wim wendt - logica

Mobile Monday

Case Presentations

1

Wim Wendt: Practice Manager Business Innovation

[email protected]

MoMo Amsterdam, 31 March 2008

01 April 2008 MoMo Mobile Payment & Transaction Pilots

Vision Logica on NFC and Mobile Payments

NFC and Mobile Payments will be driven by three maj or trends:

• Consumers adopt mobile lifestyle

• NFC Value Added Services will be major driver for new consumer • NFC Value Added Services will be major driver for new consumer services

• Growing global reader infrastructure

• To save money: You can not forget your returned bottle receipt

Mission C1000 / Schuitema NV

“Our aim is to help the consumer save money, time and hassle in a

pleasurable and distinctive way when they do their shopping”

Schuitema case: why?

• To save money: You can not forget your returned bottle receipt

• To save time: Quick checkout, you don’t have to look for return bottlereceipts, loyalty programs have a shorter handling time at the cashregister

• Save hassle: Everything you need at the cash register is combined in one mobile phone.

01 April 2008 No. 3MoMo Mobile Payment & Transaction Pilots

• On line Debit (pinnen) with a mobile phone

- Make use of the current Dutch debit payment infrastructure using RFID/NFC

• Realize a system that is near to the current system of debit payments so thatcustomers know what to do

- The applications fit in the expectations of the customers and are directly related

Design criteria pilot

- The applications fit in the expectations of the customers and are directly related to their current way of doing daily grocery shoppings

• Make a chain of different value added services using the mobile phone

- There is not one killer application

C1000 Van der Wal in Molenaarsgraaf;100 customers join a 6 month pilot period


No. 501 April 2008 MoMo Mobile Payment & Transaction Pilots

Use of NFC payments


Results (1)

• Which payment method do you prefer?

– Mobile phone 68%

– Doesn’t matter 22%

– Traditional bank card 10%

• Do you like the Samsung NFC X700N phone, or would you have chosen another phone if available?

– I am very satisfied with this phone 82%

– It is not my preferred phone, I would have chosen an other phone 18%

• Do you tell others about this trial and the new possibilities?

– Yes, I tell others about these new NFC applications and this trial 98%

– No, I didn’t tell anybody yet 2%


Results (2)

• If everyone could make use of these NFC services, would you recommend it to others?

– Yes, I would certainly recommend this to others 94%

– No, I would not recommend it 6%

• If more NFC services are available, also in other stores, would you immediately buy a new phone with NFC capabilities?

– Yes, I would immediately buy a new phone with NFC 49%– Yes, I would immediately buy a new phone with NFC 49%

– No, not immediately, but if current phone needs to be replaced I would buy

a phone with NFC capabilities 41%

– No, I would not buy a phone with NFC capabilities 10%

• Would you transfer your mobile account to a provider with NFC offering?

– Yes, if that is needed to make use of NFC 55%

– No, I would not do that 45%


Results (3)

• Do you only use your phone as payment device in this trial?

– Yes, I only use my mobile 51%

– Most of the time I use my mobile 31%

– I pay sometimes with cash for low value payments 8%

– I pay sometimes with my old bank card 10%

• Do you use your phone for low value payments under 10 Euro? • Do you use your phone for low value payments under 10 Euro?

– Yes, I also use it for low value payments 84%

– No, for low value payments, I use card or cash 16%

• Now a pincode is needed for every transaction, also low value transactions. Do you like this, or do you prefer no pincode for low value payments?

– For low value payments I would prefer NOT to use a pincode 29%

– Also for low value payments I want to enter a pincode for security 71%


Results (4)

• What are the benefits of using your phone for the RVM tickets and payment?

– It is easier and faster 51%

– It is faster 8%

– It is easier 8%

– I don’t notice any difference 33%

• Your payment card is in your phone now. If you would not need your bank card at all • Your payment card is in your phone now. If you would not need your bank card at all anymore, would you be willing to pay a few Euro cents per NFC transaction?

– Yes, I am will to pay for it, if I don’t need a bank card anymore 22%

– No, I do not want to pay more for Mobile transactions 78%


Other Comments and Possibilities

• Comments:– It is a lot easier than it sounds

– I thought I was too old for it (68 years old lady)

– This is great fun

– Unbelievable that this is possible with a phone

• Suggestions:

• Check with your phone product regarding allergy

• Use your mobile to check codes on product labels

• Get loyalty visible on your phone• Use your phone to scan products and

pay with it as kind of self checkout• Smart posters for advertising• Send SMS for additional opening hours

– Why not also use it for copier?

– We want more payment info on mobile screen

– Can it also be used for loyalty?

• Send SMS for additional opening hours• Etc.


NFC will enable the development of a range of new value-added services:

• Ticketing

– Events

– Public Transport

• Marketing & loyalty

– Frequent flyer program

– Smart posters

Payments

AccessConnection

Our inspiration is beyond payments developing & deliveri ng service(s)

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– Smart posters

• Access Control

– Hotels, holiday resorts etc

– Customs at Schiphol Airport

• Based on the unique combination of a

– User interface

– Over-the-air communication

– Short-range communication (with NFC)

Ticketing

Loyalty

Service Innovation for the airline industry: Mobile Travel Assist


Demo Scenario’s

Check-in BoardingCheck

FF

miles

Shop Change Seat

Flightdelay

Visit Lounge

Shop in

airplane

Passengers

Flightchange

The purpose of the Travel Assist demo scenario is to illustrate a range of potential services for airline passengers, Operations Control and Crew using a mobile phone, especially at the airport.

