The November edition of Mobile Wallet Outlook examines three key developments in the nascent mobile wallet arena over the last month: merchants’ attitudes to mobile payments and the role they should take in bringing mobile wallets to market; the introduction of significant new players into the bank account market; and the question of how far developments in the US will influence the international mobile wallet business — or if the US is set to follow its own path to mobile payments.

Mobile Wallet Outlook is the monthly briefing component of The Mobile Wallet Report, a subscription-based market intelligence service for decision makers working on — or holding a watching brief on — the introduction of cutting edge mobile payment, loyalty, offers and identity programmes.

Every month this briefing identifies and analyses the latest trends and developments in NFC and mobile wallets and explains how they impact the future of the market.

Subscribers also get a series of timely standalone spot reports that look in detail at specific technologies, applications, players and vertical markets. They also receive “lessons from the frontline” — case studies that examine in detail what others all over the world have already tried, what they learned and what they would have done differently.

“The Mobile Wallet Report is designed to keep readers continuously up-to-date with the latest thinking on NFC and mobile wallet business models,” says editor-in-chief Sarah Clark. “We talk with innovators, disruptors and early adopters as well as established players around the world to bring subscribers answers to the big questions surrounding the future of the mobile wallet market.”

The Mobile Wallet Report is produced by SJB Research, the UK-based publisher of NFC World (www.nfcworld.com), the leading NFC industry news website. Further information can be found at www.TheMobileWalletReport.com and sample issues are available on request.

Contact

Joe Davies, Associate Editor at SJB Research
Tel: 01341 760123 (International: +44 1341 760123)

Email: joe@sjb.co.uk

Publisher website: http://www.sjb.co.uk
The Mobile Wallet Report website: http://www.TheMobileWalletReport.com

The company is now located at:

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Telephone and fax numbers remain unchanged, and full up-to-date contact details can always be found on the ‘contact’ page on the SJB Research website at www.sjb.co.uk/contact.

About SJB Research

SJB Research is an independent analyst firm that is an international authority on NFC technology, business models, products and markets.

SJB Research consults for household-name clients, publishes research reports and market studies and produces NFC World, the leading NFC industry news website.

Contact

Mike Clark, publisher at SJB Research
Tel: 01341 760123 (International: +44 1341 760123)

Email: mike@sjb.co.uk

The new NFC phones enable consumers to replace the contents of their existing wallet or purse with a new ‘mobile wallet’ that can be used to access a wide range of services, from payments to discount coupons, access control to transport ticketing and beyond.

“NFC is attracting interest from mobile networks, mobile phone makers, banks, retailers, transport operators, advertisers and a wide range of other businesses and government organisations,” says Sarah Clark, author of a new white paper published this week by SJB Research.

“Understanding of the business models that will succeed is still in its infancy, however, and there is much confusion over what is actually involved in delivering NFC services to consumers, who needs to be involved in planning the infrastructure required and the kind of company that is best positioned to succeed.

“Our NFC Business Models research report sets out the latest thinking from around the world on what successful NFC services will look like, the building blocks that will need to be put in place in order to drive adoption of NFC services, the roles and responsibilities of each of the numerous players in the value chain and the business strategies that are most likely to succeed,” Sarah explains.

“With this white paper our aim is to provide everyone with a basic grounding in the key issues involved and, we hope, to clear up some of this confusion.”

The NFC Business Models white paper is based on the executive summary and key findings from the full research report. It introduces a number of concepts that are fundamental to understanding how the NFC market will evolve and includes details of ten of the most important findings from the research report.

The white paper can be downloaded free of charge from the SJB Research website at http://www.sjb.co.uk/models-paper

About SJB Research

SJB Research is an independent analyst firm that is an international authority on NFC technology, business models, products and markets.

SJB Research consults for household-name clients, publishes research reports and market studies and produces Near Field Communications World, the leading NFC industry news website.

Useful links

• More information about the NFC Business Models research report: http://www.sjb.co.uk/models
• Free white paper download: http://www.sjb.co.uk/models-paper
• SJB Research corporate website: http://www.sjb.co.uk/

Images

Downloadable imagery at various resolutions can be found at http://www.sjb.co.uk/media/images/

Contact

Mike Clark, publisher at SJB Research
Tel: 01341 760123 (International: +44 1341 760123)

Email: mike@sjb.co.uk

Sarah Clark, author of ‘NFC Business Models‘ explains what the announcement means and why the operators have joined together to make the announcement:

“NFC phones are set to revolutionise the way we decide what products to buy, where we choose to buy them and how we choose to pay,” says Sarah.

