introduction to analysys mason's m-payments market expertise
TRANSCRIPT
June 2015
Introduction to Analysys Mason’s expertise in m-payments
Contents
Introduction to Analysys Mason and our Digital Economy practice
The areas of m-payments we cover, and our team of experts
Analysys Mason’s m-payments proposition
Our recent experience in m-payments and client testimonials
2
Introduction to Analysys Mason
▪ Analysys Mason is a trusted adviser on telecoms, media
and technology
– design winning strategies that deliver measurable
results
– make informed decisions based on
market intelligence and analytical rigour
– develop innovative propositions to gain competitive
advantage
– implement operational solutions to improve business
efficiency
▪ 230 staff in 12 offices worldwide
▪ Respected for our exceptional quality of work,
independence and flexibility
▪ For 30 years, we have been helping clients in more than
100 countries to maximise their opportunities
3 Analysys Mason
Analysys Mason office locations
Offices located in Europe, the Middle East,
Africa, Asia and the Americas
We are uniquely positioned to provide consulting and research to the
telecoms, media and technology sector
4 Analysys Mason
Our focus is exclusively on the TMT sector
We support multi-billion dollar investments, advise clients on
regulatory matters, provide spectrum valuation and auction
support, and advise on operational performance, business
planning and strategy
We have developed rigorous methodologies that deliver
tangible results for clients around the world
We analyse, track and forecast the different services
accessed by consumers and enterprises, as well as the
software, infrastructure and technology delivering those
services
Research clients benefit from regular and timely intelligence
in addition to direct access to our team of expert analysts
Our dedicated Custom Research team undertakes
specialised and bespoke projects for clients
Research
Consulting
Consumer services
Enterprise and M2M
Regional markets
Network technologies
Telecoms software
Strategy and planning
Transaction support
Operational consulting
Regulation and policy
We have two in-house research programmes focusing on m-payments,
and also conduct bespoke projects in this area
Key topics covered by our Digital Economy research
programmes are mobile wallets and payments, commerce,
financial services, identity management, advertising,
education and smart homes
The following are some of our publications related to
m-payments that will be published in 2015:
Mobile wallets and payments in MEA 2015-2020 (Forecast
report)
Mobile commerce APAC forecasts 2015-2020 (Forecast
report)
Mobile advertising worldwide forecasts 2015-2020
(Forecast report)
Strategy report: Identity management: exploring operators’
emerging opportunities in identity management
Digital Economy players: company strategy profiles
(Google, Apple, Amazon, Facebook, Tencent, Alibaba,
eBay/PayPal)
In addition to our ongoing research into market trends and
stakeholders’ strategies, we often conduct bespoke projects
commissioned by various players in the m-payments value
chain
5
Our Digital Economy research programmes
Analysys Mason’s Digital Economy practice
Source: Analysys Mason, 2015
Digital
Economy
research
Focuses on
software and
business unit
implementation
Focuses on the
‘what’ and ‘why’
of telco
involvement
Platforms Strategies
Contents
Introduction to Analysys Mason and our Digital Economy practice
The areas of m-payments we cover, and our team of experts
Analysys Mason’s m-payments proposition
Our recent experience in m-payments and client testimonials
6
7
NFC-based proximity m-payments M-commerce Mobile financial services
▪ NFC-based proximity m-payments allow
mobile users to make payments by using
their mobile phones in-store. This service
requires the mobile device and the point-of-
sale (PoS) terminal to be NFC-enabled
▪ Mobile operators’ NFC-based offerings
store customers’ confidential data in the
secure element (SE) located in the SIM
card (Apple Pay stores the confidential data
in the SE embedded in the hardware of the
iPhone)
▪ Most other in-store m-payment solutions are
cloud-based; another technology competing
with NFC is QR codes, popular in Asia
▪ M-commerce allows for digital and physical
goods to be purchased on mobile devices
▪ Users’ e-money accounts enable payment
to be made without the money having to
enter a bank account
▪ M-commerce is often classified as a
remote
m-payment service
▪ Especially prevalent in emerging markets,
MFS is a group of m-payment services
typically targeting mobile customers that do
not have a bank account
▪ The service uses SMS to enable money to
be transferred between mobile customers,
and also supports a number of other
services (e.g. airtime top-up, bill payment,
etc.)
Key use cases:
▪ Buying goods in-store by touching an NFC-
enabled PoS terminal with an NFC-enabled
mobile phone
▪ NFC-based identification at an event (e.g.
conference)
▪ Ticketing (e.g. for transportation)
▪ Storage and use of loyalty and membership
cards and coupons.
