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What’s In Your Wallet?NFC-Enabled Mobile Payment Systems

Andrew Baird 14 February 2012#NFC

Presentation Outline

NFC Ramps Up Frequency of Mobile Payments Applications Using Google Wallet:

- NJ Transit- Jamba Juice

Future Potential in Retail, Vending Location Levels the Playing Field

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Near Field Communication (NFC)

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Developed in 1990s by Philips and Sony Acknowledged by ISO in 2003 to allow secure

contactless communication

Source: “The Future of Mobile Payments” [INFOGRAPHIC] by G+. Ben Parr. Mashable.com. July 8, 2011

NFC: “I’m Huge in Japan”

comScore: 9.8 million Japanese mobile users carried out purchases with mobile wallets in Dec. 2010

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Source: “Mobile Payments 2012: My mobile, my wallet?” (Whitepaper) Jeroen del Bel and Monica Gàza. September 2011

The Growing NFC Mobile Market

#NFC 4Source: “The Future of Mobile Payments” [INFOGRAPHIC] by G+. Ben Parr. Mashable.com. July 8, 2011

Source: “Mobile Payments 2012: My mobile, my wallet?” (Whitepaper) Jeroen del Bel and Monica Gàza. September 2011

U.S. Contenders

#NFC 5Source: “The Future of Mobile Payments” [INFOGRAPHIC] by G+. Ben Parr. Mashable.com. July 8, 2011

Transportation Application: NJ Transit

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Current Use: Third-largest public U.S. transport system allows passengers to purchase

paper tickets with Google Wallet

Opportunities to Improve: Mobile ticketing Alerts/notifications based on multi-mode transportation Partnerships with airlines, car rental companies, other transit systems

Google Wallet in Action: Jamba Juice

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QSR Application: Jamba Juice

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Current Use: Initial launch kicked off at > 200 locations in NY, SF, LA, CHI, and DC in Sept. 2011 SingleTap feature integrates Google Offers for $2 coupon

Opportunities to Improve: Further integrate with Google using Places reviews

- Deliver coupon to customers after writing a review for each Jamba Juice location- Improve local SEO, customer feedback/participation, and customer loyalty- Make more informed decisions about customers and tailor products to tastes

Potential Industry Applications

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Independent Retail: Opportunity for emerging payment

systems to partner with small businesses

Create loyalty programs to leverage collective resources

Deliver relevant products and offers in exchange for rewards

Vending: Integrate GPS on phones to send

tailored deals and offers Integrate account customer

information between partners for quick and easy purchasing

Track customer use over time and gain better data on behavior

NFC’s Future: Moving Away from Physical Currency

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Warner SiebertCEO, BuzzTable

More transactions benefit small/medium and local businesses

Mobile merges digital and real world Security Issues: February 2012 Google Wallet Hack

“Mobile unleashed a whole new element to Marketing…location. Marketers will be able to take advantage of individual consumers’ GPS coordinates and guide

them to their nearest vendor location.”

NFC’s Future: Location Levels Playing Field

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Warner SiebertCEO, BuzzTable

Restaurants, retailers, transportation, and most local business stand to benefit most

Consumers’ change in behavior – mobile payments will become the ‘norm’

Access to existing customer account information will help brands ensure greater customer intimacy

Lower processing fees = level playing field for local businesses

NFC technology on mobile phones gaining momentum United States playing catch up to Asia and European markets

for mobile payments Google leads the way with competition heating up Transportation, QSR Industries provide glimpse into future state Localization aspect of NFC-enabled mobile payment helps level

the playing field for small and local businesses Customer data and purchase behavior are key resources for

Marketers in coming years

Summary

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Q&A

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