Mobile Payments Evolution

www.solstice-mobile.com2
there are different
companies, industries and
technologies involved in
mobile payments

www.solstice-mobile.com
Money rendered for a product or service through a portable electronic device
such as a cell phone, a smartphone or a wearable.
3
what exactly are mobile payments?

Today, evolution is
accelerating exponentially
because of increased
consumer interest coupled
with a trend of companies
investing in transaction
friction reduction.

This means that these advances in mobile payments are going to
continue to happen, and at a faster pace than we have seen before.

Right around 2014, yearly gaps are becoming
monthly gaps for new technologies to be invented.
New companies are constantly getting involved.

1997
Coca Cola Vending
Machine via text
messages
1998
First downloadable
ringtones
1999
Integrated payments
with i-mode
2012
Apple Passbook
introduced
2011
Google Wallet with
NFC debuts
2014
Apple Pay introduced
2004
First text to
donate system
2006
Paypal P2P via text
messages

there are 4 categories of mobile payments

Point of Sale (in person)
Apple Pay
Google Wallet
CurrentC
Starbucks
Samsung Loop
Microsoft (rumor)
Peer 2 Peer (P2P)
Facebook
Paypal
Venmo
Chase Quickpay
Square Cash
Credit Card Enhancer
Coin
Plastc
Stratos
Wocket
Walla.by
mCommerce
Paypal Checkout
Amazon 1-Click
Paypal One Touch
Visa Checkout
Apple Pay
Android Pay

Google Wallet: 4% of
mobile payments
market (source: ITG)
Apple Pay: 1 - 1.5%of
mobile payments
market (source: ITG)
Launches
Samsung Pay
in 2015
right now,there’s no clear leader

why is that?
Many players Many use cases Divergent goalsDiverse consumer base

F I N A N C I A L S E R V I C E S R E TA I L G I A N T S S TA R T U P S

Merchants
and retailers
can still have
an impact
why is it important now?
Mobile is
still new
The omnichannel
experience
Non traditional
players can and
have an impact
Mobile wallets
will eat up
physical wallets
market shares..
sooner or later

source: McKinsey
new checkout
experiences
Conveniently
paying with points
Custom offers
and promotions
what’s in it for the users?

15
of Millennials Prefer Non-
Traditional Payments  
(source: FICO)
Millennials Distrust financial
institutions: 71% would rather go to
the dentist then talk to a banker
(source: Scratch)
of Millennials have already
used mobile payments  
(source: Accenture)
of mobile payments are
made by millennials  
(source: Nielsen)
52%
millennials
leading the way
45%
55%

In order to succeed
in mobile payments,,
you have to combine
both the merchant
and the shopper.

what’s in it for the providers?
Harness the
power of data
Lock into services Revenue Loyalty

source: Forrester
mCommerce $42.5 Billion
In-person payment $3.7 Billion
Peer-to-peer transfer $5.25 Billion
$51 billion market in 2014

Business Intelligence
2018:  
$750
Billion
2017:
$718
Billion
Gartner
2018:
$707
Billion
Juniper
worldwide united states
2019:
$142
Billion
Forrester

M-Pesa is used by
92% of Kenyans
54% of transactions on
Alipay are on mobile in
Paytm is used my
50 million
individuals in India
mobile payments are already wildly
popular in other parts of the world

● Host Card Emulation - Google Wallet, Samsung Pay
● Virtual Card - Google Wallet
● Tokenization - Apply Pay, Samsung Pay, Android Pay
technology used by the leaders
in the industry

overview
of card
payments

google
wallet

tokenization -
apple pay

samsung pay
MST (loop pay)
Works at more than 90%
of existing terminals

FOR PHYSICAL MERCHANTS:
● POS terminals that support NFC and tokenization
FOR APPS:
● Use PassKit framework
● Physical goods and services only, otherwise use In App Purchases (IAP)
● Need to use a payment processor or gateway.
○ Some processors have Apple Pay SDKs
integrating apple pay

● API to allow developers to integrate payments.
● Google Wallet will use it.
● More details will likely be revealed at Google I/O on May 28
● Will offer tokenization
here’s what we know so far about
android pay

Pay with Wearables
Apple Pay
Facial
Recognition
CurrentC
Voice
Purchase
Technology
Trigger
Peak of Inﬂated
Expectations
Trough of
Disillusionment
Slope of
Enlightenment
Plateau of
Productivity
Maturity
Visibility
All emerging technologies go
through a hype cycle. As soon as
new technology triggers ‘never
been done before’ experiences, the
hype begins to build. The end of the
hype cycle, like pay with wearables,
will be moving into the mainstream
mobile payments
hype cycle

so why aren’t
mobile
payments
taking off?

On-Demand Services
mobile payments enable new experiences

digital physical
Mobile,beacons,IoT,and
wearable technologies are
blurring the lines between
physical and digital experiences.

This means omni-channel journeys need to be
seamless and more engaging as customer’s
tolerance for clunkiness plummets.

You will see consumers switch to whatever brand
or service offers them best experience,even if that
means abandoning their previous brand loyalty.

what’s next?
DEVICES INTERNET TV MERCHANT METRICS CULTURE SHIFT

what’s next?
DEVICES
• The devices people own will play a larger role in their payment.
• Payments are constantly evolving - the lines are “blurring” between digital and physical.
• Digital interactions will require less and less action on your part to achieve your goal,
whether that goal is opening a bank account or buying lunch.

what’s next?
INTERNET TV
• Internet TV hardware, such as Apple TV and Chromecast, will enable
payments over your TV
• When you see an ad for something you are interested in, you will be able to
buy it then and there.

what’s next?
MERCHANT METRICS
• Merchants will continue to contend with chicken and the egg problems for
constantly implementing software and hardware solutions on their end to
play with these emerging forms of payment.
• The right strategy for merchants is to experiment on a small-scale and rollout
larger deployments based on key success metrics, however they choose to
define that success.

what’s next?
CULTURE SHIFT
• There is a cultural and psychological issue that mobile payments are
contending with, and winning.
• Millennials are very wary of bankers — a lot of startups in the mobile banking
space are keenly aware of this and building their products accordingly.
• Some people and cultures rely more heavily on cash because they trust it.
• Subscription services are gaining prevalence because they appeal to busy
people, and time is becoming a resource just as much as money.
• People’s thought process around payments is shifting from “Is this the lowest
price” to “Will this save me the most time.”

how frictionless is too frictionless?
Do we want brands or services automatically buying things for us
based on predictive analytics past on our past history?
The answer is that it will be different for everyone.

the digital & physical
worlds are merging in
new and exciting ways

Technologies are being cross-
fertilized and pollinated across all
industries, and unlocking brand
new customer experiences that
we have never thought of before.

“The best type of payment is the payment
you don’t see. You want it to be invisible.”
- John Lunn, former Global Director of Paypal

thank you
www.solstice-mobile.com sales@solstice-mobile.com 866.380.8472

Mobile Payments Evolution

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