The future is bright_ the future is mobile

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					                 The future is bright, the future is
                 mobile.
                                         Jim Tomaney
                                         Marketing Director
                                         ACI Worldwide(EMEA) Ltd


26th February 2002
Agenda




         m-payments




          Case Studies
Business Imperatives
What are the drivers for the telcos?


  State PTOs                                         Build out

                                                3G Licenses
        Vodafone
                             Telco          Legislation

                           Business
                          Imperatives

                 MVNOs              Churn

           3G operators                        ARPU
What are the drivers for the banks?

                                                        Mobility
   Lifestyle
                                                Low value transaction
   Mobile Operators
                                         Low volume transactions
        Mobile Penetration
                            Bank
                          Business
                         Imperatives
                 Micropayments Handling costs
             Youth segment           Fraud & theft
         Internet security
                                       Vending machines
Business Models
What are the possible business models?
                    High



                                    Operator
                                                           Open Systems
                                  Centric Model                                  Trend 2
                                                              Mobipay
                                 Orange Open MP
                                                            Paiement CB

   Number of
 mobile operators
   involved in
     scheme
                                 Closed Systems
                                                        Bank Centric Model
                                   Sonera MP
                                                              Paybox
                                    Omnipay
                                                            Cybercomm
                                 Vodafone m-pay
    Trend 1
                    Low

                           Low                                            High
                                       Number of financial institutions
                                           involved in scheme
What do the players bring to the game?

     FINANCIAL INSTITUITIONS                       MOBILE OPERATORS               INDEPENDENT PLAYER
    Customer relationship                    Customer relationship             Fast reaction time
    Merchant relationship                    Control over customer device       (but no infrastructure)
    Payment infrastructure                   Micro payment infrastructure
    Relationship with card operators




        Bank only              Bank & Telco               Telco only                 Independent
       (e.g. Merita)          (e.g. Mobipay)             (e.g. Sonera)               (e.g. Paybox)
What are the benefits to the players?




       FINANCIAL INSTITUTIONS                  MOBILE OPERATORS                   PAYMENT BRANDS
    Financial relationship with both      Incremental data traffic             More consumers and
     merchants and consumers                                                      merchants
                                           Allows for efficient mobile
    Increase frequency and depth           prepaid accounts top-ups             More transactions
     in consumer relationships
                                           The service/device becomes           Entry barrier of alternative
    Increase penetration of bank           more relevant in every minute
                                                                                  new payments brands
     intermediated payments                 needs of consumers
                                                                                 Capitalize on new technologies
    Use third party devices as            Get into merchant relationships
     POS, increasing reach and              and open cross-selling of            Accelerate entry into less
     reducing costs                         telephony and similar services
                                                                                  developed economies
                                           Induced voice traffic
How will the business models evolve?
       1999                                   2003                                2005



                                Start-up                   Stabilization                          Consolidation


            • Several approaches arise,           • The players with the                   • Systems are globally
              with players covering                 strongest customer base                  interoperable
              different links in the value          begin absorbing smaller
              chain                                 ones                                   • Two or three global players
                                                                                             arise with another one or two
            • The key players in the              • Key players start adopting               at the regional level
              industry avoid adopting just          one or all of the strongest
              one system                            systems
            • Rapid market acceptance is          • Surviving systems become
              the key to survival                   widely accepted
            • Two or three players per            • A few players survive per
              country survive this phase            region
                                                  • No competitor at a local level
                                                    will survive alone


             Multiple business models             Stabilization of standards                     Globalization

 Source: A.T.Kearney analysis
Technology & Terminology
What do people mean by m-commerce?

  •   WAP shopping ?
  •   Location based services ?
  •   Consumer authentication vs an access channel ?
  •   Micro-payments ?
  •   Cash replacement ?
  •   A new channel for existing brands ?
  •   An environment for new brands ?
Let’s agree on some definitions.


  • Wireless payments are any exchanges of
    value initiated, mediated or received using a
    mobile device, the exchange being between
    individuals, or between individuals and
    businesses, or between businesses.
  • Wireless payment revenues are the charges
    and fees collected by participants, not the
    payment itself.
Success Factors
What is the problem to be solved?

                                                      TRANSACTION VALUE


                                     MICRO PAYMENTS                   STANDARD PAYMENTS


                                                                             Migration of
               REAL WORLD




                                                                             successful schemes
                            Speed
                                                                  Paybox
                             Pass                                              Cards
  MERCHANTS




                                         Mobipay
                            Phone                                                  Paypal
              VIRTUAL
               WORLD




                             bills

                                                      Mobipay
Key Success Factors


  • Subscribers
  • Acceptance Points
  • Revenue Flows
  • Transaction Rates
  • Interoperability
Case Studies
                   Mobile operator independent scheme

      • The only fully-operational, international m-payments
        system operational in the world.
      • 50% owned by Deutsche Bank, the largest bank in
        Europe.
      • 500,000 registered consumers
      • 6,500 active merchants
      • IVR based system
      • Requires direct debit on consumers current account




www.paybox.co.uk
                  Mobile operator only scheme


      • Closed system – operator only
      • 60 UK virtual merchants so far
      • Operating in Italy and Spain too, but no interoperability
      • Transactions charged to your contract account bill
      • Consumer acceptance trial
      • Micropayments
      • Electronic goods



mpay.bill.vodafone.co.uk
                  Mobile operator & bank co-op scheme

          Movilpago                           Pagomóvil




                              +




                      Mobipay International

www.mobipay.com
Summary
Conclusions


  • Mpayments remains in the start-up
    phase
  • Success appears to depend most on
    partnership between banks and telcos
  • Interoperability is key to consumer
    acceptance and therefore, growth.
  • Technology is less important than
    consumer behaviour.
                 The future is bright, the future is
                 mobile
                                         Jim Tomaney
                                         tomaneyj@aciworldwide.com



26th February 2002
Who or what is   ?
  What ACI does


 Enables our customers to deliver
electronic payments to consumers,
   anytime, anywhere, any way

    This is electronic commerce.
 ACI has been doing e-commerce
very successfully for over 25 years
Global presence




           6 Continents - 81 Countries -
         2,371 Customers - 3,614 Systems
Software provider to the worlds top banks
Payments infrastructure


     – The largest bank in the U.S. has 14,000 ATMs located in 22
       states and processes 94 million transactions per month – the
       busiest ATM system in the world.


     – NatWest Bank processed more than 8.5 million physical &
       internet commerce authorisations on a single day in
       December 2001 – the busiest POS system in the world.


     – Barclays Merchant Services, (BMS) processed in excess of
       6.8 million transactions on 2 separate days in December
       2001 – the second busiest POS system in the world.
What people say about ACI


     – Identified ACI as the market leader for retail EFT processing
       software in November 1999



     – Rank ACI as the primary EFT software vendor in the US with
       49.4% of the market in 1999




     – State that BASE24 software claims half of the market share for
       ATM processing software amongst the largest US banks
www.aciworldwide.com

				
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