Presentation is loading. Please wait.

Presentation is loading. Please wait.

Italian Mobile Operators Enabling Digital Coupons

Similar presentations

Presentation on theme: "Italian Mobile Operators Enabling Digital Coupons"— Presentation transcript:

1 Italian Mobile Operators Enabling Digital Coupons
GRUPPO TELECOM ITALIA GS1 Global Standards Event Rome. October, 7th 2014 Italian Mobile Operators Enabling Digital Coupons Jacopo Corridoni PM of “Mobile for Retail Project” Strategy & Innovation, Telecom Italia Confidential

2 Summary Mobile Payment is a Reality in Italy
Mobile Payments and Mobile Wallets Fostering Retail Services How Mobile Network Operators are Enabling Digital Coupons A Real Life Use Case of an End to End Digital Coupon Lifecycle Confidential

3 EASY TO SAY: M-Payment Means Paying Using Your Smartphone
What M-Payment is. Enabling customers to pay at physical stores using the credit/debit card “stored” in their phones. The tech underneath. NFC is the proximity technology certified by banks, CC circuits and POS makers for its security What Customers need to m-pay An NFC-capable smartphone and a special NFC SIM provided by the telco operator An NFC POS at the store A credit card issued by customer’s bank that has been virtualized on the SIM’s secure element A simple gesture Easy, isn’t it?

4 Complexity of M-Payment could be behind the curtain
Moving a credit card on a smartphone theoretically implies: Each Bank issuing the card needs an agreement and a technical integration with each Mobile Operator to manage the virtualized credit card lifecycle. Each Bank and each MNO should adopt their own Trusted Service Management Platform (TSM) to manage the lifecycle The certification process must be replicated every time a new issuer wants to “go mobile” Bank 1 Bank 2 Bank n SP-TSM SP-TSM SP-TSM Not scalable & Hyper fragmented MNO -TSM MNO -TSM MNO -TSM MNO 1 MNO 2 MNO n Confidential

5 Italian Telco’s Cooperate to Boost M-Services
Italian MNO’s decided to cooperate in order to avoid fragmentation and make m-payment real. They have chosen a hub approach to integration Standard. The hub approach leverages on standards and reusability of interfaces Scalable. Onboarding of new banks requires small effort in terms of engineering and testing Multi-operator. Each operator can autonomously sign their own partnerships The hub approach has proven its efficacy, since the onboarding of banks has become less and less time consuming. Bank 1 Bank 2 Bank n Scalable & Standard TSM-SP HUB MNO 1 MNO 2 MNO n Confidential

6 All Components for M-Payment Success are in Place in Italy
1. Consumer Interest 2. Devices 3. Acceptance Network 4. Integration of Players: Mobile Operators Banks Credit cards Hub and Technology Integrators 2 11 Millions NFC Smartphones 5 Millions SIM by end of 2015 3 200,000 NFC POS in Italy 1 Acceptance network grown to 200,000 NFC POS in Italy Most retail chains, including supermarkets, have massively deployed NFC POS With the NFC chip on iPhone6 Apple recognizes it as the standard for transactions and this will help the acceptance network to continue growing As of September 2014, Italy shows 11 Millions certified SIM based NFC smartphones and their number is increasing Operators will distribute 800,000 NFC SIM by the end of 2014, stressing its effort in 2015, when it forecasts to ship 5M SIM The other Italian operators are developing the same exponential roadmap of SIM distribution. 4 HUB Architecture Confidential

7 M-Payment Has Gone Live in Italy during 1H2014
Telecom Italia – TIM Wallet Mediolanum Credit Card (Live) Cobranded card TIM SmartPAY (Oct.) Cards by BNL, UBI, Intesa Sanpaolo (Oct.) Vodafone – Vodafone Wallet Smart Pass (Live) Mediolanum Credit Card (Oct) UBI Cards (Dec.)

8 The Mobile Wallet as the UI Metaphor
All Telecom Operators have adopted the metaphor of Mobile Wallet as the container for payment services, in order to provide a consistent user experience. The message is easy to convey: “move the cards from your wallet to the m-wallet” The M-Wallet is not simply a metaphor: it is a technical container It can host 3rd party applications It provides 3rd party applications access to secure storage on the SIM It provides 3rd party applications access to NFC standard API’s

9 Mobile Wallet as Service Container
RETAIL Mobile Wallet as Service Container Coupons Loyalty “Emptying the wallet to go mobile”, means that the m-wallet is designed to become a real container of services. In the Retail Market it means Coupons and Retailer Offerings Digital Coupons are directly available in the wallet Their redemption at stores is just one tap away User experience is similar to payment experience Loyalty Cards We move loyalty cards to the phone. Never leave the card home Build an always on communication channel with the customer Tickets Digital ID

10 Importance of Mobile for Retail Business
Prediction #5: “$2.5B in online shopping will be performed by mobile digital assistants” Prediction #6: “US mobile engagement behavior will drive mobile commerce to 50% of US digital commerce revenue” Prediction #10: “by 2018 retail businesses will utilize targeted messaging & internal positioning” (Gartner Symposium - Oct, 6) Confidential

