How are mobile devices changing the face of

payments?

Pragati Ogal RaiMobile Technology Evangelist, PayPal

@pragatiogalgithub.com/pragatiogal

Mobile Developer Conference, Chennai, Dec 1, 2012

Agenda

• Journey of Payments

• Current Landscape

• Emerging Trends in Mobile Payments

Journey of Payments

Livestock Warfare

Fruits and grains

Old Roman Empire Gold Coin Ancient Indian Gold Coin

Ancient Greek Silver Coin

Emperor Kublai KhanYuan Dynasty

1215-1294 AD

Paper Money500 Cash 1269-1365

Kublai Khan issued paper money known as Chao

http://en.wikipedia.org

Marco Polo was a Venetian merchant traveler whose travels are recorded in II Milone.

He introduced Europeans to Central Asia and China.

Marco Polo1254 – 1324 AD

Curtsey Diners club

First Diners Club credit cards were given out in 1950

Founded in 1998, PayPal allows payments and money transfers through the Internet.

http://www.prlog.org

Logos!

Worldwide mobile payment transaction values will surpass $171.5

billion in 2012, a 61.9 % increase from 2011

Gartner, May 2012

1.8 billion consumers globally will buy digital goods via their mobile in

2011, this will rise to 2.5 billion in 2015.

Juniper Research, 2011

Current Landscape

Infrastructure

Clients Merchants

Mobile Payments Ecosystem

Security

What are Mobile Payments?

• Consumer uses a mobile device

• Merchant uses a mobile device

• Both consumer & merchant use a mobile device

How do you define mobile payments?

Remote Mobile Payments

• Send and request money

• SMS based payments

• Mobile banking

• Application/ Browser based payments

• Carrier Billing

Fahad.com

Proximity Mobile Payments

• Barcode Scanning

• Point of Sale

• NFC

• Bluetooth

• RFID

• Accelerometer

Wikepedia.org

Your Definition of Mobile Payments

What does a Merchant want?

• Quick, easy, hassle free

• Security compliance

• Fraud prevention systems

• Current and up to date system

• Reliable

• Pricing

What does a Consumer want?

• Fast

• Secure

• Easy

• Choice of payment providers

04/11/2023

Consumer Products

Merchant Products

Capabilities

MerchantProducts

OVER 800,000 DEVELOPERSCommunity

eBay Inc.: Developer Offerings

Open Global Payments Platform

Why PayPal?

113.2 million Active consumers190 markets25 currencies21 localized websites$118 billion TPV in 2011$4382 per sec6.2 million payments per day0.26% fraud rate

Collecting Payments: Express Checkout

Collecting Payments: Mobile Express Checkout

Collecting Payments: Adaptive Payments

Reports and Information

Transaction Search / Details

Instant Payment Notifications

PayPal Access: Your Commerce Identity

1. Forrester Research 2. Blue Inc.

• 23% - customers who abandon carts when asked to register1

• 45% - leave website when they can’t remember their password2

• 25 - average number of online accounts per user1

Sign-on Today

PayPal Access: Your Commerce Identity

• Single sign-on

• Enter and update billing and shipping information once

• Commerce identity. PayPal is trusted by consumers to keep their information secure and respect their privacy

Informatics Data Examples

PayPal Access: Delivers Actionable Consumer Data

Online activity: who customer is & how they purchase– Time of last purchase– Frequency of online purchase– Average amount per online purchase– More…

Category of purchase history– UPC code – eBay category (420K categories)

i.e. women's clothing jeans, women's junior’s jeans, women's petites jeans

Real-time data: Enables targeted offers, even on first visit

All online transactions

PayPal Informatics data covers up to 60% of online

transactions*

PayPal Informatics

PayPal Here: Point of Sale Payments

Development Phases

Create Sandbox account

Get API credentials

Design, build & test application

Submit for approval*

GO LIVE

* Only Adaptive Payments, Mobile Payment Library, and certain advanced APIs in Express Checkout require submission.

Biggest Challenge?

Security

Diverse & Evolving Mobile Ecosystem

Wireless Networks

Security

Developers

Carriers

OS VendorsOEMs

Services & Infrastructure

Security Issues

• Device security

• Privacy

• Fraud & Risk

• Client-merchant authentication

• Client authorization

• Evolving standards

PCI Standard Council

• Independent organization

• Develop common set of payment standards

• PCI-DSS v2.0

• PCA-DSS

• PCI-PTN

• PCI-P2PE

PCI-DSS V2.0

• Build and maintain a secure network

• Protect cardholder data

• Regularly test and monitor networks

• Maintain an InfoSec policy

• Maintain vulnerability management program

• Implement strong access control measures

Emerging Trends….

Mobile Payments are Here to Stay

"We expect global mobile transaction volume and value to

average 42 percent annual growth between 2011 and 2016, and

we are forecasting a market worth $617 billion with 448 million

users by 2016,"

Sandy Shen, research director at Gartner, May 2012

M-payments is a Global Phenomenon

Eastern Europe will see the highest user growth between

2011 and 2016. Asia/Pacific will have the most m-payment

users, but Africa will account for the highest revenues.

Gartner, May 2012

M-payments is a Global Phenomenon

• M-pesa in Kenya

• Chipknip

• GeldKarte

• Royal Canadian Mint

http://pritamkabe.wordpress.com

Mobile brings New Use Cases

Promotions & coupons

Location-based services

In-store research

Self-scanning & self-checkout

Global Social Commerce

Loyalty

Online Commerce

Mobile Wallet

Shopping Lists

Changing Form of Payments

• Money becomes more abstract• Royal Canadian Mint• Digital goods• Anonymous payments: Bitcoin

Less cash society Cashless society

Increased Collaboration among Mobile Payment Stakeholders

Improvements in Payment Security

• Consumer awareness

• Improved device security

• Biometric identification

• Evolving security standards like PCI Security Standards

Summary

• Mobile payments are here to stay

• Define what mobile means to your business

• Think beyond the hype

• Security, trust, and safety is of paramount importance

Pragati Ogal Rai

@pragatiogal

http://www.slideshare.net/pragatiogal