Paying with a mobile device
mPayments (quick overview)
Cashing in on the opportunities
issue Trending issues
Elevator Pitch ........................................................................................... 11
Global Snapshots ...............................................................................17
BBVA & Mobile Payments ......................................................22
Cashing in on the Opportunities ...................................28
Innovation Forecast ........................................................................31
In Depth....................................................................................................... 34
Technology Trends ................................................................. 43
Mobile Payments & Banking event .............................47
BBVA Innovation Center Open Day...........................48
The mobile payments trend, undoubtedly, is on its way of
becoming a mainstream phenomenon. It will change how
society thinks about monetary transactions. Let’s take a
look into mPayments, meet the main actors and gain a basic
understanding of this fast moving trend.
Mobile payments are payments made using a mobile device.
Generally, there are two ways to pay by mobile:
online payments and proximity payments.
“mPayments will transform customers’ lives”. See video
Online Payments Main Actors
Mobile payments for digital or physical goods. Digital goods
payments refer to products/services consumed on mobile de-
vices, such as app purchases or digital content. Also, person to
person (P2P) payments may be considered as online payments. Banks & Card Companies
Physical goods payments refer to products/services delivered Incumbents who are currently dominating the general payment
physically, but purchased via a mobile device. landscape; as the overall leaders, they are generally taking a wait
& see approach, looking for the right product at the right time.
Mobile payments for products & services purchases on-site via
a mobile device (short range radio technologies, such as NFC).
Generally used at POS terminals, transit, etc.
Example of wallets Mobile wallets
VISA Mobile wallets are platforms that bundle together products and
ISIS (AT&T, Deutsche services from several providers. In general, mobile wallets offer:
Telecom & Verizon)
Google ■■■A prepaid account (equiva- ■■■Loyalty programs & offers
lent of cash in real wallets) (coupons)
■■■Credit, debit & charge cards ■■■Transit (public transportation)
(payment instruments) ■■■Other (ID, electronic key, etc.)
06 November 2012 | MOBILE PAYMENTS 07
New entrants who are disrupting the payments business with
mobile technologies, such as Starbucks and Amazon . Technology companies
The financial services market is a new area for growth for these
aggressive players. Armed with the latest and greatest in technologies,
they are very active in experimenting with new value bundles and
Companies include Google , Facebook , and PayPal (an
Also, the mobile device is being used to process transactions. Retail
stores may now enable payments with a mobile device functioning
as a POS, such as Square or PayPal Here .
Mobile Operators (MOs)
Looking for new avenues for growth, MOs
are looking to mobile payments as a way to
make their relationship with clients stickier by
offering payment services, as a part of the
overall voice & data portfolio.
08 November 2012 | MOBILE PAYMENTS 09
mPayment & Value Bundles elevator pitch
Let’s take visual journey through the mobile payment
“The smartphone is simply an enabler space. We’ll look at the users and usage, deployment
— not a driver — of changing behavior.”
Ron Shevlin, Aite Group
scenarios, business models, and take a peek into the
future and the market.
“Mobile payments on their own are not
sufficient to drive consumer adoption but
the value bundle — payments together with
incentives and offers — has a higher chance
of persuading consumers to change their
Advanced Payments Report 2012, Edgar, Dunn & Company
Therefore, each actor is using or will use
mobile payments to design and build the
“best” value bundle for a given customer
segment. Lots of collaborative models
are emerging, such as ISIS and Boku
which are collaborations between mobile
operators and other entities.
See video (Boku)
10 November 2012 | MOBILE PAYMENTS 11
How is the mobile payment
What is happening
industry shaping up?
with mobile payments? 39%
In the next five years, insiders expect a majority of (40-50)
brick-and-mortar retail transactions to take place on
mobile devices. That is a big change-up for a $5.5
trillion marketplace. Meanwhile, mobile devices users
who utilize mobile payments are expected to swell
from 6.8 percent in 2009 to 21.3 percent in 2012. 9% carriers
Old institutions Merchants
Gen-xers (51-61) DEPLOYED 16% 17% 8%
Seniors (62+) READY TO DEPLOY 16% 13% 9%
TRIAL STAGE 39% 38% 28%
Who is using mobile payments?
