SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMC NEWS

TMCNET eNEWSLETTER SIGNUP

Mobile and Alternative Payments in the U.S., 3rd Edition
[January 29, 2013]

Mobile and Alternative Payments in the U.S., 3rd Edition

NEW YORK, Jan. 29, 2013 /PRNewswire via COMTEX/ -- Reportlinker.com announces that a new market research report is available in its catalogue: Mobile and Alternative Payments in the U.S., 3rd Edition http://www.reportlinker.com/p01053182/Mobile-and-Alternative-Payments-in-the-US-3rd-Edition.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Payment_Processing The mobile payments industry stands at the epicenter of tremendous innovation and change, with market participants introducing a slew of emerging payments solutions--from Square to Google Wallet to Popmoney to Serve to V.me. Thanks to the widespread adoption of smartphones, the consumer audience now has the means to use them; however, they still may not be accustomed to or even well informed about the new topography of the payment landscape.

The industry also serves as a nexus connecting the often competing interests of wireless carriers, phone manufacturers, payments networks, merchant acquirers, card associations, point-of-sale technology providers, nonbanking payment solution providers, banks, and retailers. At stake is the transformation of the consumer wallet--and the control traditional payment players have historically had over it--as well as the possibility of new revenue streams generated by data analytics, advertising, and other value-added products and services, above and beyond merchant payment fee revenue.

Even with mobile payments still in its nascent stage, Packaged Facts expects U.S. remote and point-of-sale mobile payments volume to grow by 275% in 2013, a testament to the impact of current product rollouts and consumer uptake already underway.


