Presentation about the importance and impact of the Internet of Things to the Banks. - Subject: eWallets, Internet of Things and Fintechs - Date: Apr/09/2017 - Time: 19:30h to 20:00h - Place: Cultura Bookstore - São Paulo - Brazil

1. April/2017

2. eWallet
Is the good old [&
unplugged] Wallet
already retired?
Gerson Rolim
Vecto Mobile
www.vectomobile.com.br

3. Summary
• eWallets, IoT and the “Invisible Payments”
• The Internet of Things (IoT) and the Banks
• The Perfect Storm
• eWallet Drivers
• The mCommerce Climax
• Mobile Payments Trends
• NFC – Contactless Payments
• Wearable's
• What eWallet to Use?
• eWallet: Types & Technologies
• eWallet: Who Leads Innovation?
• Future of Digital Payments
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4. eWallets, IoT and the “Invisible
Payments”
• The eWallet “fit” all forms of Payment
• In IoT all things in the world will be connected
[and thinking]!
• In the collision of the Physical and Digital
Worlds...
– … there will be no room for unplugged, non-
ecological, non-social, ... things
– so lets say goodbye to leather wallets,
checkbooks, paper money and plastic cards, ...
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5. eWallets, IoT and the “Invisible
Payments”
Bitcoin does not fit into the good old [and unplugged] Wallet
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6. 6 / 39
https://www.youtube.com/watch?v=JV6eGUSC2a8
The Internet of Things (IoT) and the Banks

7. 7 / 39
In IoT the POS (Point of Sales) is everywhere!
https://www.youtube.com/watch?v=BclusZJ8sjA
The Internet of Things (IoT) and the Banks

8. Mobile Climax +
InAPP Pay
WiFi & Bluetooth
Anywhere
Fintechs
POS NFC
1
2 4
5
One Click (Touch) Buy
+ Click & Collect3
USA
Liability Shift6
Massive
Frauds7
The Perfect Storm
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9. eWallet: Is it the Perfect Storm?
• Smartphone and WiFi [almost] ubiquitous
• POS NFC massive Rollout
• US EMV Fraud Liability Shift
– Magnetic Stripe vs Chip & PIN
• Many massive credit card fraud cases
Merchants & Consumers demanding:
• One Click (Touch) Buy + Click & Collect
• Safer Payment Solutions
• Tech Innovations (Fintechs)
• Second [& intuitive] Auth Factor
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+

10. eWallet Drivers
• Growth of Mobile Internet Users & Smartphones
2020: . 80% of Internet Users will be mobile
. 56% via Smartphone
• Newcomers
. Apple and Samsung
. Google, eBay, Alibaba and Square
. Amazon, Walmart and Starbucks
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11. eWallet Drivers
• Growth of eCommerce and mCommerce
• Online & Offline stores cross-benefits
. Cash back
. Discount & Coupons
• Better Experience & Convenience
. Security
. Pre-Paid and Unbanked
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12. Starbucks – mPayment
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Starbucks Video: https://www.ispot.tv/ad/ACjh/visa-checkout-starbucks-app-green-light

13. [start of] mCommerce Climax
• Jan/15 - 16% of eCommerce transactions in Brazil
• Jan/16 - 25% of eCommerce transactions in Brazil
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Webshoppers 2017

14. mPayment Users - World
14 / 39
Source: Gartner - Mobile Payment Worldwide - 2013

15. Volume of mPayments transactions - World
Source: Statista e IDC
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Total revenue of
global mobile
payments will
surpass
U$ 1 Trillion by
2019!

16. eWallet Usage Worldwide - World
16 / 39
Source: Statista – Ago/2016
Top 5
China
Norway
England
Japan
Australia
Colombia

17. Mobile Payments Trends - World
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Source: % of total spending on eCommerce
Worldpay- Global Payments Report – Nov/2016

18. Mobile Payments Trends: LatAm
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Source: % of total spending on eCommerce
Worldpay- Global Payments Report – Nov/2016
Asia-Pacifc Trends
X

19. eWallet: US Market Snapshot
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Source: War of the Wallets - Juniper Research - 2016

20. Mobile Payments Trends: Brazil
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Source: Worldpay- Global Payments Report – Nov/2016

21. One Size Does Not Fit All
• Many Technologies and Use Cases will continue to
coexist in the future of digital payments
• After all, Cobol has been dying for at least 30
years... ;-)
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Silicon Valley
vs.
Wall Street?

