the basics of mobile payments
DESCRIPTION
AnDevCon Boston 2013TRANSCRIPT
The Basics of Mobile Payments
Pragati Ogal RaiMobile Technology Evangelist, PayPal
@PayPalDev @pragatiogal
Agenda
• Journey of Payments
• Current Landscape
• Mobile Payments Use Cases
• Emerging Trends in Mobile Payments
Journey of Payments
Food & GrainsAncient Indian and Roman Coins
500 Cash 1269-1365
Emperor Kublai KhanFirst Diners Club credit cards were given out in 1950
Founded in 1998, PayPal allows payments and money transfers through the Internet
Logos!
PayPal processed $14 billion in mobile payment volume in 2012 –
more than 3 times the mobile payment volume of $4 billion it
processed in 2011.
In 2012, eBay generated $13 billion through mobile devices, an
overall increase of 120% from 2011. eBay expects to transact $20
billion in 2013.
http://www.forbes.com/
On Black Friday and Cyber Monday mobile commerce volume via eBay mobile in the
U.S. more than doubled compared to 2011. http://www.digitaltrends.com/
Current Landscape
Infrastructure
Clients Merchants
Mobile Payments Ecosystem
Security
What are Mobile Payments?
• Consumer uses a mobile device
• Merchant uses a mobile device
• Both consumer & merchant use a mobile device
How do you define mobile payments?
Remote Mobile Payments
• Send and request money
• SMS based payments
• Mobile banking
• Application/ Browser based payments
• Carrier Billing
Fahad.com
Proximity Mobile Payments
• Barcode Scanning
• Point of Sale
• NFC
• Bluetooth
• RFID
• Accelerometer
Wikepedia.org
Your Definition of Mobile Payments
What does a Merchant want?
• Quick, easy, hassle free
• Security compliance
• Fraud prevention systems
• Current and up to date system
• Reliable
• Pricing
What does a Consumer want?
• Fast
• Secure
• Easy
• Choice of payment providers
Use Cases
• Fundraising for schools, non-profits
• Check out for lower fees
• Accept payments anywhere
• Not restricted to one payment type
• Easy to implements
Donations
Content & Digital goods
• Games, media, content
• In-context, less clicks payments
• Low fees for both small and large
transactions
• One-time micropayments, pay-as-
you-go, and subscription models
• International markets
Payment Gateway
• Process major credit cards
• Hosted or customizable
• Any merchant account, processor or
cart
• Sandbox environment, dev tools
• Bill Me Later option
• Small and large transactions
• Advanced fraud protection
• 24x7 customer support
• Scalable
• International markets
Shopping Cart
• Multiple selections
• View shipping, taxes, other costs
• Quick setup
• Integrated payments
• Integrated social media
• Advanced fraud protection
• 24x7 customer support
• Scalable
• International markets
www.cartkeeper.com
Online Invoicing
• Create and email invoices
• Click a payment
• Professional looking templates
• Customizable
• Send invoices from phone
• Manage invoices
• Quick transfers
Mobile Point of Sale
• Accept cards, checks, invoices,
cash
• Clear pricing
• Quick access to funds
• Customer support
• Connect multiple readers
• Global solution
Mobile Point of Sale
PayPal’s chip and pin solution
Commerce Identity
• Single sign-on
• Enter and update billing and
shipping information once
• Security and privacy
• Reporting and analytics
Development Phases
Create Sandbox account
Get API credentials
Design, build & test application
Submit for approval*
GO LIVE
Biggest Challenge?
Security
Security Issues
Device security Privacy Fraud & Risk Authentication Authorization Evolving Standards
http://mollythewally.blogspot.com/
http://mollythewally.blogspot.com/
Device security Privacy Fraud & Risk Authentication Authorization Evolving Standards
PCI Standard Council
• Independent organization
• Develop common set of payment standards
• PCI-DSS v2.0
• PCA-DSS
• PCI-PTN
• PCI-P2PE
Emerging Trends….
Mobile Payments are Here to Stay
"We expect global mobile transaction volume and value to
average 42 percent annual growth between 2011 and 2016, and
we are forecasting a market worth $617 billion with 448 million
users by 2016,"
Sandy Shen, research director at Gartner, May 2012
M-payments is a Global Phenomenon
In Q4 2012, 60% of eBay’s mobile purchases came from outside the U.Swww.centives.net
PayPal’s international business accounted for more than half of total revenue in 2012
M-payments is a Global Phenomenon
http://pritamkabe.wordpress.com
M-pesa Chipknip GeldKarte Royal Canadian Mint
Mobile brings New Use Cases
Promotions &
coupons
Location-based services
In-store research
Self-scanning & self-checkout
Global Social Commerce
Loyalty
Online Commerce
Mobile Wallet
Shopping Lists
Changing Form of Payments
• Money becomes more abstract• Digital goods• Anonymous payments: Bitcoin
Less cash society Cashless society
Increased Collaboration among Mobile Payment Stakeholders
Improvements in Payment Security
• Consumer awareness
• Improved device security
• Newer authentication techniques
• Evolving security standards like PCI Security Standards
Summary
• Mobile payments are here to stay
• Define what mobile means to your business
• Think beyond the hype
• Security, trust, and safety is of paramount importance
@PayPalDev @pragatiogal
http://www.slideshare.net/pragatiogal
Thank you!