The future Global trends for Mobile

Payment, ePayment and eCommerce

(A Startup Tech/Finance perspective)

Banking and Payments is changing big time.

The new generating of Push ePayments, mPay, Zapp, Band and Watch.

Banks new generation competitors: ApplePay, Google Wallet and

speculation on Google as an eBank!

eCommerce Global trends

New Tech That could effect you: AR and IoT –Will change everything!

Some final Advice for Start-ups

My Wish is to suggest what you should consider today to be

successful in the Future!

Farshad Nowshadi. M.Phil

VP-eStrategy (Advising Board) for Saman Bank

20 years Consultant to Global Reuters Financial

Advisor/Mentor/VC to European Startup Finance-Tech companies

L39-Canary Wharf and Google for Entrepreneur

Got access to some of largest VC’s, in the Tech/Finance area

Early Investor in Google, Amazon, AliBaba, Linkedin, TripAdvisor and many Startups in UK,US and Iran

International Author of Managing Tech/Finance Books

Consultant to Microsoft Financial Services & D-Bank

International Speaker( Berkeley Univ-US Bridge2014 (Silicon Valley Investment-Iran conference)

Rise of the Internet/Technology

has changed Banking forever.

The Global

Banking Trend

“Banking is no longer

somewhere you go, it is

something you do”

“We do not need Banks anymore

just Banking Services” – Bill Gates

“User just want GREAT DIY

Banking services”

Global Trend:

Using Cash is Dying!

“Bank Branches and just

cash dispensing ATMs will

both disappear over time!”

Dealing with Cash has its

drawbacks..

Big overheads to process

Security issue

Often associated with Money

Laundering

Dirty

Is your Bank Ready

for what is coming?

Latest Usage of Payments in Iran.

As of 2014 according to CBI

Exceptional growth in ATM and Online

payments

ATM in Use in Iran: Now ..… Over 33,000

Debit Cards(Shetab) in use ..... Over 280 Million That is over 3 Cards Per person

2.1 Million POS terminals in use (Exploding)

Number of POS and Online transaction is exploding

Now per month is over 390 Million,

Valued at 69,000 Billion Tommans (Equiv 23 Billion US$)

Trend: Bank Branches are

Closing Down fast..

In The UK every day, this year sees another

Bank Branch close its doors.

HSBC, Barclays, Lloyds – All announced this

year to close around 500 Branches !

Less Branches- But Customers Need Better

Experience

Always Banking ,

but never at a Bank!

Still need Branches?

–Yes!

I believe you do. Because..

Customers Like to see impressive Branches-Adds Credibility

A friendly Open and Welcoming Place (Love our Kids Areas)

Somewhere you can go and talk face to face.

Physical check of Documents

The new Saman Bank V3 Look’n’Feel

(all of our 260 Branches being redesigned)

Trend: Customers of the Future will

be less loyal and more Mobile

UK FSA and Central Bank of America

Have standardized Customers Mobility

Between Banks

Move DD and Standing Orders Between

Banks in 2-7 Days Guaranteed!

This is happening now in the UK, and

around the world soon.

So what does this mean for Bank???

We must constantly provide a Better

Service to Keep our customers and attract

others!

Mobile Payment Explosion!

Mobile Payment

Explosion!

Smartphone Growth in the

Middle East- Will be Massive Middle East now has 250 million mobile phone subscriptions (End of 2012)

Iran is the biggest Mobile market(With 90 Million-2012)

UAE is the country with the highest smartphone penetration.

(Predicted to rise from 47% in 2011 to over 70% in 2016)

Internet Speed is at

last-Going up in Iran!

Rouhani Government granted

3G and 4G licenses to

MTN Irancell and ,Hamrahe Aval

Now with the Cost of Smart Phones

coming down, and always on Mobile

Internet service available

So many possibilities are opening up

I think it is a Pivotal time for

Investment

Get Ready Now:

Smart Phones are here.. WHY? 1. High penetration of mobiles:

Over 4 Billion mobile phone users in the world that hugely

surpass the number of credit/debit card owners.

2. People carry their phone wherever they go, no better

device than a mobile phone for payments

3. NFC chips or stickers can be added to the mobile

phones to make the payment simpler and faster.

4. The world is moving towards 4G: Seamless Fast

Online Internet Service

World is Price Sensitive

The Eric Schmitt Promise of less than $100 is now here!

Nokia Android-X Phones ( Around $100)

Google Project Ara (Proposed Retail at $50)

Some Facts-Why we must Invest to

provide the Best Mobile Banking

Service In UK Average Person (2014 Figures)

User Mobile/Internet Banking 20 Times/Month

Goes to Bank Branch 2-3 times a YEAR!