22. Silicon Valley vs. Wall Street
Battle field: mPayment patents – intelectual properties
22 / 39
Source: Vivek Sharma paper at IPWathcdog – Jan/17

23. Beyond Phones…
Don’t think that mobile payments
will be limited to your smartphone
or tablet!
• Bluetooth Beacons, WiFi, NFC and so on...
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24. NFC - Contactless Payments
• Contactless Payments are growing
• NFC technology will leverage digital payments in the POS
• 40% of new Payment Cards in 2014 were NFC
• 9,5M new POS NFC 2014, 33% more than 2013 (ww)
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Source: NFC Ready POS Worldwide – Nov/2015

25. Wearables
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26. Wearables
• Mobile Payments + Wearables = Perfect Match
• 2015 . American Express & Jawbone
. U$ 3B in payments via Wearables
• 2020 . 214M Wearables sold
. U$ 500B in payments via Wearables
• Compelling Reasons: Wearables x Credit Card:
– Reduce Friction in payment process
– Added Value– Ex.: Payment with Loyalty Card
– Security: Visa NFC Ring / Rio 2016 Olympic Games
– Perfect Success Case: Disney MagicBand
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27. Compelling Reasons: Wearables x
Credit Card
Disney MagicBand
• This wearable goes far beyond the payments!
• Park Tickets
• Fastpass
• Room Key – Disney Hotels
• Disney Photopass
• One Click Buy Experience in Real World
• Social Desire
=> Status, Commodity & Comfort <=
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28. [almost] Disney Magicband
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29. The Dawn of eWallets
• Revamped by newcomers: Apple Pay and Samsung Pay
• eWallet Wars:
– Google Wallet suffering since 2011
– Visa V.me RIP since 2016
• Major eWallets – Has the time Internet Titans begun?
– Android Pay (Google)
– Apple Pay
– PayPal (ebay)
– Samsung Pay
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30. What eWallet to Use?
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31. Fonte: Q Insights
eWallet: Types and Technologies
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32. eWallet: Who Leads Innovation?
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Source: Digital Payments Report 2016 – PCM Research

33. eWallet: Who Leads Innovation?
• Innovators
– Device Manufacturers
– Digital Payment
Providers
• More Confidence
– Banks
– Credit Card Companies
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Source: Digital Payments Report 2016 – PCM Research
• Less Probability
– Mobile Operators
• Less Confidence
– Retail Stores
– Mobile Operators

34. The future of Digital Payments
• The future will be like this...
– Omni-Channel & Channel Agnostic
– Click & Collect & One Touch Buy
– Infinite Shelves
– Device Agnostic, Any time & Anywhere
– + Open eWallets / + Loyalty Wallet
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35. In IoT the Point of Sales (POS) is
EVERYWHERE!
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36. References
• Webshoppers - http://www.webshoppers.com.br
• Gartner - Mobile Payment Worldwide - '13 -
https://www.gartner.com/doc/2484915/forecast-mobile-payment-
worldwide
• Worldpay- Global Payments Report - '16 -
http://pt.worldpay.com/global/insight/articles/2016-11/global-
payments-report-2016
• eWallets: US Market Snaphot – War fo the Wallets -
https://www.juniperresearch.com/document-library/white-
papers/war-of-the-wallets
• Silicon Valy vs Wall Strett - Patentes de mPayment -
http://www.ipwatchdog.com/2017/01/06/mobile-payments-
fintech-vs-non-fintech-patent-landscape/id=76455/
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37. References
• NFC World – NFC Ready POS Worldwide - '15 -
https://www.nfcworld.com/2015/02/24/334209/berg-insight-
reports-on-nfc-pos-terminal-growth/
• Q Insight – eWallets: Tipos e Tecnologias -
https://www.slideshare.net/nquibria/future-of-payments-
evolution-or-revolution/16
• Digital Payments Report 2016 – PCM Research -
http://www.paymentscardsandmobile.com/digital-payments-
report-2016/
• Volume Mundial de Mobile Payments -
https://www.statista.com/statistics/226530/mobile-payment-
transaction-volume-forecast/
• Statista eWallet Usage Worldwide - ‘16 -
https://www.statista.com/statistics/218615/mobile-payment-
methods-used-on-smartphones/
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38. Thanks!
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linkedin.com/in/gersonrolim/