6. www.mobilesquared.co.uk
Phase I DCB hits ceiling
@mobilesquared
61%
70%
75% 78%
39%
30%
25% 22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY2014-15 FY2015-16 FY2016-17 FY2017-18e
Slowdown of phase I DCB growth
Mobile-based revenues Voice-based revenues
Phase I content & services
• Betting or gambling
• Games or apps charge to my bill
• Games on social network
• Internet-based information services
• Music and video content
29%
7%
0%
5%
10%
15%
20%
25%
30%
35%
2014-15/2015-16 2015-16/2016-17
Phase I DCB revenue change
7. www.mobilesquared.co.uk
VAULT
@mobilesquared
Phase I Betting or gambling
Games or apps charge to my bill
Games on social network
Health & lifestyle apps
Internet-based information services
Music and video content
Phase II Represents new industries and sectors adopting DCB, such as ticketing
in particular, which has the potential to drive consumer usage beyond
the early adopters into the mass market.
Value-Added Utility & Lifestyle Transactions (VAULT):
- Low-cost transport train tickets, bus rides, car parking, taxis
- Low-cost entertainment tickets, high-cost ticket deposits
- Random, take-away food, pizza, stamps, bike hire, short break travel
insurance
• Phase I usage dominated by early adopters
• Revenue slow down first indication that
transition from Phase I to Phase II will not be
seamless.
17. www.mobilesquared.co.uk
Around the world
@mobilesquared
Rovio teamed up with SingTel/Fortumo to sell plush toys
Result: 5 times lower shopping cart abandonment than credit cards
Spain’s Movistar, Orange and
Vodafone work with DOCOMO to
launch a mobile ticketing app, e-
Park app to purchase parking
across 13 cities – downloaded
over 500,000 times.
DOCOMO also working cross-carrier with
bus company Alsa.
Company has signed deals with Sunrise,
Three Ireland and Vodafone UK.
Japan’s largest coffee
chain Ueshima Coffee working
with Boku and mobile network
operators KDDI and Docomo.
Users to top-up loyalty cards
using their mobile bill.
18. www.mobilesquared.co.uk
Consumers say
25% of existing VAS users likely or very
likely to use DCB Phase II services
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Transport
Entetainment
Random
How likely are you to use DCB?
Very likely Likely Neither likely or unlikely Unlikely Very unlikely
@mobilesquared
19. www.mobilesquared.co.uk
Frequency
Still viewed as an alternative payment by majority of VAS users
• 9% view DCB as a primary payment mechanism
@mobilesquared
9%
13%
23%
7%
14%
34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Daily Weekly Monthly Quarterly Annually I don't know
How often would you use DCB?
20. www.mobilesquared.co.uk
DCB spend
£11-15 most popular spend
• 68% of users would spend up to £15
@mobilesquared
0%
5%
10%
15%
20%
25%
30%
£0-5 £6-10 £11-15 £16-20 £21-25 £26-30
How much do you think you would spend using DCB?
22. www.mobilesquared.co.uk
DCB spend by region
@mobilesquared
0.00
100,000,000.00
200,000,000.00
300,000,000.00
400,000,000.00
500,000,000.00
600,000,000.00
Total Europe Asia RoW
WTM2017: DCB Phase II users, spend up to $20
$14-20
$7-14
$0-7
23. www.mobilesquared.co.uk
Why DCB?
Convenience is the driving factor for DCB adoption
@mobilesquared
Please explain why you are “very likely” or “likely” to use DCB
I like the convenience of using my mobile
phone to make payments
I like to have multiple payment options
I like to have multiple payment options
I trust my mobile operator
I don't know
24. www.mobilesquared.co.uk
You’re welcome
We’ve got a ton of data and analysis not only on DCB, so please get in touch
nick@mobilesquared.co.uk
Office: +44 (0) 1344 747 113
Mob: +44 (0) 7976 057 052
www.mobilesquared.co.uk
@mobilesquared
@mobilesquared