Key use cases:
▪ Buying digital and physical goods online
using a mobile device such as a
smartphone or tablet
▪ Offline-to-online purchases – i.e. online or
mobile purchase of an item that has been
advertised offline (e.g. in a magazine)
▪ Using coupons and loyalty cards
Key use cases:
▪ Transferring money to another individual or
entity via SMS (nationally and
internationally)
▪ Airtime top-up
▪ Bill payment*
▪ Bulk payments, micro-loans, savings,
insurance, etc.
Areas covered
We cover key m-payments areas: proximity m-payments, m-commerce and
mobile financial services
* Please note that there in an overlap between MFS and m-commerce. For instance bill-payment MFS could be considered a type of m-commerce
Our analysts and consultants cover m-payments topics and often write
about various players in the m-payments value chain
8 Our experts
Mobile financial services NFC proximity payments M-commerce
John Abraham
Enrique Velasco-Castillo
Google acquires Softcard mobile
payments joint venture
Apple Pay’s successful positioning
in the m-wallet market and CSP
strategic responses
Stela Bokun
Operators could still play a part in
the HCE-dominated m-payments
ecosystem
Patrick Rusby
Mobile point-of-sale solutions for
SMEs: strategies for mobile
operators and vendors
Mpho Moyo
Cross-border mobile financial
services in Africa: the next big
opportunity for mobile operators
Stela Bokun
M-money service providers should
encourage a more active usage of
basic m-money services
Karim Yaici
Airtel and MTN expand mobile
financial services in Sub-Saharan
Africa
Enrique Velasco-Castillo
Vodafone launches M-PESA in
Romania, where m-money services
have significant potential
Justin Van Der Lande
Direct carrier billing could help
operators to capture consumer
spending on mobile content
John Abraham
Payforit Summit 2013: direct carrier
billing gains momentum as
consumer and CSP interest grows
John Abraham
Telefónica announces plans to
monetise mobile content through
direct carrier billing
Tim Harrabin
Mobile financial services; the
evolution of payment
Nuno Afonso
Direct carrier billing has the
greatest potential for success in
emerging markets
Aris Xylouris
Facebook Messenger introduces
P2P money transfers to increase
user engagement on its platform
Aris Xylouris
Orange Polska and mBank’s joint
mobile banking service could be
successfully replicated elsewhere
Topics covered in recent research reports and articles (click to view articles)
Contents
Introduction to Analysys Mason and our Digital Economy practice
The areas of m-payments we cover, and our team of experts
Analysys Mason’s m-payments proposition
Our recent experience in m-payments and client testimonials
9
We assist various stakeholders in the m-payments ecosystem
10 Analysys Mason’s m-payments proposition
Analysys Mason’s
m-payments clients
Mobile operators
Govt. agencies
and financial
regulators
Content publishers/mercha
nts
Banks or other
financial entities
M-wallet platform vendors
M-payments start-ups
We are an operator: How can Analysys Mason help us?
11
Analysys Mason’s m-payments proposition
Launching a new
mobile financial
service
Increasing usage
among registered
customers
Providing evidence
to support
discussions with
the regulator
Bundling MFS with
other services to
create a
“converged
m-wallet”
Understanding the
operator’s role in
the HCE*
dominated
m-payments
market
Mobile operators
* host card emulation
We are a regulator or other government agency*: How can Analysys
Mason help us?
12
Analysys Mason’s m-payments proposition
Assessing the risks
associated with
MFS business
models** and key
risk mitigation
strategies
Assessing the
relationship
between MFS
adoption and
financial inclusion
Comparative
analysis of MFS
interoperability
policies in a range
of countries
Best practices in
regulating new
MFS (e.g. cross-
border P2P
m-money transfer)
Best practices in
offering NFC-
enabled public
services
Government agencies
and financial regulators
* E.g. public transport operator, municipal body providing public services, etc.
** Including operator-led, bank-led and hybrid business models
We are a content publisher/merchant: How can Analysys Mason help us?
13
Analysys Mason’s m-payments proposition
Assessing the
potential of the
mobile channel and
best practices in
building an omni-
channel strategy
Choosing the
functionalities to
offer in the
merchant’s mobile
application*
Understanding the
benefits of
m-payments
services for your
customers
Assessment of the
available
m-payments
technologies and
their future**
Best practices in
offline-to-online
commerce
Content publishers or
merchants
* E.g. In-store product location, help function, product information, stock information etc.