PLANNING STAGE 25% 28% 36%
NO INTEREST SO FAR 5% 3% 19%
53% 66% Handset Payment Application
70% 47% LOW manufacturers service providers
DEPLOYED 10% 19% 22%
27% 20% READY TO DEPLOY 20% 24% 37%
35% TRIAL STAGE 37% 45% 30%
10% 12% 16%
18% PLANNING STAGE 29% 11% 10%
Retail Fast Mass Digital Online 3% 1% 1%
NO INTEREST SO FAR
purchase food transport downloads purchase
12 November 2012 | MOBILE PAYMENTS 13
Business models The market (1)
What is the most Global E-payments:
viable business model? 43%
number of transactions Number of
By 2014, an estimated 13 percent of all smartphones Mobile-financial
(billion), 2009-2013F (Billion)
will have built-in NFC capabilities.
Most payments are not mobile. Alternative pay- 15.1 1.2
*common platform shared by alliance of carriers ments, which includes mobile, will account about 0.9
and financial institution. for 8% and 9% in 2013 of e-payments transactions. 27.6
Mobile carrier 19.8
going solo CAGR 14.2
26% Financial ‘09-’13F
Open federation model* institution Total 19.1%
Alternative Payments 32.1%
4% Non-banking competition
2009 2010 2011F 2012F 2013F
Debit, credit, prepaid cards 18.1% Source: Capgemini I World Payments Report 2011, September 2011
The market (2)
Mobile carrier What will be the most Global M-payments: 15,284
27% going solo 1,223
popular mobile payment number of transactions Number of
app in the near future? (billion), 2009-2013F (Million) 9,814
payment As merchants, financial institutions, and mobile carriers Banks are still in charge, but the competition is grow- 6,756
work together to figure out the future of the mobile ing faster. By 2013, the new entrants will have taken 473 14,062
19% 16% payment system. People should not be surprised if about 8% of the mPayment business, from a base of
SMS-based Embedded their phone starts to replace the contents of their wallet 0.5% in 2009. 3,120 272
payments credit cards 156
10% over the next few years. 6,283
Total 48.8% 2009 2010 2011F 2012F 2013F
Non-bank providers 67.3%
Percentage of respondents Source: Deloitte.com Bank providers 27.6% Source: Capgemini I World Payments Report 2011, September 2011
14 November 2012 | MOBILE PAYMENTS 15
The market (3)
Mobile Payments is a dynamic
trend; and, as such, is drawing a
lot of attention from around the
world. This section takes a look at
selected banks & card companies,
retailers, mobile operators and
The market technology companies and see
what they are up to.
In 2010, the total
volume of global credit The number of mobile We are forecasting
card payments totaled payment users will reach a market with
$6.2 212.2 448
million in 2012, million users
up from by 2016
160.5 million in 2011
Source: Gartner, May 2012
16 November 2012 | MOBILE PAYMENTS 17
AT&T, T-MOBILE AND VERI-
zON WIRELESS: ISIS
The Mobile Operators led consortium is offering a
mobile wallet platform. The Isis mobile commerce
network will be available to all merchants, banks, pay-
ment networks and mobile carriers.
Fuente: Pay with Isis
Mobile TELIA, TELE2, TELENOR AND 3 (ThE
SWEDISh BIG 4 MOS): WYWALLET
Banks & Card Operators WyWallet, the mobile wallet joint venture from Telia,
Companies TELEFONICA: O2 WALLET
Tele2, Telenor and 3 has been launched with support
for person-to-person money transfers, SMS transit
A deal with Facebook, Google, Microsoft, and RIM and ticketing payments, and online shopping. Live
Users can send and receive money by using just a
Retail allows a Telefonica subsidiary customers (O2) to pay
for digital goods and services directly through the
tests of POS payments using NFC are set to start in
July, with full-scale roll-out scheduled for 2013.
mobile phone number. mobile phone bill. Fuente: WyWallet
See video See video
COMMONWEALTh BANk: kAChING DEAL WITh SQUARE
Allows customers to make payments to email, to The coffee giant chooses Square to process pay-
Facebook, to mobile, and to PayPass (MasterCard) ments in all of its stores and also takes an equity
contactless terminals. investment. “The focus is on the experience, and
See video putting that above everything else,’ says Square
founder Jack Dorsey about Starbucks’s stores.”