Mobile and Alternative Payments in the U.S. provides industry participants with the wealth of analysis and guidance they need to stay abreast of this quickly evolving market. Report coverage includes market sizing and forecast for U.S. mobile payments, as well as a comprehensive evaluation of competitor dynamics: -- Mobile payments strategies employed by the leading U.S. card associations, including American Express' prepaid card innovation and Serve digital platform innovation, Discover Financial Services' alternative payments strategy and PayPal and Google Wallet relationships, MasterCard PayPass and PayPass Wallet Services, and Visa V.me -- Mobile payment solutions developed by Digital Leaders, including online commerce behemoths Amazon, Apple, Google, Facebook, Groupon and PayPal; innovative offline commerce players LevelUp and Square; the Isis Mobile Commerce Network; and retailer mobile payment strategies -- Macro trends shaping the mobile payments landscape, including eCommerce growth, NFC payment growth. bill payment trends, P2P growth and associated metrics, and mobile payment fraud and security issues In addition, Proprietary Packaged Facts consumer survey data and Experian Simmons syndicated consumer surveys provided the basis for a detailed analysis of the consumer context: -- Mobile phone and smartphone ownership trends, app usage, and tablet ownership -- Mobile phone usage trends pertinent to mobile payments, including mobile phone usage trending over time and related demographic analysis -- Mobile payment methods (i.e. P2P, bill payment, etc.) and payment funding choices by demographic -- Mobile payers' current and intended use of mobile payment, deposit and communication methods, broken out by smartphone users, non-smartphone users, mobile bankers, and mobile payers -- Recent and intended use of mobile phone financial, promotional & shopping tools -- Mobile phone and smart phone feature usage; smartphone share of mobile phone ownership by demographic; and voice, data and text plan penetration Executive Summary Report Scope Market Size and Forecast Macro Trends Shaping the Mobile Payments Landscape Mobile Phone Usage Trends Mobile banking trends Mobile payments trends Consumer Interest in Mobile Phone Financial, Promotional and Shopping Enhancements Mobile Payments Strategies: Card Associations Mobile Payments Strategies: Digital Leaders Mobile Payments Strategies: Mobile Network Operators Mobile Payments Strategies: Retailers Chapter 1: Overview Mobile financial services: banking and payments Mobile financial services Mobile banking Mobile payments Mobile payment technologies SMS text messaging WAP RFID NFC 2D Barcode Mobile payment funding options Online and offline payment methods/players Chapter 2: Market Size and Forecast Summary analysis Mobile payments set for takeoff--but only after some dust settles Worldwide mobile payment growth The U.S. market Mobile payment usage is on the uptake But payment frequency remains low Table 2-1: U.S. Mobile Payment Transaction Value, 2012-2016 Growth drivers Piggybacking on online banking and bill payment Giving merchant acceptance a shot in the arm Non-banking mobile payments players transitioning online account goldmine to offline arena Leapfrogging the near-term NFC hurdle Awareness and education set to rise Convenience/portability Greater payment flexibility Growth inhibitors Too many cooks spoil the broth Technology standardization Security and fraud On the fence Speed Financial service provider fees Chapter 3: Macro Trends Shaping Mobile Payments Landscape Mobile phone usage nears saturation Graph 3-1: Mobile Phone Users and Usage Penetration, 2004-2012 Smartphone shares reaches majority status Smartphone share passes 50% Table 3-1: Consumer Mobile Phone Ownership, Smartphone Ownership and Ownership Share, 2012 Past the tipping point--onward and upward Apps and more apps Graph 3-2: iTunes Music and App Store Downloads Tablet usage share triples in less than 18 months Table 3-2: Tablet Ownership, Spring 2011-Summer 2012 Tablet and smartphone demographic synergy Table 3-3: Consumer Tablet Ownership, by Demographic, Summer 2012 E-commerce gains Graph 3-3: Quarterly E-Commerce Retail Sales, Percentage Growth, and Percent of Retail Sales, 2003-2012 NFC: low penetration to high penetration--but when A small merchant footprint Contactless a small ripple in a big pond PayPass merchant adoption at 400,000 Bottom line: incremental growth does not a revolution make Looking down the road: 2015 will tell a different story An EMV nudge Consumer bill pay methods: mail continues to dwindle Among alternatives, online bill pay rising fastest Graph 3-4: Consumer Bill Pay Preferences: Forms Used, 2007-2012 Online banking and bill pay add more users Graph 3-5: Online Banking and Bill Payment: Household Usage, 2002-2011 Eyeing P2P Players The P2P usage universe Table 3-4: Domestic and International Person-to-Person Money Sending/Receipt, 2010-2012 U.S. mail dominates; Western Union, Money Gram and PayPal are key players Table 3-5: Domestic Person-to-Person Money Sending/Receipt: By Method, 2010-2012 Lots of checks and cash left to convert 95% of dollar value in cash and checks! Mobile banking usage lags awareness Graph 3-6: Mobile Banking Feature Awareness vs. Use Security and fraud concerns holding adoption back Security concerns thwart use of mobile banking Specific mobile banking security concerns Graph 3-7: Mobile Banking Feature Awareness vs. Use But can mobile payments actually be more secure than traditional payments Mobile phone as fraud reducer Dynamic authentication Password-protect phone and payment app Facial recognition Am I protected It depends on the funding If protection level is not tied to phone, then what's the problem Security in the Cloud Pros Cons Reducing fraud Google Wallet vulnerability: fire flared up, then put out Reaching the unbanked Mobile phones can help them connect more deeply to financial services It's more a question of data plan and internet usage, not access Table 3-6: All Consumers vs. Unbanked Consumers: Cell Phone Usage, Cell Phone Text Messaging, Web Browsing, Data Plan, App and Operating System Usage/Population, Tablet Ownership/Population, and Online Banking Usage/Population, 2012 And the underbanked Convenience a mobile banking driver Chapter 4: Mobile Phone Usage Trends Summary analysis Mobile