The new NFC phones contain a high security chip known as a secure element which acts like an electronic version of your wallet and can be used to replace everything from credit cards and loyalty cards to bus and train tickets, library cards, door keys, coupons and even cash.

These chips can be built into mobile phones and other devices by the manufacturer, they can be integrated into SIM cards issued by mobile networks to their subscribers and they can be added to existing phones via special microSD cards or stickers issued by banks and other organisations.

“Whoever provides a consumer with a secure element can then generate new revenues by leasing space on the chip to other businesses that also want to offer next-generation mobile services to their customers,” Sarah explains.

“In the GSMA statement issued today, the mobile operators make it clear that they plan for NFC services to be delivered using the SIM as the secure element, placing operators in control of NFC services — and future revenue streams.”

“The announcement does not necessarily mean, however, that these leading operators have now found an answer to the need for a business model for the launch of commercial NFC services,” she adds. “Rather, this announcement signals the operators’ realisation that they need to work together in order to deliver the same global reach that a rival offering from handset manufacturers and others would provide.”

“Essentially, they are involved in a bid to grab land — and a significant share of revenues — ahead of expected rival proposals from the likes of Google and Apple. The move is likely to prove to be good news for consumers and for businesses such as retailers, transport operators, travel firms, brands and others looking to take advantage of the arrival of NFC services since there will be competing offers on the table and that should lead to lower prices.”

The full announcement from the GSMA is available to view on the association’s website.

About the ‘NFC Business Models’ research report

‘NFC Business Models’ provides companies looking to benefit from the arrival of near field communication technology with the information needed to understand the issues, identify their options and develop a strategy for success. Further information, a full table of contents and online ordering facilities are available at http://www.sjb.co.uk/models.

Contact

Mike Clark, publisher at SJB Research
Tel: 01341 760123 (International: +44 1341 760123)

Email: mike@sjb.co.uk

Publisher website: http://www.sjb.co.uk
Report website: http://www.sjb.co.uk/models

The new NFC phones contain a high security chip known as a secure element which acts like an electronic version of your wallet and can be used to replace everything from credit cards and loyalty cards to bus and train tickets, library cards, door keys, coupons and even cash.

The tiny secure element chips can be built into mobile phones and other devices by the manufacturer, they can be integrated into SIM cards issued by mobile networks to their subscribers and they can be added to existing phones via special microSD cards or stickers issued by banks and other organisations.

“Whoever provides a consumer with a secure element can then generate new revenues by leasing space on the chip to other businesses that also want to offer next-generation mobile services to their customers,” says Sarah Clark, author of ‘NFC Business Models‘.

“Mobile network operators, banks, handset manufacturers and technology providers around the world are all planning to create major new revenue streams by providing consumers with these mobile wallets,” she explains. “But understanding of the business models that are most likely to succeed is still in its early days and there will be winners as well as losers in the NFC revolution.”

‘NFC Business Models’ explains in detail the latest thinking from around the world on how to implement the five fundamental building blocks required to make an NFC service a success. These are: the core infrastructure that will form the backbone upon which NFC services are delivered; the business models available to the mobile network operators, banks and handset manufacturers who will provide consumers with their mobile wallets; the issues involved and strategies for success in the NFC payments market; gaining buy-in from consumers and from service providers; the launch strategies that are most likely to succeed.

The ‘NFC Business Models’ research report addresses key questions facing the industry today including:

• How can merchants be persuaded to adopt the contactless payments terminals required to support NFC transactions?
• What are the benefits to banks of providing NFC services — and do the benefits outweigh the costs involved?
• What kind of pricing models will need to be offered to service providers — and will they be sufficient to cover the costs of developing and making available an NFC service delivery platform and of issuing NFC devices to consumers?
• Will consumers be willing to pay for an NFC mobile wallet? And what kind of services will they want to use?

“Many companies are looking to profit from NFC,” says Clark. “Global organisations like Apple, Google, Visa, PayPal and Facebook are all working on the technology, along with retailers, travel firms, public transport operators, financial institutions, brands, car manufacturers, security firms, central and local government, marketers and advertisers — even your local supermarket.

“The stakes are high and success will rely on meeting the needs of three key groups — consumers, merchants and the widest possible range of service providers,” Clark explains. “The companies that succeed will be those that take the time to gain an understanding of the needs of each of the parties involved and then design an infrastructure that provides a win:win:win solution for all.”