ChASE: INVESTMENTS & PARTNERShIPS FastCompany added, “Square treats payments a
■■■Square, GoPago (investor) lot like Starbucks treats coffee: by focusing on the
■■■ISIS (partner) experience around a product that is more or less a
Source: GoPago commodity.”
Allows customers to make P2P payments to emails AMAzON MPS
or mobile phone. Amazon allows its merchant partners to accept mo-
Source: Chase bile payment with its Amazon Mobile Payment Ser-
vice (Amazon MPS). On the other end, Amazon offers
MASTERCARD: PAYPASS WALLET its customers to make payments via mobile devices.
It’s a digital wallet service that makes online shopping Additionally, Amazon facilitates P2P, sending money
safe and easy by storing payment and shipping to an email or a mobile number.
information in one convenient and secure place. With Source: Payments. Amazon
PayPass Wallet, customers simply shop, click and
checkout faster online.
18 November 2012 | MOBILE PAYMENTS 19
amount of buzz as Facebook continues to grow and
the company is uniquely positioned to completely
Source: Thedailybeast l June 2012
With Square, small business owners and merchants BANkS & CARD COMPANIES TEChNOLOGY COMPANIES
can accept card payment using an Android phone, (TEChNOLOGY PROVIDERS TO BANkS)
iPhone, or iPad. Also, the company offers “pay with ■■■Telepin Software POS SOLuTIOnS
Square,” allowing customers to pay with their mobile ■■■Customer Engagement ■■■Charge Anywhere
device at the POS. ■■■Corfire ■■■VeriFone
Source: Squareup ■■■MChek ■■■InTuiTGoPayment
Technology PAYPAL hERE
Companies Keeping up with its competitor, PayPal recently
launched PayPal Here, allowing customers to accept
■■■JMango ■■■Moneris Solutions
cards and also checks. Also allows users to invoice MOBILE OPERATORS ■■■Handpoint
GOOGLE WALLET and track cash payments. Of course, PayPal contin- (IN APP PURChASES, BILL TO
Fast and easy payments, with any card. Google Wallet ues to win mindshare as it facilitates payments, in- MOBILE COMPANIES) LOyaLTy PROGRaMS
now supports all major credit and debit cards, from cluding mobile devices. Recently, a survey revealed ■■■Bango ■■■Foursquare
Visa, MasterCard, American Express, and Discover. that 8 of 10 consumers would use PayPal’s wallet, if it ■■■PayOne ■■■Mogley
Google Wallet stores cards online so they’re available were to be available. ■■■Mopay ■■■Swagg
wherever customers go in the real or virtual worlds. Source: PayPal ■■■Dimoco
See video ■■■BilltoMobile nFC
APPLE: PASSBOOk A new mobile payment network, LevelUp provides a MOBILE WALLETS ■■■Giesecke & Devrient
With the iOS 6, Apple introduced the “Passbook,” a QR code pay-by-phone application for consumers and ■■■Serve ■■■Ingenico
mobile app which manages boarding passes, tickets, a terminal system for merchants. Recently it raised $21 ■■■Magtek ■■■Oberthur Tecnologies
store cards, and coupons. The leading mobile tech- million ($9 million coming from the venture capital ■■■MasterCard ■■■Vivotech
nology company is expected to further pursue its arm of Deutsche Telekom) in a 2nd round funding. ■■■MobilePay ■■■Xius Innovate Lead
“iWallet” strategy. The company launched Passbook See video ■■■Cimbal
with it newest OS, the iOS 6. “Apple controls the hard- ■■■Tabbedout
ware and the mobile OS, and now with Passbook, it IzETTLE ■■■NoMoreCards
provides brand app developers the ability to link their Europe’s answer to Square, iZettle allows businesses
products to a centralized and easy management.” to take card payments using an iPhone or iPad.
Source: Forbes | What CIOs Need to Understand about Apple’s Pass- See video
book Service, October 2012.