phone ownership nears saturation point Graph 4-1: Mobile Phone Ownership and Ownership Penetration, 2004-2012 Increasing variety of features making their way onto mobile phones Texting usage nears 60% Camera/picture phone use bodes well for remote check deposit Table 4-1: Mobile Phone Features and Services Penetration, 2007-2012 Feature engagement Downloading apps, GPS and camcorder phone engagement above 50% Graph 4-2: Mobile Phone Feature Usage and Engagement: By Feature, 2012 Data plans attached to a third of mobile phones Graph 4-3: Share of Mobile Phone Owners with Limited and Unlimited Voice, Data and Text Plans, 2012 Mobile phone usage and smartphone usage share Smartphone share passes 50% Youth, higher income consumers and racial/ethnic minorities lead the way Table 4-2: Consumer Mobile Phone Ownership, Smartphone Ownership and Ownership Share, 2012 Smartphone users vs. non-smartphone users: feature usage, bill and downloads Texting carries across smartphones and non-smartphones Data-driven feature usage is smartphone dependent Strong feature-driven user base for mobile payments providers to target Table 4-3: Feature Usage, Phone Bill and App Download Frequency: Smartphone Users vs. Non-Smartphone Users, 2012 25-34s drive usage, but internet, text and e-mail penetration implies broad target population Table 4-4: Smartphone User Feature Usage, Phone Bill and App Download Frequency: By Age Bracket, 2012 Usage consistent across incomes despite significant billing differences Table 4-5: Smartphone User Feature Usage, Phone Bill and App Download Frequency: By HH Income, 2012 Chapter 5: Mobile Banking Trends Summary analysis Mobile bankers 25-34s and non-whites pivotal demographics Table 5-1: Mobile Banking: Usage Penetration, 2012 Mobile banking features and services Almost 50 million using phone to check account balance/recent transactions Remote check deposit is quickly gaining traction Table 5-2: Mobile Banking Features and Services Usage Penetration and Population: U.S. Population, Mobile Phone and Smartphone Users, 2012 Mobile bankers = smartphone users Table 5-3: Mobile Banking and Mobile Banking Frequency: Mobile Phone, Smartphone and Non-Smartphone Users, 2012 Chapter 6: Mobile Payments Trends Summary analysis Mobile payers Gaining a foothold Table 6-1: Mobile Payments Usage Penetration, 2012 But marked by infrequent use Table 6-2: Mobile Payments Per Month, 2012 Mobile payment methods Bill payment has widest usage footprint P2P taking hold 1 in 10 tapping phone at POS; using virtual wallets Table 6-3: Mobile Payment Methods, 2012 It's a generational issue more than a financial one Table 6-4: Mobile Payment Methods: Analysis by Gender, Age and HH income, 2012 Payment cards prevailing funding option, followed by bank account and PayPal Table 6-5: Mobile Payments Funding Sources, 2012 Youth and money Table 6-6: Mobile Payments Funding Sources: Analysis by Gender, Age and HH income, 2012 Past 12 months vs. next 12 months: mobile payment, deposit and communication methods Current state of affairs Future state of affairs Graph 6-1: Mobile Payers' Mobile Payment, Deposit and Communication Methods: Current vs. Intended Use, 2012 Interest during next 12 months Interest more prevalent among smartphone users Table 6-7: Interest in Mobile Phone Payment, Deposit and Communication Methods in Next 12 months: Mobile Phone, Smartphone and Non-Smartphone Users, 2012 Mobile bankers and mobile payers express similar interest Table 6-8: Interest in Mobile Phone Payment, Deposit and Communication Methods in Next 12 months: Mobile Phone Users, Mobile Bankers and Mobile Payers, 2012 65+ smartphone users could benefit from barcode scanning app Table 6-9: Interest in Mobile Payment by Text, Barcode Scan and Web Browser in Next 12 Months: Smartphone Users vs. Non-Smartphone Users by Demographic, 2012 Hispanic intention to tap phone at POS lags average Table 6-10: Interest in Mobile Payment by App, POS Tap and Picture Bill Payment in Next 12 Months: Smartphone Users vs. Non-Smartphone Users by Demographic, 2012 Intended use of picture check deposit among 35-44s lag average Table 6-11: Interest in Picture Check Deposit and Two-Way Alerts in Next 12 Months: Smartphone Users vs. Non-Smartphone Users by Demographic, 2012 Chapter 7: Consumer Interest in Mobile Phone Financial, Promotional and Shopping Enhancements Summary analysis Introduction Mobile Phone Financial and Promotional Organization Mobile Financial and Promotional Organization Tools: Current Use and Future Use Graph 7-1: Mobile Payers: Current and Future Use of Mobile Financial and Promotional Organization Tools, 2012 Non-smartphone users interested, too Table 7-1: Interest in Mobile Financial And Promotional Organization Tools in Next 12 months:Mobile Phone, Smartphone& Non-Smartphone Users Mobile bankers most apt to express interest in variety of methods Table 7-2: Interest in Mobile Financial and Promotional Organization Tools in Next 12 Months: Mobile Phone Users, Mobile Bankers and Mobile Payers, 2012 Mobile Phone Shopping Enhancements Mobile Shopping Tools: Current Use and Future Use Stop using that cell phone to find a better offer and then shop elsewhere! Keep them in the store and upsell them Comparing prices while shopping a popular phenomenon Graph 7-2: Mobile Payers: Current and Future Use of Mobile Shopping Tools, 2012 Non-smartphone users interested, too Table 7-3: Interest in Mobile Shopping Tools in Next 12 months: Mobile Phone, Smartphone and Non-Smartphone Users, 2012 Mobile banker interest suggests platform development route Table 7-4: Interest in Mobile Shopping Tools in Next 12 months: Mobile Phone Users, Mobile Bankers and Mobile Payers Chapter 8: Mobile Payments Strategies: Card Associations American Express Payment diversification Prepaid moves Filling a void Strong consumer value proposition Bluebird takes flight Part of the digital wallet Serve Tapping younger, affluent customers Building use base via partners with large customer bases Ticketmaster Verizon Funding agnostic P2P and other nifty things Bridging online and offline Personalized offers My Offers personalizes daily deals Go Social Location-based SMS text messaging for feature phone users Location-based offers for iPhone on the way Loyalty automation Serve revenue Table 8-1: Serve Revenue Drivers and Cost Drivers Discover Financial Services, Inc.

