Full PDF version downloadable at www.firstpartner.net. This updated Market Map provides an essential visual overview of the Mobile Payments & Banking market landscape. It includes NFC and other proximity payments, Mobile Commerce, Mobile Money in developed and developing markets and Mobile Banking. It describes typical target customer segments, differences between key geographic markets and the role of Mobile Wallets. The map gives a concise overview of the service provision and technology value chain and the roles played by Mobile Network Operators, banks, Payment Service Providers, payment networks and technology vendors. Key players are named and important trends and figures are highlighted. FirstPartner is an independent research and proposition development company specialising is areas including Payments, Mobile Advertising, Mobile Value Added Services and M2M. For more information visit www.firstpartner.net

1. 2014 Mobile Payments & Banking +44 (0)870 874 8700
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Regulators
Industry Associations /
Standards
USA
The US has been at the forefront of mobile payments
innovation in Western markets however offerings are
fragmented and true mass market adoption is still some way
off. The largest consortium Initiative, ISIS, launched
nationwide in Nov 2013.
Eastern
Europe/
Turkey
Western
Europe
Asia
Pacific
Developing
Countries
The powerful Sony/NTT DoCoMo alliance in Japan and
aggressive deployment by Korean carriers has put Asia in
the lead in mobile payment deployment. NTT DoCoMo,
China Mobile and KT have announced standards for NFC
roaming between countries.
With large unbanked populations, developing
countries have been at the forefront of mobile
banking/payment innovation. Kenya's M-PESA
demonstrated the potential and similar services
are now widely deployed.
National carrier consortia are forming to facilitate
co-ordinated NFC payment ecosystems, often
including retail banks and card networks.
Money transfer agencies are embracing mobile as a
remittance and bill payment channel and partnering
aggressively with carriers to deliver international
services.
Retail banks lead some MMT services and will be the
consumer channel for many mobile wallet and
proximity payment services.
Carrier Consortia Carriers Payment Processors OS & Hardware Platform Owners Remittance Agencies Retail Banks
Migrant Worker
Often cash centric, the need to send
money home drives use of international
and domestic remittance services.
Have regular needs to transfer money between
family members and for parental control of
spend. Potential adopters of mobile money
transfer in developed markets.
Low payment card ownership, high levels of group
social activity and comfort with mobile devices makes
this segment likely early adopters.
Unbanked
Those without ready access to traditional
banking facilities, or having a low propensity
to use them for cultural reasons. Mobile
makes essential financial service accessible.
Sophisticated Banked Families
Acceptance
Carriers are leading and branding many Mobile
Money Transfer and NFC services, partnering with
banks and payment processors as required.
Leading Payment Processors are launching mobile
wallets supporting multiple services.
Google and Apple combine leading handset
platforms with high levels of consumer engagement
and established payment processing capabilities.
Google Wallet launched in 2011 and an Apple launch
is widely speculated on.
Proximity Payments On-line and M-Commerce Mobile Money Transfer M-Banking
PaymentServices
Physical
Goods and
Services
Transport
and
Ticketing
Loyalty
and
Couponing
Mobile NFC Other
Contactless Acceptance Terminals Mobile Point of Sale
Reader equipped smartphones
and tablets enable micro
merchants and roving sales
people to easily accept card
and mobile payments.
E&M
Commerce
Digital
Goods and
Services
Domestic & international
remittance; sole trader,
merchant, bill & salary
payments
Balance Enquiry,
Account Management,
Money Transfer, etc.
Carrier and In App Billing
E&M Wallet
Carrier Billing In App Billing
Stored value or payment
account linked M-Wallets
support a simplified
M-commerce payment
experience.
Mobile Money Transfer for the Unbanked
Person to Person and Small Trader Payments
International Remittance
Banking the Unbanked
Driving Convenience
Mobile Authentication
Banks in developed markets are widely deploying
app and browser based M-Banking services to
give consumers greater flexibility and choice.
Mobile delivered one time passwords
provide a convenient strong authentication
tool for on-line financial services.
Using the mobile to provide banking
services where branch infrastructure
and adoption is poor.
