Thursday, April 21, 2011

Annual Mobile Payment Transactions to Reach 45 Billion in 2015

SCOTTSDALE, Ariz., April 21, 2011 - The recent proliferation of web-enabled smartphones is acting as a catalyst to push mobile payment transaction volume. In fact, transactions will actually increase at a pace greater than the number of users, as individuals adopt mobile payment solutions for an increasing portion of their payments. As consumers become more familiar with mobile payments, and as the number of retailers supporting these solutions increases, the rate of usage will increase exponentially. Thus, it is expected that the number of annual mobile payment transactions will increase to 45 billion in 2015, says In-Stat (

“Despite mobile payments’ perennial failure to launch globally, 2011 will be a significant year for market growth,” says Amy Cravens, Senior Analyst. “It’s the level of interest in mobile payments shown by big players worldwide, including banks, credit card companies, mobile operators, and handset/operating system providers that is largely driving that growth.”

Areas expected to generate significant activity in 2011 include:

  • NFC: 2011 is poised to be the year for NFC as it evolves from a concept to a strategy that is actively being pursued. 
  • Mobile web payments: A big growth area that is highly correlated to smartphone trends. 
  • App store billing: Handset manufacturers are partnering with mobile payment providers to enable carrier billing and improve consumer purchase experience and carry through. 
  • Micropayment: Using your mobile phone for small payments by deducting funds from a virtual wallet is gaining momentum. 
  • Intersection between payments and other applications: Mobile payment concepts are emerging as a means to improve the consumer shopping experience by communicating information and simplifying the shopping experience 
Recent In-Stat research, Mobile Payments Worldwide: Is the Market Ready? (#IN1105000SI), examines the mobile payment market structure, outlining the various elements in this multifaceted market. Discussion will include mobile payment types as well as the relationships comprised in this complex ecosystem.

The report also includes:

  • Market player profiles including: Bling Nation, Boku, Clairmail, Isis, mFoundry, and Obopay 
  • Forecasts for the mobile payments market through 2015 
  • Forecasts of anticipated usage and transaction volume 
  • Detailed examination of the NFC market 
  • All forecast extend through 2015 and are segmented by geographic regions 

This research is part of In-Stat’s Mobile Technologies service, which provides analysis of the market for technologies, IP and semiconductors that enable next generation mobile devices, including processors, graphics, modems, GPS, displays, memory, storage, operating systems, software, and human interfaces.

Related research:
Smartphones: A Worldwide View
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mopay Says North American Interest in Mobile Payments Doubled Last Year

