3. Introducing
MYWALLET CARD PLATOBNÁ KARTA
Prvá plne virtuálna platobná karta na SK vydávaná „vzduchom“
Predplatná karta ktorú môže využiť ktokoľvek bez ohľadu na
existujúce zmluvné vzťahy s bankami
Jednoduchá registrácia a aktivácia karty v priebehu par minút
APLIKÁCIA MYWALLET MOBILNÁ PEŇAŽENKA
Prvá plne komerčná prevádzka mobilnej peňaženky na SK
Prvá multifunkčná mobilná peňaženka na SK
Postavená na plnej TSM infraštruktúre umožňujúcej vydávanie
kariet „vzduchom“ bez nutnosti návštevy vydavateľa karty
Dostupná na širokej a rozširujúcej sa rade telefónov portfólia
ST
5. Technical setup
MNO TSM
NBE platforms
Existing
Payment card
system
SP TSM
platform
OTA
platform
NFC phone
NFC SIM
C
BANKA-X
Bank back
end
systems
MNO back
end
systems
CRM
Billing
Application
6. Why we struggled to
bring “the solution” to
market despite common
understanding that it is
future proof?
7. 1) Technology Reasons
HOW IT WAS MEANT TO BE
TSM
OTA
platform
BANKA-X
MNO 2
OTA
platform
MNO 1
OTA
platform
MNO 3
SP
SP
SP
BANKA-X
9. 1) Technology Reasons
HOW IT IS – “STANDARDIZATION SCHISM”
MNO TSMSP TSM
STANDARD
Global Platform AFSCM
MODE
simple
delegated
authorized
D
S
D
S
10. SP
SP
SP
BANKA-X
BANKA-X
BANKA-X
BANKA-X
BANKA-X
1) Technology Reasons
GRAPH COLORING THEORY - COSTS ON ONE SIDE EQUALS REVENUES ON ANOTHER (VENDOR) ONE
MNO TSM
OTA
platform
BANKA-X
MNO 2
OTA
platform
MNO 1
OTA
platform
MNO 3
MNO TSM
MNO TSM
C
SP TSM (Group)
BANKA-X
C
BANKA-X
BANKA-X
BANKA-X
C
SP TSM (Group)
SP
SP TSM (Aggregated)
SP TSM (Aggregated)
HUB
S
D
S
D
D
D
S
D
S
D
S
S
11. 2) Business Reasons
BUSINESS CASE/CONNECTED COSTS
PAYMENT SCHEME SELECTION (TECHNICAL DECISION AT THE END)
RIGID DECISION MAKING – GROUP DECISIONS
CUSTOMER OWNERSHIP (OWN WALLET/APPLICATION)
AND/OR
Online payment only vs. Offline payment supported
PIN on POS vs PIN on mobile
Change PIN posibility
Application management gateway integration
12. 3) Customers facing Reasons
DEVICES
NFC penetration
Mobile OS – firmware (compatibility issue )
SECURE ELEMENT – NFC SIM EXCHANGE ISSUE
ACCEPTANCE NETWORK* (50% penetration of contactless POS is it enough?)
EDUCATION (does service activation without need of personal office visit help?)
13. *Low penetration of POS Terminals
5,97,57,78,89,49,610,312,112,313,414,816,2
18,819,320,321,022,222,423,624,524,825,928,028,428,530,0
33,1
35,5
ROSKPLDEBGHUCZLVBEATLTNLSIEUEEEURLUSEDKPTITUKFRELESCYIEFI
Source : European Central BankNumber of POS terminals per 1000 citizens (year 2012)
a) POS terminals in Slovakia is domain of big cities and big retail chains only.
2008 2009 2010 2011 2012 2013
40 000
38 000
36 000
34 000
0
Number of POS terminals
b) And even in this segment it seams market is saturated at level of
40ths. terminals
10
12
14
16
18
20
2013
16%
2012
16%
2011
17%
2010
17%
2009
17%
2008
16%
POS terminals penetration among Cash Registers
c) LONG TAIL MERCHANTS DON’T USE POS
TERMINALS. ARE THEY ADDRESSED BY RIGHT
PRODUCT AND APPROACH?