Discover building significant relationships Alternative payments strategy PayPal card Google Wallet card MasterCard PayPass Security PayPass Wallet Services PayPass network remains very small MasterCard inControl: Security, financial control and awareness The bigger picture: EMV is the key Strong on security Weak on adoption Visa Priority 1: driving consumer adoption Rollout with major banking and retail partners V.me makes huge splash abroad Visa mobile payments relationship building Chapter 9: Mobile Payments Strategies: Digital Leaders Introductory competitive analysis The mobile payment solution with the most users wins Table 9-1: Leading E-Commerce Mobile Payments Players: Consumer Usage Metrics Who has the fee edge Table 9-2: Leading E-Commerce Mobile Payments Players: Merchant Processing Fees And how/where do I pay Table 9-3: Leading E-Commerce Mobile Payments Players: Payment Options New technologies at the point of sale Table 9-4: Leading E-Commerce Mobile Payments Players: POS Payment Method Amazon Payments Drawing from an enormous consumer usage base Table 9-5: Amazon.com Website Monthly Usage Penetration and Visits per Month, 2007-2012 Checkout by Amazon Checkout by Amazon Mobile Amazon Simple Pay Amazon WebPay Amazon Mobile Payments Service Flexible Payment Services Pricing and fees Table 9-6: Amazon Payments: Fee Structure, 2012 Apple Passbook Dipping a toe in offline space NFC still not on the menu, but perhaps fingerprints are Missing pieces The iTunes connection 400 million accounts worldwide Millions of highly engaged U.S. users Who align well with smartphone demographic Table 9-7: iTunes Annual, Weekly and Daily Usage Population and Demographic Analysis, 2012 Key mobile technology groups likely to use iTunes Table 9-8: iTunes Annual, Weekly and Daily Usage Penetration and Population Universe: By Cell Phone Owners, Cell Phone Data Plan, Android and iOS Users, App Downloaders, Tablet Owners, and Online Bankers, 2012 Graph 9-1: iTunes Annual, Weekly and Daily Usage Penetration: By Cell Phone Owners, Cell Phone Data Plan, Android and iOS Users, App Downloaders, Tablet Owners, and Online Bankers, 2012 Google Wallet Wallet 1.0: lots of fanfare; little success Wallet 1.5: putting it in the cloud Calling all cards Save to Wallet feature Online/offline integration: Enter the virtual prepaid card Online purchases: ubiquity, courtesy of MasterCard In-store purchase limited by NFC Security enhancement Wallet 2.0: Leapfrogging NFC with a physical card Thank you, Discover The interchange issue: Google loses on transaction revenue Facebook Direct to carrier billing payments strategy; digital content focus Providing opportunity for Facebook App Center 15% of revenue from payments Mobile active users set to top 500 million Graph 9-2: Facebook Mobile Active Users and Average Revenue Per User, 2011-2012 Groupon Payments Very attractive pricing LevelUp The best pricing: no interchange Incentive programs, merchant partnerships and user base LevelUp makes its money from added-value analytics Merchant-driven customer discounts Addressing security concerns Table 9-10: LevelUp Security Summary PayPal Bill Me Later Zong 100 million accounts and counting The PayPal P2P usage base Online and mobile capability PayPal Wallet PayPal Here: POS solution The Discover network connection The card you use to pay matters: lower interchange = better for PayPal Location-based mobile advertising Addressing fraud Square, Inc.