mopay Identifies Major Trends in Worldwide Mobile Payments Market

U.S. Gaining on Asia and Europe on Mobile Payments Acceptance
MUNICH & PALO ALTO, Calif.--(BUSINESS WIRE)--mopay, a global leader in innovative payment solutions for online merchants, today announced that mobile payments in North America experienced an unprecedented rise in adoption in 2010 with conversion rates almost doubling within one year, helping bridge the divide between leading regions Asia and Europe. mopay attributes this rapid growth to improved carrier agreements, easier integration, optimized usability and growing general acceptance amongst consumers. The company analyzed significant data from its international mobile payments platform and based this conclusion on conversion rates, transaction values and transaction numbers accumulated in more than 80 countries.
“mopay’s large country coverage and high transaction volume allows us to run in-depth analysis on the mobile payment habits of consumers from a global to a local level”
By analyzing its mobile payments data, mopay also found that other regions around the globe are seeing increased adoption of mobile payments and higher conversion rates. With the surging penetration of mobile devices in Central and South America, these regions gained in the ranking now leveling up with Australia for a solid showing behind Asia and Europe, both long-time mobile payment adopters. Africa currently shows the lowest conversion rate amongst major regions.
Additional findings of mopay’s recent analysis include:
  • Regardless of region, adults use mobile payments more deliberately and thus consequently, the average global conversion rate of adults is more than twice as high. Still, minors’ conversion rates are highly attractive as mobile payments are one of only a few payment methods to reach this valuable target group of the under-banked and unbanked.
  • Mobile payments work best within a value of USD $2.50 and $10.00. Global merchants have independently established a sweet spot of their mobile payment offers of around $8.00. Only three percent of all offers ranged below a value of $2.50 and two percent exceeded a value of $14.00.
  • Within this price range, the average transaction value of mobile payments increased in 2010 mirroring the growing trust of consumers in mobile payments. If this trend continues, the industry might see a significant upward shift of the pricing sweet spot by the end of this year.
  • Although mobile payments are broadly considered micropayments, consumers regularly spend up to $50.00 per month using mobile payments. This fact is due to a high percentage of repeat customers meaning that the majority of consumers use mobile payments more than once a month – in 2010 almost 60 percent. As low as the pricing range may seem, mobile payments regularly generate macro revenue per consumer.
“mopay’s large country coverage and high transaction volume allows us to run in-depth analysis on the mobile payment habits of consumers from a global to a local level,” said Kolja Reiss, Managing Director of mopay Inc. “U.S. merchants who successfully utilize mobile payments in the home market and are looking to replicate this success abroad are often unprepared for the various obstacles running international mobile payments often present. Global mobile payments providers are able to fill this knowledge gap and lay down the ideal monetization strategy for each market, each country and even each target group. Moreover, the extensive data at hand allows merchants to quickly react to trends and even proactively adapt monetization strategies and offers. Operating in more countries than any other mobile payments provider mopay is uniquely positioned to quickly identify trends that help companies around the globe develop the right mobile payments strategies for their business.”
About mopay:
mopay is a global leader in innovative payment solutions for online merchants. mopay’s core platform enables merchants of virtual, digital and physical goods to bill charges directly to consumers’ cell phone and land line accounts. mopay operates in more than 80 countries across the globe, reaching more than 3.3 billion consumers. The company has a blue-chip customer base including major brands such as Bigpoint, Gameforge, Innogames, Sulake and Travian. mopay, part of the MindMatics group, has more than 100 employees at locations in the United States, Germany, Austria, the United Kingdom and China. For more information, visit


PAN Communications
Lisa Astor, +1 978-474-1900

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Visa Closes "The Gap" on Real Time Discounts and Promotions with Mobile Consumers

Visa Delivers Real-Time Discounts and Promotions to Mobile Consumers When and Where They Shop

Gap tests Visa’s new service to send real-time offers to consumers’ mobile devices
SAN FRANCISCO--(BUSINESS WIRE)--Visa Inc. (NYSE:V), a global leader in payments, today announced it is working with Gap, a leading global specialty retailer, to deliver real-time discounts and promotions to consumers via SMS text messages. Gap customers who opt-in to participate in the service are notified of money-saving discounts or promotions in real-time while shopping.
“Visa’s ability to process and analyze transactions in real-time provides the capability for retailers to reach potential customers while they’re out shopping and allows financial institutions to reward Visa account holders with value-added services tailored to them”
Visa’s global processing network, which connects millions of merchants and thousands of financial institutions around the globe, is the enabling technology behind this new mobile service. Consumers receive valuable offers on their mobile devices when qualifying transactions are made with enrolled Visa accounts. The offering is part of Visa’s larger strategy to personalize the consumer shopping experience, and deliver more value to merchants and financial institutions to help them tailor their consumer marketing programs, driving business growth and efficiencies.
“Visa’s ability to process and analyze transactions in real-time provides the capability for retailers to reach potential customers while they’re out shopping and allows financial institutions to reward Visa account holders with value-added services tailored to them,” said Jim McCarthy, Global Head of Products, Visa Inc. “We have reached the point when the power of Visa’s global network goes well beyond processing purchases to delivering critical information that benefits consumers, merchants, and financial institutions.”
Gap launched the new Visa service in November 2010 as a pilot program to test the customer response to receiving real-time offers on their mobile phone. Gap customers enrolled via a secure website and were sent Gap offers when they made Visa transactions meeting certain pre-determined program criteria, such as shopping at a merchant within a specified zip code, a specific merchant category type, or spend on a specific day or during a specified time period. Customers redeemed those offers by simply presenting the text message displayed on their mobile devices at the Gap.
“As an early adopter of innovative new technologies we were excited to be the first global retailer to test the new Visa service,” said Amy Carr, Director of Customer Relationship Management Strategy, Gap Inc. “It provided us insight into our enrolled consumers that we never had in the past, which improved the targeting of our promotional programs, timing of communications and allowed us to tailor offers to Gap customers.”
Visa plans to make the new service available to retailers nationwide.
About Visa Inc.:
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world’s most advanced processing networks—VisaNet—that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information,

