optism alcatel-lucent anthony belpaire mobile payments conference presentation

12/10/2012

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COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION

Mobile payments go well beyond payments… October 2012

Anthony Belpaire


Alcatel-Lucent mCommerce

OPTISM™ MOBILE MARKETING &

WALLET

Solution Alcatel-Lucent mCommerce

360 Marketing & Wallet solution based on subscriber consent and preferences offering advertisers and merchants easy access to a willing and targeted audience for ads, coupons and offers. •The solution offers SaaS revenue sharing model, go-to-market

support, audience acquisition & management and campaign tools

Connected

to 157 million subs

Working with

major brands, retailers & agencies

Average response rates

of 20-25%

Most successful campaign:

55% response rate

Selected by

major MNOs:

Vodafone, Orange & Etisalat

#1 in permission marketing

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Setting Market context

Emerging Markets

Developed Markets

Banked

Underbanked

Unbanked

Convenience

Remittance

Remittance, Bill payment

Savings, Microlending

Distribution

and

Subscriber assets

Subscriber asset

Context (LBS), Call Center, Billing, SIM-

SE, Device Management

Mobile Money for underbanked Closed loop SVA (mPesa, ..)

Convenience (mobile account linked to existing payment card) and value Added services (cfr Google Wallet,..)


Do mobile payments provide sufficient value for consumer & merchants?

If mobile payments means, adding MORE players in the value chain…WHO will carry the cost?

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Can mobile disrupt the traditional payment chain…

Merchant Acquirer Payment Scheme

(VISA, MC) ISSUER

0.5% 0,01% 1,5%

Consumer Consumer

98% 100%

1

Card Issuer Monetization / VAS

• Card Linked Offers

• Loyalty (mileage), virtual credits

• Shop alerts

Various carriers issuing co-branded credit/prepaid for access to issuing data and card linked offers


Today’s Example: mobile check-outs (SecureVaults)

-ZERO ‘interchange’ fee to merchant

Subsidizes the transaction

Loyalty and Offers to compensate

Captures purchase data of consumer

1,8% merchant fee

Merchants get a campaign tool for deal uploads, so Groupon increases deal inventory

Captures purchase data of consumer

Mobile Check-Out - SecureVaults (Cloud)

•User registeres his payment credentials at Cloud based SecureVault provider

•Mobile App passes a ‘Token’ to Merchant (v)POS

Merchant Acquirer

of Vault

Payment Scheme (VISA,

MC) ISSUER Consumer Consumer

Vault

Token

Vault

Provider

0.5% 0,01% 1,5% 100% 100% Receives98%

Pays 100%

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Today’s Example: ‘Proxy’ Accounts (Cloud/NFC)

•Funding of payment by Google in return for

Capturing of on/ and off-line purchase data leading to Google Account profile enhancements

Enhanced Off-line conversion a killer app for advertisers

From display (CPM/CPC), to clipping of coupons (CPA) in Wallet, to Redemption (CPS)

Proxy Account (Cloud&NFC)

•User registers his payment credentials at Wallet Provider

•Wallet Provider associates a ‘Proxy’ card (eg Paypass debit) with the Wallet account

•Wallet Providers associates the consumers’s opted payment card with the Proxy Card

•Merchants sees ‘proxy card’, user sees Google as ‘merchant’ on his registered payment card


(2) Today’s Example: Google Wallet

Merchant Acquirer

(Rails)

Proxy Account Issuer

0.5% 0,01% 1,5%

Consumer

Consumer Acquirer Payment Scheme

(MC) Issuer

Proxy Wallet

100%

1

1

100%- 0,20USD 0,20 USD 2 Receives 98%

Pays 100%

Google receives 98%, but needs to pay Merchant 100%

• Google captures purchase info • Original Issuer only sees Google as Merchant

1 2

DIS

RU

PT

IVE

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Today’s Example: Vikingspots – MVNO Mobile Vikings


10 Information under NDA All Rights Reserved © Alcatel-Lucent 2012

Today’s example: O2 UK enhancing and monetizing consumer data

• Behavior

(Micro)-Location

Consumption behavior

Browsing/search behavior

• Profile

• Explicit preferences

ARPU

Profile info

Handset info

Browsing info

Billing details

Address

Consumption data

Recent card payments

Preferred content

Preferred events

Age, Gender, location

Explicit preferences

Consumption data

Recent card payments

O2 UK: full offer centered around customer data

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Mobile Payments need to be more then payments

• mCommerce Consumer- and merchant adoption will require value added services beyond payment

Consumer seeks highly relevant and non intrusive (upon consent) content/services (coupons, deals, recommendations..)

Merchants seek point of influence during the commerce journey of the consumer to drive traffic, sales activation or loyalty


Optism™ Mobile Wallet Vision

•bridging on/offline

• One User Experience aggregating

• Contextual and Personalized promotions

• Loyalty programs

• Prepaid money

• Payment cards..

•User in control

• Permission based: Opt-In

• Self service Profile & Interests

•Relevance

More then card virtualization but new experience

to engage with consumer

12 12 All Rights Reserved © Alcatel-Lucent 2012

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Optism™ mCommerce Business Architecture

Mobile Marketing add, coupon, offer

Wallet Existing and new Acquiring schemes

TSM Enabling virtual

Cards inlc prepaid

Consumer Mobile Wallet

MNO role Optism

Service Providers

Banks

Retailers

Brands

Permission Marketing Targeting Engine Campaign & inventory

management Analytics & reporting Multi Store value

account TSM (partner)


Brands

Agencies Media Seller Dashboard

Media Seller

Targeting

ADS

Profile Preferences

Location Behavior

Mobile App Web

Messaging (SMS, MMS) Dialogue campaigns In-App notification

E-mail

Ad Interaction Deal purchase

Coupon clipping Coupon redemption

Optism™ 360Commerce - inventory flow

MNO loyalty

rewards

Merchant dashboard

Aggregated

DEALS &

COUPONS Retailers

Reporting Analytics

MNO consumers

OPT-IN base Opt-in mgt

Audience mgt

Reporting Dashboard

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Rent SIM space

Monthly fee per payment app

Per ticket fee for transport/events

Transaction fees

Revenue on float

Opex reduction on airtime top-up

Churn reduction

Consumer subscription fees

E-wallet display ad fees

Context Based campaigns

Coupon redemption fees

Analytics & Reporting

JVs NFC SIM

rental

e-wallet

Mobile

Markting

JVs

MNOs target combination of mCommerce services

MNOs moving to full functionality Commerce offer
