nacha 2011 mobile payment fundamentals

Workshop Description

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Mobile Payments

17A1:00 p.m. - 3:00 p.m.WorkshopsMany payments experts believe everyone should jump on the mobile payments bandwagon while there are still open seats. Do you have the answers you need before making the jump? Speakers in this workshop cover the gamut of topics surrounding mobile payments: business models, technology, form factors, and lessons from other countries. You won’t want to miss this exciting introduction to mobile payments.Level: Fundamental Chip Wickenden, CCMHead, Enterprise Solutions, FIS

Agenda

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Methods and Elements of Mobile Payments

Introduction

Definitions, Scope and Scale

Strategy and Opportunities

Market Participants

Wrap-up and Questions

Regulatory and Risk Focus

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Mobile Network Operator

Voice is digitized, unless analogPackets are switchedDigital signal decoded and re-assembled

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Mobile Network Operator

Mobile Network

Operator or Landline Operator

Texting Not Talking

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Camera Phone

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Smart Phone

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App Phones

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Common Phone Operating Systems

• iPhone

• Google Android

• BlackBerry

• Windows Mobile

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SIMM Card

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The SIMM Card and the IMEI number uniquely identify and enable the phone to the network

Don’t forget security !

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The Network Effect

• Theodore Vail, president of Bell Telephone, 1908 Annual Report • Robert Metcalfe, Metcalfe’s Law 1980, focusing on devices• Rod Beckstrom, Beckstrom’s Law, focusing on the value of

transactions within the network• Bernard Lunn, Reverse Network Effect with Scale • Rahul Tongia, The Cost of Network Exclusion

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“The value of a network to it’s members increases exponentially with the number of users”

V = N2

Two Sided Markets

• The number of participant of a given group create an attraction for members of another group

– Patients and hospitals– Electronic billers and bill payment service

providers– Fraternities and sororities– Publishers using Adobe and consumers

using PDF readers– Merchants and cardholders

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http://en.wikipedia.org/wiki/Two-sided_market

Disruptive Technology

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“The Innovator’s Dilemma”

For much more on this, refer to the works of Harvard professor Clayton Christiansen. His website is: http://www.claytonchristensen.com/

Do you need one of these?

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This scene explains contactless payment better than any other

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