FACEBOOk The company’s product allows anyone with an in-
Facebook has scrapped its Facebook Credits and ternet connection to safely send money to friends
has everyone wondering what they will do in the or businesses.
mobile payments arena. There is a tremendous See video
20 November 2012 | MOBILE PAYMENTS 21
Mobile The Channel Director of
BBVA Bancomer, Mauricio
Pallares, highlighted during the
presentation that the company
is turning to electronic banking
to lead it’s strategy to bank the
unbanked and promote financial
BBVA Bancomer recently inclusion. With ‘Mobile Money,’
launched ‘Mobile Money’, a new the group intends to extend
banking services to 1.5 million
service that allows customers customers and reach a volume
to send money anywhere in of 19.5 million transactions in
the country using a mobile the first year of operations.
phone. This service will BBVA Bancomer Mobile
provide access to banking Money results from an interest
to 1.5 million users, in developing a modern and
innovative bank that offers
contributing to their
alternatives that facilitates access
financial inclusion. to low-cost, financial services
while ensuring safety, proximity,
availability, time savings, and
convenience. The new service
launched by BBVA Bancomer
is also available in Spain under
the name, “dinero móvil.”
22 November 2012 | MOBILE PAYMENTS 23
Are a group of consumers who are driving the demand for
mobile payments. They aggressively change the way they
shop and pay for products and services.
important 4% 24%
The rise of the mobile class
Low High mPayments
Customer surveys always seems to facilitate
understanding. In this section, we’ll take a look at the Based on a global survey of 4,200 consumers (realized in Q1 2012), Aite Group’s
research reveals leading mobile payment consumers, the Smartphonatics.
recent survey results related to mobile payments and Source: Aite | The Global Rise of Smartphonatics: Driving Mobile Payment and Banking Adop-
tion in the Americas, EMEA, and Asia-Pacific, May 2012.
some insights they reveal.
24 November 2012 | MOBILE PAYMENTS 25
Where are they? Smartphonatics / Key Findings
16% UK 10% Germany 31% China
8% France 27% Italy
Are twice as likely than non-Smartphonatics to adopt
42% South Africa mobile payments.
Are driving mobile payment adoption around the world .
Offer clues to creating and meeting demands for mobile
payments (albeit at different rates across the globe).
Who are they? Mobile payment usage
Represent a country’s mobile maturity level.
Do not necessary use smartphones (it’s all about the behavior).
Will continue to use a myriad of payment options,
18% including mobile.
70% Others consumers
has used mobilephone to make
Senior Boomer Gen X Gen y a payment in the last six months.
Source: Aite | The Global Rise of Smartphonatics: Driving Mobile Payment and Banking Adoption
in the Americas, EMEA, and Asia-Pacific, May 2012
26 November 2012 | MOBILE PAYMENTS 27
Cashing in on the
Whoever creates the most meaningful financial New business models
value bundle for a given customer segment will
win marketshare. The walls between industries
B e part of someone else’s value bundle! Banks can collabo-
rate with platform providers for value delivery. For example,
Chase, CapitalOne and Barclays are part of ISIS mobile wallet, a
are beginning to breakdown and the market consortium of mobile operators.
is turning into a free for all. Can the banks be
November 2012 | MOBILE PAYMENTS 29
For banks, mobile payments are not an end to it- trust and confidence, such as offering value added
self. In a world of customer experience as the new financial products/services; such as helping custom-
value proposition, products by themselves do not ers to save, to invest, and to borrow. In other words,
offer a competitive advantage. Together with other banks are positioned to provide a meaningful expe-
building blocks of the business model, banks can rience to customers when it comes to addressing
leverage mobile banking and put together a value their financial needs/wants, including the ability to
bundle that can delight customers and regain their pay for purchases via mobile devices.
+ Mobile T
+ Mobile S
Value-adde/SERVICES = MEANIN
Mobile Payments is a trend that is gaining a lot of
momentum and, as such, banks and other financial
services companies are watching it closely. In this section,
we’ll take a quick look how banks should understand
mobile payments and how to approach it.
30 November 2012 | MOBILE PAYMENTS 31
Take the Long View The Long View
B etween the seemingly imminent domination
of mobile payments as seen in the news and
knowing that they represent a small percentage of
Group in their recent article, how Banks Can Take
the Lead in Mobile Payments, offers some in-
sights for banks:
The article also offers suggestions for banks on
how to seize the moment:
total payments lies the true relevance this trend. ■■■Invest to gain experience.
