Jan Ondrus ESSEC Business School

Google, Amazon, Apple and NFC: Another Clash of the Titans?

There was a time when...

... the payment industry was very happy

1-4 % commission

on any purchase

Market was stable & balanced

Money was relatively easy

But as any party, it could not last forever...

With new technology developments...

Telcos and device makers became interested in the payment market

Mobile phones were getting more popular

& m-commerce was about to take off

As a result...

Some Titans wanted to dominate the market

While others tried to collaborate

Most initiatives just failed...

The market went from buzzes to failures...

Until...

Nov 15 2010

Google announcement about NFC

Looked like someone was finally bringing the missing piece

It generated...

... a lot of buzzes &

ideas again

and more importantly...

... financial interests

New Titans on the market: New opportunities

Good or Badthing for the

payment industry ?

In any case, the whole industry has reacted...

Forming different alliances

So now what?

Are we going to repeat the same story again and again?

Let’s take a closer look at the newcomers...

✔  Strategic  alliances✔  Google  Checkout✔  Google  Places✔  Android

✘  Credit  card  #  stored✘  Privacy  issues

✔  Physical  and  digital  retail✔  Amazon  Payments✔  Amazon  1-­‐Click✔  Knowledge  about  consumers✔  Credit  card  #  stored  

✘  Alliances✘  Hardware✘  Mobile  plaCorm

✔  iTunes  store  ✔  iPhone/iPad✔  IntegraGon✔  Image✔  Credit  card  #  stored

✘  Physical  merchants✘  Alliances✘  Interoperability✘  Payment  engine

Any possible winner?

Too early to say...

The industry is still facing the same issues as before...

http://designforrecognition.files.wordpress.com/2010/06/chicken-the-egg.jpg

Chicken and egg problem

Standardization & Interoperability

Control of the secure element

Finding the right business model

Minimizing merchants’ rejection

Avoiding consumer’s disinterest

Web 2.0 Summit, Eric Schmidt (Google)

So did it really change the game?

Only the future will tell...

To conclude...

Create sustainable ecosystem(s)

Align business models and environments

Provide appropriate technology

For more info: http://www.janondrus.com