1. Thin Is In
The Future of Digital Wallets
October 18, 2011 1

2. Christina Nguyen White
User Experience Designer, Mobile & Multi-channel
2

3. This is an inspirational talk on
Digital Wallets
in the eyes of a consumer 3

4. 1. Who’s trying and succeeding?
2. What questions should we be asking?
3. How do we make it real?
4. How will it change the way we shop?
This is an inspirational talk on
Digital Wallets
in the eyes of a consumer 4

5. What’s your wallet personality?
✔
5

6. What’s your wallet personality?
✔
6

7. What’s in your wallet?
7

8. What else?
8

9. What is a digital wallet?
9

10. Digital Wallet
Payment Financial Coupons Comparison Tickets/
Method Management Shopping Passes/ ID
10

11. 1
Who’s trying?
11

12. 12

13. Devices
13

14. What is an NFC Chip?
4”
14

15. Devices
15

16. Financial Management
16

17. Financial Management
Mint.com Pageonce USAA Chase
17

18. Coupons
18

19. Coupons / Check-In Incentives
Shopkick Groupon CardStar Best Buy Reward Zone
19

20. Comparison Shopping
20

21. Comparison Shopping
Red Laser Lasoo Scan & Shop Google Shopper
21

22. Tickets / Passes
22

23. Tickets / Passes / IDs
Japan Japan Hong Kong
Public Transit Pass Mobile Airline Check-In Octopus Wallet Watch
23

24. Payment Method
24

25. Payment Method
25

26. Payment Method
26

27. Who’s close?
27

28. Who’s close?
28

29. Who’s close?
+
=
+
29

30. Devices that will be replaced* by mobile phone users
according to mobile phone users worldwide, June 2010
% of respondents
TV 5%
Personal ID card 18%
eReader 22%
Car Keys 24%
Video Recorder 27%
Personal Computer 27%
Credit Card 31%
Digital Camera 52%
iPod or MP3 Player 54%
GPS 54%
Note: Ages 18+, *within 5 years
Source: Oracle, “Opportunity Calling-The Future of Mobile Communications”, Sept 22,2010
30

31. 2
What questions should we be asking?
31

32. Who’s responsible for smartphone security?
15%
Feel the phone
manufacturer is
30%
Feel the cellular carrier is
55%
Feel the individual is
Source: cellphones.org
32

33. What’s in your phone?
33

34. Are digital wallets safe?
$3.3-8.6Bn annually
US Credit Card Fraud est. range
based on the use of mag-stripe credit card technology
Sources: Secret Service, Oracle Financial Services
34

35. Are digital wallets safe?
France cut card fraud by more than 80%
by using PCI compliant EMV Chip technology and PIN number
instead of mag-stripe and signature at the point-of-sale
35

36. Will digital wallets reduce fraud?
Yes, digital wallets will help reduce fraud.
“Dynamic authentication is the key to securing payments into
the future"
Ellen Richey, Chief Enterprise Risk Officer at Visa
36

37. Who are the players?
Before
+ +
After
+ + +
37

38. Who “owns” the digital wallet?
Financial Institutions Carriers Retailers
38

39. Financial Institutions Carriers Retailers
• Payment Processing
What they
• Credit Card services
bring to the • Bank services
table: • Security Infrastructure
What they • Customer-Centric
perspective
need to
• Technology to support
adopt:
39

40. Financial Institutions Carriers Retailers
• Payment Processing • Networks & Location Based
What they Services & Messaging
• Credit Card services
bring to the • Bank services • Drive Features & Standards for
table: OEMs
• Security Infrastructure
• Mobile Payment Services
• Direct Carrier Billing
What they • Customer-Centric
perspective
need to
• Technology to support
adopt:
40

41. Mobile Carriers
The North American Conundrum
OS OS OS OS OS OS OS OS OS OS OS OS
OS OS OS OS OS OS OS OS OS OS OS OS
OS OS OS OS OS OS OS OS OS OS OS OS
41

42. Financial Institutions Carriers Retailers
• Payment Processing • Networks & Location Based
What they Services & Messaging
• Credit Card services
bring to the • Bank services • Drive Features & Standards for
table: OEMs
• Security Infrastructure
• Mobile Payment Services
• Direct Carrier Billing
• Customer-Centric • Standardized handset
What they
perspective and OS
need to • Technology to support
adopt:
42

43. Financial Institutions Carriers Retailers
• Payment Processing • Networks & Location Based • Shopping Experience &
What they Services & Messaging Customer Perceived Value
• Credit Card services
bring to the • Bank services • Drive Features & Standards for • Consumer Data
table: OEMs • Point of Sale
• Security Infrastructure
• Mobile Payment Services • Customer Perceived Value
• Direct Carrier Billing • Reduction of Processing Fees
• Customer-Centric • Standardized handset • Integrated Point of Sale 
What they
perspective and OS “Everywhere shopping”
need to • Technology to support • NFC embedded phones
adopt: • Retail
43
partnership

44. Who “owns” the digital wallet?
Financial Institutions Carriers Retailers
44

45. 45

46. Who “owns” the digital wallet?
Financial Institutions Carriers Retailers
✔ ✔ ✔
46

47. Who influences the consumer?
Financial Institutions Carriers Retailers
47

48. Who influences the consumer?
Financial Institutions Carriers Retailers
✔
48

49. What needs to happen?
1 Financial Institutions, Carriers, and Retailers need to work together to
understand how to split up the transaction fees, etc.
2 Figure out how industry will get enough consumers to use the digital
wallet and enough merchants to accept mobile payments.
3 Ensure that the user experience is still easy to use & intuitive
49

50. Then what?
Consumers don’t want a new way to spend money faster.
vs.
50

51. Then what?
They want a new way to spend money wiser.
51

52. 3 How will we make it
a reality?
52

53. Remember the telephone?
53

54. Evolution of the Phone
Email
Caller
Camera Alarm
GPS ID
Clock
SMS Web
Apps, Address
Apps,
Apps Note Book
Games Book
Mp3
Player
54

55. Keep It Simple
vs.
Phone Wallet
55

56. Remember running 1 application?
56

57. 57

58. Avoid clutter
58

59. Gradually Enhance
Payment Method Financial Management Coupons Comparison Tickets/Passes
Shopping 59

60. Gradually Enhance
“Stroud” Curve of Downloadability
60

61. Your life is on your phone.
61

62. Your life is on your Facebook feed.
62

63. But your private, personal information is in your wallet.
63

64. Where does social belong?
Community Feed
64

65. Social Network = Digital Wallet
65

66. Social Network influences Digital Wallet
66

67. …by helping start the conversation
67

68. …and continue the conversation.
LOYALTY
LOYALTY
68

69. 4
How will it change the way we buy?
69

70. Mom
Driving
70

71. 71

72. [Parking
Lot
Scene]
72

73. 73

74. 74

75. 75

76. [Kitchen
Scene]
76

77. What’s in your wallet?
77

78. What is your wallet?
78

79. The Takeaways
• Think of consumer’s needs first
• Digital wallet is not JUST paying with your phone
• Keep it simple. Gradually enhance.
• Make it easy, effortless, and convenient.
• Find its relevant place within the shopping eco-system
• Enable and continue the conversation
• Be patient
79

80. Thank You
80

81. Questions?
81