Rome, 6th October 2014 -
Ercan Kilic, GS1 Germany
How digital (especially mobile coupons)
will be
distributed and redeemed at the POS
(virtual and
physical POS)
GS1 Germany MobileCom project –
focuses on
Why is GS1 Germany active in Mobile
Commerce?
• GS1 has observed a world wide development of payment methods – they become
increasingly contactless.
• The way in which customers pay for goods, redeem coupons, collect points, etc. change
dramatically and more rapidly.
• These changes in customer behavior have an
enormous impact on the business models of our
clients and also in their investments in technology
• GS1 Germany assumes the responsibility to offer
solutions that enable its clients to benefit from the
potential resulting from these changes.
Mobile Payment
GS1 is not active in the payment eco-
system
• … but when it comes to Mobile Wallets then GS1 standards will be part
of the different POS scenarios and new processes
Banks
Payment
NetworksIAPs
MNOs
AcquirerTSM
Yesterday: Payment was manageable and easy to
understand
- Products via Banks
- Manageable product portfolio
- Distinction between payment at POS and Online – very clear
Cash
Bank transferDebit entry
Debit CardDirect DebitCredit Card
Credit Cards
Rea
l W
orl
dp
hys
ica
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OS
Vir
tual
Wo
rld
E-C
om
mer
ce
Online Banking(Vorauskasse, Rechnung)
Lastschrift
ILLUSTRATIION
Convergence of Payment
The Wallet Hype
ILLUSTRATION
Bank transferDebit entry
Cash
Debit CardDirect DebitCredit Card
Credit Cards
Rea
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orl
dp
hys
ica
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Vir
tual
Wo
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E-C
om
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Banktransfer
Online Banking
(Vorauskasse, Rechnung)
mWallets
eWallets
1
2
© 2011 Brightcove Inc.
Mobile Wallet
Source: Vodafone
• OTTs, Internet Giants, Banks, MNOs, Handset Manufacturers, Retailers want to
provide Mobile Wallets by offering value-add services to customers
Mobile Wallet –
the Google Wallet
Abbildungen: Google.com
• It is complex to set up, maintain, enrich and drive broad acceptance
of mobile wallets!
Apple Pay - a late start to the market
but with an innovative set-up
Factsheet:
• Integrated into Apple Passbook on IOS 8
• Cards already stored in Itunes can be used
• Alternatively cards can be added by taking a photo
• Supports NFC-based POS payments and one-click
payments in apps and online stores
• Authorization of transactions via fingerprint sensor
• No credit card data is forwarded to the merchant, no
transaction records are kept by Apple
• Launches first in the US in October 2014
• Will support the Apple watch after launch in 2015
Apple Pay - Passbook
The impact of Apple Pay
The break-through will come with Apple Pay
• Apple Pay will clearly raise the awareness forcontactless payments worldwide
• Customer demand will be driven by Apple Pay(contactless payments might become cool)
• Apple unlocks the access to a well-funded groupof customer with affinity to new technologies
Apple Pay’s one-click-payment feature for apps and online stores will open up a severe battle between Apple and e-wallet providers like Paypal
The market for mobile payment will benefit in general
What`s the strategy of retailers in US
• A Network of America`s favorite merchants
ISIS-Wallet - Credit Cards, Loyalty Cards, Coupons, Deals & Offers
20.000 ISIS-Wallet daily activations
68 NFC-Smartphones support the Wallet across three operators
Preloaded on 14 Smartphones
Over 270.000 redeemed Coupons at Jamba Juice in Q1. 2014
14. Mai 2014
Isis hits 20,000 daily wallet activations – per day
Savings always with you ….
Mobile Wallet contains different Services
Mobile Wallet
Debit CARDEC Card (national Debit)
Credit CARD
Coupon
Loyalty
Retailer CARD (Payment, Coupon, Loyalty)
Digital Receipts Refund Receipts Productinformation Interaction with
Smart-Shelfs, Smart-Posters
….