How much it costs Table 9-12: Square Pricing Options and Fees How it works Open tab feature Loyalty tracking Security Tools Square Card Reader Square Register Starbucks breaks it wide open Starbucks Chapter 10: Mobile Payments Strategies: Processors and POS Solution Providers Heartland Payment Systems Going Mobuyle Penetrating higher education Fiserv Leveraging relationships to build an integrated platform Table 10-1: Fiserv Customer Relationships, by Payment Method and Device Electronic banking Electronic bill payment and presentment Digital channels P2P opportunity 2010 P2P launch 2011 Popmoney integration Demand surging Fast transaction execution Integration with bill payment Spot Pay: Setting sights on Square and PayPal Windows 8 Digital Banking Verifone 1 million NFC terminals shipped Terminal upgrades coming Straddling emerging wallets Chapter 11: Mobile Payments Strategies: Mobile Network Operators Isis 230 million accounts is a nice start Table 11-1: Verizon, AT&T, Sprint and T-Mobile Subscribers, ARPU and Service Revenue, 2009-2011 Isis A challenge to the payment networks Open wallet approach Table 11-2: Isis: What's in the Wallet and How It Works Off the ground after delays Chapter 12: Mobile Payments Strategies: Retailers Merchant Customer Exchange Wal-Mart testing Starbucks Starbucks takes the barcode route 100 mobile million transactions and counting Stored value card foundation Benefits Square partnership--a Square investment Restaurant chains McDonald's Dunkin Donuts Appendix Consumer survey methodology Market size and forecast Report table interpretation Abbreviations Terms and definitions Explanatory tables Table: Appendix - 1: Mobile Phone, Smartphone, Non-Smartphone, Mobile Banking and Mobile Payments Users: 2012 Table: Appendix - 2: U.S. Cell Phone Ownership/Use, by Demographic: 2012 Survey Comparison To order this report: : Mobile and Alternative Payments in the U.S., 3rd Edition Contact Nicolas: nicolasbombourg@reportlinker.comUS: (805)-652-2626Intl: +1 805-652-2626 SOURCE Reportlinker

[ Back To TMCnet.com's Homepage ]





LATEST VIDEOS

DOWNLOAD CENTER

UPCOMING WEBINARS

MOST POPULAR STORIES





Technology Marketing Corporation

800 Connecticut Ave, 1st Floor East, Norwalk, CT 06854 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2014 Technology Marketing Corporation. All rights reserved.