the future of mobile payments - cuna councils...mobile payments, why should my cu care? •the...
TRANSCRIPT
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The Future of Mobile Payments
Presented By: Mark Berman, CEO Horsetail Technologies
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Introduction• Mark Berman
• Passionate CU Junkie!• Co-Founder & CEO, Horsetail Technologies
– IT services, Managed Services, Cloud Services and Customer Mobile and Software Development.
• Continuous Compliance
– NCUA and State Regulatory Compliance Software Platform
• From Baltimore, MD
• Married all of a week to Tania who you might find around the conference here with me!
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What Are We Going to Discuss?
• Why you and all CU’s need to be thinking… mobile.
• The mobile frontier and where it is headed.
• The member’s perspective.
• Potential roles for credit unions in the mobile space.
• Why “real” CU collaboration will be critical.
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Mobile Payments, Why Should My CU Care?
• The Growth of Mobile• Millennials • Expected Experience • Growth • Loss of Income • Data
– Reach a broader set of customers with more diverse services
– Reach beyond payments transactions to manage the customer’s entire digital wallet
Growth of Mobile
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Transaction HistorySearch HistoryBrowse History
DIGITALCREDIT UNIONS
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Transaction HistorySearch HistoryBrowse History
Context
DIGITALCREDIT UNIONS
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Growth of Mobile
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Millennials
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Millennials
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Expected Experience
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Expected Experience
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Loss of Income
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$$$ Behind the Swipe
CUMerchant FI
Loss of Income
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$$$ Behind the Swipe
CUMerchant FI
Loss of Income
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Expected Experience
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Growth
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Data
Case Study: Level UP
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Data
Focus: Level UP
• Application that allows businesses to receive portable payments from any client
• No credit or debit cards
• Vendors use a Levelup terminal to scan a (QR) code on a client’s cell phone.
• Retailers created loyalty programs
• Analysis tools
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Data
Focus: Level UPA
NA
LYTI
CS
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Data
Focus: Level UPLO
YALT
Y
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Data
Focus: Level UPP
ENET
RAT
ION
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Mobile Payment Frontier
Fun, Early Stage
Convenience
Monumental Shift
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Where Do We Sit on The Frontier
• Bridging the gap between early stage and convenience
• Adoption will rise with convenience but it will take the monumental shift to see mass adoption.
• Why??
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Early Stage Convenience
• Apple iPay
• Flint Mobile
• Square
• GoPayment
• ROAMpay
• PayPal Here/Beacon
• Dwolla
• Google Wallet
• Phone Swipe
• ISIS
• MastercardPayPass
• Visa payWave
• GoPayment
• LevelUp
• mPowa
• PayToo
• Boku
• Paymentech
• Payfone
• MCX
• linked2pay
• Innerfence
• Breadcrumb
• PaySimple
• Forte
• Spark Pay
• PayAnywhere
• Swipe
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Early Stage Convenience
• Apple iPay
• Flint Mobile
• Square
• GoPayment
• ROAMpay
• PayPal Here/Beacon
• Dwolla
• Google Wallet
• Phone Swipe
• ISIS
• MastercardPayPass
• Visa payWave
• GoPayment
• LevelUp
• mPowa
• PayToo
• Boku
• Paymentech
• Payfone
• MCX
• linked2pay
• Innerfence
• Breadcrumb
• PaySimple
• Forte
• Spark Pay
• PayAnywhere
• Swipe
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Don’t Be Blackberry!• The average member interacts with their credit union twice a day
electronically• That’s 80% of the member’s interactions!
If they are coming to you use it! They are on your turf. Don’t take it for granted.
• People used there Blackberry’s everyday, UNTIL they didn’t.• Opportunities for Cross-Selling and Social Engagement abound today.
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What’s In it for Me?
• Merchants have no desire, especially those smaller organizations.
• Users may or may not find phones convenient, cards aren't that bad.
• Security benefits of mobile can be misleading or misunderstood.
• Card associations and issuers are now splitting their share. • Just not that different, experience isn’t significantly better. • Technology Support Networks (TSN’s) are honed to today’s
products, not tomorrows
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Lets focus on the member
Not technology…
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Who Do Members Pay?
Biller
Merchant Individuals
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The System Today
• P2P is mature
• Bill pay is mature
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The System Today• Not the Merchants…
• Antiquated card payment system today
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The System Today
• Left wallet (non payments) needs improvement
• Access to flexible products at POS not available
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What Would Improve the Member Experience?
• Monumental shift to the payment system
• Merchant payment options that include lower cost and greater experience
• Cooperative and local experience
• Greater access to lending and data
• Left wallet options with security- CU’s are perfect
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Okay, What Should My CU Do?• Go talk to the member
• Go talk to the community and other cooperatives
• Define your ideal member’s desired experience
• Build for flexibility
• Diversify
• Pay attention
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What’s Trending
• Starbucks
• Payment systems that integrate data and rewards
• Payment systems that break the mold
• Collaborative consumption
• Cooperation
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What is Now?
• Friend Payment Request: Facebook Moving into P2P PaymentsMENLO PARK, Calif.--Facebook has introduced a new application that allows person-to-person payments...
• Fiserv Completes First Tokenized TransactionsBROOKFIELD, Wis.—Fiserv reported that it has completed its first tokenized transactions via its Accel debit payments network...
• Square Launches Square Cash For Businesses; Competes With Apple Pay And PayPalSquare introduces its Cash service to compete in the increasingly competitive mobile payments market
• Samsung Pay can be introduced to Korean market as early as early July
• 85% of iPhone 6 Owners Don't Use Apple Pay: Should Apple Inc. Be Worried?By Leo Sun March 22, 2015
• Alibaba to introduce ‘Smile to pay’ technology that will allow users to pay using SelfieChina’s Amazon teams with Alipay China’s largest online and mobile payments service
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The Battlefield• Who’s the
Enemy?– Digital – built for
speed
• Who do you need?– Digital – built for
innovation
• Weaponry –– Armed with deposit accounts,
lending relationships, an enduring reputation for security, and a robust infrastructure for clearing and settling, CU’s are currently THE players with the ability to achieve the scale required for mobile payments.
• Gotta Use It…– CU’s also enjoy huge advantages as
digital-payments service providers, to the extent that they leverage these strengths against digital attackers.
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The Swimming Pool and the Cat and the Mouse
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Leverage the COOP
• You are a cooperative financial company
• Millennials care!
Cooperate and build – TOGETHER
• What is my CU?
– Fast Follower… Catalyst… Leader
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Where Can You Get Involved
• Many places.
• Need to be flexible, nimble and aware of member needs.
• Diversify.
• Focus on creating a consistent experience.
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YOU’VE NAILED IT
• When you understand the financial needs of your member
…as conveniently as Square
…as collaboratively as Zipcar
…as intimately as Spotify
Trust through Intimacy
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Thank You!
Questions