1. Rome, 6th October 2014 - Ercan Kilic, GS1 Germany
How digital (especially mobile coupons) will be distributed and redeemed at the POS (virtual and physical POS)
Rome, 6th October
Ercan Kilic, GS1 Germany

2. GS1 Germany MobileCom project – focuses on

3. Why is GS1 Germany active in Mobile Commerce?
GS1 has observed a world wide development of payment methods – they become increasingly contactless.
The way in which customers pay for goods, redeem coupons, collect points, etc. change dramatically and more rapidly.
These changes in customer behavior have an enormous impact on the business models of our clients and also in their investments in technology
GS1 Germany assumes the responsibility to offer solutions that enable its clients to benefit from the potential resulting from these changes.

4. Mobile Payment Mobile ist wichtig für Retailer und Hersteller
Das haben auch schon die großen Player erkannt wie Over the top player Google, Paypal, Amazon, Apple & Co.

5. GS1 is not active in the payment eco-system
… but when it comes to Mobile Wallets then GS1 standards will be part of the different POS scenarios and new processes
Banks
MNOs
Acquirer
& Mobile  no nicht viel passiert – but
TSM
IAPs
Payment Networks

6. Yesterday: Payment was manageable and easy to understand
Real World
physical POS
Cash
ILLUSTRATIION
Debit Card
Direct Debit Credit Card
Products via Banks
Manageable product portfolio
Distinction between payment at POS and Online – very clear
Virtual World E-Commerce
Credit Cards
Bank transfer
Debit entry
Lastschrift
Online Banking (Vorauskasse, Rechnung)

7. Convergence of Payment The Wallet Hype
ILLUSTRATION
Real World physical POS
Cash 1
mWallets
Debit Card
Direct Debit Credit Card 2
eWallets
Virtual World
E-Commerce
Credit Cards
Bank transfer
Debit entry
Online Banking (Vorauskasse, Rechnung)
Bank
transfer

8. Mobile Wallet
OTTs, Internet Giants, Banks, MNOs, Handset Manufacturers, Retailers want to provide Mobile Wallets by offering value-add services to customers
It`s not only Payment – it`s more than that - it`s the convergence of payment, couponing loyalty product info, etc. & co.
The whole scenario is driving to mobile
Source: Vodafone

9. Mobile Wallet – the Google Wallet
It is complex to set up, maintain, enrich and drive broad acceptance of mobile wallets!
Abbildungen: Google.com

10. Apple Pay - a late start to the market but with an innovative set-up
Factsheet:
Integrated into Apple Passbook on IOS 8
Cards already stored in Itunes can be used
Alternatively cards can be added by taking a photo
Supports NFC-based POS payments and one-click payments in apps and online stores
Authorization of transactions via fingerprint sensor
No credit card data is forwarded to the merchant, no transaction records are kept by Apple
Launches first in the US in October 2014
Will support the Apple watch after launch in 2015

11. Apple Pay - Passbook

12. The impact of Apple Pay The break-through will come with Apple Pay
The market for mobile payment will benefit in general
Apple Pay will clearly raise the awareness for contactless payments worldwide
Customer demand will be driven by Apple Pay (contactless payments might become cool)
Apple unlocks the access to a well-funded group of customer with affinity to new technologies
Apple Pay’s one-click-payment feature for apps and online stores will open up a severe battle between Apple and e-wallet providers like Paypal

13. Apple vs. paypal
Paypal - the market leader Online Payment

14. What`s the strategy of retailers in US
A Network of America`s favorite merchants

15. ISIS-Wallet - Credit Cards, Loyalty Cards, Coupons, Deals & Offers

16. Isis hits 20,000 daily wallet activations – per day
14. Mai 2014
Isis hits 20,000 daily wallet activations – per day
ISIS-Wallet daily activations
68 NFC-Smartphones support the Wallet across three operators
Preloaded on 14 Smartphones
Over redeemed Coupons at Jamba Juice in Q
US mobile payments venture Isis revealed it has averaged more than 20,000 daily activations of its wallet app over the last 30 days, the first time it has lifted the lid on take-up since its nationwide launch last November.
Its growth is double the rate of the prior month, said the venture, which is backed by AT&T, T-Mobile US and Verizon Wireless.
Of course, activations do not necessarily translate into active users, which is the real test of whether the service has achieved popularity.
In addition, the venture announced that 68 mobile devices support the wallet across the three operators, up from the “more than 40 smartphones” it revealed at the time of its launch last year.
Today the wallet app comes preloaded on 14 smartphones, said the venture.
Isis has courted US retailers, of which Jamba Juice has become a prominent supporter. It is giving away a free smoothie every time a consumer uses the mobile wallet to pay.
Its stores have seen a more than 50 per cent month-over-month growth in wallet use, it said. By the end of Q1, Jamba Juice customers had redeemed over 270,000 free smoothies, and it expects to hit one million redemptions by the fall.
Generally, data about user interest in Isis’ NFC-based payments service has been scarce, even before last November’s launch.
Prior to commercial launch, Isis did reveal that acceptance of contactless payment doubled in the two US cities where Isis ran its trial. And that the average user in its Salt Lake City trial (one of the two cities) pays for goods or services five times or more per week using their handsets.
Now Isis plans to make consumers feel more at home with mobile payments, according to CEO Michael Abbott (pictured). “We continue to offer compelling consumer deals – all with the goal of helping consumers become very more comfortable with mobile wallets.”

