1. For Retailers and Their Consumers
Mobile Payments
For Retailers and Their Consumers
By Worldlink Integration Group

2. Types of Mobile Payments
Smart Phones
64% of current Mobile POS devices
Tablets
The number of retailers testing tablets reached nearly 11% in 2013 –RIS News
Wearable Tech
Applications on smart watches or connectivity to mobile payment platforms with smart jewelry or glasses.
Beacons
Digital Check Presenters

3. Consumer Use
Payment: Pay through mobile applications, in-store beacons, and digital check presenters without having to pull out cash or a credit/debit card. Receipt of Coupons: Pay with coupons downloaded on smartphones or tablets through beacons, mobile applications, or internet browsers. Price Comparison: Use internet capabilities of a smartphone or tablet to compare prices of items online and in other stores before purchasing. Place orders: Access a restaurants mobile application to place a food order and pay in advance, so that it is ready upon arrival. Check-in: Check in at restaurants on smart phones to reduce wait time or in stores to receive discounts and promotions.

4. http://www. dmconfidential

5. Use by the Retailer
Receive Payment: Provide mobile applications, beacons, or digital check presenters to make receipt of payment faster and more secure for the consumer. Manage Inventory: Instant updates from mobile devices whose data can be shared through WiFi or Bluetooth. Reduce Wait Times in Restaurants -Place orders at tables rather than having to return to POS stations. -Finish payments at tables for faster turnover. Engage with Consumers in Stores -Beacons can connect to shoppers’ smartphones based on location in the store, provide coupons, and locate items in different departments. -Tablets for employees can provide inventory information so that store associates may look up whether an item is available in the back of house inventory, online, or at a nearby branch without leaving the customer unattended or forcing them to wait impatiently which may result in a loss of sale.

6. Benefits for Retailers
“Mobile payment users, on average, spend approximately 2x as much through all digital channels than those not using mobile payments.” - Bain & Co. Loyalty programs Reduce Transaction Costs Inventory management Product analytics Customer analytics Increased Conversion Rates Faster Turnover Times

7. Consumer Adoption Rates
73% of consumers who use mobile wallets do so <5 times per month
Survey of 25,000 consumers in five countries shows:
50% of consumers are aware of mobile payments
3-7% have used mobile payments in stores
Currently, the adoption rate of consumers and their consistent use of mobile payments once adopted is low. The potential exists though, so as more retailers and restaurants adopt the technology, it is likely that consumers will make the switch as well.
16-27% of consumers are willing to try mobile payment

8. Consumer Adoption Rates Continued
65% of U.S. consumers will continue to use credit and debit as primary payment methods in 2014 according to VeriFone
Mobile purchases by smartphone users by age group:
Age = 37% have made purchase on their phone
Age = 29% have made purchase on their phone
Age 55+ =14% have made purchase on their phone
Consumer Smartphone Purchases
Small purchases = 45%
Medium purchases = 44%
Large purchases = 29%
55% of consumers want mobile wallets
The potential exists and there is a demand for the technology.

9. Since 2010, M-Commerce Spending has drastically increased
Since 2010, M-Commerce Spending has drastically increased. Fourth quarter sales peak each year due to the holiday seasons. If we compare the rates by the identical quarter of each year, we see consistent increase in mobile purchases from 2010 to 2013.

10. Industry Dilemmas Lack of consolidation
According to Eden Zoller, a Principal Analyst from Ovum (a technology consulting firm), “Consumers will not adopt multiple digital wallets and instead will focus their loyalty…with one or possibly two services. The best positioned will be those associated with the financial branches that consumers trust most. It is digital wallets of this kind that have the best chance of achieving scale.”
The large number of mobile payment options:
NFC (Near Field Communication)
QR Codes
Mobile applications
BLE (Bluetooth Low Energy)
Technology differentiation creates a disconnect between stores and consumer preference.

11. Predictions IHL Predicts: Forrester Research:
In North America, 64.6% of all new Mobile POS will be on phablet (tablet-sized phones) or larger screens in 2014.
Forrester Research:
Total worldwide sales of tablets will surpass 380 million units this year.
Goldman Sachs projections:
U.S. retail sales on smartphones will more than double from $70 billion this year to $173 billion by 2018.
Tablet sales will more than triple from $130 billion this year to $453 billion in 2018.

12. Concerns Security: Practicality and Inconsistency Privacy:
One of the biggest concerns of consumers is the security of their payment data.
Practicality and Inconsistency
There is a lack of incentives for customers to switch.
Not enough stores and restaurants provide mobile payment options.
Consumers can use their phone at some locations, but must pay with card or cash at others.
Privacy:
Customers are uneasy about the possibility of being tracked or monitored by stores for behavior profiles and analytics.

13. Conclusion
The current adoption rates of mobile payments by consumers, retailers, and restaurants is slowly rising. The willingness of buyers and consumers to provide and adopt new technology is reduced due to security concerns. The benefits of mobile platforms go beyond just payments: -Customer engagement abilities -Inventory analysis -More efficient use of time for both parties. Want to Learn More About the Industry and Current Technology Trends? Check out our website or follow us on our social media sites for the latest news:
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