**E.g. Bluetooth Low Energy – BLE, cloud, QR codes, near-field communication –NFC etc.
We are a bank or other financial entity : How can Analysys Mason help us?
14
Analysys Mason’s m-payments proposition
Sizing the
opportunity for a
mobile banking app
Assessing the
available
technologies,
business models
and partnership
options
Best practices in
bank-driven
m-wallet launches
Comparative
analysis of existing
payments solutions
Assessing the
market landscape
in P2P mobile
remittances
Banks or other financial
entities
We are an m-wallet platform vendor: How can Analysys Mason help us?
15
Analysys Mason’s m-payments proposition
Assessing the
potential of new
m-payments
features and
services
Support with
marketing: white
papers and
webinars
Assessing
investment
opportunities in
different
m-payments areas*
Assessing business
development
opportunities with
new clients and in
new markets
Providing evidence
in communications
with existing and
new clients
M-wallet platform
vendors
* E.g. In NFC-based proximity payments, m-commerce, mobile financial services or something
else.”
We are an m-payments start-up*: How can Analysys Mason help us?
16
Analysys Mason’s m-payments proposition
Assessing
opportunities in
new markets and
barriers to entry
Customer
segmentation and
pricing strategy
Support with
marketing: white
papers and
webinars
Assessing
competitive
landscape and
partnership options
Examination of
regulatory
requirements in
various markets
M-payments start-ups
* Application developers, mobile transfer organisations etc.
Market research
Market analysis
Market sizing Benchmarking
Marketing
Analysys Mason can help answer these questions through our unique
offering
17 Analysys Mason’s m-payments proposition
▪ End-user surveys
▪ Focus groups
▪ Real-time browser-based
mobile surveys
▪ Interviews with stakeholders
▪ Regulatory landscape
▪ Competitive environment
▪ Technology
▪ Distribution channels, etc.
▪ Adoption, usage, revenue
trends and forecasts
▪ Customisation of
periodically updated
in-house m-payments
forecast models
▪ Operational benchmarking
and best-practice analysis
▪ Tariff benchmarking and
analysis
▪ Client-sponsored white
papers and webinars
▪ Client satisfaction
surveys
▪ Insight articles and social
media
Key benefits we deliver
to clients:
Strong technical expertise
Understanding of the market,
competitive and regulatory
issues
Understanding of revenue,
gross margins and capex
projections and their key drivers
Global coverage and
multilingual team
Unmatched quality control
mechanisms
We conduct bespoke end-user research and interviews with
industry stakeholders
We often conduct client-sponsored, bespoke end-user
research
Furthermore, many of our projects involve extensive
interviews with industry stakeholders from all parts of the
m-payments value chain
Finally, custom m-payments projects often rely on data on
the adoption and usage of m-payments services by end
users
such data is collected by our syndicated research team on
a regular basis
the sample illustrated on the right comes from our most
recent Connected Consumer Survey, conducted in July
and August 2014 in 15 countries in Africa, Asia, Europe,
the Middle East and North America. The survey had a
minimum of 1000 respondents in each country, and the
total sample size was 22 174
18
Likelihood of smartphone users purchasing items using
mobile devices, by device and item type
Analysys Mason’s m-payments proposition
Source: Analysys Mason, Connected Consumer Survey, 2015
0% 20% 40% 60%
I am not sure/I don’t know
No, I have no real interest in thisservice
No, but I would be interested inthis service if it were available
Yes, occasionally (twice a monthor less)
Yes, regularly (roughly weekly ormore often)
Percentage of respondents
Non-Apple Apple
Non-Apple Apple
Digital items:
Physical items:
Questions: “Have you used your mobile phone to make a purchase of a physical
item, either online or at a point-of-sale, within the past 3 months? If so, how often?”
and “Have you used your mobile phone to make a purchase of a digital item – for
example, music, videos, apps or in-app purchases (such as upgrades)? This
excludes spend on subscription services such as Netflix or Spotify/Deezer.”; n = 700.
