Mobile Payment Strategy in CANADA By Frank Sitthichai Lertsutthiwong

July 18, 2011

By Frank Sitthichai

Stakeholders

Consumers Handset Manufactures Mobile Network Operators Bank and Financial Institutions

July 18, 2011

By Frank Sitthichai

Consumers
With MNOs,Handsets Less Loyaty on brand, but follow the trend How often for phone replacement Carry more than one phone? Stick with an MNO, less likely to move to another MNO

With Creditcard companies/Banks Using a preferred credit card as the most often usage Carry more than one credit cards Using Debit for less amount/Cash

July 18, 2011

By Frank Sitthichai

Handset Manufacture

Focus on Trend: Smartphone NFC enabled in roadmap, wait for market readiness Iphone & Android : plan to come with e-wallet app installed/NFC ready. Trend to suport their business: Apple shops, G-coupon, Adwords/Adsense, Push & Pull strategy

July 18, 2011

By Frank Sitthichai

Mobile Network Operator

Do not want to be undervalued Find the way to create more ARPU via Value Added Services Some MNOs have their own ewallet, just to bring mobile payment to their subscribers but not quite success since market not ready Can gain competitive advantage over Banks and Handsets Customer Centric

July 18, 2011

By Frank Sitthichai

Banks&Financial Institutions

Card base from debit to credit Credit and Debit card are in maturiy stage Cash Cow. Banks needs new product to stimulate market and bring them up in Stars Interac : Good concept, able to adopt technology trend such as EMV chips Start Mobile Banking in closed environment with basic WAP/GPRS

July 18, 2011

By Frank Sitthichai

Mobile Payment Dilema

Every stakeholder wants to win the market, but somehow no concrete solution Each stakeholders have their own expertise, but not able to accommodate each other Complimentary solutions required

July 18, 2011

By Frank Sitthichai

Franks Analysis

Consumer Centric: Customer will tell you what they want. Therefore, WHO has occupied the MOST customers? Handset Mgfr? -> NO! Apple, Android -> NO! RBC, TD Bank, Scotia Bank, BMO, and other Issuers? NO! Those customers are so fragmented! Mobile Network Operators? NO! Roger:Bell:Telus ( Market share 35%,29%,28%) NOT Monopoly market, Each of them doesnt have enough leverage to others

July 18, 2011

By Frank Sitthichai

Mobile Payment in CANADA need Catalyst!

Catalyst : players who can influence stakeholders, lead the market, and provide support to all stakeholders They are 3 Musketeers

July 18, 2011

By Frank Sitthichai

Reasons

Why VISA, Master, Interac (VMI)

Supporting reasons Number of credit cards (VISA, MasterCard) in circulation (2010):73.1 million (source: www.cba.ca) One person has more than 1 card no matter who is issuer, but always switch to one another due to rebate, redeem points benefits.

Numbers of credit cards have been issued?

How many debit cards have been issued? As of 2010, 37 millions (souce: euromonitor.com) How often Canadians use debit card Number of smartphone Canadians made104.5debit card purchases per person in 2007 (source: www.cba.ca) Overall 33% consumer using smart phone and 67% still user regular phone. Consumers ,aged 18-34 years old, have smartphone nearly 48% Source (www.cwta.ca, 2011) 22% of smartphone users have done moible payment 18% of consumers intested in using mobile to swift at POS Source (www.cwta.ca, 2011) Security, Privacy, Fraud, Theft Source (www.cwta.ca, 2011)

Intersting Information survey

Mobile Payment & Mobile Wallet Concerning

July 18, 2011

By Frank Sitthichai

WHY VMI (Continue)

Reasons Number of consumers Card Base Business Supporting Reasons VMI occupied ALL consumers who can come to Mobile Payment users. MNO and each banks have occupied only portion of consumers Customers already perceive those value and able to adapt into new product. Security concerning issue can be resolved by VMI brand This product helps VISA and Master to move from CASH COW to STARS such as PAYWAY and PAYPASS 1) Other banks such as HSBC, Citi, and others who compatible wtih VISA/MASTER will be ready to deploy 2) Merchant s are also able to deploy the system quickly 3) User adoption is easier than from handset perspective Perfect Competition between VISA and MASTER Interact can easily adopt at same scenario with its current network.

Already start ed in card-based NFC Readiness to deploy locally and globally

VMI

July 18, 2011

By Frank Sitthichai

What next?
You understand now how the mobile payment will work What value you can add in gain benefit from this ecosystem

Thank you Frank sitthichail@gmail.com

July 18, 2011 By Frank Sitthichai