Most People now Majority of users go to

Comparison Financial Services sites

Old Days go to your Bank, and go with what ever they

say.

Mobile, Touch/Voice Interface and Social Media..

is the way of the future-No Exception..

NFC payment is

set to explode

around the globe!

What could be easier just

“Touch and Go”!

In the UK NFC cards are taking off

Today over 36 million people with NFC

cards

Now 300,000 retailers POS enabled NFC

Reduce Checkout Queues

But Limited to small amounts

Major Players Supporting

RFID and NFC for Payments Credit cards manufacturers starting to issue Contactless cards

Visa (PayWave)

MasterCard (PayPass)

American Express (ExpressPay)

Now Banks Getting into the action Zapp!

Your Smartphone NFC is now the Card

(Will this bring the Death of the Physical card?)

Android Smartphones (HTC, Samsung etc) Dominates NFC payments

(Apple iOS At last is to adopt NFC in iPhone 6+)

Microsoft Windows Phone 8 OS also support NFC

As used in Google Wallet technology

It is predicted by 2017 NFC Smartphones will be

everywhere (Over 500 Million)-

Get READY TODAY!

BandPay

Free From Barclaycard

part of Barclays Group

Can use anywhere you see

on any POS with

Pre Load your Account

Eventually linked to you

account

Working now

Example-My son School

Soon- Apple Watch

Google Wallet Now “You can add your own cards”

Visa, MasterCard, American Express or Other credit

and debit cards to Google Wallet.

Now cloud based and is Bank and Telecom

independent

(Before now details were stored on your phone)

Your credit or debit cards become either linked cards

or cards which are directly enabled for use with

Google Wallet mobile app

Also recently introduced, you can now have a physical

Google Master Card

To withdraw Cash and Pay anywhere that accepts MC from

your wallet. Only in the US for now.

Google Wallet. Takes

Wallets further.. Need

Smart

Phones

with

NFC

Android

OS

Watch

an Intro

Video

Google Wallet (cont)

See the latest version in Action..

NewApple

Pay

Is igniting the Mobile Wallet

Service

Fully started now

(Also good for Google Wallet!)

Nearly half of all retailers plan to

adopt Apple Pay by next year

Combines

NFC with Touch ID fingerprint Tech

Difference between Google Wallet

Uses Apple uses pre-existing Debit

Cards on PassBook (Apple Store)

(800 Million cards)

Only on iPhone 6(and Above)

Google Wallet on Almost all

Andriod(Linked to Google Play)

Google Wallet Pay Via Email

Now Support USD and UK Pound

What does this mean for 500 Million Users?

Could Google become a Bank? Google has already invested in..

Its own universal Google eWallet

Issuing its own Google Master Card

Google Buys into Lending Club

Americas #1 Credit P2P marketplace

Rumours are suggesting Google (and

FaceBook) could be looking to buy a Bank

(to get regulatory permissions) and link it to

User Google Profile, integrating eWallet into

Android and chrome!

Provide P2P loans, Exchange and link to Ad

Words

Introducing MoIP

You heard about VoIP now ..

You will hear a lot about Money Over IP soon!

By passing SWIFT, and Inter Bank Correspondence

accounts.

New

Trends in

Internet

and Mobile

ePayment

Why is mPayment in a mess? Too many solutions

Customers are confused as to what is best.

Not available everywhere.

Retailers reluctant to adopt yet another

technology at checkout.

Mobile payments solutions need to partner

with banks and retailers to survive!

You will see very few solutions survive

Many other solutions of today will fade away

soon.

The Battle for Future Digital Mobility with Smart

Phones is the next evolution of

WWW and e-Payments

But Who is going to dominate?

Fight is now on…

Bank Fighting back

Banks are trying to maintain their grip on payment

systems

User already have a Bank Account

So let us make the most of it, and avoid setting up

intermediates

Different new methods of Sending cash via existing

bank accounts.

Pay-M

Zapp it Concept

Paym-Mobile

Payment System

Just Launched in

UK- April-2014 Using your own

existing Bank App

send money using just

mobile phone number

Santander Story

Register Now

(1Phone, Many Acc)

Use it in few weeks

1st and 2nd Generations of Online

Payments 1st Generation

From the Sellers Website users are

redirected to ..

Check in – Check out – To the Payment

Provider

Dis-Advantage is

User can not do a quick purchase from the

sellers website

Takes longer..

2nd Generation

User stays at the Sellers Website.

It uses a Payment Gateway API from

the Payment Solution Provider .