We offer robust and innovative market analysis and
competitor intelligence
19
Sample slides* from a project analysing the regulatory landscape in five markets in Africa
Analysys Mason’s m-payments proposition
* Some content has been blurred as the research was delivered on a custom basis and sponsored by our client
Source: Analysys Mason Custom Research , 2015
We use in-house data, end-user surveys and third-party data
to develop market size estimates and forecasts
20
U-commerce breakdown into e-commerce, m-commerce
and TV-commerce (%)
Forecast of u-commerce sales in Malaysia (2014–2019)
Analysys Mason’s m-payments proposition
Some content has been blurred as the research was delivered on a custom basis and sponsored by our client
Source: Analysys Mason, 2015: a consulting project on the multi-channel or ubiquitous commerce (u-commerce) market in Malaysia
1.6
2019F
1.3
1.5
2.1
1.8
1.5
2.4
2018F
12.3
2017F
10.1
2016F
8.3
2015F
6.7
2014
5.3
Others
Toys & merchandise
FMCG
Movie/ event tickets
Fashion & accessories
Insurance
Education
Public transportation
Travel
Media
Electronics & appliances
5% 6% 7%100%
2019F
64%
2017F 2016F
66%
2018F
61%
30% 29% 32%
27%
69%
2015F
26%
71%
2014
24%
73%
Cloud-based services
Mobile commerce and
advertising
Mobile education
Mobile financial services
Mobile health
Smart homes Venture capital –accelerator
Cloud-based services
Mobile agriculture
Mobile commerce and
advertising
Mobile education
Mobile financial services
Mobile health
0
5
10
15
20
25
30
0% 20% 40% 60% 80% 100%
Avera
ge r
eadin
ess s
core
Percentage of operators activeDVAP EMAP
We carry out benchmarking analyses that enable clients to
evaluate their performance relative to their peers
21
Source: Analysys Mason’s Digital Economy Readiness Index (DERI), 2015
Analysys Mason’s m-payments proposition
Average readiness score and percentage of operators active in the digital economy, by vertical
As with other projects, when conducting a benchmark analysis, we often customise existing in-house data to fit our client’s needs.
Analysys Mason’s Digital Economy Readiness Index (DERI) is an in-house tool that provides a good basis for many custom
research benchmarking m-payments projects
– DERI tracks 479 digital economy initiatives by 35 of the largest operators worldwide, and provides a ‘readiness score’ for the
initiatives. It presents a view of operators’ readiness to capitalise on emerging opportunities in the digital economy
Mobile financial services and mobile health are the most widely addressed verticals, accounting for 47% of deployments.
We produce client-sponsored white papers, and promote them
via webinars, campaigns and through social media
22
Source: Analysys Mason, 2015
Analysys Mason’s m-payments proposition
White paper on mobile financial services, sponsored by
Amdocs
Webinar on customer and network analytics, sponsored by
Huawei
Contents
Introduction to Analysys Mason and our Digital Economy practice
The areas of m-payments we cover, and our team of experts
Analysys Mason’s m-payments proposition
Our recent experience in m-payments and client testimonials
23
24
Strategy report regarding
opportunities in the
Japanese and South
Korean m-payments
markets, developed for a
global m-payments
vendor
We produced a study on m-payments market trends and operator strategies in Japan and South
Korea, to assist a global vendor in its business development in these markets
– The study provided an in-depth analysis of NFC-based proximity payments as well as the m-commerce
strategies of NTT DoCoMo, KDDI, SK Telecom and Korea Telecom
– We provided information on the services offered, their adoption and usage levels, and the revenues and
profits from these services. We also analysed operators’ m-wallet platform solutions(such as the one
provided by Gemalto), where these were not produced in-house. In Japan, we particularly focused on the
changes that the migration from FeliCa to NFC technologies has brought about
– Based on this information we advised our client on potential opportunities in the m-payments space in the
two countries
Analysis of the
regulatory landscape for
a mobile operator in
North Africa
We assisted our client in its discussions with the central bank regarding the country’s regulatory
environment for mobile financial services (MFS)
– Our client plans to launch MFS in the near future, but the regulator is reluctant to allow non-banks to own e-
money licences, or to launch and manage MFS without banks having full control over the MFS value chain
– We were asked to produce a report that would allow the operator to argue in favour of an operator-led MSF
business model. Our report provided a comparative analysis and case studies of MFS regulation in five
African markets
– The report demonstrated that operators are better able to scale MFS than banks, and can do this with low
risk to the integrity of the financial system. We also showed that some central banks have allowed
operators to launch MFS when the bank-led model previously championed by the banks had yielded
disappointing results
Recent project experience
We have extensive experience serving a wide variety of m-payments
players across the entire value chain [1/3]
25
Strategy report for a
global m-payments
vendor
We helped a global m-payments vendor prioritise its investments in the MFS, NFC and m-commerce
segments, and advised on global trends in m-payments and relevant future developments
– Our study examined m-payments in both emerging and developed markets. Services in emerging markets
