Mobile Wallet Strategies

Payments, Coupons, Offers, Loyalty and Rewards Programs

Research Report

A key element to consumer adoption of mobile payments is how various and disparate elements function and coexist digitally for a consumer. It is unlikely that consumers will respond favorably to mobile "wallets" that only work for one payment card, related loyalty cards, or with one merchant. They will most likely respond to entities who can aggregate the widest range of payment related "cards" and functionality as possible - including multiple/competing cards, loyalty and reward programs, and the widest range of offers. Providing this functionality in the form of software and hardware is difficult and it is unclear what entities might best provide mobile wallets to consumers. This report will look at the challenges to mobile wallet acceptance, drivers and business models, what companies will most likely succeed in offering mobile wallets, and how they integrate into broader capabilities - such as a digital wallet and smart wallet. Forecasts include active subscribers of mobile wallets, by category of issuing entity (MNO, OS player, bank, merchant, etc.). Other forecasts are mobile loyalty/reward uptake rates (active users) and offers uptake rates (active users, $ value).

Table of Contents

  • Market Share
  • Drivers
  • Inhibitors
  • Top Line Forecast
  • Summary and Strategic Recommendations
  • 1. EXECUTIVE SUMMARY
    • 1.1. Overview and the Stakes
    • 1.2. Mobile Wallet Capabilities
    • 1.3. Mobile Wallet Providers
    • 1.4. Google Wallet
    • 1.5. Apple
    • 1.6. Potential Mobile Wallet Providers: Banks, Payment Providers
    • 1.7. Potential Mobile Wallet Providers: Merchants
    • 1.8. Drivers
    • 1.9. Barriers
    • 1.10. Market Forecasts
  • 2. CONCLUSIONS AND RECOMMENDATIONS
    • 2.1. Conclusions
    • 2.2. Recommendations
  • 3. MOBILE WALLET BASICS AND TECHNOLOGY
    • 3.1. What Is a Mobile Wallet?
    • 3.2. Types: Single Function Mobile Wallet
    • 3.3. Types: Multi-function Mobile Wallet
    • 3.4. Types: Universal Mobile Wallet
    • 3.5. Types: Digital/Virtual Wallet
    • 3.6. Types: Smart Wallet
    • 3.7. Components: Hardware, Software, and Back End Integration
    • 3.8. Standards Bodies
  • 4. MARKET ISSUES
    • 4.1. Mobile Wallet Capabilities
    • 4.2. Payments
    • 4.3. Coupons/Offers
    • 4.4. Loyalty/Rewards
    • 4.5. Prepaid/Gift Cards
    • 4.6. MNOs as Mobile Wallet Providers: Strengths
    • 4.7. MNOs as Mobile Wallet Providers: Weaknesses
    • 4.8. MNOs as Mobile Wallet Providers: Opportunities
    • 4.9. MNOs as Mobile Wallet Providers: Threats
    • 4.10. MNO Mobile Wallet Providers: Cityzi
    • 4.11. MNO Mobile Wallet Providers: ISIS
    • 4.12. ISIS Analysis, Future
    • 4.13. OS Players as Mobile Wallet Providers
    • 4.14. Google Wallet
    • 4.15. Google Wallet: Strengths
    • 4.16. Google Wallet: Weaknesses
    • 4.17. Google Wallet: Opportunities
    • 4.18. Google Wallet: Threats
    • 4.19. Google Wallet: Summary
    • 4.20. Microsoft/Nokia
    • 4.21. Nokia Thinking
    • 4.22. Microsoft/Nokia: Strengths/Opportunities
    • 4.23. Microsoft/Nokia: Weaknesses/Threats
    • 4.24. Microsoft/Nokia: Summary
    • 4.25. Apple
    • 4.26. Apple: Strengths
    • 4.27. Apple: Weaknesses
    • 4.28. Apple: Opportunities
    • 4.29. Apple: Threats
    • 4.30. Apple: Summary
    • 4.31. Potential Mobile Wallet Providers: Banks, Payment Providers
    • 4.32. Payment Providers: Virtual, Digital and Mobile Wallets
    • 4.33. Visa and American Express Try Virtual/Digital Wallet Concepts
    • 4.34. Visa
    • 4.35. American Express
    • 4.36. MasterCard
    • 4.37. PayPal
    • 4.38. Potential Mobile Wallet Providers: Merchants
    • 4.39. Mobile Wallet Vendors
  • 5. MARKET FORECASTS
    • 5.1. Forecast Methodology
    • 5.2. Forecast Data
    • 5.3. Forecast: Installed Base of NFC Mobile Handsets
    • 5.4. Forecast: Active NFC-based Mobile Wallet Users
    • 5.5. Forecast: Active NFC-based Mobile Wallet Users as % of Mobile Subscribers
    • 5.6. Forecast: Active NFC-based Mobile Wallet Users by Issuing Entity
    • 5.7. Forecast: Active NFC-based Mobile Wallet Users, Offers
    • 5.8. Forecast: NFC-based Mobile Wallet Offers Redeemed Value
    • 5.9. Forecast: NFC-based Mobile Wallet Offers Redeemed Annual Value per User
    • 5.10. Forecast: Active NFC-based Mobile Wallet Users, Loyalty/Reward
    • 5.11. Forecast: Western Europe
    • 5.12. Forecast: Eastern Europe
    • 5.13. Forecast: Asia Pacific
    • 5.14. Forecast: North America
    • 5.15. Forecast: Latin America
    • 5.16. Forecast: Middle East
    • 5.17. Forecast: Africa
  • 6. COMPANY DIRECTORY
  • 7. ACRONYMS
  • 8. LINKS TO RELATED RESEARCH
    • 8.1. Scope of Study
    • 8.2. Sources and Methodology
    • 8.3. Notes

