The Future of Mobile Wallets: Embracing Prepaid Solutions
Exploring the pivotal role of prepaid solutions in shaping the future of mobile wallets, this article delves into the benefits, emerging opportunities, and considerations for both customers and businesses. From enhancing existing products to digitizing solutions and reducing entry barriers, the evolution towards mobile-based prepaid transactions is evident. With insights from industry experts and examples of successful implementations, the narrative underscores the transformative potential of prepaid in the mobile wallet landscape.
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Presentation Transcript
Mobey Forum Member Meeting Las Vegas: Taking Prepaid into Account Mobile Wallet Workgroup May 7th 2014 Amir Tabakovic Amir Tabakovic, Head of Market Development, PostFinance, Chairman of Mobile Wallet Workgroup, Mobey Forum
Most important first prepaid is a major driving force in the near future of mobile wallets
Prepaid is a container into which valuables can be stored and retrieved using specific methods
Past: simple but effective tool Merchants means of increasing the brand loyalty of customers anticipation of future purchases in exchange for store discounts Transport and ticketing services Prime examples: Hong Kong s Octopus prepaid travel card or London s Oystercard MNOs Airtime fewer contractual obligations PAYG accounts have eclipsed their pay monthly counterparts
Mobile Future: plenty of opportunities Enhancement of existing physical products via mobile channel Mobile reload/top up additional channel to improve customer value interactive channel to get in touch with the users Digitization of existing physical prepaid solutions replacement or endorsement of the existing solution HCE? Development of new mobile based prepaid solutions launching a new mobile based prepaid solution no need for the producing physical cards anymore - is there?
Benefits of mobile prepaid Customer side Lower entry barriers More control More functionalities Perceived security Business side Lower entry barriers Lower operational costs More flexibility Business agility Less restrictive regulatory environment
Mobile Wallets 1.0: digitizing leather wallet different stakeholders - each of them holding a peace of puzzle (control points) Each of them vying to establish a commercially influential position in the value chain deadlock and market fragmentation reduced integrative potential and market adoption
Mobile Wallets 2.0: reinventing commerce strengthening the brand loyalties of customers uniquely pleasurable shopping experience minimizing the inconvenience of payment prepaid, a way to minimize payment disruption focus on unique advantages to conventional commerce
Examples: reinventing commerce Starbucks (US, Canada, UK) AtB (Norway)
Mobile Wallets 2.0: reinventing banking prepaid instead of current account challenging the banks at their own game integrated cashback, reward and loyalty schemes of high street and online retailers prepaid as a model for personal mobile banking progressive banking customers and NOT underbanked
Examples: reinventing banking T-Mobile Mobile Money Google Wallet Amex Bluebird
Side-stepping banks with prepaid Customer centric model Experience Simplicity and flexibility
Limits of prepaid (mobile or not) mobile or otherwise, it must be loaded no credit, prescribe or interests facilities not covered by any guarantee scheme (insolvency) no official board of appeal (customer complaints) those that do not operate on the network of a major payment scheme, may be less frequently accepted by merchants
Prepaid options for banks Option one: Deploy an invisible prepaid infrastructure in support of a new service Option two: Establish a prepaid agent network and resell the products of high profile merchants Option three: Use prepaid openly and actively Option four: Play a supporting back-end role to new players in prepaid
Examples: options for banks Option 1: Danske Bank Option 2: PostFinance Option 4 CBW Bank Moven
Looking to the future prepaid - a major driving force in the near future of mobile wallets problems with regulations, operating procedures and legacy systems integration are no good excuse for missing the momentum more engagement with the merchant sector paying attention to possible disruption of current account and customer relationship questioning the own role in the ecosystem
Special thanks to the core team! Hans S. Ildstad Thor Ragnar Klevstuen Sarah Kocianski Kasper Sylvest Olsen Ville Sointu Kristian Thure S rensen Nets Anne K. Shreiner Andr Z lch EVRY EVRY Monitise Danske Bank Ericsson American Express PostFinance
Enjoy the dinner, hosted by Amir Tabakovic, Head of Market Development PostFinance Member of the Board of Directors at Mobey Forum amir.tabakovic@postfinance.ch @TABAKOVIC ch.linkedin.com/in/tabakovicamir
