Mobile Value Added Services as the driver for Mobile NFC Adoption Solution Framework & Go-to-Market Perspective Wilianto Wu, VP Mobile & Digital Convergence

Mobile Value Added Servicesas the driver forMobile NFC AdoptionSolution Framework & Go-to-Market Perspective

Wilianto Wu, VP Mobile & Digital Convergence APMEA, MasterCard

Copyright 2012 MasterCard

This “Mobile Value Added Services as the driver for Mobile NFC Adoption” presentation (“document”) contains the proprietary and confidential information of MasterCard International Incorporated and its affiliates d/b/a MasterCard Worldwide (“MasterCard”). By accepting and reading this document presentation you agree and acknowledge that the contents of this document and the fact and substance related to the existence of this document are confidential and proprietary information of MasterCard. You shall not disclose the contents of this document or discuss its existence with any third party or use this document in any manner other than in connection with the evaluation of the opportunity described herein with MasterCard. You shall limit dissemination of this document within your company only to those employees or officers who have a need to know for the purposes of evaluating such opportunity.

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Consumer’s need

Merchant’s need

Service Provider’s need

Solution Framework

Go-to-market Perspective


Loyalty ProgramsConsu

mer

’s

need

Loyalty Program plays a significant role spending, purchase and payment behaviours

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Convenience is a given,

I want to see the benefit!

Consu

mer

’s

need

Convenience is just convenience, I

don’t gain anything from it. It’s not like

the way I pay for stuff right now is SO

troublesome that I’m desperately

looking for a solution. But this… the

coupons, I can easily see how this

would benefit me.

- 30-39 years old, Male

Simpler, faster,…& recommend the

offer to me

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Reward me now!

$ Discount Free Gift % Discount

Consu

mer

’s

need

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Reward me in my next purchase…

Scan… Save…

Consu

mer

’s

need

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Optimize this…

Loyalty

Coupons

Paymen

t

Present Loyalty card

Swipe Loyalty card

Present Discount coupon

Validate / scan

Present Payment card / Tap

Trigger paymentSign / Enter PIN

Mer

chan

t’s

need

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Mer

chan

t’s

need

Faster throughput at checkout

Better consumer analytics

Minimum or zero integration at POS

Easy to issue eCoupon

Easy to engage nearby customer

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Servic

e

Provid

er’s

need

Gaining top of wallet through offers & loyalty points

Better merchant value proposition

Acceptance infrastructure is reused

Minimum effort in the backend

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Premises for Mobile VAS Solution FrameworkSolutio

n

Fram

ewor

k

• Convenience is given, benefit is the carrot

Consumer

• Existing acceptance infrastructure must be reused• Easy, simple and cost-effective for all merchants to participate• Solution must support offer sponsorship by different parties

Merchant

• Flexible for new feature introduction• Open solution, can be implemented by anyone• Minimum integration effort for wallet provider

Service Provider

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Mobile Wallet A

Solutio

n

Fram

ewor

k

Mobile Wallet AMobile

Wallet A

Mobile Wallet BMobile

Wallet BMobile Wallet B

Mobile Wallet BMobile

Wallet BMobile Wallet B

Standardized interface

Standardized VAS

program in all terminals

Offer Management

System(s)

Merchant aggregator

Consistent workflow, flexible user

interface

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Mobile App needs to satisfy this…

Positive satisfaction & motivation

MOTIVATOR

Convenience E-Coupons

The failure to satisfy these become

barriers to uptake and usage

The satisfaction of which become

triggers or drivers to usage

Not dissatisfied

but not motivated

HYGIENE FACTORDissatisfaction

& demotivation

Loyalty Program + Rewards

Solutio

n

Fram

ewor

k

…

New marketing channel

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A couple of thoughts on NFC Wallet…

Need a CLEAR and compelling long lasting benefit

over consumers’ current options for them to switch

Superb user experience

Superb customer service

Simple onboarding

Addressing security concern

Addressing other perceived

barriers

Build true consumer utility

Payment

Couponing, Loyalty

Ticketing, Access control

Identity, P2P, …

Go-to

-mar

ket

Persp

ectiv

e

DRIVING BEHAVIOUR CHANGE DELIVERING THE HYGIENIC BEYOND CONVENIENCE

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Documents

Mobile Value Added Services as the driver for Mobile NFC Adoption Solution Framework & Go-to-Market Perspective Wilianto Wu, VP Mobile & Digital Convergence