billion on mobile payments smartphones will be used globally by 2016 Presented by Sources: http://www forbes com/sites/arounthink/2013/08/13/connecting-with-customers-the-future-of-mobile-pavments Merchant Warehouse DIVELOPED BY N NOWSOURCING :------- :------ (o.

Comparing QR Codes vs NFC in the Battle for Your Mobile Wallet

shared by merchantwarehouse on Apr 08
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A look at two of the main early competitors vying for market share in the mobile wallet space. Examining the benefits and drawbacks to each technology this infographic details why these are the early ...


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