Mobile Payment - Advanced Technologies (NFC), Strategies And Future Of Remote & Proximity Payment In U.S
Report Description
The market for NFC (Near Field Communication) mobile payments in the U.S. is in the nascent stage with an adoption rate of only 1.7%; this represents a huge opportunity for early movers offering the same. Adopting NFC mobile payment will open new revenue channels for banks as well as mobile operators as more than 94% of the U.S. population owns a mobile phone, and 60% of these have a card slot in their mobile phone. With the help of NFC technology, banks will be able to tap micro transactions made by cash, representing around 20% of the total transactions in the U.S. This will also help banks to capture the growing GEN Y population as well as the huge underbanked and unbanked population.
In 2009, the value of mobile payment transactions in the U.S. was $5.2 billion, constituting 6% of the global value of mobile payment transactions; this is expected to reach $56.7 in 2015, growing at a CAGR of 49.19%. The share of U.S in 2015 will reach approximately 10.6% of the global mobile payment transaction.
The market for NFC (Near Field Communication) mobile payments in the U.S. is in the nascent stage with an adoption rate of only 1.7%; this represents a huge opportunity for early movers offering the same. Adopting NFC mobile payment will open new revenue channels for banks as well as mobile operators as more than 94% of the U.S. population owns a mobile phone, and 60% of these have a card slot in their mobile phone. With the help of NFC technology, banks will be able to tap micro transactions made by cash, representing around 20% of the total transactions in the U.S. This will also help banks to capture the growing GEN Y population as well as the huge underbanked and unbanked population.
In 2009, the value of mobile payment transactions in the U.S. was $5.2 billion, constituting 6% of the global value of mobile payment transactions; this is expected to reach $56.7 in 2015, growing at a CAGR of 49.19%. The share of U.S in 2015 will reach approximately 10.6% of the global mobile payment transaction.
EXECUTIVE SUMMARY
Factors Driving Adoption of nfc Mobile Payments
Factors Restraining Adoption of nfc Mobile Payments
Choosing the Right Business Model
Report Purpose
1 INTRODUCTION
1.1 Report Catalyst
1.2 Report Structure
1.3 Research Objectives
1.4 Research Methodology
2 STRATEGY FORMULATION
2.1 Mobile Payments – Market Structure
2.1.1 Defining Mobile Payments
2.1.2 nfc Based Mobile Payments - Evolving Market in the U.S.
2.2 Segmentation of U.S. Payments Market by Type and Size
2.3 Opportunity for nfc Based Payments- Huge Cash Transactions
2.4 Mobile Payments - Market Estimate
2.4.1 Market Size and Growth Trends of Mobile Payments
2.4.2 Market Size and Growth Trends of Proximity Mobile Payments
2.5 Winning Imperatives for Deploying nfc Mobile Payments
2.5.1 Evaluating Business Models for Deploying nfc Mobile Payments
2.5.1.1 Operator Dominated Model
2.5.1.1.1 Benefits and Drawbacks
2.5.1.2 Financial Institution Dominated Model
2.5.1.2.1 Benefits and Drawbacks
2.5.1.3 Collaborative Model
2.5.1.3.1 Benefits and Drawbacks
2.5.2 Risk and Benefit Analysis for Various Stakeholders
2.5.2.1 Collaborative Model is Best for all Stakeholders
2.5.2.1.1 Collaborative Model Value Chain
2.6 Value Proposition of nfc Mobile Payments
2.6.1 Customers
2.6.2 Mobile Operators
2.6.3 Merchants
2.6.4 Application Developers & Manufacturers