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Fiserv Launches Enhanced Relationship Rewards for Premier, Now with Loyalty Points

  • Relationship Rewards for Premier integrates with UChoose Rewards from Fiserv, which offers a wide array of online point redemption options
  • Enables banks to develop tailored rewards programs that attract and retain accounts by recognizing the entire banking relationship
  • Southern Community Bank and Trust exceeds new account goals, realizes 2.5 times greater retention levels than average for customers enrolled in rewards program
BROOKFIELD, Wis.--(BUSINESS WIRE)--Fiserv, Inc. (NASDAQ:FISV), the leading global provider of financial services technology solutions, today unveiled enhanced features and capabilities for Relationship Rewards for Premier® bank platform, a solution that provides flexible incentives to recognize and reward a customer’s entire banking relationship. Part of its strategy to help banks and credit unions cope with current regulations that impact profitability, Relationship Rewards from Fiserv cultivates customer loyalty and “stickiness” by rewarding bank customers who meet selected criteria. Relationship Rewards is available for the Premier bank platform from Fiserv.
“I would say it has been the most successful product launch in our bank’s 15-year history”
The patent-pending design of the newest version of Relationship Rewards for Premier enables banks to choose how to reward profitable customer behaviors, relationships and activities. Financial institutions may reward customers for their product relationships, balances, electronic statement delivery, mobile banking, bill payment, direct deposit, point of sale transactions and more. The reward may include bank-fulfilled benefits, such as premium interest rates, refunded fees, rebates or waived services changes.
Using Relationship Rewards loyalty points and UChoose Rewards®, separately licensed components of the solution, banks can award points for a wide array of redemption options. Now fully integrated with Relationship Rewards, UChoose Rewards from Fiserv is a debit and credit card fulfillment program that enables customers to redeem points through a user-friendly website for goods and services, including merchandise, gift cards, travel, event tickets and cash back.
Southern Community Bank and Trust in Winston-Salem, N.C., is using Relationship Rewards to reward customers who meet specific criteria for electronic banking and debit card usage. Since launching Relationship Rewards in January 2008, the bank now has over 7,200 accounts, which has exceeded its initial projections. For customers enrolled in the rewards program, retention is 2.5 times greater than the average for other Southern Community Bank and Trust accounts, and bank earnings are twice that of its traditional checking account.
“I would say it has been the most successful product launch in our bank’s 15-year history,” says Jeff McDowell, Senior Vice President and Director of Retail Banking for Southern Community Bank and Trust. “This approach has helped us bring in hundreds, if not thousands, of new relationships to our bank. And, by rewarding items like e-statement usage, debit card purchases, online banking and direct deposits, we are incenting customer behaviors that impact our bottom line.”
Because no single customer loyalty program will resonate with all customer segments, Relationship Rewards acknowledges many kinds of behaviors, enabling banks to customize their solution and offer multiple programs to attract and serve a diverse customer base. Through Relationship Rewards, Fiserv offers several turnkey rewards programs, including targeted benefits for Generation Y customers and small businesses. By assigning the right reward program to the appropriate customer segment, banks are able to take advantage of new revenue opportunities.
“Relationship Rewards helps financial institutions build trust and goodwill to drive account acquisition and boost customer retention, while replacing revenue lost to regulation,” said Doug Shum, product manager, Risk & Performance for Bank Solutions at Fiserv. “A solid reward program is about more than handing out goodies – it’s about encouraging behaviors that generate revenue and cultivate customer loyalty.”
Additional Resources
About Fiserv
Fiserv, Inc. (NASDAQ:FISV) is the leading global provider of information management and electronic commerce systems for the financial services industry, driving innovation that transforms experiences for financial institutions and their customers. Fiserv is ranked No. 1 on the FinTech 100 survey of top technology partners to the financial services industry. For more information,