New services will come up soon - challenges for standardisation
GS1 Germany GmbH
POS Interaction – Increase of technologies
and interfaces at the retailer´s POS
NFC - reverse vending machine
cas
h r
eg
iste
r -
till
NFC-Terminal
NFC-Reader
Photo Scanner
QR Code Display
Laser Scanner
BLE Beacon
Retailers are uncertain and not willing to make large investments at the POS!
1D / 2D Barcodes Laserscanner Photoscanner Beacon / BLE Bluetooth RFID NFC-Terminal NFC-Reader separat etc.
Technologies / Interfaces
camera
NFC
BLE
QR Code
IFR
W-LAN
SMS
GS1 Germany GmbH
Confusion in today’s Digital
Coupon Landscape
• How to set up a successful couponing strategy?
• Which distribution channel should we use – wap, App, SMS, or others?
• How to set up cross-retailer campaigns?
• Is there a simple (self-service) tool that features performance measurement and real-time campaign management?
Brands Retailers
• What do consumers expect?
• Which technologies and interfaces exist and which ones are relevant for us?
• What does that mean for my investment in digital infrastructure at the POS?
• Threat: other players such as Cashback Couponing providers
Consumers
• Yes, I want coupons - but where can I redeem them and how?
• Which retailers support this coupon campaign?
• I do not want to download several coupon apps! Couponing has to be simple!
Couponing Landscape
Stakeholders
CouponDistribution
Media Agencies
Creative Agencies
Brand Owners
MNOs Consumer
Retailers
Clearing-houses
Validation
Others?
GS1 Germany GmbH
Mobile Couponing Landscape
Mobile
distribution
channels
Brands /
coupon
issuersProcesses Retailers
Clearing
Houses
Specialized Agencies
Media Agency
Lead Agency
GS1 Germany GmbH
Areas of tension in
Mobile Couponing
• Prerequisite for the broad acceptance of Mobile Couponing: Efficient
processes along the line from distribution to redemption!
Coupon
distribution
Coupon
redemption
GS1 Germany GmbH
Areas of tension in
Mobile Couponing
Receive coupon Redeem coupon
1 2
present
scan
BLE
Challenge: Redemption at POSDistribution: Not critical
NFC
GS1 Germany GmbH
Coupon distribution
Efficient coupon distribution across several distribution channels is limited today!
Coupon Issuer
KitKat Brand App
Consumer
GS1 Germany GmbH
Mobile Advertising Campaign 1.0 • No tracking possible – hoping for awareness! End of campaign!
100.000 Ad Impressions
10.000 clicks
10.000 Visits
CTR = 10%
Consumer
till
Measurement ???
banner placement
GS1 Germany GmbH
The Challenge - how to redeem mobile
coupons at the till
1D / 2D Barcodes Laserscanner Photoscanner Beacon / BLE Bluetooth RFID NFC-Terminal NFC-Reader separat etc.
Technology – Smartphone
cas
h r
eg
iste
r -
till
NFC-Terminal
NFC-Reader
Photo Scanner
QR Code Display
Laser Scanner
BLE Beacon
camera
NFC
BLE
QR Code
IFR
W-LAN
SMS
0,50€
0,50€ günstiger!
Frontend: POS / till:
GS1 Germany GmbH
Mobile Advertising 2.0 -
CXP solves the measurement issue
• CXP enables measurement along the whole coupon cycle!
Konsument
Banner placement
10.000 clicks
CTR = 10%
5.000 clicks
Measutrement = Redemption Rate, e.g. 1% Performance Marketing!
tillTill
integrationCoupon is
activated
1.000 redemptions at till
Distribution:100.000 Coupons
CXPDetailed reports
100.000 Ad Impressions
0,50€ off !
10.000 Visits
0,50€ off !
0,50€ off !
GS1 Germany GmbH
POS: Processing of digital coupons through the
backend of the retailer
Problem: lack of standards leads to incompatibility and less efficiency!
