1. © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc. 1 Ovum m-commerce coverage – providing a 360 degree view

2. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 2 Mobile commerce: navigating the m-payments and m- advertising ecosystem  The mobile commerce domain spans payments, shopping, advertising, and financial services, and the opportunities this presents is understandably creating a lot of excitement.  The market is becoming intensely competitive as a growing number of players are battling for position, including operators, online players, application developers, financial service providers, device manufacturers, and platform providers  But the excitement is also creating hype that is masking the fact that the mobile commerce ecosystem is complex, difficult to navigate, and faces some tough challenges ahead.  When it comes to mobile payments, key flashpoints are security and privacy concerns, increasingly fragmented solutions, business model issues, and consumer and merchant acceptance.  Ovum’s mobile commerce coverage addresses of all these issues to provide a balanced assessment of the service and revenue opportunities ahead and also the strategies needed to succeed in both mature and emerging markets.

3. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 3 We cover a range of complex, overlapping m-commerce domains Product/service search & discovery Social location shopping Price comparisons Auctions Reviews) Multi-channel integration Orders & delivery Support & customer care Shopping Telco billing Peer to Peer payments Closed loop payment systems Online/web payments Specialist applications Mobile Point of Sale (mPOS) Payments General account management (e.g. balance information) Transfers & remittances Bill payments Microfinance Investment options Banking Online & mobile advertising Location based marketing Loyalty schemes & rewards Recommendations Data analytics Segmentation & targeting Advertising & marketing Overlapping m-commerce domains Core focus: the consumer shopping experience Core focus: advertising & customer relationship marketing Core focus: payment transaction processing Core focus: financial services

4. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 4 Include all key players in the m-commerce ecosystem Mobile Payments Card schemes/payment networks Visa, MasterCard,Amex Standards bodies, Industry organizations Smart Card Alliance, GSMA Banks Barclays, Banco Santander et al Retailers/merchants Starbucks, Pizza Express, Wallmart, Online/OTT Players Google, ebay/PayPal, Apple, Groupon mPOS providers Square, iZettle, Intuit Mobile Operators Orange, Turkcell, NTT DoCoMo Mobile device/ OS players Samsung, Apple, Google, Microsoft Payment processors First Data, Fiserv Social networks Facebook, Tencent, Platform/managed Service Providers Monetise, Comviva Trusted service managers (TSM ) Gemalto, Oberthur Technologies

5. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 5 Consider all m-payment solutions and enabling technologies Selected payment solutions Main approach Enabling technologiesPlayer examples Telco-based billing Applications and services that leverage telco infrastructure to process mobile payments Premium SMS and telco billing, including in-app billing Directly by telcos along with a wide range of third parties: BillToPay, Boku, mBlox, Payfone, Bango, Zong (acquired by eBay) Person to Person (P2P P2P payments including transfers and remittances (domestic and international). Telco billing and networks, NFC, WiFi, and Bluetooth, mobile web Telcos, banks, PayPal, Amex, Fundamo (acquired by Visa), Mobile wallets Stores account information and value from credit cards, prepaid gift cards, and reward cards. Allows consumers to use their mobile devices for proximity and/or online payments. Wallets also contain range of complementary apps NFC, QR codes, WiFi, Bluetooth, mobile web Numerous telcos alone or via JVs (e.g. ISIS), banks, Google, Visa, MasterCard, merchants alone (e.g. Starbucks) or via JVs (e.g. The Merchant Customer Exchange - MCX) Mobile web check- outs Web/cloud-based applications and browser solutions that enable mobile payments for online goods and services, plus digital services. Mobile web browsers and applications Telcos, Google, Amazon, PayPal, Apple, Dwolla, Amex, Visa, MasterCard Mobile Point of Sale (MPOS) Merchant facing solution that enables a merchant owned smartphone/tablet to accept card transactions Card reader (dongle, standalone unit) & application. Bluetooth, WiFi, QR codes, some NFC Square, Intuit, iZettle, Payleven, PayPal, Groupon,VeriFone, NCR, Comviva, Monetise, Specialist applications These focus on particular verticals and typically expand their payment solutions in those particular areas NFC, QR codes, Wi-Fi, Bluetooth,Tabbedout, CardSpring, Jumio

6. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 6 Examine the full spectrum of m-commerce applications Location based services – e.g. store locators, geo- fencing based apps In store - e.g. in store navigation/discovery, shelf/product labels Ticketing - e.g. cinema, concerts Advertising-related applications - e.g. promotions and coupons; Customer Relationship Marketing (CRM) - e.g. loyalty programs Banking & financial services Transport - e.g. parking fees, toll charges Identity storage and management Access control/security - e.g. digital keys Gift cards, vouchers Payments Shopping companion applications - e.g. price comparisons, store locator, shopping lists

7. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 7 Show stakeholders how the m-payments market will grow

8. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 8 Have unique insights into the consumer view of m-commerce Ovum Customer Insights Survey: Consumers

9. © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc. 9 Ovum m-commerce research outputs

10. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 10 We inform, forecast and advise  We provide the latest information and developments from the key m- commerce players active in your markets  We show you how your customers are using such services  We forecast an independent and realistic view of how such service will impact your business going forward  We present best of breed case studies of how other players are deploying and developing m-commerce services  We help guide your strategic thinking and planning

11. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 11 Ovum provides comprehensive m-commerce research Ovum m- commerce Consumer insights Opinion pieces Market forecasts Strategic reports Key player case studies On the radars of disruptive start-ups

12. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 12 Ovum’s current m-commerce research outputs (at Q3 2013)  Marketer Perceptions of Mobile advertising (survey). 2013  Mobile Point of Sale Market Dynamics (report). 2013  Facebook prepares for a mobile payments push (opinion). 2013  Amazon expands its e-commerce domain with a virtual currency (opinion). 2013  Mobile Payments Forecasts: 2013–17 (market forecasts). 2013  On the Radar: podifi (case study). 2013  On the Radar: Square (case study). 2013  Mobile Wallets Unwrapped (report). 2012  Mapping Mobile Payments (report). 2012  Mobile Money for the Unbanked: Addressing the Growth Challenges (report). 2012  Visa's Mobile Money Strategy (case study). 2012  Mobile Money Interoperability: Outlook and Implications (report). 2012

13. © Copyright Ovum. All rights reserved. Ovum is an Informa business. 13 Forthcoming m-commerce research for Q4 2013  Consumer facing mobile proximity payments with a close up on NFC  Case studies  The Future of m-payments  M-commerce – trends to watch

14. © Copyright Ovum. All rights reserved. Ovum is a subsidiary of Informa plc. 14 Thank-you Eden Zoller Principal Analyst Ovum m: +44(0)7769 934 985, e: eden.zoller@ovum.com For further information, please visit our website: www.ovum.com Follow us on Twitter: @OvumICT | @OvumTelecoms