‘NFC Business Models’ provides companies looking to benefit from the arrival of NFC with the information needed to understand the issues, identify their options and develop a strategy for success. The 170-page research report is available to purchase today for £797 (US$1,258/€924).

Further information, a full table of contents and online ordering facilities are available at http://www.sjb.co.uk/models.

Note to editors

A copy of the executive summary, including the key findings from this new report, is available to journalists and bloggers on request. Sarah Clark, the author of ‘NFC Business Models’, is also available for interview.

Contact

Mike Clark, publisher at SJB Research
Tel: 01600 715994 01341 760123 (International: +44 1600 715994 +44 1341 760123)
Email: mike@sjb.co.uk

Publisher website: http://www.sjb.co.uk
Report website: http://www.sjb.co.uk/models

Banks and mobile network operators will both be seeking to make money from the introduction of the new mobile payments technology, the report predicts, and are set to go head to head in a bid to gain control of the market.

“NFC technology will be used to replace everything from credit cards and loyalty cards to bus and train tickets, library cards, door keys and even cash,” says Sarah Clark, author of NFC: The Road to Commercial Deployment. “What hasn’t yet been decided, however, is who will win the battle to provide consumers with their new hi-tech mobile wallets.”

The UK, France, United Arab Emirates, Singapore, Taiwan and Korea will be the first countries to get the new mobile wallets, the report predicts. The US, Canada, Spain, Germany, Italy, Norway, the Czech Republic, Romania and Australia are also expected to be early adopters of NFC.

Businesses ranging from retail and travel to fast food, consumer goods, tourism and entertainment are all expected to be affected by the arrival of NFC services. Government and educational service providers will also be impacted by its arrival.

“Decisions made in 2010 will be critical in determining which mobile network operators, which banks, which industry suppliers and which service providers become the leaders in the field,” she adds. “Ultimately, only two or three companies in each country will succeed in building a major new business providing NFC services to businesses and consumers. The winners could be banks or mobile operators, or even a new entrant to the market.”

Consumers with NFC-enabled phones will be able to simply touch their phone to a ‘smart’ poster or product label containing an RFID chip to sign up for a loyalty programme, collect a money-off coupon, download a trailer for a new movie, access the latest travel information or go straight to a product’s website to read customer ratings and reviews and compare prices.

Social networks will also get a major boost. With an NFC phone, you can friend someone online when you meet them in the real world by simply touching your phones together. Or touch your phone to a smart poster as you go into a restaurant to automatically update your Facebook status and get an offer coupon from the venue as a thank you for telling your friends you’re there.

Commuters will be able to store their travel pass on their phone and mobile versions of airline boarding cards, hotel room keys and even passports will make it quicker and easier to get from place to place. Paying bills will become much simpler, too. Simply touch two NFC phones together to transfer money to a friend, buy a drink or pay for a service.

“No more rummaging around for the right change, card, keys or paperwork and no more texting your location to your friends — with NFC everything can be handled by your mobile device,” says Clark. “And, of course, NFC is a highly secure technology. Consumers will be able to instantly lock all the mobile wallet services on their phone if it is lost or stolen and then get them automatically transferred onto a new phone as soon as it arrives. They will also be able to use their phone to make payments even when the battery is flat.”

‘NFC: The Road to Commercial Deployment’ examines the international market for near field communication technology from 2010 to 2014. It is published by SJB Research, a UK company specialising in analysing the market for emerging technologies in the mobile and payments fields. SJB also produces the international industry news website Near Field Communications World.

The report provides detailed guidance for banks and mobile operators looking to introduce NFC successfully and for companies wishing to offer NFC services to their customers. It includes an analysis of the technical and business challenges that still need to be resolved and explains how mobile operators, banks, handset manufacturers, industry suppliers and key potential NFC service providers will resolve those issues during 2010.

‘NFC: The Road to Commercial Deployment’ explains the key factors that will decide which companies will become the mobile wallet market leaders and details what the first NFC services will need to offer in order to succeed.

The research report is available to purchase today. Further information and online ordering facilities are available at http://www.thenfcreport.com/road.

Note to editors

Information on the impact of NFC mobile wallets for particular industries and in particular countries is available to journalists and bloggers on request. Sarah Clark, the author of ‘NFC: The Road to Commercial Deployment’, is also available for interviews.

Contact

Mike Clark, publisher at SJB Research
Tel: 01600 715994 01341 760123 (International: +44 1600 715994 +44 1341 760123)
Email: mike@sjb.co.uk

Publisher website: http://www.sjb.co.uk
Report website: http://www.thenfcreport.com/road