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NFC Mobile Commerce. Enabling Rich Mobile Commerce for In-Store Payments, Loyalty, Merchandising & Marketing July 13, 2011. Slide 1. ViVOtech at a Glance. ViVOtech is THE NFC software and systems company
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NFC Mobile Commerce Enabling Rich Mobile Commerce for In-Store Payments, Loyalty, Merchandising & Marketing July 13, 2011 Slide 1
ViVOtech at a Glance • ViVOtech is THE NFC software and systems company • We enable rich mCommerce solutions for in-store payment, loyalty, marketing, merchandising • We provide the key building blocks of the NFC ecosystem: • Smart applications for enhanced customer experience • Wallet and Trusted Service Manager (TSM) software • POS systems • Pioneered Contactless NFC leader • More than 800,000 NFC readers shipped to 35 countries - 80% US market share • Conducted 30+NFC field trials - including the world’s largest in India • Broadest, most tested, deployed NFC solutions worldwide • Market leading financial (Alloy, DFJ) and strategic investors
ViVOtech NFC Solution Provides a Personalized, DynamicLocation-Based Wallet Solution From Back Pocket to Front Pocket Rewards, Coupons, Offers Near-Store to In-Store Experience One-on-One Marketing Preferred Payments Enriched NFC Wallet Solution
ViVOtech Definition of NFC Mobile Commerce NFC mCommerce connects the consumer, the store and the digital world through touch. It enables new and richer interactive experiences in all phases of in-store shopping to increase consumer and merchant value, including: - Personalized marketing e.g., one-touch to check in and receive a personalized offer from a merchant - Interactive shopping e.g., one-touch on shelf tag to get product information, offers, or ship-to-me option - Integrated check-out e.g., one-touch to redeem loyalty points and offers and pay, and get additional offers e.g., one-touch to order coffee, pay, and identify table for delivery
ViVOtech NFC Enables a Powerful Touch-Based Model for Influencing In-Store Purchases Many opportunities to affect purchase behavior with relevant content and offers Far Near Enter Shop Checkout - Browse for coupon redeemable in-store - Coupon delivered to the phone wallet - Touch mall poster for store coupon - Touch airport poster for bank prepaid card - Touch store poster for offers - Touch table menu to order, pay, and identify table for food delivery - Touch shelf tag for product info - Touch aisle display for accessory product coupon - Touch POS reader to receive add-on coupon, redeem loyalty points and pay
Why NFC Will be the Dominant In-Store mCommerce Technology? NFC = Touch for Services Compared to rival technologies like barcode, SMS and URL’s, NFC is: 1. Faster and easier to use for the sales clerk and the consumer 2. More secure 3. Easier and lower cost to scale pervasively at the point of sale 4. Capable of one-touch redemption and payment 5. Fully interactive
Mobile Commerce Evolution: NFC Reaching Tipping Point and Will Become Dominant NFC will become the primary form of in-store mobile marketing and payment 2015 2011 NFC will dominate rival technologies Most Tier 1 Merchants adopt NFC, followed by Tier 3, then Tier 2 Existing merchant services vendors enter (e.g., NCR, IBM) 20% NFC POS by end-2015 1.5B NFC phones by end-2015 NFC emerging as predominant technology Mobile, Web, Financial players entering - targeting Tier 1 Merchants - issuing RFPs New player consortiums subsidizing NFC readers in stores 20-40M NFC phones 2005 Banks, Transit, Food, CC, MNO’s, Merchants SMS, Barcode, QR code, GPS, NFC Technology Tests Usability Tests Market Tests Early Commercial Rollouts Mass Rollouts
ViVOtech Products Enable Solutions for All Three Phases of NFC Technology • Phase 3 - 2010 • Integrated NFC Chip UICC and/or Embedded • Phase 2 2009 • Add-On NFC Phone Chip • Phase 1 2005 Contactless Card Benefits Additional Benefits Further Benefits • Merchants • Quick pay ticket lift • Faster lines • Lower fraud handling costs • Payment Providers • Cash displacement • Lower cloning fraud costs • Consumers • Personalized offers and rewards • Merchants • More targeted/effective promotion/loyalty spend • Lower card costs • Payment Providers • Penetrate developing markets • Mobile prepaid and loyalty revenues • Consumers • Single virtual wallet • In store personalized offers • Merchants • 1 to 1 marketing in store • In store up and cross sell • Payment Providers • Lower lost/stolen fraud costs • Mobile Operators • New revenue sources • Lower churn
NFC Mobile Wallet, OTA Provisioning, Mobile Loyalty and Coupon Solutions for A Suite of Blackberry, iPhone & Android Models. = + NFC Sleeve iPhone 4 NFC Enabled – iPhone 4 Enable Majority of Existing Blackberry, iPhone, Android, & Nokia Models*, For NFC Mobile Payments & Coupons in Just Few Minutes + = In2PayTM MicroSD NFC Device NFC Enabled Blackberry • ViVOtech Wallet-OTA Provisioning & TSM solution has been integrated & tested with • - Blackberry Curve, Blackberry Bold, Blackberry Tour and Blackberry Torch models - Device Fidelity, MicroSD, • - iPhone 3GS/3G & 4 models - Device Fidelity Devices and WDI iCarte Devices • - Any Smartphone – Twinlinx Bluetooth sticker • Multiple models – Watchdata SIMPass and SDPass and G&D MicroSD
