1.
Mobile payment for vending machines June 9, 2009
 This is a sample copy with only a few selected
pages. Purchase and download the latest version
here:
 http://www.eurotechnology.com/store/cmode
Mobile Payment for Vending Machines
(C-mode, Suica)
(version 8 of June 9, 2009)
Gerhard Fasol PhD
fasol@eurotechnology.com
Eurotechnology Japan K. K.
http://www.eurotechnology.com/
©2007-2009 Eurotechnology Japan KK 1
www.eurotechnology.com

2.
Mobile payment for vending machines June 9, 2009
About the Author of this report�
 Gerhard Fasol is President and Chief Executive Officer of Eurotechnology
Japan KK, a boutique consultancy firm for leaders that he founded in
1996 in Tokyo. Eurotechnology Japan KK advises several of the world’s
largest blue-chip corporations, financial institutions, the Government of
Finland and the European Union on strategy and mergers and
acquisitions. Fasol has been working with Japan’s high-tech sector since
1984. He was manager of one of Hitachi’s research-and-development
labs, and was Associate Professor of the NTT Telecommunications Chair
at Tokyo University.
 Fasol has worked since 1984 with Japan’s telecom sector
 Fasol graduated with a PhD in Semiconductor Physics from Cambridge
University and Trinity College, Cambridge
©2007 Eurotechnology Japan KK 2 www.eurotechnology.com

3.
Mobile payment for vending machines June 9, 2009
License
Thank you for purchasing licenses to our reports, and for your cooperation with our licensing conditions.
Only through your purchases can we continue to produce high-quality market reports from Japan
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 Note.
This research report comes without any warranty of any kind. The authors and Eurotechnology Japan K. K. do not warrant that the
information in this report is without error, nor that the information serves any particular purpose. For legal advice please consult properly
licensed legal professionals, for investment advice please consult properly licensed financial advisors. Trademarks mentioned are the property
of their owners.
Eurotechnology is a trademark or registered trademark in Japan and other countries.
©2007 Eurotechnology Japan KK 3
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Mobile payment for vending machines June 9, 2009
Executive Summary:
Mobile payment for Vending Machines, C-mode, Suica
 C-mode combines i-mode with vending machines for customer relationship management
(CRM).
 At this point (February 2006) only about 1500 of Coca-Cola’s 1 million vending
machines in Japan are Cmode machines
 C-mode is a service developed by Coca-Cola, NTT-DoCoMo and Itochu Corporation. C-
mode’s trademark is owned by Coca-Cola.
 Coca-Cola’s underlying motivation for developing C-mode is to sell mobile content
(music, JAVA- Games (i-Appli), screen savers, etc) through CoCa-Cola’s drinks vending
machines, and customer relationship management
 Cmode vending machines (nickname: Cmo, Shimo), accept coins and YEN 1000 bank
notes and e-cash with i-Mode Felica wallet phones, print tickets, maps and other
information, read bar code tickets from the mobile phone display.
 Cmode machines are networked via DoCoMo’s packet switched wireless DoPa data
network.
 Cmode’s content and service partners include Pia (entertainment information and event
reservations), Tsutaya (a large rental video chain), SEGA and others.
 Almost all functions of Cmode require membership of “Club Cmode”, which collects
personal information of members and gives loyalty points to members. In January 2006
the number “Club Cmode” members reached 500,000
©2007 Eurotechnology Japan KK 4
www.eurotechnology.com

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Mobile payment for vending machines June 9, 2009
Agenda
 What is C-mode?
 The Cmode vending machine
 C-mode as part of Japan’s mobile payment landscape
 Felica wallet phones
 C-mode as part of the i-mode Eco-System
 The C-Mode payment system - the user perspective
 Mobile content sales via C-mode
 Club C-mode
 Competitive landscape, and comparable vending
machine systems
 Summary
©2007 Eurotechnology Japan KK 5
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6.
Mobile payment for vending machines June 9, 2009
What is C-Mode?
©2007 Eurotechnology Japan KK 6
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7.
Mobile payment for vending machines June 9, 2009
The C-mode Vending Machines
Cmode-1: initial model (2001)
Cmode-2: includes i-Mode-FeliCa wallet phone interface
(2004/2005)
©2007 Eurotechnology Japan KK 11
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Mobile payment for vending machines June 9, 2009
C-Mode as part of Japan’s Mobile
Payment Landscape
 More about mobile payment systems in Japan:
 http://www.eurotechnology.com/store/mobilepayment/
 http://www.eurotechnology.com/store/walletphone/
 http://www.eurotechnology.com/store/suica/
©2007 Eurotechnology Japan KK 18
www.eurotechnology.com