17. Savings always with you ….

19. Mobile Wallet contains different Services
Debit CARD
EC Card (national Debit)
Credit CARD
Coupon
Loyalty
Retailer CARD (Payment, Coupon, Loyalty)
Digital Receipts
Refund Receipts
Productinformation
Interaction with Smart-Shelfs, Smart-Posters ….
New services will come up soon - challenges for standardisation

20. POS Interaction – Increase of technologies and interfaces at the retailer´s POS
cash register - till
NFC-Terminal
NFC-Reader
Photo Scanner
QR Code Display
Laser Scanner
BLE Beacon
camera
NFC
BLE
QR Code
IFR
W-LAN
SMS
Technologies / Interfaces
1D / 2D Barcodes
Laserscanner
Photoscanner
Beacon / BLE
Bluetooth
RFID
NFC-Terminal
NFC-Reader separat
etc.
Es gibt theoretisch eine Vielzahl an Technologien, über die das Smartphone mit der Kasse / dem Terminal des Händlers kommunizieren können
Es ist noch nicht klar, welche Technologie sich letztendlich durchsetzen wird oder ob mehrere Technologien relevant sein werden
Erhebliches Investmentrisiko für Händler  abwartende Haltung
Die GS1 adressiert diese Thematik bereits in der Arbeitsgruppe (Erstellung einer Technologiematrix)
Henne-Ei Problem: Händler sind abwartend, warten was der Kunde möchte. Kunden hingegen sind auch verunsichert ob der vielen Möglichkeiten und halten sich auch noch zurück
GS1 Germany widmet sich diesem Problem und hat eigens für diese Thematik eine eigene Unterarbeitsgruppe gegründet, um die Händler zu unterstützen! Unter anderem wird gemeinsam eine Technologiematrix entwickelt, die den Händlern als Entscheidungshilfe dienen soll.
Fakt ist aber auch, dass alle neuen ausgelieferten Terminals mit NFC ausgestattet sind, sodass eine relevante NFC-Abdeckung zwangsläufig zustande kommen wird. Insofern wird die Coupon-Einlösung über NFC immer relevanter, speziell im Hinblick auf die Komplementäre Nutzung mit Mobile Payment innerhalb einer Mobile Wallet (Konvergenz)!
NFC - reverse vending machine
Retailers are uncertain and not willing to make large investments at the POS!

21. Confusion in today’s Digital Coupon Landscape
Brands
Retailers
Consumers
How to set up a successful couponing strategy?
Which distribution channel should we use – wap, App, SMS, or others?
How to set up cross-retailer campaigns?
Is there a simple (self-service) tool that features performance measurement and real-time campaign management?
What do consumers expect?
Which technologies and interfaces exist and which ones are relevant for us?
What does that mean for my investment in digital infrastructure at the POS?
Threat: other players such as Cashback Couponing providers
Yes, I want coupons - but where can I redeem them and how?
Which retailers support this coupon campaign?
I do not want to download several coupon apps! Couponing has to be simple!

22. Couponing Landscape Stakeholders
Distribution
Media Agencies
Creative Agencies
Brand Owners
MNOs
Consumer
Retailers
Clearing- houses
Validation
Others?

23. Mobile Couponing Landscape
Mobile distribution channels
Media Agency
Lead Agency
Specialized Agencies
Processes
Brands / coupon issuers
Retailers
Clearing Houses

24. Areas of tension in Mobile Couponing
Prerequisite for the broad acceptance of Mobile Couponing: Efficient processes along the line from distribution to redemption!
Coupon distribution
Coupon redemption

25. Areas of tension in Mobile Couponing
Distribution: Not critical
Challenge: Redemption at POS 1 2
Receive coupon
Redeem coupon
present
scan
NFC
BLE

26. Coupon distribution Coupon Issuer
Efficient coupon distribution across several distribution channels is limited today!
Viele unterschiedliche Reichweiten meist nicht zentral über ein Tool steuerbar, viele ineffiziente Prozesse
Abhängigkeit von Clearing-Häusern bei der Verteilung an die Reichweiten
Reichweitenanbieter (Wallet / App Anbieter - bspw. Coupies) stehen teilweise im Wettbewerb zur B2C Reichweite des Clearing-Hauses (z.B. eigene Coupon Wallets)
händlerübergreifende, nationale Coupon-Aktionen können dadurch nur eingeschränkt umgesetzt werden
Eingeschränkte Messbarkeit und somit unzureichende Erfolgsmessung der Kampagnen
KitKat Brand App
Consumer

27. Mobile Advertising Campaign 1.0
No tracking possible – hoping for awareness!
End of campaign!
Ad Impressions
Visits
banner placement
till
clicks
CTR = 10%
Consumer
Measurement ???