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TSYS to Present at 23rd Annual Card Forum & Expo

 TSYSCOLUMBUS, Ga.--(BUSINESS WIRE)--TSYS announced today that Scott McCormack, director of prepaid for TSYS Merchant Solutions, in partnership with an executive from the Bank of Oklahoma, will present at the 23rd Annual Card Forum & Expo, which will take place from April 27-29 in Miami, Fla.
McCormack will co-present with Dianne Foster, vice president of Commercial Payment Systems for Bank of Oklahoma in a session titled, “Prepaid Programs for Commercial Clients.” This session will provide an in-depth view of how Bank of Oklahoma used prepaid solutions to build out and support its commercial programs.
The 23rd Annual Card Forum & Expo will be held at the Fontainebleau Miami Beach, and will feature a program covering a wide variety of topics from credit, debit and prepaid, to growth strategies and overcoming market challenges. For more information, log on to
About TSYS
TSYS (NYSE: TSS) is reshaping a new era in digital commerce, connecting consumers, merchants, financial institutions, businesses and governments. Through unmatched customer service and industry insight, TSYS creates a better experience for buyers and sellers, supporting cross-border payments in more than 85 countries. Offering merchant payment-acceptance solutions as well as services in credit, debit, prepaid, mobile, chip, healthcare, installments, money transfer and more, TSYS makes it possible for those in the global marketplace to conduct safe and secure electronic transactions with trust and convenience.
TSYS’ headquarters are located in Columbus, Georgia, with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS provides services to more than half of the top 20 international banks. For more information, please visit us at

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NFC Mobile Weekly News April 21st

NFC Payments Appear Too Slow for the Real World 

PCWorld - Keir Thomas - ‎Apr 18, 2011‎
Oracle's research indicates how many bugs there are yet to work out before NFC payments become mainstream. Despite Google's push for us to take up NFC, it would be a huge shame if NFC were rolled-out too early and was rejected by consumers as not ...

North America will be the top NFC market in five years - Kevin Woodward - ‎2 hours ago‎
NFC is a wireless technology that enables devices to exchange information—including encryptedpayment card data—over a short distance.

Patent hints supersonic sounds and magnetic signatures for e-wallet iPhones 

9 to 5 Mac - ‎30 minutes ago‎
I imagine this change could be picked up by a payment terminal (or an iPhone) in sufficient proximity, thereby authorizing a wireless payment transaction. Apple has thus far filed dozens of patent applications related to NFC, which is an acronym fo ...

Annual Mobile Payment Transactions to Reach 45 Billion in 2015; In-Stat 

TMC Net - Rajani Baburajan - ‎1 hour ago‎
The year 2011 is expected to be the year for Near Field Communication (NFC). NFC will evolve from a concept to a strategy.
Mobile Money News Weekly - Week of April 18, 2011 SYS-CON Media (press release) (blog)

NFC East links: Roseman set for draft 

ESPN (blog) - ‎4 hours ago‎
The Eagles are following the lead of the Giants in allowing season-ticket holders the chance to defer the second half of their ticket payment until the league announces there will be a season in 2011. The Washington Post's Mike Jones on some of the ...

Like this story? Share it 

StorefrontBacktalk - Evan Schuman - ‎11 hours ago‎
Some quick context: For years, advocates of NFC (and RFID contactless payment before that) mobilepayments have argued that it will be much faster than magstripe.