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Mobile payment for vending machines June 9, 2009
FeliCa Wallet Phones
More reports about FeliCa wallet phones:
 http://www.eurotechnology.com/store/walletphone/
 http://www.eurotechnology.com/store/suica/
 http://www.eurotechnology.com/store/mobilepayment/
©2007 Eurotechnology Japan KK 26
www.eurotechnology.com

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Mobile payment for vending machines June 9, 2009
C-mode as part of the
I-Mode Eco-System
 More about i-Mode:
 http://www.eurotechnology.com/store/imode/
 More about mobile payment and m-commerce:
 http://www.eurotechnology.com/store/mobilepayment/
©2007 Eurotechnology Japan KK 35
www.eurotechnology.com

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Mobile payment for vending machines June 9, 2009
The Cmode Payment System:
The User Perspective
©2007 Eurotechnology Japan KK 40
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12.
Mobile payment for vending machines June 9, 2009
Mobile Content Sales via Cmode
©2007 Eurotechnology Japan KK 49
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13.
Mobile payment for vending machines June 9, 2009
Competitive Landscape
and
Comparable Vending Machine Systems
©2007 Eurotechnology Japan KK 61
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14.
Mobile payment for vending machines June 9, 2009
Taspo – payment card and
e-cash for tobacco
©2007 Eurotechnology Japan KK 66
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15.
Mobile payment for vending machines June 9, 2009
Summary
Mobile Payment for Vending Machines
©2007 Eurotechnology Japan KK 68
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16.
Mobile payment for vending machines June 9, 2009
Summary:
Mobile Payment for Vending Machines
 Cmode, SUICA and other electronic payment, and RFID based payment systems are
increasingly used for mobile payments at vending machines and to introduce customer
relationship management (CRM) solutions to vending machines
 Cmode connects vending machines to DoCoMo’s DoPa networks and links them to i-
mode, and i-Mode-Felica wallet phones via a new user interface.
 Cmode enables soft drink machines to sell mobile content, and higher priced and
sophisticated services, products and software.
 Cmode enabled vending machines (nickname: Shimo), accept YEN 1000 bank notes and
coins, electronic/mobile payment via mobile Felica wallet phones, print tickets, maps and
other information, read QR-code tickets from the mobile phone display, and interact with
the user.
 Cmode’s initial content and service partners include Pia (entertainment information and
event reservations), Tsutaya (a large rental video chain), SEGA and others.
 Customer relationship management (CRM) system for vending machines: Almost all
functions of Cmode require membership of “Club Cmode”, which collects and stores
personal information of members, gives loyalty points to members, and manages the
customer relationship.
©2007 Eurotechnology Japan KK 69
www.eurotechnology.com

17.
Mobile payment for vending machines June 9, 2009
More information:
 Blogs:
 http://fasol.com/blog/
 http://eurotechnology.com/blog/
 Reports:
 http://www.eurotechnology.com/store/
©2007 Eurotechnology Japan KK 70
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18.
Mobile payment for vending machines June 9, 2009
Contact
 Eurotechnology Japan KK
 Shinagawa Intercity Tower A 28F
 2-15-1 Konan, Minato-ku
 Tokyo 108-6028, Japan
 Tel +81-3-6717-4160
 FAX +81-3-6717-4141 and
+81-3-5477-7044
 http://www.eurotechnology.com/
©2007 Eurotechnology Japan KK 71
www.eurotechnology.com
 CEO: Gerhard Fasol PHD