Tables

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  1. Active NFC-based Mobile Wallet Users, World Market, Forecast: 2012 to 2016
  2. Active NFC-based Mobile Wallet Users % of Mobile Subscribers, World Market, Forecast: 2012 to 2016
  3. Active NFC-based Mobile Wallet Users by Issuing Entity, World Market, Forecast: 2012 to 2016
  4. Active NFC-based Mobile Wallet Users, Offers, World Market, Forecast: 2012 to 2016
  5. Mobile Wallet Offers Redeemed, Value, World Market, Forecast: 2012 to 2016
  6. Mobile Wallet Offers Redeemed, Annual Value Per Active User, World Market, Forecast: 2012 to 2016
  7. Active NFC-based Mobile Wallet Users, Loyalty/Reward, World Market, Forecast: 2012 to 2016
  8. NFC-based Mobile Wallet Data, Western Europe, Forecast: 2012 to 2016
  9. NFC-based Mobile Wallet Data, Eastern Europe, Forecast: 2012 to 2016
  10. NFC-based Mobile Wallet Data, Asia-Pacific, Forecast: 2012 to 2016
  11. NFC-based Mobile Wallet Data, North America, Forecast: 2012 to 2016
  12. NFC-based Mobile Wallet Data, United States, Forecast: 23012 to 2016
  13. NFC-based Mobile Wallet Data, Latin America, Forecast: 2012 to 2016
  14. NFC-based Mobile Wallet Data, Middle East, Forecast: 2012 to 2016
  15. NFC-based Mobile Wallet Data, Africa, Forecast: 2012 to 2016

Charts

  1. Active Mobile Wallet Users
  2. Active NFC-based Mobile Wallet Users Versus Mobile Subscribers
  3. Active NFC-based Mobile Wallet Users by Issuing Entity
  4. Active NFC-based Mobile Wallet Users, Offers
  5. Active NFC-based Mobile Wallet Users, Offers
  6. Mobile Wallet Offers Redeemed, Value
  7. Mobile Wallet Offers Redeemed, Value
  8. Active NFC-based Mobile Wallet Users, Loyalty/Reward
  9. Active NFC-based Mobile Wallet, Offers, Loyalty/Reward Users
  10. Mobile Wallet Offers Redeemed, Value
  11. Active NFC-based Mobile Wallet, Offers, Loyalty/Reward Users
  12. Active NFC-based Mobile Wallet, Offers, Loyalty/Reward Users
  13. Mobile Wallet Offers Redeemed, Value
  14. Active NFC-based Mobile Wallet, Offers, Loyalty/Reward Users
  15. Mobile Wallet Offers Redeemed, Value
  16. Active NFC-based Mobile Wallet, Offers, Loyalty/Reward Users
  17. Mobile Wallet Offers Redeemed, Value
  18. Active NFC-based Mobile Wallet, Offers, Loyalty/Reward Users
  19. Active NFC-based Mobile Wallet, Offers, Loyalty/Reward Users
  20. Active NFC-Based Mobile Wallet Users By Issuing Entity, World Market, Forecast: 2012 to 2016
  21. Active Mobile Wallet Users, World Market, Forecast: 2012 to 2016

Figures

  1. Provisioning of Mobile Contactless Card Payments Applications to a Secure Element
  2. An Example of an NFC Mobile Payment Flow
  3. Advertisement for Cityzi
  4. ISIS Promotional Material
  5. Google Wallet Logo