Inter-Clearing
Clearing
Clearing
Clearing
Industry / Coupon-Issuer
till
4
Clearinghaus 1
1
Clearinghaus 2
2
Clearinghaus 3
3
today
till3
till1
We address this challenge in our working groups!
till2
GS1 Germany GmbH
Standardized communication between retailers and
and coupon service providers
Standardized communication communikation leads to compatibility and optimized efficiency
Coupon issuer Clearinghaus 1
Clearinghaus 2
Clearinghaus 3
till
till
till
till
till
till
Standardized communication based on EPCIS
Clearing
Bilderquelle: Google
TOMORROW?
Clearing
Clearing
GS1 Germany GmbH
GS1 standards and data architectures in the
Coupon-Cycle
GLN
GTIN
GSRN
GCN
SGCN
Global Location Number: A unique identifier that refers to a specific location. A location could be an organisation, warehouse, retailer, platform or role.
Global Trade Item Number: A unique code, belonging to a specific organisaiton, that identifies a product at a packaging level.
Global Service relationship Number: A unique code relating to a relationship with a specific consumer. For example identifying a unique consumer.
Global Coupon Number:An identifier relating to a specific coupon and its use, business rules and creative. The GCN holds the generic information about that coupon (or series of coupons)
Serialised Global Coupon Number:This is a single, unique, instance of a GCN.
Mobile Payment - „NFC City Berlin“ | GS1 Germany GmbH | 33
Mobile Payment Pilot is based on NFC
and Mobile Wallet
• Mobile Payment Pilot based on NFC und Mobile Wallet
• Cross MNO and Cross Retailer model
NFC-City BERLIN
Mobile Payment - „NFC City Berlin“ | GS1 Germany GmbH | 34
Vision of “NFC City Berlin“
• The goal of “NFC City Berlin“ is to set up a lighthouse project that establishes the “Eco System“ of Mobile Payment. • A critical mass and an impulse for NFC will be achieved by joining forces at the issuance side and
at the point of acceptance.
• The Mobile Payment project will be established first at main market participants. Subsequently, the project will be extended by more participants and use cases.• That includes harmonization of different services and transaction types such as couponing and
ticketing but also parking, carsharing, access via NFC.
• The constant use of NFC services increases customer acceptance to use smartphones not only in retail but also in other services and Scenarios (different use cases).
• “NFC City Berlin“ considers basically:• Customer acceptance
• Technical interaction
• Business models
“NFC City Berlin“ is the first step towards an overall contactless communication and transaction at the physical POS.
Mobile Payment - „NFC City Berlin“ | GS1 Germany GmbH | 35
The participation in the development and in the implementation of a contactless payment infrastructure enables all parties to proactively form a strategic positioning within the ecosystem.
Goal of NFC City Berlin
• “NCF City Berlin“ delivers important insights about the interplay of the different parties and components:
• Customers
• Technique & processes
• Eco system & partner models
• That enables the participating companies to position themselves strategically early in the Mobile Payment field.
• On this basis, all parties are able to refine their products and services.
Customers• Acceptance• Usage• Behavior
Technique & processes• Complexity and functionalities of wallet & cash systems • Processes & interaction
Ecosystem & partner models• Development and testing of business models
Mobile Payment - „NFC City Berlin“ | GS1 Germany GmbH | 36
Key objectives of the NFC City Project• Support creating a partner model between the key stakholders• Building a sustainable eco-system together• Figuring out the ideal Mobile Payment Solution• Testing the soultion(s) - User Experience / Design• Optimizing the processes between the Stakeholders and especially
Consumer/Smartphone and Terminal/Cashier system / till of the Retailer
• Generating insights concerning the customer acceptance• Measuring transactions • Generating Reportings concerning performance and huser behavior• Genarate insights for all stakeholder - also for value added service providers
Couponing Loyalty Advertising and others
• Build focus groups to undestand customers needs – surveys in stores etc.• Preparing roll-outs • Developing and providing best practises and recommendations for the community• Defining standards
Contact
GS1 Germany GmbH
Ercan KilicHead of Mobile Commerce
GS1 Germany GmbHMaarweg 13350825 Köln
Tel: 0221-94714-218Mobile: 0171-561 44 84Fax: 0221-94714-7218E-Mail: [email protected]