14. Is There Light on the end of the tunnel?
26.6.2014– mimoriadne citlivé / citlivé / interné / verejné – Autor / Názov prezentácie 14
TSM INFRASTRUCTURE IS COMPLEX BUT
CURRENTLY THE ONLY SERCURE SOLUTION
PREPARED FOR MASS COMERCIAL DEPLOYMENT
MOBILE WALLET MARKET IS NASCENT
ECOSYSTEM BUT TSM INFRASTRUCTURE
STANDARDIZATION AND EXISTING COMMERCIAL
DEPLOYMENTS ARE PAVING THE WAY –
UNIFICATION IS ON THE WAY
HOSTED CARD EMULATION MIGHT BY PROMISING
ALTERNATIVE/COMPLEMENT TO TSM
INFRASTRUCTURE IN FEW YEARS
DEVICE PENETRATION AND CUSTOMER
EDUCATION IS IN OUR HANDS
15. Way to go right here right now with ST and
MyWallet
SP
SP
SP
BANKA-X
BANKA-X
OTA
platform
OTA
platform
STMNO TSM
BANKA-X
C
C
SP TSM (Group)
SP
SP TSM (Aggregated)
SP TSM (Aggregated)
NFC phone
NFC SIM
Application
BANKA-X S S
S
S
1)
2)
+ Full Control
- Higher costs
- Longer time to market (9+ months)
- General ST solution constrains
support
planned in
2015
support
planned in
2015
+ Low Costs (NFC revolution program)
+ Fast time to market (6months)
? Outsourced solution
- General ST solution constrains
Card
17. Wallet ≠ payment instrument only
INTERNAL MARKET RESEARCH HAS REVEALED THAT 87%OF CUSTOMERS PERCEIVE VALUE IN WALLET
APPLICATION THAT AGGREGATES MULTIPLE SERVICES
AMONG MOST REQUIRED SERVICES ARE TRANSPORT CARDSAND LOYALTY CARDS
OTT PLAYERS AND MNOs (INTEGRATED ICT TELCO PLAYERS) ARE MORE LIKELY TO
INTEGRATE/AGGREGATE MULTIPLE SERVICES THAN BANKS
AT THE END IT IS FEAR OF LOOSING CUSTOMER OWNERSHIPIF APPLICATION IS PROVIDED BY
SOMEBODY ELSE (ON BOTH MNO AND TSM SIDE)
18. War over customer ownership via Secure
Element control
UICC
(Universal Integrated
Circuit Card) – SIM card
SMC
(Secure Memory Card)
– SD card
ESE
(Embedded Secure Element)
– separate device HW
HCE
(Hosted Card Emulation) – SE
in cloud
FULL TSM INFRASTRUCTURE NEEDED
19. IS HCE a holy grail?
BIG JOB AHEAD
SECURITY (MALICIOUS APPLETS, FAULT ATTACKS, MASQUERADES
AND SIDE CHANNEL ATTACKS)
CERTIFICATION (Including emvco, visa, mastercard, american express,
etc.)
FUNCTIONAL DRAWBACKS
LOW POWER MODE
ROAMING AND NO DATA CONNECTIVITY SCENARIOS
TRANSACTION SPEED (Over LTE, network latency can be as low as 20ms
but for a 3G or 2G network it can
frequently exceed 100ms and even 300ms what is close to 400ms
threshold)
20. Who can benefit from hce?
Bank
MNO
NEW ENTRANTS
Big OTT players may leverage
and finally penetrate from
online to physical stores
They are not likely willing to
negotiate with local players
It is expected that many startups will
bring their innovation to ecosystem
They are flexible not bounded by
legacy approach – who from current
players is able to cooperate with
them?
Banks willing to bring their own
application for their payment cards
as complement to existing mobile
banking applications.
Multipurpose mobile wallet freed
from SIM centric and complex TSM
solution is ideal for customer reach
extension even beyond own
customer base
21. A bird in the
hand is worth
two in the bush
SIM Centric
TSM solution
2014 201?
HCE
22. Musical chairs – how
many players will last
and who will be out of
the game if we play
Mobile Payments?
23. Too many players not enough revenues
Bank
MNO
NEW ENTRANTS
WE BELIEVE THAT THERE WILL BE
SEVERAL WINNERS AS IT IS
COMMON IN MOBILE
APPLICATIONS WORLD
ULTIMATE DECISION POWER IS IN
THE HANDS OF CONSUMER AND
HE/SHE WILL DECIDE WHO WILL
SURVIVE
25. Current Performance
X = 1,5
SO FAR WE ARE OVER PERFORMING OUR PLANS BY 20% :)
INTENSIVE MARKETING COMMUNICATION IS ABOUT TO START
SIGNIFICANT DECISIONS TO INCREASE TARGET CUSTOMER BASE
APPROVED
26. proposition
MyWallet service is offered to customers with 100% price discount till
year end 2015
MyWallet will be avaliable for whole base of mobile customers
(prepaid, postpaid, retail, business) till year end 2014
Prepaid payment card MyWallet Card is offered by ClickandBuy
International Ltd – 100% daughter of DTAG
MyWallet Card issuing fee for 3 years is only 9,95 EUR
With digital MyWallet Card is issued also plastic payment card
connected to the same account for ATM withdrawal and cases when
contactless terminal is not available
27. Future of MyWallet
PAYMENT CARDS
ID CARDS
TRANSPORT CARDS AND TICKETS
EVENT TICKETING
LOYALTY AND COUPONING
ENTRANCE CARDS
FRIST WAVE
SECOND WAVE
28. Way to go right here right now with ST and
MyWallet
SP
SP
SP
BANKA-X
BANKA-X
OTA
platform
OTA
platform
STMNO TSM
BANKA-X
C
C
SP TSM (Group)
SP
SP TSM (Aggregated)
SP TSM (Aggregated)
NFC phone
NFC SIM
Application
BANKA-X S S
S
S
1)
2)
+ Full Control
- Higher costs
- Longer time to market (9+ months)
- General ST solution constrains
support
planned in
2015
support
planned in
2015
+ Low Costs (NFC revolution program)
+ Fast time to market (6months)
? Outsourced solution
- General ST solution constrains
Card
29. Having questions or willing to
discuss cooperation? You are
welcome to contact me:
Michal.Suster@telekom.sk