include peer-to-peer m-money transfer, airtime top-up, bill payment, savings and insurance products. In
developed markets services include NFC-based services (including proximity payments) and m-commerce
– We also looked at the importance of m-payments services for omni-channel retailers. We provided in-depth
case studies of Alipay, Apple Pay and Buyster
Strategy workshop and
report for a large South
Asian operator
We helped a South-East Asian OpCo within a major Asian group to conceptualise its commercial and
technical digital payment strategy, covering e-commerce, m-payments and digital currency
– The technical strategy was built on the commercial strategy, supported by market research and hypotheses
– We conducted an ‘as-is’ review of the operator’s technical payment systems, channels and
methods/processes, in addition to other technical transformation and systems upgrade projects. This
allowed us to develop a comprehensive view of the technical landscape of the operator
– After developing a commercial strategy and numerous technical use cases for e-payments and m-payments
we proposed an independent payment platform architecture, and produced a high-level roadmap for the
client to move from its current technical systems to the new platform
Market review of DCB for
a private equity firm
For a private equity firm considering an investment, we reviewed the market for direct carrier billing
(DCB), and assessed the target company
– We assessed the market potential for DCB and identified the risks and opportunities for the target company.
We also conducted interviews with industry stakeholders (e.g. operators, merchants, vendors) and
incorporated the findings in the report
– We identified three possible strategies, as well as the corresponding benefits and disadvantages. The
findings allowed our client to improve its understanding of the DCB market, and fed into its assessment of
the target company. Our report was the key input into the client’s investment decision
Recent project experience
We have extensive experience serving a wide variety of m-payments
players across the entire value chain [2/3]
26
Assessment of
m-payments
opportunities for a
global financial services
provider
For a global financial services provider, we assessed the m-payments opportunities in a selection of
emerging markets in Russia, Ukraine, South Africa and the Middle East
– The study covered a broad range of services, including m-banking, m-wallets and NFC-based payments,
with a view to analysing market evolution, key players, entry routes and potential partners
– We carried out interviews with stakeholders including mobile operators, payment platform providers and
financial institutions. This work, supported by desk research and market-size modelling, provided our client
with a comprehensive view of the opportunities in each market, and our results were used to support the
client’s business development activity.
Strategy report for a
large pay-TV service
provider in Asia
We determined the size of the u-commerce market in Malaysia, and assessed future growth and trends
in the market
– Our report covered the following areas: (a) overview and outlook of the retail market in Malaysia; (b) current
state of the u-commerce market; and (c) growth forecast of the u-commerce market over 2014–2019
– Having gained a detailed understanding of the retail and u-commerce markets in Malaysia, we then
identified and assessed opportunities for the client in the u-commerce market
Annual market
landscape report for
PhonepayPlus
We were hired by PhonepayPlus, the regulator of premium-rate services in the UK, to produce a study
on micropayment services
– The study was based on a large survey of UK users of premium-rate services and a set of focus groups
– The research focused specifically on the role of vulnerable consumers in the premium-rate market
– PhonepayPlus made the study publicly available on its website
Recent project experience
We have extensive experience serving a wide variety of m-payments
players across the entire value chain [3/3]
We keep our clients’ objectives at the centre of our work and are ready to
go the extra mile to exceed clients’ expectations
27 Client testimonials
From the beginning, I felt I was in good, professional
hands, and I knew that my needs were fully understood,
and that I would receive the best analysis that can be
gotten in the field
Delivered a complex model suited to our needs in time
and scope, was flexible and “went the extra mile” in
response to new and changing requirements
Very helpful input outside the scope of the main project,
alerting me to wider developments and sharing their
perspective on them Communication was very good, Analysys Mason did not
make any promises that they could not deliver;
timescales were consistently met, which was especially
appreciated given that we had a very tight schedule
Regulator in the Middle East
Integrated operator in Asia
Content developer and
broadcaster in W. Europe
Regulator of premium-
rate services in W. Europe
Analysys Mason was selected due to: “Good mix of qual
and quant research … to provide statistical robustness
and wider contextual narrative; other bids didn't to the
same degree. The cost was very reasonable and honest”
Thank you
28
Stela Bokun
Manager, Custom Research
0)1223 460866
Cambridge
Tel: +44 (0)1223 460600
Fax: +44 (0)1223 460866
Dubai
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