28. The Challenge - how to redeem mobile coupons at the till
Frontend: POS / till:
cash register - till
NFC-Terminal
NFC-Reader
Photo Scanner
QR Code Display
Laser Scanner
BLE Beacon
0,50€
0,50€ günstiger!
camera
NFC
BLE
QR Code
Technology – Smartphone
1D / 2D Barcodes
Laserscanner
Photoscanner
Beacon / BLE
Bluetooth
RFID
NFC-Terminal
NFC-Reader separat
etc.
IFR
W-LAN
SMS

29. Mobile Advertising 2.0 - CXP solves the measurement issue
CXP enables measurement along the whole coupon cycle!
Distribution:
Coupons
Ad Impressions
0,50€ off !
Visits
0,50€ off !
1.000 redemptions at till
Banner placement
CXP
till
clicks
Detailed reports
CTR = 10%
Konsument
5.000 clicks
Till integration
Coupon is activated
0,50€ off !
Measutrement = Redemption Rate, e.g. 1%
 Performance Marketing!

30. POS: Processing of digital coupons through the backend of the retailer
Problem: lack of standards leads to incompatibility and less efficiency!
Clearinghaus 1 1
till 1
Clearing
today
till 2
Industry /
Coupon-Issuer
Inter-Clearing
Clearing
Clearinghaus 2 2
till 3
Clearinghaus 3 3
till 4
Clearing
We address this challenge in our working groups!

31. Standardized communication based on EPCIS
Standardized communication between retailers and and coupon service providers
Standardized communication communikation leads to compatibility and optimized efficiency
till
TOMORROW?
Clearinghaus 1
Clearinghaus 2
Clearinghaus 3
Clearing
Coupon issuer
Standardized communication based on EPCIS
Clearing
till
Clearing
Bilderquelle: Google

32. GS1 standards and data architectures in the Coupon-Cycle
GLN
Global Location Number:
A unique identifier that refers to a specific location. A location could be an organisation, warehouse, retailer, platform or role.
GTIN
Global Trade Item Number:
A unique code, belonging to a specific organisaiton, that identifies a product at a packaging level.
Global Service relationship Number:
A unique code relating to a relationship with a specific consumer. For example identifying a unique consumer.
GSRN
Global Coupon Number:
An identifier relating to a specific coupon and its use, business rules and creative. The GCN holds the generic information about that coupon (or series of coupons)
GCN
SGCN
Serialised Global Coupon Number:
This is a single, unique, instance of a GCN.

33. Mobile Payment Pilot is based on NFC and Mobile Wallet
Mobile Payment Pilot based on NFC und Mobile Wallet
Cross MNO and Cross Retailer model
NFC-City BERLIN

34. Vision of “NFC City Berlin“
The goal of “NFC City Berlin“ is to set up a lighthouse project that establishes the “Eco System“ of Mobile Payment.
A critical mass and an impulse for NFC will be achieved by joining forces at the issuance side and at the point of acceptance.
The Mobile Payment project will be established first at main market participants. Subsequently, the project will be extended by more participants and use cases.
That includes harmonization of different services and transaction types such as couponing and ticketing but also parking, carsharing, access via NFC.
The constant use of NFC services increases customer acceptance to use smartphones not only in retail but also in other services and Scenarios (different use cases).
“NFC City Berlin“ considers basically:
Customer acceptance
Technical interaction
Business models
“NFC City Berlin“ is the first step towards an overall contactless communication and transaction at the physical POS.

35. Goal of NFC City Berlin Customers Technique & processes
Acceptance
Usage
Behavior
Technique & processes
Complexity and functionalities of wallet & cash systems
Processes & interaction
Ecosystem & partner models
Development and testing of business models
“NCF City Berlin“ delivers important insights about the interplay of the different parties and components:
Customers
Technique & processes
Eco system & partner models
That enables the participating companies to position themselves strategically early in the Mobile Payment field.
On this basis, all parties are able to refine their products and services.
The participation in the development and in the implementation of a contactless payment infrastructure enables all parties to proactively form a strategic positioning within the ecosystem.

36. Key objectives of the NFC City Project
Support creating a partner model between the key stakholders
Building a sustainable eco-system together
Figuring out the ideal Mobile Payment Solution
Testing the soultion(s) - User Experience / Design
Optimizing the processes between the Stakeholders and especially
Consumer/Smartphone and Terminal/Cashier system / till of the Retailer
Generating insights concerning the customer acceptance
Measuring transactions
Generating Reportings concerning performance and huser behavior
Genarate insights for all stakeholder - also for value added service providers
Couponing
Loyalty
Advertising and others
Build focus groups to undestand customers needs – surveys in stores etc.
Preparing roll-outs
Developing and providing best practises and recommendations for the community
Defining standards

37. Contact GS1 Germany GmbH Ercan Kilic Head of Mobile Commerce
Maarweg 133
50825 Köln
Tel:
Mobile:
Fax: