Overview of international mobile payment initiatives on wearables (Google Glass, smartwatch, smart suit, smart wristband etc.)

1. Will Mobile Payments
Future be on your wrist ?
Yvon MOYSAN, Saint Germain Consulting & IESEG School of
Management
EFMA Mobile Banking Advisory Council
27th of March 2015

2. Wearable payments: first initiative in 2011
• Nearly four years ago, U.S. Bank
launched a medical bracelet
that could also make
payments: it was a failure.
• But today the situation is
different
http://vision.visaeurope.com/article/wearable-payments-failure-in-2011-success-in-
2015/80c3529ce97574ffe23f7defcfb0e20c
http://thefinancialbrand.com/19202/us-bank-contactless-payment-wrist-band/
“[…] when we did the test, you had to tell the merchant that you were going
to use contactless payments […]
Dominic Venturo, chief innovation officer, U.S. Bank.

3. Wearable payments: the situation today
• In 2015, 4.9 Billions Connected "Things" will be in
use, up to 40% from 2014. By 2020, this number will
reach 30 billions(1)
• The market for U.S. mobile payments will expand from
$52 billion in 2014 to $142 billion by 2019 (2)
• Non-banks have built wearable payments applications
such as PayPal and Walt Disney Co.
• The launch of Apple Pay and Apple Watch elevate
the potential of wearable payments in consumers'
minds.
http://www.paymentssource.com/news/technology/magicbands-used-by-half-of-disney-
world-guests-3018743-1.html
(1): Source: Gartner (Nov.2014)
(2): Source: Forrester Research

4. Wearable payments: customer’s attitudes today
http://www.emarketer.com/Article/Wearables-Next-
Mobile-Payment-Device/1012134
• Among US smartphone owners, more than
2/3 said they would prefer to use a wearable
device over a mobile phone to make in-store
payments.
• Mobile payments could also increase the
frequency of wearables usage, as 50% of
respondents said they would a wearable
device more if it could make in-store payments.
• Overall, more than 40% of respondents
said they would make in-store payments via
wearables.
(1): Source: Stratos (Dec 2014 )

5. Banks and non Banks test how
different wearable devices can be
used in and around point of sale
terminals

6. Heritage Bank
http://www.paymentssource.com/news/are-wearable-payments-the-next-disruption-for-
banks-3018123-1.html
http://www.ibtimes.co.uk/power-suit-wearable-tech-that-lets-you-make-instant-paywave-
nfc-contactless-payments-1446116
A smart suit that lets you pay for things
by flicking your wrist.
• Made from Australian merino wool, the Japanese brand
MJ Bale suit uses Visa's payWave system to connect
to Heritage Bank's mobile wallet.
• MJ Bale, working together with the Heritage bank, have
made 11 prototype Power Suits.
• Users can top up their mobile wallet with a balance from
their bank's debit or credit card up to $1,000 and use it
to pay for items up to $100.
Main features
« Power suit »: a smart suit to pay

7. Heritage Bank
https://www.youtube.com/watch?v=JEuY-FHflZw
http://www.smh.com.au/national/mj-bales-paywave-power-suit-gives-wearer-a-card-up-
their-sleeve-20140423-374he.html

8. Barclays
http://www.theguardian.com/money/2014/jul/05/contactless-payments-wristband-connects-
to-bank-account
http://www.barclaycard.com/news/bpay-band-launches.html
http://www.barclaycard.com/how-we-work/innovations/bpayband.html
http://www.dailymail.co.uk/sciencetech/article-2758019/Forget-Apply-Pay-soon-ll-paying-
‘Just imagine a typical day in the near future. You leave the house, hop on the train
and head to the gym. After your workout, you grab a coffee and go to the office.
‘The money or information you need for every stage of that journey will be integrated
into a single device like bPay band”
Barclaycard
• 300 000 points of sales in the UK
• Pre loaded with money (Visa or Mastercard)
• Can be automatically topped up
• Can be used for purchases of up to 20 £ (32 €)
• Available for non Barclays customers
• Free service. No commission
Main features
Bpayband, a smart wristband to pay

9. Bendigo and Adelaide bank
http://www.bendigoadvertiser.com.au/story/2447592/new-banking-app-one-to-watch-out-for/
“It beats PayPal on trust”
Bendigo Bank
• The consumer opens the app.
• The merchant creates a QR code offering the item
for the agreed price and the offer is sent to the bank
server.
• The consumer scans the code and accepts the
payment.
• The server matches the two pieces of information and
completes the transaction.
Main features
A Samsung Gear 2 smartwatch app to pay

10. Bendigo and Adelaide bank
http://www.youtube.com/watch?v=5NJKjf9eyYA

11. BKM
http://www.mobeyforum.org/bkm-express-the-first-digital-wallet-to-start-payments-
with-wearables/
http://www.mobeyforum.org/bkm-express-the-first-digital-wallet-to-start-payments-
with-wearables/
• Customers will be able to give simple voice commands
while wearing Google Glass to shop with BKM
Express, the digital wallet selected by 16 banks in
Turkey.
Main features
A Google Glass payment application

12. Barclays
http://www.marketingmagazine.co.uk/article/1326738/barclaycard-boosts-wearable-tech-
investment-contactless-gloves
http://www.finextra.com/News/fullstory.aspx?newsitemid=26827
“In a survey of 2,000, shoppers voted gloves as the most "desired" wearable payment
item. They were popular among shoppers who wanted an easier way to pay while laden
with shopping bags. Rings and bracelets came second and third”
Barclaycard
• Embedded with a contactless chip that can be used
to pay for transactions of up to £20
• 300 000 points of sale in the UK
Main features
Contactless glove to wave and pay

13. Banks and non Banks test also
what other financial services
should be included with
payments

14. Logbar
http://www.dailymail.co.uk/sciencetech/article-2572820/The-Bluetooth-ring-turns-finger-
MAGIC-WAND.html
One ring to open emails, switch on lights and
pay bills, all using hand gestures
• Drawing an envelope shape in mid-air opens an
email
• Drawing a camera opens the camera app on a
connected phone
• Drawing a musical note will start playing songs
• Switch on / off lights
• Pay bills
• Make payments with the swipe of a finger
• Receive alerts and notifications, such as new
Facebook posts
Main features

15. Logbar
https://www.youtube.com/watch?v=f5rH5FYd37A

16. Artefact
Token: A Wallet on Your Wrist
https://www.aruco.com/2014/06/token-bracelet-paiement/
• A wearable bracelet connected to select payment accounts –
from checking and savings, to credit cards, digital currencies, and
PayPal account.
• A security mechanism based on a unique biometric like a thumb
print or your heart bear, a PIN or password and the device itself
• It allows to receive personalized offers from a merchant
• It allows to lend money to a friend.
• It allows to see how a purchase will impact customer’s budget
right before he pays
Main features

17. Royal Bank of Canada
A smart wristband for biometrically authenticated payments
http://www.biometricupdate.com/201411/bionym-rbc-mastercard-testing-payments-using-biometric-
wristband
http://venturebeat.com/2014/11/03/mastercard-and-bionym-will-test-wrist-based-mobile-payments-
no-phone-required/
http://www.betakit.com/bionym-rbc-and-mastercard-announce-worlds-first-biometrically-
“We’re continuing to work to provide customers
increased choice how they pay. Once their wristband is
activated, they can leave their phone at home and
securely buy a coffee with a tap of the wrist.”
Jeremy Bornstein, head of mobile payments RBC
• The smart wristband uses
the wearer’s unique
heartbeat to verify that he
or she is the real card
holder.
Main features
• RBC expects that this device
will be used as a unique
identification device that could
be a substitute for computer’s
password, car’s keys and also
a way to check in to hotels
room.
In progress

18. Payment option or not on your wrist ?
Only 12,2 % of smartphone owners cited making payments
and tracking payment history as the primary way they
used or would be interested in using wearable devices.
Instead, wearables owners and potential users were most
interested in tracking fitness and health.
Banks and non Banks shouldn’t bank on selling wearables based
on their mobile payment options. Mobile payment options are
a nice-to-have wearables feature, not a must-have.
ss
(1): Source: Stratos (Dec 2014 )

19. American Express as an ideal combination ?
The Jawbone UP4: it does everything the
UP3 does, and you can buy things with it.
http://techcrunch.com/2015/04/15/jawbones-new-200-up4-doubles-as-an-american-express-
card/
• The UP4 can act as an AmEx card at hundreds of
thousands of NFC-enabled merchants in the US
• The idea: add an AmEx card to the UP4 through
Jawbone’s UP app. Then just tap the UP4 against an
NFC-enabled card reader, and Purchase is made!
• Fitness and health trackers: Bio impedance sensors,
heart rate, hydration levels, track sleep (“light sleep” vs
“deep sleep”) etc.
Main features

20. Extract from the survey:
Internet of Things:
International Banking and Insurance wearable apps
- More than 150 slides
- More than 70 initiatives analysed in more than 20 countries
- For more information, visit our website:
http://www.saintgermainconsulting.com/en/etudes
Saint Germain Consulting
Yvon MOYSAN
yvon.moysan@saintgermainconsulting.com
Tél: 06 62 84 71 00
www.saintgermainconsulting.com
Questions and Answers ?

21. Internet of Things: international Banking and Insurance
wearable apps
• Glasses, watches, wristbands, virtual reality headset, iBeacon or even wearable
suits… Which bank or insurer have already launched a wearable app and why? What
are the features of these apps dedicated to customers or employees? What are
customers’ needs and expectations? What are customers’ fears? What are primary
customers’ uses ? What are the app features that banks and insurers have already
abandoned? What are the future app features or devices that banks and insurers
expect to focus on? What are the Internet of Things key figures and projected trends?
• This study includes more than 150 slides and covers the major wearables app that
banks and insurers have developed so far. More than 70 of them are indeed
analyzed. The objectives of the bank or the insurer are presented and illustrated by
CEO or Digital Marketing Director verbatim, the main current and future features of
the app and first customers’ feedbacks are detailed. In addition, the study includes
several relevant links to press articles and videos illustrating the bank or insurer
wearable app.
SaintGermainConsulting:37rueSaintAndrédesArts75006Paris
Tél:0662847100–Email:yvon.moysan@saintgermainconsulting.com
For more information regarding this study, please send an e- mail to yvonmoysan@saintgermainconsulting.fr

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Internet of Things: international Banking and Insurance
wearable apps. January 2015. (PDF version)
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