2.6.5 Banks
2.7 nfc is the Future of Mobile Payments
2.7.1 Competitive Developments in nfc and Mobile Payments
2.7.2 Strategies Adopted by Banks to Increase the Adoption of Proximity Mobile Payments
2.8 Future Outlook of Mobile Payments Market
2.8.1 Mobile Payments Market Dynamics
2.8.1.1 Factors Supporting the Demand for Mobile Payments
2.8.1.1.1 Social Networking and Gaming Improves the Demand for Mobile Payments
2.8.1.1.2 Increase in the Number of Mobile Phone Users
2.8.1.1.3 Growing Penetration of Mobile Financial Services Among Mobile Phone Users
2.8.1.2 Factors Hampering Adoption of Mobile Payments
2.8.1.2.1 no Legal Framework and Lack of Unified Standards Specific to Mobile Banking
2.8.1.2.2 Security and Authentication Issues Hampering Adoption of Mobile Payments
2.8.1.2.3 Extensive Banking Network and Excellent Infrastructure
2.8.1.2.4 Integrating Diverse Stakeholders Remains a Challenge for Banks
3 CASE STUDIES
3.1 the State Bank of Colorado Implements Contactless Mobile Payment Service
3.1.1 Objective
3.1.2 the State Bank of Colorado
3.1.3 Purpose of Offering Mobile Payments
3.1.4 Collaborating With Bling Nation to Fulfill the Objectives
3.1.5 More Business Accounts and Satisfied Customers 58
3.1.6 Reduction in Processing Cost for Merchants and Increase in Convenience for Customers
3.1.7 Conclusion
3.2 Initiatives Taken by Visa & Devicefidelity to Boost Adoption of Proximity Mobile Payments
3.2.1 Objective
3.2.2 About Visa
3.2.3 About Devicefidelity
3.2.4 Reason for Offering nfc Mobile Payments
3.2.5 Visa Selects Devicefidelity for nfc Mobile Payments
3.2.6 Visa Selects Apple’s Iphone due to its Popularity
3.2.7 Positive Impact on Bank’s Revenues and its Customers
3.2.8 Increase in Convenience for Consumers
3.2.9 Impact on Profitability and Efficiency of Merchants
3.2.10 Benefits for Devicefidelity
3.2.11 Conclusion
4 VENDOR ANALYSIS
4.1 key Findings
4.2 Vendor Benchmarking
4.2.1 Technological Benchmarking
4.2.1.1 Trusted Service Manager/application Provider
4.2.1.2 nfc Hardware and Sticker/microsd Card Manufacturers
4.2.2 Benchmarking Based on Services Provided
4.2.2.1 Trusted Service Manager/application Provider
4.2.2.2 nfc Hardware and Sticker/microsd Card Manufacturers
4.2.3 Benchmarking Based on the Features and Security Aspects
4.3 Vendor Profiling
4.3.1 Bling Nation
4.3.1.1 Products and Services
4.3.1.2 Recent Developments
4.3.2 Mfoundry
4.3.2.1 Products and Services
4.3.2.2 Recent Developments
4.3.3 Obopay
4.3.3.1 Products and Services
4.3.3.2 Recent Developments
4.3.4 Boku
4.3.4.1 Products and Services
4.3.4.2 Recent Developments
4.3.5 Clairmail
4.3.5.1 Products and Services
4.3.5.2 Recent Developments
4.3.6 Devicefidelity
4.3.6.1 Products and Services
4.3.6.2 Recent Developments
4.3.7 Vivotech
4.3.7.1 Products and Services
4.3.7.2 Recent Developments
4.3.8 Inside Contactless
4.3.8.1 Products and Services
4.3.8.2 Recent Developments
4.3.9 Sybase 365
4.3.9.1 Products and Services
4.3.9.2 Recent Developments
4.3.10 Fiserv 88
4.3.10.1 Products and Services
4.3.10.2 Recent Developments
Factors Driving Adoption of nfc Mobile Payments
Factors Restraining Adoption of nfc Mobile Payments
Choosing the Right Business Model
Report Purpose
1 INTRODUCTION
1.1 Report Catalyst
1.2 Report Structure
1.3 Research Objectives
1.4 Research Methodology
2 STRATEGY FORMULATION
2.1 Mobile Payments – Market Structure
2.1.1 Defining Mobile Payments
2.1.2 nfc Based Mobile Payments - Evolving Market in the U.S.
