160928-27_4th Annual Mobile Wallet Conference 2016_Mobile Wallet Trends
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Spire was honored to be invited as a guest speaker at the 4th Annual Mobile Wallet Conference 2016.
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160928-27_4th Annual Mobile Wallet Conference 2016_Mobile Wallet Trends
- 1. Mobile Wallet Trends Prepared by Spire Research and Consulting For 4th Annual Mobile Wallet Conference Jakarta, 27 September 2016
- 2. TABLE OF CONTENT 1 Current Development of Mobile Wallet 2 Asia-Centric Mobile Platform Variety 3 The Future of P2P Digital Currency Development Mobile Wallet Trends
- 3. Regulators InstrumentsService Providers Mobile Wallet Online Payment Public Transport Lending / Savings / Insurance Money Transfer Bill Payment Digital Information Retail Payment Mobile Wallet Ecosystem Current Value Chain and Services “Current mobile wallet ecosystem are dominated by conventional financial service providers and telco strictly regulated by financial authorities.” Source: SPIRE analysis
- 4. Switching Factor to Mobile Wallet Customer behavior, service usability and security, still the key Perceived Security of Mobile Wallet Perceived Privacy of Mobile Wallet Facilitating Conditions for Mobile Wallet Trust in Mobile Wallet Behavioral Intention to Use Mobile Wallet Social Influence for Mobile Wallet Attitude Toward Using Mobile Wallet Attractiveness of Mobile Wallet Alternatives Perceived Ease of Use of Mobile Wallet Perceived Usefulness of Mobile Wallet Perceived Value of Mobile Wallet Usability (i.e. seamless, incentives, etc.) Behavior (i.e. infrastructure, experience etc.) Security (i.e. privacy, password etc.) Source: Visa Consumer Survey, JTAER, SPIRE analysis I will use mobile wallet I will not use mobile wallet “Faster transactions (71%), ease of use (55%), and no need to have cash on hand (47%) are the main reasons for choosing Mobile Wallet payment options over cash.”
- 5. Converging Financial Services Platform Opportunities to organization, regulators, and startups Financial Services New Players New Technologies Industry Convergence Digital currencies Big data analytics Machine learning & cognitive computing Multi-channel integration Integrated IT infrastructure Cross-industries integration Source: UK Government Office for Science, PwC Strategy & Analysis
- 6. 2016 Central Bank’s Regulatory Sandbox Initiative Fintech companies ‘safe space’ to test innovative solution Innovative Benefit to Consumers / Industry Clear Definition and Outcomes Safe with Assessed and Mitigated Risk Exit Strategy Source: MAS, BNM, Techinasia, FCA.org, SPIRE analysis Jun 2016 Jul 2016 Sept 2016 UK firms can apply for the first cohort of the regulatory sandbox. Bank Negara Malaysia (BNM) issued Discussion Paper on Fintech Regulatory Sandbox. Bank Indonesia (BI) recently announced new initiatives regarding the payment system. Singapore MAS Proposes a "Regulatory Sandbox" for FinTech Experiments.
- 7. TABLE OF CONTENT 1 Current Development of Mobile Wallet 2 Asia-Centric Mobile Platform Variety 3 The Future of P2P Digital Currency Development Mobile Wallet Trends
- 8. Indonesia’s Government to People PKH Digital Financial Disbursement Platform Indonesian Bureau of Logistics The e-Warong Facilitators Beneficiaries Pointed to be DFS’s Agents Reach 1 million families target through DFS Setting 612.816 families target to disburse PKH through DFS in July – September 2016. Pilot DFS Set Trial on 1300 poor households in 4 Kota Kabupaten 2015 In August, Govt’ launched RASTRA and new mechanism in PKH disbursement through KKS (welfare family card) as a platform for 3 major functionality, PKH, RASTRA, and e-money. Launched PKH-RASTRA 2016 Data Opening Bank Account Registration, printing and distribute KKS Training & Educate Payment & Stock Educate Buying Transaction Logistics Help Agent HelpBeneficiaries Disburse PKH & RASTRA’s Money PKH : Program Keluarga Harapan Timeline Platform “New Model of PKH- RASTRA Mechanism using Mobile Wallet.”
- 9. Philippines Consumer to Consumer (C2C) A Cost Effective Digital Remittance Program Remittance value: 8% of GDP Agent Master Agent MTO Local Office MTO Int’ Office Payment Bank C2C Average transaction fee is 10%, Digital Remittance average transaction fee is 3%. Digital MTO Payment Bank 2% 1%2%2%2% 2% 1% 1 in 10 Filipinos lives and works overseas As one of the largest remittance user in ASEAN, Mobile wallet is mainly used by Filipinos to do Digital remittance transactions. In 2015, Philippines received a total of US$25.4Billion Remittance value. Traditional to Digital Transformation Benefit: Source: CGAP, SPIRE analysis “Philippines was one of the first countries in the world to witness the launch of mobile wallet services.”
- 10. TABLE OF CONTENT 1 Current Development of Mobile Wallet 2 Asia-Centric Mobile Platform Variety 3 The Future of P2P Digital Currency Development Mobile Wallet Trends
- 11. Blockchain Potential Application and Growth Drivers Over 4000 active fintech startups in New York with $12 billion. P2P money Transfer across international borders - segment worth $500 B. All time Public/VC investment into Blockchain startups - $894 million. 2015 Nov - Shared database technology by ING, PWC, UBS and IBM. 2016 May – UK Bank Santander pilots blockchain payments and transfer app in 21 countries. 2016 Apr Japanese government 67tn yen investment. 2016 Apr - J.P. Morgan Chase & Co. and Citigroup Inc. have successfully tested the record-keeping technology behind bitcoin on credit-default swaps. 2016 Jun -. Bank of Canada was working on electronic version of the Canadian dollar. Source :IBM, FT.com, AWSJ.com, Nikkei
- 12. Legality P2P Digital Currency by Country Favourable Unfavourable Neutral Japan Recognizes Bitcoin and Digital Currencies US classified bitcoin as a commodity Singapore reportedly stated that "bitcoins exchange is a commercial decision“ Hong Kong at present has no direct legislation The European Union has passed no specific legislation No official statement by Bank Negara Malaysia Bank Indonesia states that bitcoin and other virtual currency are not currency or legal payment instrument China private parties can hold and trade bitcoins in China, regulation prohibits financial firms like banks from doing the same Russian where it appears a de facto ban is in place Central Bank of Bangladesh cited concerns over bitcoin’s lack of “a central payment system Source : Coindesk.com, cryptocoinsnews.com, wikipedia
- 13. Acceptance of P2P Crypto Currency Market Size Source : Coindesk 8-10 million bitcoin wallets and number of transactions has also grown impressively, from roughly 80,000 a day to more than 200,000. CNY and USD are the most traded currency.
- 14. Key Concept and Benefit of Blockchain Shared Contract CryptographyShared Ledger Consensus Ensuring secure, authenticated & verifiable transactions Business terms embedded in transaction database & executed with transactions All parties agree to network verified transaction Append-only system of record shared across business network Broader participation, lower cost, increased efficiency Source :IBM Concept “Blockchain is an emerging technology pattern that can radically improve banking, supply-chain and other transaction networks, giving them new opportunities for innovation and growth while reducing cost and risk.”
- 15. Tel: (62) 5794 5800 Fax: (62) 5794 5808 Wisma 46, Kota BNI 25th Floor, Unit #07-09 Jakarta 10220 indonesia.info@spireresearch.com www.spireresearch.com