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Arrival

crewLockers

Crew arrivalinfo

purser

PIL and

Passen-ger info

Crew info system

Crew and Purser

Send

delay

infoOperations Control

Sendflight

changeinfo

Sell

products

Flight

delay

SMS

Check-in and receive boarding pass in the phone

Internet check-in:

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• Normal internet check-in

• Receive boarding pass by secure SMS

or with NFC reader

Airport check-in:

1. Hold phone next to kiosk for automatic

identification

2. Receive boarding pass in mobile phone with NFC

reader

Frequent Flyer Miles

A mobile phone may provide convenient access to loyalty information, redemption, promotions, and for identification

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identification

FFM members are excellent target group for initial mobile applications, due to relationship value.

Demo: Tax-free shopping for promotions

Poster with smart tags

Steps :

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Steps :

1. Tap phone at selected item

2. Item appears on phone

3. Select “Buy now ”

4. Confirm purchase

5. Amount deducted from Credit Card

6. Product delivered in the plane

One-click shopping

Demo: Change seat

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1. Passenger can view his seat in the plane on his mobile phone

2. Passenger can change has seat, and will receive new boarding pass

3. € 4.00 Service charge deducted from his Credit Card

Demo: Crew arrival

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Crew arrives at the airport

1. They swipe with their passport for official notice

2. For additional information they hold NFC phone near the computer.

3. Crew receives info on their phone:

- Locker no

- Briefing room no

4. The purser gets the crew arrival information on his NFC enabled tablet PC

Demo: locker unlocked

The crew can use their mobile phone to unlock their locker

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locker

Demo: get update about delay in flight

1. Flight is delayed

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1. Flight is delayed

2. Passengers receive SMS with updated

flight information (time and gate)

3. Boarding pass in phone is automatically

updated with new departure time

4. Passenger gets access to lounge by

entry code on NFC phone

Demo: get update about flight cancellation

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1. Flight is cancelled

2. Passengers is re-booked and receives

SMS with new ticket and flight

information

3. New Boarding pass in phone is

automatically loaded

4. 1000 Air miles are added to his account

Demo: Purser can check passenger info

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Purser can has full control with his tablet:

- Check if passengers are checked in

- Check if passengers are boarded

- Passenger information

- Check if crew has arrived

Demo: boarding with mobile phone

1. At the gate, the passenger simply touches the

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1. At the gate, the passenger simply touches the reader with his mobile phone

2. After validation of the boarding pass, a green light indicates that the passenger may board the plane

Demo: Shopping with in flight magazine

1. In the airplane the customer is reading the in flight magazine

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flight magazine

2. He can buy products simply by touching the product in the magazine and his goods are delivered by the crew

3. Cabin crew receives information about products bought by passengers and delivers without additional payment transaction

Benefits

– Increased customer service

• E.g. flexible access to lounge

• Flight information by SMS

• Instant compensation for customer

– New revenue streams

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• Increase in tax-free shopping

• Revenues for new services

– Direct communication, anytime, anywhere

• Travel Assist is always “in your pocket”

– Faster processes,

– less paperwork,

– more management information

Summarizing

1. The consumer is very positive using his mobile for mobile payments

2. NFC is an important building block for mobile payments And service innovation

3. We need to work together …..

NFC

Forum

Enterprise

marketBridge the Gap


Technology

push

Business / user

demand

Forum market

NFC

Application

NOT

NFC

Application

HOT

Bridge the Gap

Open Innovation Programs:

1. Explore payment and service development possibilities

2. Test user preferences

3. Innovate together developing our eco system

Questions


Thank you!Wim Wendt (+31-6 26 906 078)

Michel Bayings (31- 6 12 935 670)

Appendix


The future is NOW!

31

Number of JAL Touch and Go

users has already run into

millions , mainly individual

business travelers

Generic NFC Eco System / key roles

SIM Software

developers

Chip

manufacturer

NFC Handset

manufacturer

Application

providers

Issuer

(Bank)

Issuing

processor

developers manufacturer

Mobile operator

(Telco)

(Bank)

Trusted

Service

Manager

Consumer

Payment

network

Merchant

Proprietary

Payment

applications

Acquiring

processor

Acquirer

3rd party

HW supplier

Ticket & loyalty

issuer


Logica position

Logica is a leader in mobile solutions and mobile pa yments, providing business

consulting, application development and system inte gration services:

• Active member of MobeyForum

N°33

• Organiser of Mobile Payments Round Table, Brussels, 2006, with EPC

• From which came current initiative to design first blueprint for Trusted Service Manager

• Mobile Premium SMS services platform (also used for Postbank Mobile TAN codes)

• Driving force and active community member of Open Mobile Internet

• Developing various demos and applications in Working Tomorrow Innovation Program

• Turnkey hosted Mobile virtual network operator solution in the market

• Initiator and project manager of C1000 NFC payment and services pilot

What is NFC?

• NFC: Near Field Communication

• Wat is NFC?

• NFC brings the physical world to the virtual world

• NFC is a secure wireless technology, mainly used for mobile phoneapplications and short range communication (< 5 cm)applications and short range communication (< 5 cm)

• NFC is your contactless smart card in your mobile p hone

• With NFC a phone can read information from smart tags, by tappingthe phone to the tag.

• With NFC, readers can read and store information from a secure chip in your mobile phone.

NFC VAS will be a major driver for new services•NFC will enable the development of a range of new v alue-added services:

•

NFC Summary

NFC technology

Roles LogicaCMG in NFC eco systeem

SIM Software

developers

Chip

manufacturer

NFC Handset

manufacturer

Application

providers

Issuer

(Bank)

Issuing

processor

developers manufacturer

Mobile operator

(Telco)

(Bank)

Trusted

Service

Manager

Consumer

Payment

network

Merchant

Proprietary

Payment

applications

Acquiring

processor

Acquirer

3rd party

HW supplier

Ticket & loyalty

issuer
