sxsw 2010: thin is in - the future of digital wallets

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Thin Is In The Future of Digital Wallets

October 18, 2011

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Christina Nguyen White User Experience Designer, Mobile & Multi-channel

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This is an inspirational talk on

Digital Wallets in the eyes of a consumer

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This is an inspirational talk on

Digital Wallets in the eyes of a consumer

3. How do we make it real?

4. How will it change the way we shop?

2. What questions should we be asking?

1. Who’s trying and succeeding?

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What’s your wallet personality?

✔

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What’s your wallet personality?

✔

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What’s in your wallet?

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What else?

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What is a digital wallet?

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Payment Method

Financial Management

Coupons Comparison Shopping

Tickets/ Passes/ ID

Digital Wallet

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Who’s trying? 1

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Devices

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What is an NFC Chip?

4”

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Devices

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Financial Management

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USAA Mint.com Chase Pageonce

Financial Management

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Coupons

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Best Buy Reward Zone Shopkick Groupon CardStar

Coupons / Check-In Incentives

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Comparison Shopping

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Red Laser Scan & Shop Lasoo Google Shopper

Comparison Shopping

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Tickets / Passes

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Japan Public Transit Pass

Japan Mobile Airline Check-In

Hong Kong Octopus Wallet Watch

Tickets / Passes / IDs

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Payment Method

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Payment Method

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Payment Method

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Who’s close?

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Who’s close?

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Who’s close?

+

+

=

30

% of respondents

Devices that will be replaced* by mobile phone users according to mobile phone users worldwide, June 2010

Note: Ages 18+, *within 5 years Source: Oracle, “Opportunity Calling-The Future of Mobile Communications”, Sept 22,2010

54%

54%

52%

31%

27%

27%

24%

22%

18%

5%

GPS

iPod or MP3 Player

Digital Camera

Credit Card

Personal Computer

Video Recorder

Car Keys

eReader

Personal ID card

TV

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What questions should we be asking?

2

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Who’s responsible for smartphone security?

Feel the individual is

55%

Feel the phone manufacturer is

15%

Feel the cellular carrier is

30%

Source: cellphones.org

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What’s in your phone?

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Are digital wallets safe?

$3.3-8.6Bn annually

US Credit Card Fraud est. range based on the use of mag-stripe credit card technology

Sources: Secret Service, Oracle Financial Services

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Are digital wallets safe?

France cut card fraud by more than 80%

by using PCI compliant EMV Chip technology and PIN number instead of mag-stripe and signature at the point-of-sale

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Will digital wallets reduce fraud?

Yes, digital wallets will help reduce fraud.

“Dynamic authentication is the key to securing payments into the future"

Ellen Richey, Chief Enterprise Risk Officer at Visa

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Who are the players?

Before

+ +

After

+ + +

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Who “owns” the digital wallet?

Financial Institutions Carriers Retailers

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Financial Institutions Carriers Retailers

What they

need to

adopt:

What they

bring to the

table:

•  Customer-Centric perspective

•  Technology to support

•  Payment Processing

•  Credit Card services

•  Bank services

•  Security Infrastructure

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•  Payment Processing

•  Credit Card services

•  Bank services

•  Security Infrastructure

Financial Institutions Carriers Retailers

What they

need to

adopt:

What they

bring to the

table:

•  Customer-Centric perspective

•  Technology to support

•  Networks & Location Based Services & Messaging

•  Drive Features & Standards for OEMs

•  Mobile Payment Services

•  Direct Carrier Billing

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Mobile Carriers The North American Conundrum

OS OS OS OS OS OS OS OS OS OS OS OS

OS OS OS OS OS OS OS OS OS OS OS OS

OS OS OS OS OS OS OS OS OS OS OS OS

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Financial Institutions Carriers Retailers

What they

need to

adopt:

What they

bring to the

table:

•  Payment Processing

•  Credit Card services

•  Bank services

•  Security Infrastructure

•  Networks & Location Based Services & Messaging

•  Drive Features & Standards for OEMs

•  Mobile Payment Services

•  Direct Carrier Billing

•  Customer-Centric perspective

•  Technology to support

•  Standardized handset and OS

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Financial Institutions Carriers Retailers

What they

need to

adopt:

What they

bring to the

table:

•  Customer-Centric perspective

•  Technology to support

•  Standardized handset and OS

•  Shopping Experience & Customer Perceived Value

•  Consumer Data

•  Point of Sale

•  Customer Perceived Value

•  Reduction of Processing Fees

•  Integrated Point of Sale “Everywhere shopping”

•  NFC embedded phones

•  Retail partnership

•  Payment Processing

•  Credit Card services

•  Bank services

•  Security Infrastructure

•  Networks & Location Based Services & Messaging

•  Drive Features & Standards for OEMs

•  Mobile Payment Services

•  Direct Carrier Billing

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Who “owns” the digital wallet?

Financial Institutions Carriers Retailers

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Who “owns” the digital wallet?

Financial Institutions Carriers Retailers

✔ ✔ ✔

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Who influences the consumer?

Financial Institutions Carriers Retailers

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Who influences the consumer?

Financial Institutions Carriers Retailers

✔

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What needs to happen?

Financial Institutions, Carriers, and Retailers need to work together to understand how to split up the transaction fees, etc. 1

Figure out how industry will get enough consumers to use the digital wallet and enough merchants to accept mobile payments. 2

Ensure that the user experience is still easy to use & intuitive 3

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Then what?

Consumers don’t want a new way to spend money faster.

vs.

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Then what?

They want a new way to spend money wiser.

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How will we make it 3 a reality?

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Remember the telephone?

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Evolution of the Phone

SMS Web

Caller ID

Email

Camera

Mp3 Player

Note Book Games

Alarm Clock

GPS

Address Book

Apps, Apps, Apps

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Keep It Simple

Phone Wallet

vs.

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Remember running 1 application?

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Avoid clutter

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Coupons

Gradually Enhance

Financial Management

Comparison Shopping

Tickets/ Passes

Payment Method Financial Management Coupons Comparison Shopping

Tickets/Passes

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Gradually Enhance

“Stroud” Curve of Downloadability

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Your life is on your phone.

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Your life is on your Facebook feed.

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But your private, personal information is in your wallet.

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Where does social belong?

Community Feed

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Social Network = Digital Wallet

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Social Network influences Digital Wallet

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…by helping start the conversation

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…and continue the conversation.

LOYALTY

LOYALTY

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How will it change the way we buy? 4

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Mom  Driving  

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[Parking  Lot  Scene]  

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[Kitchen  Scene]  

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What’s in your wallet?

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What is your wallet?

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The Takeaways

•  Digital wallet is not JUST paying with your phone

•  Think of consumer’s needs first

•  Keep it simple. Gradually enhance.

•  Make it easy, effortless, and convenient.

•  Find its relevant place within the shopping eco-system

•  Be patient

•  Enable and continue the conversation

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Thank You

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Questions?