Consumer
Segments
Young Socialisers
• ISIS,:Verizon, AT&T, T-Mobile
• Weve: Vodafone, EE, Telefonica UK
• TDC, Telenor, TeliaSonera, Three
• Mpass: Deutsche Telekom, Vodafone, Telefonica
• Cityzi: Orange, Bouygues, SFR, NRJ Mobile
The Mobile Wallet
The battleground for the consumer
Technology & System Vendors
NFC Chips SIM Based Secure Elements Banking & Processing SystemsWallet & App Vendors
Mobile payment for transport ticketing is well
established in a number of countries. Turkey and Poland
are among the most advanced payment markets in
Europe with widespread deployment of contactless
acceptance infrastructure and NFC services launched.
The pace of mobile payments launches in Europe accelerated
in 2013 & early 2014 with first commercial deployments of
VisaV.me, MasterCard MasterPass,VodafoneWallet and
Orange Cash. Signifcant upcoming launches include services
from the French bank consortium AFSCM.
NFC is the most widely backed technology for
"touch and go" payments, ticketing and PoS
promotions. Market adoption is dependent on
compatible handset and terminal penetration.
The adoption of Host Card Emulation by card
companies facilitates carrier independent services.
NFCStickers,MicroSDCards&Sleeves
Heavy users of cards, on-line banking and
e-commerce services . Mobile commerce and
banking services fulfil needs for immediacy
and control.
Apple’s iBeacons and PayPal Beacons both
based on Bluetooth Low Energy (BLE) may
herald a significant alternative to NFC.
Other technologies being deployed
include QR codes, SMS and MF Tones and
cloud based services.
MMT Platforms
Handset Vendors
Payment Processors and Service Providers
Acquirers Payment Service Providers (PSPs) Carrier Billing
Couponing and Loyalty
Consumer
Account
Provider
Source of
Funds
Funds
Transfers
Funds
Withdrawal /
Settlement
The Four Party
Model
Bank
Wallet Provider
• Card
• Stored Value
• Bank
Carrier
Bill/Prepaid
Balance
Mobile
Network
Operator
• Carrier Bill
• Mobile Money
Agent
• Mobile Wallet
• Agent
• Bank
Mobile PSP
Bank/Interbank
Network
Mobile Network Operator
Partner Bank
Issuer Card Network
• Acquirer
• PSP
The E-Wallet
Model
The Mobile
Money Transfer
Model
The Carrier
Billing Model
Transaction Fee
Payment Processing
Value Chain
Card & Debit Processing Networks
MMT Service Providers M-Banking Service Providers
Interbank ACH Networks
Merchant/ConsumerFacing
Markets
Mobile
Trusted Service Managers (TSMs)
Provisioning & Management
The map includes information compiled from interviews and information available
in the public domain. As information sources are outside our control, FirstPartner
makes no representation as to its accuracy or completeness. Responsibility for any
interpretation or actions based on this map lies solely with the reader.
Copyright FirstPartner Ltd 2014
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Introduction
Mobile Payments and Banking remain key for Mobile
Network Operators, Financial Institutions and Payment
Providers worldwide. While NFC PoS deployments
continue to progress slowly, consumer adoption of
remote mobile commerce and banking is growing
strongly and mobile money schemes continue to be
widely deployed in developing markets.
Mobile Payments in
Numbers
Sources
(1) GSMA Mobile Money Tracker
(2) Safaricom Half Year Results 2013-2014
(3) ABI Research
(4) Gartner
(5) Chinese Central Bank - People’s Bank of China
(6) Mobey Forum
(7) ABI Research Feb 2014
(8) PayPal inc.
225 Mobile Money Services
deployed in developing nations
with 115additional planned (1)
90%
Growth in P2B & B2P M-PESA
transactions 2012-2103. Overall
11.6 million active customers make
paments worth$1.1 Billion per
month (2)
320Million
NFC enabled devices
shipped in 2013
accounting for around
17.5% of total mobile
handsets 3, 4)
$1.6Trillion
of mobile payments
made in China in 2013
- growth of 318% year
on year(5)
46%
Projected market share of
mobile Point of Sale
terminals by 2017(6)
100%
Year on Year Growth in
value of mobile payments
processed by PayPal,
which reached $27 billion
in 2013. (8)
34Billion
Tickets will be delivered
to mobile devices over
the next 5 years with QR
making up 48% and NFC
30% (7)
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