11 Couponing Coupons are mainly printed on physical supports, distributed through traditional channels and redeemed at the stores belonging to the acceptance network. Players Brands (ex. Kraft, Nestlé, Ferrero): create the offer to promote their products Clearinghouses (ex. Valassis): publish the coupon, collect the redeemed coupons from the retail stores and refund them Retail Stores (ex. Auchan): accept coupons and apply the nominal discount Digitalization brings advantages Consumers never lose their preferred coupons and have them in their m-wallet Retailers demultiply the effort required by managing collection and delivery of coupons and get refunded far earlier Brands acquire knowledge about behaviors of coupon users. The coupon can become profiled Clearinghouses simplify their operations and develop a data warehouse service for the brands Confidential

12 Digital Coupons: The Advantages of Mobile Distribution
Coupons go digital and the smartphone becomes the mobile always-on distribution channel Coupons simply pop-up in the application hosted in the wallet, or the customers can grab them using QR and barcodes. Coupons never get lost or forgotten at home Frauds decrease because coupons are secured and not replicable and personal Coupons not only reach a specific retailer’s customer base but also prospect clients. Geolocalization helps retailers to drive customers to their stores

13 Digital Coupons: The Advantages of NFC Redemption
Coupon redemption is easy at the teller: just one tap at the POS No big infrastructural change, since we use the same NFC POS that most large retail chains have already in place Check out time does not increase Using NFC we bypass physical problems like barcode readers not reading smartphone displays User experience of coupon redemption becomes identical to payment experience. The customer will only use his phone Redemption will have no fraud issues since the coupon will be encrypted and associated to user.

14 Digital Loyalty Cards: The Advantages
Loyalty cards go mobile by exploiting the features that mobile operator offer to app developers: Security and standard NFC Interfaces The m-wallet adds visibility to retailer’s loyalty app, because customers get used to access the wallet Digital Loyalty Cards become secure since they use security features provided by the m-wallet Easy to use at the cashier It becomes the channel to communicate with customer Combining Digital Identity, MNO’s and Retailers can create a trust mechanism to ease customers’ subscrition to loyalty programs.

15 The Building Blocks for Mobile Digital Coupons
Coupon Issuers (Brands, Retail Store) Coupon Issuers (Brands, Retail Store) Coupon Validator Coupon Issuers (Brands, Retail Store) Coupon Issuers (Brands, Retail Store) Coupon Distributor & Aggregator Retail backend system We need a standard format for coupons MNO’s Tech Platform (HUB) Standard NFC I/F Mobile customer

16 The Italian Mobile Operators’ Contribution to Couponing
The Italian MNOs decided to cooperate with GSMA in order to deliver a common technical solution and user experience for the national retail scenario. The joint work is aimed at providing standard building blocks that each player can exploit for their commercial purposes. The building blocks are: NFC standard applet on the phone that hosts coupon id’s NFC standard app on the POS that receives coupon id’s An optional disintermediation hub enabling apps on the phone to dialogue with couponing backend servers Telecom Italia has proposed a standard for the NFC interface between the smatphone and the POS used to convey the coupon and loyalty card codes First implementation have been agreed to start 4th Quarter 2014 As of October 2014, the interface between phone and POS has been proposed and implemented in the trials that will be described later

17 The MNO’s Role MNO’s simply propose themselves as a technological enabler for the digital couponing ecosystem, by: Defining how every smartphone transmits the coupon or the loyalty id to the POS Providing certification for devices and SIM that ensure adequate security level Commercially, the large amount of customers using operators’ wallets will enable a privileged display channel for coupon providers. Operators’ goal is not gathering usage profile information, which must remain the business of retailers.

18 Real Life Trial Telecom Italia has launched a real life trial in order to proof all the aspects of the ecosystem. Technical Aspects Usability User Feedback

19 TIM Mobile Couponing Service
In June 2014 TIM has started a real life trial of mobile couponing: “Gli sconti di TIM” (TIM Discounts) The trial is active in all Bennet stores in Lombardy and Turin and has been opened to internal trialists The TIM Wallet includes the new couponing app that receives digital discount coupons issued by Valassis TIM customer can redeem the coupons when checking out at Bennet supermarkets by simply tapping on their NFC POS The system has been developed in partnership with major Cashier System Provider NCR The solution can be rapidly deployed at other retail stores. Confidential

20 The Valassis Trial mapped onto the General Architecture
Coupon Issuers (Brands, Retail Store) Coupon Issuers (Brands, Retail Store) Coupon Validator Coupon Issuers (Brands, Retail Store) Brands (Nestlè, Kraft, Ferrero,…) Coupon Distributor & Aggregator Retail backend system MNO’s Tech Platform (HUB) Standard NFC I/F Mobile customer

21 The new user experience for m-couponing
Redeem the coupons directly at the cashier by tapping on the NFC POS Select the Coupons directly on the Wallet Find the nearest Store Confidential

22 All Italian Operators are Performing Trials
All Italian Operators have agreed on same technical approach Same user experience They have started testing the digital coupon solution with different players as shown below. Coupon Distributor Mobile Operator Retail System Integrator Retail Store Confidential

23 What’s Next Telecom Italia has successfully tested its NFC application with both NCR and Konvergence powered till systems. In 4Q2014 Telecom Italia will broaden its trials to other retailers than Bennet. Before 1H2015 Italian MNO’s plan to launch the commercial solution within their mobile wallets. Confidential


Download ppt "Italian Mobile Operators Enabling Digital Coupons"

Similar presentations

Ads by Google