These Two Banks Are Snoozing While This Disruptive Technology Surges Forward 

Wall Street Daily (blog) - ‎3 hours ago‎
It's joined forces with mobile payment platform, Payfone, which is capable of integrating NFCtechnology. So I can't rag on American Express today.

Increased NFC adoption to boost mobile payments 

BCS - ‎Apr 20, 2011‎
The increased adoption of near field communications (NFC) by smartphone providers is likely to boost opportunities for the expansion of mobile payment. That is according to market analyst Juniper Research, which said the technology will allow for ...

Angry Birds to Use NFC Technology on Nokia Phones 

Mobiledia - Kendra Srivastava - ‎Apr 20, 2011‎
This interaction uses near-field communications, or NFC, the same technology used by many upcoming mobile payment systems, and which is poised to handle $1.3 trillion in transactions by 2014.

NXP and Poken deliver NFC integrated products for social networking 

EE Herald - ‎6 hours ago‎
The new platform adds to Poken's product portfolio by adding NFC-based loyalty, payment, and access control capabilities to an already-successful range of social media products.

Sprint working on NFC payment for 2011 

IntoMobile - ‎Apr 4, 2011‎
Sprint is already working on an NFC payment system for 2011 and this will enable users to use their phones to “tap to pay.

Apple selling Square mobile payments reader--NFC plans in doubt

Fiercemobilecontent - Jason Ankeny - ‎Apr 18, 2011‎
Industry onlookers have expected Apple to roll out NFC services since mid-2010, when the company named Benjamin Vigier Product Manager of its mobile commerce unit.

Nexus S NFC payment system due later in 2011 with Citigroup and MasterCard? 

Android Community - Chris Davies - ‎Mar 28, 2011‎
Google would apparently not take a cut of the transaction fees, instead only getting a foot in the door on better quality analytics.

Salt Lake City to Give NFC Payment System a Go 

E-Commerce Times - Erika Morphy - ‎Apr 7, 2011‎
Isis formed in mid-November 2010 with the goal of bringing NFC-enabled mobile commerce to Salt Lake City. The program has been billed as being able to serve the city's entire retail community and now, its transit system.

Research and Markets: 2011 Contactless Near Field Communication (NFC) Mobile ... 

TMC Net - ‎Apr 18, 2011‎
Despite this activity, mobile contactless/NFC is a payment option that is battling limited availability of contactless-ready merchant terminals and mobile technology, as well as low consumer demand.
NFC news in brief • 18 April 2011 Near Field Communications World

Sharp growth predicted for m-commerce and NFC by 2014 

Shopsafe - Katie Neilson - ‎Apr 19, 2011‎
NFC is only just making its way into high end smartphones, with the Google Nexus S being the first UK handset to offer integrated compatibility with terminals that allow for contactless payment and other interactive services. Network providers O2 and ...

Amazon May Deploy their Own NFC Payment Service - Kevin Krause - ‎Apr 1, 2011‎
... to Google with the launch of their Appstore for Android followed shortly by the opening of their Cloud Player personal music streaming service, the company is reportedly exploring the possibility of launching their own NFC payment service.

USA Technologies Hails Megatouch Cashless Payment Processing Pact 

Vending Times - Tim Sanford - ‎4 hours ago‎
USA Technologies provides solutions that can accept every form of cashlesspayment, from traditional "swipe" credit and debit cards to prepaid media, contactless smartcards and wireless/cellular phone payment using NFC-enabled instruments.

INSIDE Secure Licenses Advanced ARM SecurCore Technology 

SYS-CON Media (press release) - ‎Apr 20, 2011‎
The ARM SecurCore processor family provides powerful 32-bit secure solutions based upon the ARM architecture and incorporates advanced security features that make SecurCore processors an ideal choice for paymentNFC secure element, pay TV, e-ID, ...

Mopay: Mobile payment interest doubled in North America last year 

VentureBeat - ‎5 hours ago‎
The ability to have companies charge a consumer's phone directly has long been popular in Asia, where phones come equipped with near-field communication (NFC

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