You enter Card details on the sellers

website

Which means it can be stored for

future quick usage.

1-2-3-4 Generations of Online

Payments 3rd Generation

Adds an extra level of security that

is not shared with the Sellers

website.

It is basically same as 2nd

Generation BUT with the addition

of Verified by Payment provider

(Semi Check in –out)

4th Generation (New!)

Push payment

(I will talk about this Next)

4th generation

Online/

ePayment

The Big Idea!

A new breed of Push ePayment to Online Merchants.

“At checkout, the buyer logs on to their OWN

online banking service and arranges for a

payment to be made to the merchant declared account. “

Good to be aware of this Significant trend in Global Mobile

ePayments.

Zapp – New

ePayment Solution

8 Million customers from HSBC, First

Direct, Nationwide, Santander and Metro

Bank Mobile app will use it very soon!

Zapp was developed by Vocalink, the group

that runs the UK's payments infrastructure and

is owned by a consortium of 18 Banks and

Building Societies

What is the Advantage?

No need to Give your Card or Account Details

Saves CC % Commission

Pay the way you are used to

As secure as your own Bank

No need for Credit Cards Anymore!!!

Based on Fast Payment System

So How does it work? Zapp integrates into your own mobile

banking application

See balances on accounts before

payments

On Check out ..

Shops accepting Zapp payments (NFC),

will send a special eInvoice to shoppers

mobile phone. The shopper confirms the

instant payment with a tap of the finger.

On Adverts/Web

Instant order pay and checkout online via a

QR

Key Trend: This is going to be Big! See Zapp in action..

Extending the Idea..

Pay by just saying your name! (Square Tech)

Update: New Google Wallet Palso Project!

Update: New Starbucks Payment

The Battle Ahead Starts now.. I Believe today

Biggest Challenge to

Banking Model

comes from Technology

Providers

Bank need

Embrace the technology

Use their technology to

enhance their own services

And Work Together to

maintain/enhance existing

market share

PayM, Zapp, Faster Pay

Saman Bank: Investing Today in

Mobile Payment services of Tomorrow

Advice: Make sure you have APPS for

Android and iOS

If you get the extra resources or a good deal from MS:

Enable Win 8 Mobile Apps as well as Android and Apple.

No Smart

Phone

No Cash

No Cards

Just Talk!

Video Concept

By Google

Glass and

Russian

PrivatBank

My Vision of the Bank of the Future

Few Technology that I think will

be big in 2015!

These could open up new

Business opportunities for you!

Augmented Reality (The new VR)

This will be

very big in the

next few years

Google Glass

is dead Long

Live the new

AR Google

Glass!

AR in

eCommerce is

happening now!

Blippar Type Tech / Google Glass

Google Extends Street View to show

your Items for sale in your store.

Internet of

Things Big Change is coming!

Estimated to be worth $3

Trillion over next 3 years

New Business on Horizon

Think of Ideas now!

Almost all utilize Mobile

Example

NEST..

Phillips Light Bulb-Amazon..

August Smart Lock..

Summery: Why I believe Iran will become a

perfect for Tech/Finance investment

20th Largest Economy in world

Highly educated population of over 75 Mil

Innovation in Finance, Banking (reducing Transaction cost)

Iranian Currency vs US$ Major devaluation

Internet Speeds are being allowed to be significantly increased and

the explosion of Smart Phones

Start of Tehran major Internet City,VC funds and accelerator

cultures

Makes IRAN an Ideal Long term opportunity

for Silicon Valley Entrepreneurs! Thank you! My email is : farshad@nsolutions.co.uk

Summery: My top tips for Startup’s

long term success Is there a real need for your solution?

User ability should answer this question.

(This is the Big one)….

Do something different

Do not just Copy a Western Company Business

Model

Leap frog the idea to do something Unique

Useably and convince is the KEY to you success!

Do not just go for short term gain!

Start-up Advice

Work with the Best you find

Take the time to find the best Team

Ensure they also have put down commitments from them

Consider Vesting!

Ideas are Worthless what is important to SHOW it is Possible

Do not rush too early to approach seed investors.

Need to show you have already have invested everything into you idea

Do not worry about failure – Around 70% will fail

But Know when you should change your idea!

If starting out, work with great Accelerator – It can make a big

difference to your success (Such as Avatech )

Once you have establish a demonstrable value approach VC’s

(Such as Sarava )

What is one top thing Customers want

from our Mobile/Internet Services?

Convenience at Better Value! Speed, Reliability, Security all flow on..

If you can really deliver this-

You will be successful……...

My name: Farshad Nowshadi

Email: f_nowshadi@sb24.com

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