THE MOBILE PAYMENT

Presented by

(R)EVOLUTION

THE GROWTH STORY

Mobile payment usage continues to grow year after year, with more than half of consumers (56 percent) now using mobile payments. Banks must reimagine their business, embrace innova-

tion, transform into fast-moving organizations, and respond to these changing customer behaviors.

0%

Veryfrequently

(daily)

Frequently(2-3 times

a week)

Occasionally(a few times

a month)

Seldom(every fewmonths)

Rarely(a few times

a year)

2015

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2016

5%

13% 12%

27%

19%

39%

15% 14%

49%

6%

Q: How often would you say you currently use your mobile phone to pay for thingsin physical stores?

of respondents use mobile payments at least a few times a month.

In 2015 In 2016

36% 80%Asia Pacific is set to lead mobile payment

(r)evolution.

276 Millionabout half of China’s mobile internet

users use mobile payments.

of respondents “rarely” use mobile payments in store (among those who have used mobile payments), down

from 49% in 2015.

6%

THE TRENDS DRIVING THE CHANGE

Emergence of mobile, cloud, artificial intelligence (AI),

software as a service

Shifting technologies and their applications

$3 billion+ in venture capital (VC) funding drives a massive

proliferation of startups

Substantial funding

Empowered customer, smartphone-equipped, with

anytime and anywhere expectations

Evolving consumer behavior

02 03

THE TRUSTED SOURCEBanks emerged as the most trusted go-to source for mobile payments in our survey.

For retailers and technology companies, trust has proven to be one of the leading barriers to consumers’ acceptance and usage of their bespoke mobile payment options. 

Q: Who do you trust the most to provide mobile payment services?

43%

14%11% 10%

6% 5% 4% 3% 2% 1% 1%

My bank or otherestablished financial

institutions

Source: SapientNitro, 2016.*

A retailer, like Walmart,Target,

or Starbucks Other

01

A mobile phone carrier, like Verizon,

AT&T, or Sprint

Device manufacturerslike Apple, Samsung,

or Motorola

Google

No one

AmazonIt doesn’t matterwho provides the

service as long as Iget what I want

Credit cardproviders

Alternate paymentservice providers like

Paypal, Square, etc.

Source: SapientNitro, 2016.*

WHAT BANKS CAN DO

Partner more closely with retailers and technology companies who offer direct payments.

Develop unified payments, integrated reward and loyalty programs, personalized offers, and even GPS and in-venue navigation, all in a single and compelling payment experience.

When designing user experiences, place the customer in the center and be more agile if they want to better engage the new generation of payment customers.

01

02

03

THE FUTURE EXPERIENCE

THE FANTASY PAYMENT TEAM

Consumers will be instantly rewarded in line with their preferences every time they engage in a transaction - not to mention having automatically organized records of each payment. For banks, these personalized experiences will lead to higher customer

engagement, cross-sell opportunities, and retention.

Automatically recognize when consumers enter the store

Allow them to browse peer reviews

Shop

WayfindConnect socially

Manage coupons and rewardsPay for foods and services

through bespoke mobile apps

Determine the right payment method and currency

Ensure the highest security

Stay on top of what each consumer can afford

FUTURE RETAIL PAYMENT

EXPERIENCES WILL

Banks can assess and refine their own approach to payment solutions by benchmarking against this fantasy payment team made up of the best-in-class solutions from each category.

ACCOUNT NUMBER

(* SapientNitro conducted the 2016 Mobile Payment Study to better understand the mobile payment behaviors of U.S. smartphone users.

We conducted a survey of our U.S. based panel on February 2016, and received 493 responses.)

FOUR WAYS THAT BANKS CAN PREPARE FOR THE PAYMENT (R)EVOLUTION

Anticipate needs and providecontextual experiences

Banks should consider taking existing personalized offers and using artificial

intelligence and predictive technologies to anticipate customer needs. Banks can also

leverage "down-timing" by sending reminders to customers during common travel times or

while at the airport.

Banks should consider moving beyond mobile-first, app-based strategies and

embrace user interfaces that are voice-responsive or integrated with

third-party APIs.

Banks should consider using messaging platforms and

voice-enabled interfaces to offer both transactions and biometric

authentication.

Banks should consider moving beyond commoditized payment services and

invest in peer-to-peer payments, cardless ATMs, or partnerships with

third-party rewards programs.

Move faster and be nimblerwith payment investments

Join the conversation

More than money

03 0401 02

Wechat

Messaging

Venmo

Social

Square

POS

Wallaby

Wallet

SamsungPay

Compatible

Paypal

Brand

VisaDeveloper

Open API

DanskeBank

Bank

Starbucks

Merchant

Stripe

E-commerce

M-Pesa

Inclusive

Master-Card

Selfie Pay

Bitcoin

Transparency

Alipay

Empire