Mobile payment is a business opportunity for ■■■The value will be in deals and offers, not in pay- ■■■Form a “house view” on the m-wallet.
banks... it’s just a matter of timing. ments. ■■■Preserve the attractiveness of cards.
■■■Cards will not disappear anytime soon. ■■■Establish security protocols.
For now, most banks are dipping their toes to see ■■■mPayments are not yet superior to traditional pay-
how the water is... and don’t seem to be in a hurry ment methods. Sources: BCG | How Banks Can Take
to dive in. In this context, the Boston Consulting ■■■Banks are the masters of their own destiny. the Lead in Mobile Payments, June 2012
32 November 2012 | MOBILE PAYMENTS 33
In depth On the Web
Amazon | Amazon Mobile Payment Service
Barclays | Pingit
Brandon McGee | Mobile Banking Blog (covers mo-
bile payments as well)
A list of sources to other useful tools and Mobile Money
Boku | Introducing Boku Accounts. Smarter phone,
resources that you may find useful as a smarter payments (Vimeo), February 2012. Mobile Payments Today
supplement to the information offered on Boston Consulting Group | how Banks Can Take the New York TImes, Technology | PayPal here is More
the ‘Mobile Payments’ report. Lead in Mobile Payments, June 2012. Than a Square Imitator, July 2012
Business2Community | Facebook Credit Card As NFC World
Your New Universal Payment Solution?, July 2012 Payments News
Chase | QuickPay Pymnts.com: What’s next in payments
Publications Commonwealth Bank | kaching
Daily Beast | Universal Wallet: Facebook’s Very
PayPal | PayPal’s Global Mobile Solution Unveiled:
Bright Future Merchants Around the Globe (YouTube), May 2012.
Aite | The Global Rise of Smartphonatics: Driv- EFMA | EFMA Global Yearbook 2012, May 2012.
Dwolla PayPal | PayPal here: how It Works (YouTube),
ing Mobile Payment and Banking Adoption in the
Ernst & Young | Global Banking 2020: Foresight & March 2012.
Americas, EMEA, and Asia-Pacific, May 2012. FinExtra
Capgemini | World Payments Report 2011, Septem- Google | Google Wallet SapientNitro | The Future of Money and Mobile Pay-
Gartner | Forecast: Mobile Payment, Worldwide, ments (YouTube), June 2012.
2009-2016, May 2012. Google | Introducting Google Wallet (YouTube), Au-
Capgemini & EFMA | 2012 World Retail Banking Re- gust 2011. Square | Boccalone Gets Paid with Square (Vimeo),
IDC Financial Insights | Consumer Payments Survey, December 2011.
port, April 2012, May 2012.
July 2012. GoPago
Celent | Preserving Merchant Relationships When Square | Pay with Square
Juniper Research | NFC Mobile Payments — No Con- Intuit | The Marketplace in Your hand, 2012
Mobile Comes to the Retail POS, January 2012 Starbucks | Mobile Apps
tact Required, June 2012.
kPMG | 2011 kPMG Mobile Payments Outlook, July Starbucks | New! Starbucks iPhone Apps (YouTube),
Deloitte | Cell me the money: Unlocking the Value in ISIS (PayWithIsis) | The Isis Vision (YouTube), September 2009.
the Mobile Payment Ecosystem, 2011. February 2012.
kMPG | kPMG Banking Outlook Survey, June 2012. TechCrunch | Apple Announces New Passbook App
Forrester | 2012 US Mobile Banking Functionality izettle To Store Movie Tickets, Retail Cards, And Board-
Rankings, April 2012. kPMG | Monetizing Mobile: how banks are preserv- ing Passes, June 2012
Lafferty | QR code to boost mobile payments dra-
ing their place in the value chain, July 2011.
Forrester | Consumers Bankers Association Survey, matically, September 2011 (subcription article). Telefonica (O2) | Mobile Wallet
June 2012. MasterCard | The Mobile Payments Readiness In-
LevelUp Visa | Visa Digital Wallet (YouTube), May 2011.
dex, May 2012.
Deloitte | Mobile Payments: a Deloitte Analysis --
MasterCard | PayPass WyWallet (Telia, Tele2, Telenor and 3 - the Swedish
Managing change in the “mobi-payscape.” Pew Internet & American Life Project | The future
of money: Smartphone swiping in the mobile age,
Edgar, Dunn & Company | Advanced Payments Re-
port, March 2012.
