TSM perspective on future of mobile payments Mobey Forum Lauri - - PowerPoint PPT Presentation

TSM perspective on future of mobile payments

Mobey Forum June 18, 2010, Helsinki Lauri Pesonen CEO, Venyon

Mobey Forum 18.6.2010 Page 2

Topics for the presentation

• Enablers and drivers for Mobile Financial Services
• Role of TSM in the Mobile Payment Ecosystem
• Where are we now, future outlook
• Questions & Answers

Mobey Forum 18.6.2010 Page 3

Consumers carry multiple credential for their daily services

Mobey Forum 18.6.2010 Page 4

Mobile phone consolidates consumer’s credentials as the ultimate device to use and conduct services

Mobile Financial Services are an essential part of this evolution

Pay Communicate Identify

Mobey Forum 18.6.2010 Page 5

Common mobile enablers supporting Mobile Financial Services

Common mobile enablers

• Mobile subscriber penetration
• Consumer acceptance of new services
• Stickiness, mobile phone always with you
• Advances in mobile technologies
• IP convergence

… supporting mobile financial services

• Payments at point-of-sale
• Online payments
• Person-to-person, money transfer
• Account management, bill payments

Mobey Forum 18.6.2010 Page 6

Advances in mobile technologies cater for implementation of compelling Mobile Payment services

IP channel NFC Secure Element Rich Application Environment Mobile Wallet Multiple Applications Branding SMS channel ISO 14443

Online Services Proximity Services Online Application Life-Cycle Management Multi-application Smart Card chip:

• Secure storage and

processing of credentials

• Compatibility with existing

infrastructure

Network Bandwidth

Mobey Forum 18.6.2010 Page 7

Mobile Payments is new playing field for established and new schemes

• Established payment schemes
• Plug into the existing infrastructure and extend to mobile
• Acquire new users for payment service -> more transactions
• Leverage the mobile channel to introduce new services
• More efficient operations
• New payment schemes
• Establish a new payment service leveraging the existing

mobile subscriber base, such as mobile money services for unbanked

• Develop a suite of mobile financial services
• Merchant involvement
• Mobile will play an important role as a new channel to drive

consumers to merchant outlets & sites

ISSUER ACQUIRER MERCHANT CONSUMER PAYMENT SCHEME ESTABLISHED PAYMENT SERVICE PROVIDERS NEW ENTRANTS

Mobey Forum 18.6.2010 Page 8

NFC is an essential part and driver for Mobile Payments and other contactless services

• Role of multi-application Secure

Element issuer

• NFC as a new channel to existing
• perator services
• New NFC based services
• New customer acquisition, retention
• f existing customers

MOBILE OPERATORS

• Leverage existing contactless ticketing

infra to introduce mobile ticketing

• Cost efficient OTA ticket issuance
• More customers, less free riders
• Mobile channel – new and convenient

services to commuters

TRANSPORT OPERATORS

• Leverage existing contactless

acceptance infra to introduce mobile payments

• Mobile channel – portfolio of mobile

financial services supported by frequently used payments

• New customer acquisition, retention
• f existing customers

BANKS MERCHANTS

• Leverage the investments in

contactless acceptance

• Mobile loyalty and CRM

programs – enhanced consumer profiling with opt-in usage

• More customers, more

transactions

• Always with you
• Online connected
• Proximity interactions
• Customized UIs
• Multiple services

CONSUMERS with NFC phone

Mobey Forum 18.6.2010 Page 9

Mobile environment is fragmented

• Multiple mobile phone platforms
• Symbian, Android, iPhone OS, Windows Mobile, RIM

OS, Maemo, Series 40, different Java implementations, …

• Multiple Secure Element products from different

vendors

• SIM, microSD, embedded SE, SE/NFC accessories,

passive and active stickers, …

• Multiple service schemes and service providers
• Applications from different schemes and service

providers are to “co-exist” in the consumer’s mobile phone, with distinctive requirements and features of their own

This complexity needs to be managed for all consumer services using secure credentials, such as Mobile Financial Services

Mobey Forum 18.6.2010 Page 10

TSM’s primary role is to provide post-issuance SE application provisioning and life-cycle management services as a neutral and trusted service aggregator

TSM

for SPs

Banks, FIs Transit Retailers Other MNOs Other SE Issuers

SEI TSM SEI TSM

+

Over The Air

Secure Element Issuers Service Providers

Consumer’s Devices

Mobey Forum 18.6.2010 Page 11

TSM and Mobile Payments

• TSM provides the following core services to Mobile Payment schemes
• Secure OTA provisioning and personalization of payment applications
• Secure OTA life-cycle management of payment applications
• GlobalPlatform type of LCM services – lock, unlock, delete
• Application specific LCM services, such as OTA counter reset, PIN management, top-up etc.
• Notifications between Secure Element Issuers and Banks / FIs
• To support different schemes and service providers TSM service must be
• Highly flexible to support different business process and interface requirements
• Technology agnostic to support all mobile devices and secure elements
• Secure, proven by relevant payment industry standard certifications
• Scalable to grow with service ramp-up
• Future-proof
• Not only for Mobile Payments
• TSM support for Mobile Payment applications should not be done in isolation from
• ther services (e.g. loyalty, transit), as consumers will demand and use applications

from all verticals with their mobile phones

Mobey Forum 18.6.2010 Page 12

Where are we now with Mobile Payments?

Commercial services up and running Mobile Money In place to support service launches Standards Excellent, as proven by numerous trials Customer acceptance

Other Mobile Financial Services NFC based contactless Mobile Payments

NFC handset availability Still limited Gap partially bridged by NFC/SE add-ons Contactless infrastructure Sufficient for service launch, and expanding TSM services Commercial grade TSM services available Stakeholder involvement Substantial activity in many countries Business models being refined Mobile Banking Commercial services up and running

Mobey Forum 18.6.2010 Page 13

How does the future of Mobile Payments look like?

STRONG GROWTH ALREADY HAPPENING MANY SERVICES EVERYBODY HAS IT

Mobey Forum 18.6.2010 Page 14

Questions & Answers

lauri.pesonen@venyon.com www.venyon.com