This document discusses mobile payment trends in Europe based on surveys of industry professionals and consumers. Key findings include: 1) Ease of use, security, and trust are important factors for consumer adoption according to both industry and consumer surveys. 2) Over half of consumers in France, Germany, and the UK have used mobile payments, led by France, but most have only done so for less than six months. 3) Browser-based payments are the most popular payment method, while awareness and usage of NFC payments is lower. 4) Non-users are not convinced of the usefulness or ease of mobile payments over other methods and lack trust in the technology. Trialing mobile payments is important to increase adoption.

1. Research - Mobile Payments Europe
Paying by phone – dream or reality?
Prepaid Exchange France
Paris, May 2013

3. Reminder - the Unique Gx Proposition
We help maximise returns on your investment in payments
• 100% focussed on emerging payments &
prepaid, operate in France/SA/Canada/UK1. Domain
• Dedicated to transforming the world of
payments by empowering success2. Purpose
• Provide events, intelligence and support
tailored for different needs3. Product
• Dedicated to YOUR success and THE
INDUSTRY’S success4. Approach

4. Firstly, thanks to our Members

5. What we will discuss today
1. Industry Survey Results
• 159 respondents
• From the payments industry (English bias)
2. Consumer Survey Results
• 1,400 respondents across 4 countries
• Users of mobile payments
3. Hot Examples
• Innovative developments in mobile

6. Hot examples
Included within the slide deck to keep you entertained
1. Paywith
2. iZettle
3. Droplet
4. O2 Mobile Wallet
5. Pingit

10. 1. Industry Survey

11. Industry Survey 2013
• Online survey conducted in February 2013
• 159 respondents
• Cross-industry verticals
• English language bias

15. What are the keys to user adoption?
 Industry views are similar to consumer views – simplicity,
trust, security and problem-solving is important.
57
64
70
71
77
0 10 20 30 40 50 60 70 80 90
Capable of solving problems
Security of use
Consumer trust
Good consumer experience
Simplicity of Use
Percentage

17. PayWith, bringing discount coupons to payment

20. 2. European Consumer Survey

21. European Mobile Payments Survey Results
• Online Surveys conducted in February 2013
• 1,400 European consumers
• Gender split even

22. A. Users: Those who have made payments

23.  eCommerce & mCommerce growth plays a significant role in this
high figure
25
35 35 32
75
65 65 68
0
10
20
30
40
50
60
70
80
France Germany Italy UK
Percentage
Have you used a mobile phone to pay for goods or services?
Yes
No
High % used a mobile phone to pay, led by France

24. Majority using phone to pay for less than 6m
68
53
60.1
56
32
47
39.9
44
0
10
20
30
40
50
60
70
80
UK France Germany Italy
Percentage
Length of Time making Mobile payments
Less than six months
Six months or more
 Still a new market – particularly around non-browser based applications
 But up to 2/3rd of users of phone for payments in last six months – rapid adoption

25. Browser-based payments the most popular
method of last payment
 NFC Needs more a) consumer education, b) increase of transaction limits & c)
retail POS terminals to grow – incremental growth
 Is it actually solving a problem for consumers?
• UK – 46% of last payments made on a browser.
• UK & France – similar levels of Tap and Go by consumers.
- Much lower in Italy & Germany
• SMS Payments are higher in France and Germany
• UK – low levels of carrier based billing for last transaction – just
over 1%
- Much higher in Germany, France & Italy

26. Awareness of Fees – split into 2 groups
44
32
62
69
56
68
39
31
0
10
20
30
40
50
60
70
80
UK France Italy Germany
Percentage
Awareness of Transaction Fees
Yes
No
 7 out of 10 French consumers are not aware of transaction fees like UK
 Italians and Germans largely aware of fees

27. Do fees represent good value?
52
64
23
33
37
28
65
18
11
8
12
49
0
10
20
30
40
50
60
70
UK France Germany Italy
Percentage
Fees were Low
Fees were About Right
Fees were High
 Italians unhappy with fees – due to comparable products
 French happiest with low levels of fees

32. What did people like or dislike about
experience?
• Minority Dissatisfied
– Seemed to take too long to transact (all countries – higher Italy)
- Poor network connectivity (all countries – higher Italy)
- Fees too high (Italy)
• Neutrals – How could experience be improved?
- Increase speed of transactions (all countries)
- More discounts and special offers (all countries)
• Majority Satisfied
- Quick and easy to use
- Convenient & Fun

33. Who raised awareness of mobile payments?
• Friends and Family across three countries (UK, Ger, Fr)
- WOM & Observation
• Internet
• Newspapers
Social Interactions are key drivers of
building awareness of mobile payments

35. Pingit
Big bank making sending money easy
• Send money by text
• ‘Barclays’ best digital
customer acquisition tool’
(Marketing Week)
• 1.5m downloads since 2.12

36. B. Non-Users

37. Several consistent findings across the study
• Non-Users do not:
• Consider it useful to use a mobile phone to make a payment
over other methods
• Have the same levels of trust in mobile payments
• Consider it would be easier to use a mobile phone to
make a payment
Non-users are aware of paying on a mobile -
they are just not convinced why they should

38. A crucial step is Trial
Trial depends upon many
conditions being met.
Trial
Intention
to Use
Ease of Use
Trust
Usefulness
Source: Gx

40. Droplet – fee-free payment platform
It’s free for everyone

45. What would make non-users start to use?
• Observing others using mobile payments
• Being shown how to use the technology themselves….
• ….and trialing the technology themselves
Don’t underestimate the investment
required to stimulate behaviour and
change to pay by mobile
Traditional Telco marketing
communications are unlikely to work

48. O2 Mobile Wallet
Multiple options
• But are the options what
customers want?

52. Contact details
Tony Craddock
CEO
Global Prepaid Exchange Ltd. and Awards Portfolio Ltd.
Tony.Craddock@yourgx.com
+44 7803 203 405
• Join our LinkedIn Groups: People in Prepaid; People in Emerging Payments
• Follow me on Twitter: @TonyCraddock