34 November 2012 | MOBILE PAYMENTS 35
In this section, readers will find summaries of the most relevant news of selected
topics that have been published over the course of the month based on its relevance Mobile banking
to the Banking industry. The summaries were prepared by the editorial board. Further
information is made available for each given topic.
Which Way to Go?
Core banking platform Most mobile banking apps in the market today are native
apps. That is to say, the kind of apps you purchase from an
Have the need to better app store for a particular mobile platform, such as Apple’s
understand customers App Store, Google’s Play, etc. These apps currently provide
the best experiences for customers as it integrates the
and the value bundle? functionalities of the smart devices into the mobile banking
Go back into the core. app, such as camera or GPS. However, keeping the mobile
banking up to date for each platform can quickly run up
“Banks need to seriously consider core renovation. the costs. With the coming of html5, banks can “write once,
Core renovation allows modern architecture to publish in many platforms;” not only html5 can save money,
deliver new functionality like dynamic pricing and but also decrease time to market. Banks will have more
product and pricing simulations which help banks choices regarding mobile banking applications in the post
to understand, at an enterprise level, the value of PC era. Which way to go?
customer relationships and the potential of any
Source: Finextra | Apps, a continuing debate: html5 vs. native, 12 August 2012
given product offer or bundle.”
New formats Enterprise 2.0
The future of bank channels, The Knowledge Economy
would not be
as seen by Cisco is coming
would keep the
30% same deposits Cisco Internet Business Solutions Group Global “The knowledge workers’ revolution will come from a re-
would switch Research reveals new ways for banks to prosper in the newed workstation, and it will live in the cloud, whether
omnichannel world: the future of the branch. it is public, private or hybrid,” fueled by Desktop as a
20% ■■■The old branch is dead; long live the Service, Social Desktop or whatever it may be called.
25% would not be omnichannel branch Currently, the challenges enterprises face include:
15% happy and 22%
would reduce ■■■Mobile: The promise of embedded
10% deposits ■■■Growing number of communication channels: email,
banking in consumers’ lives
Facebook, Twitter, Skype, RSS, etc.
■■■Social: The potential is here—when will
5% ■■■Dispersed knowledge (internal and external)
7% banks be ready?
0% ■■■Short-term vision of social integration
■■■Video: Seeing is believing
Source: Cisco Source: Forbes | July
36 November 2012 | MOBILE PAYMENTS 37
Social Media Crowd finance
Put your money
where your mouth is
SOCL (Global X Social Media Index Fund) Nasdaq GM. 2 - Aug - 2012 SOCL (Daily) 11.93
The social bubble
Open 12.07 high 12.10 Low 11.84 Close 11.93 Volume 125.4k Chg -0.15 (-1.24 %)
Crowd-sourcing is used to fund innova-
15.2 tive farm and food projects. ThreeRevo-
lutions.com offers food and farm enter-
14.4 prises an opportunity to raise funds from
14.0 appreciative consumers who are eager to
13.8 A quick look at the Global X Social support and connect with their favorite
13.4 Media Index Fund pretty much tells businesses and really put their money
13.0 the whole story. The fairy-tale story is where their mouths are ...
12.6 ending and it’s time for social media Source: Marketwatch | July
12.2 companies to begin delivering real
11.93 value to consumers and businesses.
Sep Oct Nov Dec 2012 Feb Mar Apr May Jun Jul Aug
Mobile payments Digital Marketing
20 % of Europeans Interesting digital marketing stats:
already make payments people use tablets in the evening
with mobile & interactivity is best in tablets
According a recent report from Forrester, 1/5th Taken from weekly stat monitoring by Econsul-
of european consumers. “Banks need mobile tancy, a digital marketing firm:
payments to protect their retail payments ■■■Between 7.30pm and 9pm more people click on
businesses from digital disruption.” tablet ads than on mobile ads
■■■A quarter (25%) of respondents said they would be
Source: Internetretailing | July
likely to click interactive ads
38 November 2012 | MOBILE PAYMENTS 39
New Gizmo era New banking concepts
It’s not a bank; it’s
3D printers to go a banking store: The
Couple of MIT students developed Virgin Money Store
the first truly portable 3D printer The first Virgin Money Store opened its doors in
that fits inside a metal briefcase, a July, with plans to open some 70 plus more stores
“personal fabrication machine.” In a in the future. The “stores” feature free WiFi, iPads and
short period of time, consumers will iMacs, and a “no hard-sell policy” adopted by staff.
become mobile manufacturers. What “Customers can simply come in, take the weight
could that enable? Time will tell. off their feet, enjoy a cup of tea and use our free
Source: Arstechnica facilities.”
