PCM MPE 2017 Special

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Thought Leaders Corner “Wallet Wars” - The Awakening Consumer awareness of mobile payment has risen dramatically but adoption rates aren’t as high as many research institutions predicted. At this stage of mobile-first it is now time to move forward with valueadded services on an aggregated level to make mobile payment SEXY and CONVENIENT. by Martin Christl The current view on the mobile payment ecosystem Experts identified main challenges for the mobile payments landscape: 1. Mobile payment is not a seamless and consistent experience. 2. The Pan-European Consortia which aimed to unify the market, failed in its attempts due to a lack of collaboration and strategic alignment cross borders. 3. Payment schemes are looking for alternative revenue streams to compensate for their regulated transaction rates and to compete with fintechs entering the market. 4. PSD2 (European payment industry regulation) puts pressure on the whole payment market as providers have to open up their environments to standardised conditions. 5. Most of the mobile payment services don’t offer sufficient special incentives. 8
Thought Leaders Corner How to survive the “Wallet Wars”? Consumer centric user experience is the basic groundwork of the only useful but daunting KPI: Retention Rate. Merchants and brands seek deeper and stronger relationships with consumers to enable cross-selling and to up-sell their portfolio. Meanwhile a <strong>2017</strong> consumer expects consistent experience across all sales channels and touchpoints from the brands they love. Mobile wallets will play a key role in connecting brands and consumers and enabling a seamless shopping experience. People today have clearly expressed their desire for a single wallet that keeps track of all of their loyalty memberships and coupons, and automatically applies earned rewards. A well designed wallet is meant to: 1. enable a compelling mobile shopping customer experience 2. help merchants attract new customer and serve loyal preexisting customers 3. generate the necessary scale across the whole value chain. Considering the increasing adoption of mobile wallets such as ApplePay, AndroidPay, SamsungPay, and AliPay - how will other players compete with the growing number of global over-the-top services? The roadblock of mobile wallets The lure of something new has universal appeal. Therefore, it’s no surprise that mobile wallet providers spend a lot of resources to attract new consumers. But even for big brands, acceptance is growing slowly, mainly due to the diversity of offerings. Low merchant acceptance rates result in consumer mistrust. Mobile wallets don´t come with a lot of consumer friendly features in general, beyond the initial cool factor or the ability to save time at the till. If it’s urgent that consumers adapt their behaviour, you must come up with a game changing relevant experience. Sweet spot for merchant services Loyalty programmes and couponing are at the heart of many merchants’ customer engagement strategies. Advanced mobile technologies and services are opening up opportunities to make loyalty and couponing more relevant and compelling for consumers. In-store, merchants use mobile contactless technologies, such as GPS and Beacons for location aware interactions to influence consumers in a shopping situation (when presenting the loyalty card or pushing relevant, personalized content, for example). Moreover, merchants and brands can use mobile technologies and services to increase the effectiveness of their marketing campaigns in real-time. It’s obvious that each and every brand and merchant tries to have its very own app out in the market. As consumers interact with many different merchants and brands, it is unrealistic for business owners to expect that all individual B2C apps will be consumed equally. Today, consumers expect to find all shopping benefits in one relevant place. This is where the acceptance of mobile wallets comes in. In <strong>2017</strong>, things appear to be shifting again in the “Wallet Wars”: Besides device manufacturers Apple, Google and Samsung, it seems that only wallets that provide value-added services will survive. May the force be with you! Mobile payment alone is no game changer anymore. The strong demand for a value-adding ecosystem addressing consumer and merchant needs has become the No 1. market topic. The mobile-pocket loyalty HUB is built to enrich the loyalty services baseline in a wallet. The services start from a very basic but relevant functionality of storing loyalty cards, towards more advanced capabilities of targeting and engaging with consumers on an individual level. While enabling merchant and brand communications functionality, the HUB ensures adoption and active users, increases relevance, pushes transaction frequency, offers higher reach over the HUB ecosystem and maintains consumer happiness. Merchants and brands are given a single entry point to conveniently manage content across the globe in multiple wallets. This results in astonishing consumer satisfaction, which makes the hard work of wallet operators to entertain consumers worth it. Improvement of app ratings (in avg. by 0,7 Stars), proven boost of usage and exciting additional interaction points for consumers mark a tipping point in wallet experience to meet the standards of the 2020´s. The industry-disrupting open ecosystem approach from mobile-pocket is bringing true value to all partnering stakeholders with a fair share. Banks, MNOs, brands, merchants, franchisees, shop owners and end users benefit equally. Best practice case of a mobile wallet A remarkable case can be found in the Vodafone Group. The international team has achieved their best practice, and were 9
Page 1 and 2: MPE Issue | February 2017 SPECIAL M
Page 3 and 4: Contents Amir Abdin Editor-in-Chief
Page 5 and 6: Thought Leaders Corner Center (BKM)
Page 10 and 11: Thought Leaders Corner honoured wit
Page 12 and 13: Thought Leaders Corner Digital tran
Page 14 and 15: MAXIMIZE YOUR DATA VALUE CONNECTING
Page 16 and 17: expert interview from transaction-b
Page 18 and 19: LOOKING FOR A JOB? THERE’S NO BET
Page 20 and 21: startup spotlight “IF THERE ARE O
Page 22 and 23: startup spotlight providing insight

PCM MPE 2017 Special

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