2.2 Segmentation of U.S. Payments Market by Type and Size
2.3 Opportunity for nfc Based Payments- Huge Cash Transactions
2.4 Mobile Payments - Market Estimate
2.4.1 Market Size and Growth Trends of Mobile Payments
2.4.2 Market Size and Growth Trends of Proximity Mobile Payments
2.5 Winning Imperatives for Deploying nfc Mobile Payments
2.5.1 Evaluating Business Models for Deploying nfc Mobile Payments
2.5.1.1 Operator Dominated Model
2.5.1.1.1 Benefits and Drawbacks
2.5.1.2 Financial Institution Dominated Model
2.5.1.2.1 Benefits and Drawbacks
2.5.1.3 Collaborative Model
2.5.1.3.1 Benefits and Drawbacks
2.5.2 Risk and Benefit Analysis for Various Stakeholders
2.5.2.1 Collaborative Model is Best for all Stakeholders
2.5.2.1.1 Collaborative Model Value Chain
2.6 Value Proposition of nfc Mobile Payments
2.6.1 Customers
2.6.2 Mobile Operators
2.6.3 Merchants
2.6.4 Application Developers & Manufacturers
2.6.5 Banks
2.7 nfc is the Future of Mobile Payments
2.7.1 Competitive Developments in nfc and Mobile Payments
2.7.2 Strategies Adopted by Banks to Increase the Adoption of Proximity Mobile Payments
2.8 Future Outlook of Mobile Payments Market
2.8.1 Mobile Payments Market Dynamics
2.8.1.1 Factors Supporting the Demand for Mobile Payments
2.8.1.1.1 Social Networking and Gaming Improves the Demand for Mobile Payments
2.8.1.1.2 Increase in the Number of Mobile Phone Users
2.8.1.1.3 Growing Penetration of Mobile Financial Services Among Mobile Phone Users
2.8.1.2 Factors Hampering Adoption of Mobile Payments
2.8.1.2.1 no Legal Framework and Lack of Unified Standards Specific to Mobile Banking
2.8.1.2.2 Security and Authentication Issues Hampering Adoption of Mobile Payments
2.8.1.2.3 Extensive Banking Network and Excellent Infrastructure
2.8.1.2.4 Integrating Diverse Stakeholders Remains a Challenge for Banks
3 CASE STUDIES
3.1 the State Bank of Colorado Implements Contactless Mobile Payment Service
3.1.1 Objective
3.1.2 the State Bank of Colorado
3.1.3 Purpose of Offering Mobile Payments
3.1.4 Collaborating With Bling Nation to Fulfill the Objectives
3.1.5 More Business Accounts and Satisfied Customers 58
3.1.6 Reduction in Processing Cost for Merchants and Increase in Convenience for Customers
3.1.7 Conclusion
3.2 Initiatives Taken by Visa & Devicefidelity to Boost Adoption of Proximity Mobile Payments
3.2.1 Objective
3.2.2 About Visa
3.2.3 About Devicefidelity
3.2.4 Reason for Offering nfc Mobile Payments
3.2.5 Visa Selects Devicefidelity for nfc Mobile Payments
3.2.6 Visa Selects Apple’s Iphone due to its Popularity
3.2.7 Positive Impact on Bank’s Revenues and its Customers
3.2.8 Increase in Convenience for Consumers
3.2.9 Impact on Profitability and Efficiency of Merchants
3.2.10 Benefits for Devicefidelity
3.2.11 Conclusion
4 VENDOR ANALYSIS
4.1 key Findings
4.2 Vendor Benchmarking
4.2.1 Technological Benchmarking
4.2.1.1 Trusted Service Manager/application Provider
4.2.1.2 nfc Hardware and Sticker/microsd Card Manufacturers
4.2.2 Benchmarking Based on Services Provided
4.2.2.1 Trusted Service Manager/application Provider
4.2.2.2 nfc Hardware and Sticker/microsd Card Manufacturers
4.2.3 Benchmarking Based on the Features and Security Aspects
4.3 Vendor Profiling
4.3.1 Bling Nation
4.3.1.1 Products and Services
4.3.1.2 Recent Developments
4.3.2 Mfoundry
4.3.2.1 Products and Services
4.3.2.2 Recent Developments
4.3.3 Obopay
4.3.3.1 Products and Services
4.3.3.2 Recent Developments
4.3.4 Boku
4.3.4.1 Products and Services
4.3.4.2 Recent Developments
4.3.5 Clairmail