App ecosystem Join & enjoy
They’re finally here: “Only” 1.6% of Facebook
enterprise app stores users spent money on
Now big software vendors hope to stream- virtual goods
line the searching and buying process by
In percentages, it’s pretty paltry. But ... when
following in Apple’s footsteps. SAP and other
expressed in dollars, that becomes over 1 billion
enterprise software companies are opening
dollars. Uh, that would be nine zeros. “The newly
app stores and hoping that they can monetize
launched Facebook App Center will spur pay-
the app ecosystem, such as The SAP Store.
ments usage. In addition to in-app purchase, app
Sources: PC Advisor / EcoHub. developers (not only social games developers)
now have the flexibility to charge users one-off flat
fee and/or subscription.”
Source: Forbes | August 2012
40 November 2012 | MOBILE PAYMENTS 41
Trending issues Technology trends
The following section outlines the upcoming technologies that will change
Smart cities + urban mobility everything, with predictions on what may come of them in financial industry.
to Daimler AG, it’s the best 3D Printing
way to get from A to B 3D printing is a process of making three dimensional solid objects
from a digital file. 3D printing is achieved using additive processes,
“Moovel,” brings together entirely different means of
travel and presents the options so that they can be
where an object is created by laying down successive layers of
seen at a glance – transparently, in a user-friendly way material. In other words, 3D printing turns bits into atoms.
and on an equal footing. The recommendations are
based on the offers of the mobility service providers. A “3D printing makes it as cheap to create single items
pilot program is launched in Stuttgart and another one
is planned in Berlin. As of July, the app is available for as it is to produce thousands and thus undermines
download in Apple’s App Store. economies of scale. It may have a profound impact
Source: Media Daimler
on the world as the coming of the factory did. …
Just as nobody could have predicted the impact of
Health the steam engine in 1750
—or the printing press
in 1450, or the transistor
Is there a doctor in the phone? in 1950— it is impossible
There is an explosion of mobile medical Diabetes monitoring
apps, beyond the diet and exercise kind.
to foresee the longterm
■■■Heart EKG monitoring
The president of the American Academy ■■■Blood pressure monitor (wrists) impact of 3D printing.
of Physicians, Glen Stream states, “People ■■■Electrocardiogram device But the technology
want to be empowered to take care of their ■■■E. coli sensor
health” and are asking for apps for help. ■■■Ear infection checker
is coming, and it is
Current apps include: likely to disrupt every
Source: USAtoday l August 2012
field it touches.”
Source: The Economist
42 November 2012 | MOBILE PAYMENTS 43
T he market for 3D printing and related products
and services are expected to grow because ad-
■■■The material base is expanding. Plastics, metal
alloys, ceramics, food, etc. Technology
ditive manufacturing essentially makes the cost of
complexity free (or almost free). Massive personali- ■■■3Dmodel creation is being democratized. What
zation doesn’t mean massive costs. In terms of man- was a complex & expensive is now simple & af-
ufacturing, personalization becomes essentially free. fordable; and readily accessible. WHEN TECHNOLOGY BOOSTS
■■■The cost of 3d printers is dropping dramatically. 3D printing comes in all shapes and sizes. For ex-
Building a product is just the beginning. Once in
The cost of basic home 3D printer is dropping to about ample, they can go big or go small and everything
$1,000 and a industrial 3D printer to about $10,000. else in between. the market, users will evaluate if the application
developers have been working on during the
last months is good enough or not. It is true
that this evaluation depends on a never-ending
3D printed passenger planes
number of variables - customer satisfaction,
needs covered, look and feel, expectations,
overall experience - which makes the success
almost impossible to predict.
