Mobile Payment

Table of Contents

• Executive Summary: Mobile Payment - New Business Models for Mobile Communications
• Mobile payments as aew business models for mobile communications Japan has become the worlds most competitive communications market
  • Why are new business models needed for mobile communications?
  • Japans telecommunications landscape (graphical map, including recent restructuring, mergers and de-mergers and expected new entrants)
  • DoCoMo and KDDI/AU are the leaders, under competitive pressure by Vodafone and new entrants
  • DoCoMo, KDDI and Vodafone - the top players in Japans mobile industry (graphics comparing financial data - sales, net profits and market capitalization - for DoCoMo, KDDI and Vodafone)
  • Competing for Japans mobile subscribers (graphics: subscriber data for all Japanese mobile phone operators 1998-2004, including industry consolidation)
  • Competing for Japans mobile subscribers (graphics showing month-by-month subscriber growth/loss for the period Jan 2003 - March 2005)
• DoCoMos invstment in credit card companies: building new business models
  • DoCoMos investment in credit card companies
  • Credit card payments are a much bigger market than mobile communications (graphic comparing Japans mobile communications market with Japans credit card payment market since 1990 with projection to 2010)
  • Japans credit card payment and cash advance market (pie chart showing market shares of credit card companies)
  • DoCoMos investment in credit card companies: implications
• Japans mobile internet as a platform for mobile payments
  • Mobile payments today in Japan
  • The i-Mode Exosystem
  • Mobile internet penetrates Japan (graphics showing mobile internet subscriber numbers for 1999-2005)
  • Todays 3G i-Mode in a nutshell: users pay for content
• M-commerce, mobile payments and mobile transactions
  • Japans mobile internet supports a range of m-commerce and m-transactions
  • m-commerce, m-content, and m-advertising in Japan (market size estimatiomnns, graphics for 2000-2006)
  • Mobile mail order, e-commerce and m-commerce (market size estimations: 1998-2010)
• Payment for mobile content: mobile music
  • Overview of mobile music market
  • Graphical view of mobile business cash flow strams and business relationships
  • Music on i-mode
  • User experience to purchase music from i-Mode SH900i handset
  • Mobile music sales vs fixed line internet music sales (graphics: online music market segmntations for 2001-2004)
  • Market size for ringtones in Japan
  • Mobile music market size in Japan (graphics 1999-2004, with extrapolation to 2007)
  • Mobile music as a share of total music market (graphics showing data for 1994-2003)
  • Leading mobile music sites, profiles and descriptions
• Selling full songs by mobile phone: KDDI/AUs Chaku-Uta-Full service
  • Mobile music: the new business model for music, in comparison with the old CDROM model (graphical market size data for 2004-2005 comparing chaku-uta, chaku-uta-full and and Apple i-Tunes for 2003-2005)
  • KDDI/AUs chaku uta full, screen images and characteristics, menu list
  • Chaku-uta full: screen images and characterization of submenus
  • KDDI/AUs top 3 chaku uta full sites: screen images
  • Screen images of chaku uta full songs stored in a KDDI/AU phone
• Paying for mobile games
  • Overview
  • Graphical view of market size for arcacde games, video game softwaare, video game hardware, fixed line games and mobile phone games
  • Example: leading mobille phone game game make and DoCoMo i-Mode partner
  • DoCoMos payment intermediation system for console games
• Online purchasing, mobile shopping malls
  • Online purchases by mobile phone
  • Commerce features unique to mobile phones
  • M-commerce: shopping by mobile phone
  • Examples of mobile phone online bookstores
  • Examples of mobile phone online music stores
  • Mobile shopping mall
  • Event tickets by mobile phone, example of leading mobile store
  • Selling flowers by mobil phone
• KDDI/AUs mcommerce initiatives
  • Overview
  • AU shopping and auction menu
  • AU shopping
  • Au auctions via mobile phone
  • AU records and EZ music store
  • AU style
• Reserving and paying with mobile phone for train travel: example - ExpressCard
  • Overview of the ExpressCard
  • Table of key data, market size, usage characteristics, and sales volume estimation
  • ExpressCard mobile selling system description
  • Seat reservation and purchase via PC internet site
  • Seat reservation and purchase via mobile phone, screen image of top menu
  • Mobile reservation, and purchase site, login screen image and description
  • Researvation and purchase sequence, screen images
  • Paper ticket issue of tickets purchased by mobile phone
  • Estimation of market size
• Reserving and paying with mobile phone for train travel: example - Odakyu romance car club
  • Overview of the Odakyu romance car club
  • Mobile reservation, and purchase site, login screen image and description
  • Researvation and purchase sequence, screen images
  • Summary
• DoCoMo coin
  • Overview of DoCoMo coin system
• What are wallet phones and why
  • Overview
  • Example: P506iC (introduced on July 10, 2004)
  • i-Mode Felica transaction partners
  • Why wallet phones, what are wallet phones
  • DoCoMo i-Mode Felica wallet phone description
  • Schematic overview of the i-Mode Felica System
  • Why wallet phone
  • Trends of mobile communications, phases of development
  • Mobile phone - stages of development
  • Implications for the mobile carrier
• The Felica platform
  • Overview
  • Inside view of FeliCa cards
  • FeliCa and standards
  • Felica, data for specific FeliCa card models
  • Felica compared with other IC-Cards
  • VISA, SONY and Infineon alliance
  • ANA mileage club card as an example application
  • Contactless secure card reader/writer
• Security and privacy
  • Security is critical for success
  • Security - key issues
  • Security - solutions
  • Privacy
• Felica Networks - the company
  • Overview
  • JR-East joins Felica Networks, graphics showing capitalization for pre and post investment
• i-Mode Felica preview service (January - June 2004)
  • Overview
  • Concept
  • Terminals for the preview service
  • Preview service description
  • Participating companies
  • Applications tested
  • List of services
• i-Mode Felica services from introduction (from July 10, 2004)
  • Overview of wallet phone introduction on July 10, 2004
• Initial eleven wallet phone services (from July 10, 2004)
  • Listing with description of partners
• Twenty three wallet phone services (from August 2004 and beyond)
  • Listing with description of eleven initial introduction partners
• EDY Electronic Cash
  • What does the name Edy mean?
  • ANA mileage club as example for EDY application
  • Demonstration of EDY electronic cash functionality with screen images
  • Why electronic cash?
  • Requirements for electronic cash
  • Edy overview
  • Edy timeline and history
  • Japans ecash is private business
  • National introduction of ecash
  • Edy charger unit for retail use
  • Cash register (POS) with Edy reader/writer
  • Softdrink machine with Edy reader/writer
• BitWallet KK
  • Company outline
  • Shareholders and equity ratios
• i-Mode FeliCa examples
  • Karaoke
  • Contactless off-line payments
  • Photocopy machines
  • Office applications
  • Game arcades
  • Event tickets
  • POS payments
  • Airline tickets, reservations and check-in
  • Phones as train tickets
• The competitive picture: competing mobile operators
  • Outline
  • The challenge
• Summary: Mobile payment