4.3.5.1 Products and Services
4.3.5.2 Recent Developments
4.3.6 Devicefidelity
4.3.6.1 Products and Services
4.3.6.2 Recent Developments
4.3.7 Vivotech
4.3.7.1 Products and Services
4.3.7.2 Recent Developments
4.3.8 Inside Contactless
4.3.8.1 Products and Services
4.3.8.2 Recent Developments
4.3.9 Sybase 365
4.3.9.1 Products and Services
4.3.9.2 Recent Developments
4.3.10 Fiserv 88
4.3.10.1 Products and Services
4.3.10.2 Recent Developments
LIST OF TABLES
Table 1 Risk and Benefits for Stakeholders
Table 2 Value Chain for Collaborative Model
Table 3 Description of Various Mobile Payment Technologies
Table 4 Initiatives to Increase Adoption of Mobile Payments
Table 5 Initiatives Towards the Adoption of Mobile Payments
Table 1 Risk and Benefits for Stakeholders
Table 2 Value Chain for Collaborative Model
Table 3 Description of Various Mobile Payment Technologies
Table 4 Initiatives to Increase Adoption of Mobile Payments
Table 5 Initiatives Towards the Adoption of Mobile Payments
LIST OF FIGURES
Figure 1 Mobile Commerce Market Structure
Figure 2 Mobile Payments Market Structure
Figure 3 Evolution of Mobile Payments Applications
Figure 4 Payment Market Segmentation on the Basis of Transaction Size & Type (2009)
Figure 5 nfc Opportunities at Cash Payment Locations in the U.S. (2008)
Figure 6 Share of Payment Modes by Value of Transaction (2009)
Figure 7 Cash Transactions at Various Payment Locations in the U.S. (2008)
Figure 8 Mobile Payments - High Growth Market in the U.S.
Figure 9 Global and U.S. Mobile Payments Transaction Value From (2007-2015)
Figure 10 Remote and Proximity M-payments Market Forecast (2009 – 2015)
Figure 11 key Winning Fields for Deploying Mobile Payments Successfully in the U.S.
Figure 12 Operator Dominated Mobile Payment Model
Figure 13 Financial Institution Dominated Mobile Payment Model
Figure 14 Collaborative Mobile Payment Model
Figure 15 Evolution of nfc Technology
Figure 16 Adoption of Mobile Payment by Applications (2010)
Figure 17 Factors Impacting Adoption of nfc Mobile Payments in the U.S.
Figure 18 Increasing User Base of Mobile Phones (2000-2010)
Figure 19 Increasing Global nfc Enabled Mobile Phone Shipments (2008–2015)
Figure 20 Increaisng Adoption of Mobile Financial Services (2008 – 2015)
Figure 1 Mobile Commerce Market Structure
Figure 2 Mobile Payments Market Structure
Figure 3 Evolution of Mobile Payments Applications
Figure 4 Payment Market Segmentation on the Basis of Transaction Size & Type (2009)
Figure 5 nfc Opportunities at Cash Payment Locations in the U.S. (2008)
Figure 6 Share of Payment Modes by Value of Transaction (2009)
Figure 7 Cash Transactions at Various Payment Locations in the U.S. (2008)
Figure 8 Mobile Payments - High Growth Market in the U.S.
Figure 9 Global and U.S. Mobile Payments Transaction Value From (2007-2015)
Figure 10 Remote and Proximity M-payments Market Forecast (2009 – 2015)
Figure 11 key Winning Fields for Deploying Mobile Payments Successfully in the U.S.
Figure 12 Operator Dominated Mobile Payment Model
Figure 13 Financial Institution Dominated Mobile Payment Model
Figure 14 Collaborative Mobile Payment Model
Figure 15 Evolution of nfc Technology
Figure 16 Adoption of Mobile Payment by Applications (2010)
Figure 17 Factors Impacting Adoption of nfc Mobile Payments in the U.S.
Figure 18 Increasing User Base of Mobile Phones (2000-2010)
Figure 19 Increasing Global nfc Enabled Mobile Phone Shipments (2008–2015)
Figure 20 Increaisng Adoption of Mobile Financial Services (2008 – 2015)