E ven the most simple solution needs a
marketing campaign accompanying
the launch —it may not be mandatory
but it really helps!— Spreading the word
can be done in many different ways, but
surprising the final users is becoming
Fat, even at nano-scale harder and harder. Google has detected
the opportunity and their teams are creat-
ing amazing examples about how to take
their products to the limit. In other words,
Google uses the technology beyond their
product as the marketing campaign. Let’s
enjoy with a few examples.
44 November 2012 | MOBILE PAYMENTS 45
Play the Cube Mobile Payments
Mobile payments are on their way to become a mass phe-
PlayMapsCube is a tilt-to-roll marble game using 3D
nomenon. Analysts believe that on the next five years most
and the Google Maps API. The game is a tutorial for
of the transactions done in physical commerce will be ex-
Google Maps but it includes some features that make
ecuted through mobile devices.
it an addictive game. Is it really needed to explain how
Google Maps works? For most of the people probably This payments will shape the way monetary transactions
not, but it is cool and it will be useful during the maps are seen in the future by the society as a whole, and will
war for sure. surely transform the clients’ lives.
The Mobile Payments event will be held
on November 29th.
Chaos to perfection World Wonders Project From 9.30 to 2.00 pm. BBVA Innovation Center
The Google Cultural Institute has created an amazing Another example created by the Google Cultural Plaza de Santa Bárbara, 2, 28004. madrid
3D virtual tour of the Palace of Versailles. This Institute to show how Google Street View works.
example shows the true power of Google Chrome Google makes world heritage sites available
navigator working with WebGL for rendering to users across the globe by using the Street
interactive 3D graphics without the use of plug-ins. View technology including videos, photos and
in-depth information. Users can now explore Other events
the world wonders just as if they were there. Videos,
pictures and ■ INICIADOR
Iniciador Madrid with Enrique Burgos “Keys to developing
all the info your personal Brand”.
Iniciador Madrid dismissed the 2012 season with an interview
to Enrique Burgos (Chief Marketing Officer at QDQ Media) to
discuss the main keys to creating a personal brand.
Date: December 12th, 18.00 in BBVA Innovation Center
know Square Workshop: “Creating an optimal present”.
The crisis has led to a further weakness in the already difficult
world of channeling emotions. This workshop aims to fami-
Check out the videos and photos liarize and empower main mindfulness, from the standpoint
of the event in our web of both theoretical and practical.
www.centrodeinnovacionbbva.com Date: December 18th at 18:30 BBVA Innovation Center
46 November 2012 | MOBILE PAYMENTS 47
Where we are
BBVA Innovation Center Madrid, is a place where ideas become reality. Would you lle
like to know? You can see the prototypes we created to model the bank of the fu- no
ture, to understand how we crossed the barrier of convention to seek new sources
Just make a
of value for our customers and to observe new forms of work that we have de- reservation the day
ployed to support our innovation methodology. that want to come
Plaza de Sta. Bárbara, 2. 28004 Madrid.
The first few days available for
the month of December are: December 1 2
3 4 5 6 7 8 9 www.centrodeinnovacionbbva.com
December 4th at 18:00 10 11 12 13 14 15 16
December 12th at 10:00 17 18 19 20 21 22 23 Follow us:
24 25 26 27 28 29 30 www.facebook.com/centrodeinnovacionbbva twitter.com/cibbva
December 19th at 18:00
31 www.youtube.com/user/centroinnovacionbbva www.slideshare.net/CIBBVA
48 November 2012 | MOBILE PAYMENTS 49
BBVA Innovation Edge is the first corporate magazine
focused on innovation. Innovation Edge aims to
explore new trends and technologies that may impact
the financial industry, especially retail banking.
Edge is the result of a
collaborative work done
by all the people who are
involved in innovation at
APP: Available on the App Store...
CONTRIBUTORS TO THIS ISSUE:
Maria Pilar Álvarez
Jose Fernández WEB: ... and also on the web:
Eduardo Gabriel García
David Martín PDF: To read off-line
Gustavo Vinacua Are you interested More info
Jose Manuel Villa in Innovation Edge?
Sang Gu “Phil” Yim
Pedro Francisco Zago
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retrieval, without permission of the publisher, BBVA. DL: M-38720-2012