ALTERNATIVE PAYMENTS: CHANGING THE RULES

Table of Contents

EXECUTIVE SUMMARY

• Challenges of Alternative Payments Innovations
• Electronic Payments
• Focus of Report
• Technologies
• Competition, Cooperation, Partnerships
• Conclusion

OVERVIEW OF ALTERNATIVE PAYMENTS

• Overview of Alternative Payments
• Scope of this Report
• The Way People Pay
• Three Ways of Paying
• Paying on Account and Extending Credit
• The Payments Value Chain
• Potential to Shorten the Value Chain
• The Four Party Payment System
• Authorization
• Clearing and Settlement
• Interchange Fees
• Types of Alternative Payments
• Contactless Payments (Debit And Credit)
• Mobile Payments
• Biometric Payments
• Specialized Payment Markets
• Micropayments
• Social Money
• Key Market Segments
• Mainstream Market
• Unbanked, Immigrants, and Credit Challenged
• Unbanked - International
• Youth Market
• Merchants
• Conclusion

ALTERNATIVE PAYMENTS TECHNOLOGY

• Introduction
• Magnetic Stripe
• Radio Frequency Identification (RFID)
• RFID Acceptance
• Smart Cards
• Short Message Service (SMS)
• Direct Debit Using SMS
• Near Field Communications (NFC)
• NFC Trials
• Philips Arena Trial in Atlanta, Georgia
• NFC Trial in Dallas, Texas
• NFC Potential
• NFC Developments in Japan
• NFC in Europe
• Biometrics
• Fingerprint Template and Payment Procedure
• Industry Coordination and Standards
• RFID
• m-Payments and Contactless Payments
• NFC Forum
• Payments: Mag-Stripe, Contactless, Smart Card, Wireless, Biometrics
• Conclusion

MARKET DRIVERS AND TRENDS

• Introduction
• Speed and Convenience
• Country Specific/Cultural Factors
• Differing Payments Infrastructures By Country
• Ease of Use, Fumble Factor
• Micropayments
• Microcomputer in the Hand
• Cool Factor
• Retaining Customer Loyalty -- Rebates and Coupons
• Payment/Cardholder Steering
• Unbanked Population (Immigrants, Credit Challenged)
• High Credit Card Fees - Background on PIN-Based Debit Cards
• Disintermediaton
• Security Concerns
• Active versus Relatively Passive Payment Action
• Government Support and Regulation
• Need for Online Payments, New Payment Alternatives
• PayPal
• Google Checkout
• Un-Drivers
• Point of Sale Equipment
• Other Payment Providers
• MoneyGram International
• Peppercoin

CONTACTLESS PAYMENTS

• Introduction
• Background and History -- United States
• Japan and Korea, Europe
• Strategic Factors Affecting Contactless Usage and Deployment
• Interchange Costs
• Additional Benefits of Contactless Cards
• Security of Contactless Cards
• Cross-Elasticity with PIN-Based Debit Cards
• Background on PIN-Based Debit Cards
• Applications
• Big City Mass Transit
• Case Studies -- 7-Eleven and Sheetz
• Employee Cafeterias
• Vending Machines
• Market Promotions
• Incentive for Customer and Merchant Use
• Contactless Market Opportunity
• Lessons from Target' s Bad Experience with Smart Cards
• Terminal Upgrades to Contactless
• Key Players
• Credit Card Companies and Payment Services
• American Express
• Citibank
• Discover Financial Services
• MasterCard Worldwide (PayPass)
• Visa
• First Data
• Reader Systems and Equipment Companies
• On Track Innovations Ltd. (OTI)
• Symbol Technologies
• ViVOtech
• General Technology Providers
• Giesecke & Devrient GmbH
• INSIDE Contactless
• Other Contactless Payment Players
• Chockstone (Customer Loyalty Solutions)
• FreedomPay (Corporate Cafeteria Market)
• Precision Dynamics (Alternative Contactless Payment Provider)
• RFID Chips -Texas Instruments
• Oberthur Card Systems (Contactless Cards)

WIRELESS PAYMENT SOLUTIONS

• Introduction
• Wireless Payment Types
• Wireless Payment Platform
• Current and Future Payments Evolution
• The Players, Current and Future
• Competitive Advantage and Payment System Margins
• Requirements for Market Growth
• The Smaller Companies - Establishing Customer Trust
• The Wild Card - NFC Technology, Wireless Carriers, and Banks
• World Development
• Asia
• Europe
• United States
• South America
• Conclusion
• Key Players
• Service Providers/Enablers
• C-SAM
• Cyphermint
• Dexit
• MobileLime
• Mobipay
• MoreMagic Solutions
• Obopay
• PayPal Mobile
• Sapphire Mobile Systems
• SMART (Smart Communications)
• Valista
• WIZZIT
• Niche Players
• TextPayMe
• Verrus Mobile Technologies
• Wireless Carriers
• Cingular
• T-Mobile
• Verizon Wireless
• Cell Phone Companies
• Nokia
• Motorola
• Samsung
• Sony Ericcson

BIOMETRIC AUTHENTICATED PAYMENTS

• Introduction
• Biometric Authentication
• How Payments Work
• Merchant Benefit
• Security Discussion
• Need for Registration
• Applications and Trials
• Market Evolution
• Potential Users
• Key Players
• Biometric Service Providers
• Pay By Touch
• Privaris
• Digital Defense Group
• IdentiSys
• Authentication Companies
• Gemalto (Axalto, Gemplus)
• US Biometrics
• Technology Providers
• NCR
• Facekey
• Fingerprint Cards
• Card Companies
• Discover Financial

MARKET PROJECTIONS

• Introduction
• Contactless Payments
• Current Market
• Key Assumptions
• Five-Year Market Forecasts
• m-Payments
• Current Market
• Key Assumptions
• Five-Year Market Forecasts
• Biometrically Authenticated Payments
• Current Market
• Key Assumptions
• Five-Year Market Forecasts