ViVOtech NFC Mobile Solution Drives Traffic to Stores,Enable Personalized Customer Influence Near and In Store Environments Convert Browsers to Buyers • Drive Up-Sell and High Margin Products: • Cross department • Complementing accessories • New product specific promotions Drive Traffic To Stores: • NFC Touch Points for Rewards & Promotions • Mall Entrance Check-In • High Traffic Areas, e.g., Food Court • Store Entrance Check-In • Auto Trigger – WiFi Triangulation Deliver Enhanced Customer Experience: • NFC Shelf Tags & Touch Points • Product Information • Personalized Price Checker • Time-Limited Personalized Offers
Check-In at a Restaurant or Store Using NFC Phone or Sticker with Existing Handsets 40% Complete Welcome! Tap your phone to get your personalized promotion list! 40% Complete NFC-Enabled Kiosk or Smart Poster at store entrance Mall Check-In • User taps the NFC phone on Mall Check In smart poster • Wallet will connect to server and download merchant promotion • Selected merchant promotion is displayed in wallet ready for redemption NFC-Enabled Kiosk or Smart Poster at Mall Store Check-In • User taps the NFC phone on check-in Kiosk at store entrance • Wallet will connect to server and promotions fitting the customer profile • List of personalized available promotions and coupons will be displayed in wallet
mTouch – Shelf Tag Time-Sensitive Promotions Product Price, Reviews and Product Details Real-Time Cross-Sell and Up-Sell
2. Consumer and Tag ID info sent to Back-End Tag I.D. Consumer I.D. 3. Marketing server issues personalized promotions to phone based on location, interest and personal profile. Customer #1 Customer #2 Drive Impromptu Traffic Using Location Based, Personalized, Mobile Marketing 1. Customer Taps NFC Smart Poster at Retailer Patent pending
“Touch-to-Order” from a NFC Poster in Fast Food Restaurant Menu board located inside restaurant, in the drive thru lane or parking spot (Sonic Style) • User taps the NFC phone to Smart Menu Board in Drive Thru lane or Parking Spot (Sonic style) • Wallet will communicate with OTA server and download order 40% Complete • Order is successfully downloaded, and is ready to be placed
Order & Pay in Single Tap of NFC Mobile User can just tap to “order, redeem & pay” In Restaurant In Drive Thru * ViVOtech patent pending
Choose your method of payment and select “Buy Now” Thank you for using Specialty Retailers “Tap and Purchase” Your credit card has been charged $129.94 Tracking number X6364997 Original: $180.00 Now: $119.00 Buy Converting In-Store Browser to Online Shopper* • User taps the NFC phone on Retailer smart poster • Wallet will provide product description based on Smart Poster and an option to “Buy Now” • Customer selects card for payment in wallet • Wallet will show the confirmation page with the check out basket • Wallet will connect to Merchant’s back end for authorization and display tracking information • Product will be shipped to customer ship to address. Patent pending
Smart Poster Gift Card Provisioning with NFC Phone* In-store, Near-Store, Gift Card Malls, Airports, ANYWHERE • User taps the NFC phone to the Retailer Smart Poster • Wallet will communicate with OTA server and download card 40% Complete • Card is successfully downloaded and ready to use by customer Note: Banks can offer this service to retailers for co-branded cards or private level * ViVOtech patent pending
Automated Card Selection at POS • ViVOtech readers communicate mobile wallet • Auto selection of preferred payment method • Auto selection of loyalty card Top of Wallet! * ViVOtech patented
ViVOtech Product Descriptions ViVOtechTMNFC Provisioning Suite 3 ViVOtechTMNFC Touch Suite ViVOtechTMNFC Applications Suite ViVOtechTM NFC POS Systems Collaborative provisioning software for issuers and trusted service managers Service discovery and content delivery software NFC-mobile marketing, loyalty, coupon and prepaid software Multi-purpose NFC readers and firmware for payment, redemption and marketing - Trigger Manager - Content Manager - Control Server - Issuer Server - Wallet Library - Campaigns / Offers - Pre-Paid, eGift - New Use Cases - NFC Readers - NFC Adaptors - Wallet Firmware -- Two-server architecture to maximize flexibility and interoperability and minimize integration costs -- Touch-based inventory, offer and content management to optimize marketing efficiency -- Two-server architecture to maximize interoperability and security and minimize integration costs -- Libraries for OTA, NFC and SE “plumbing” to speed wallet application development -- Modules for prepaid, gift, and loyalty cards and coupons to optimize marketing effectiveness -- Social networking, reporting and analytics to optimize efficiency -- Multiple Use Cases -- Variety of form factors to leverage current investments in POS/ECR -- Full-function firmware to reduce complexity by direct ECR integration
Mobile Success Story with Existing Handsets & ViVOsticker Technology: Mobile Loyalty, Prepaid, & Rewards • Over 100,000 tags issued since launch in August ‘09 • Zapa Services for Insomnia Coffee Enabled with ViVOtech mLoyalty & Prepaid Platform • Approx 750,000 NFC transactions • Company overview • Leading providers of managed NFC solutions in Europe • Delivers innovative technology solutions for loyalty, prepaid, gift cards • Headquartered in Dublin, Ireland 20
ViVOtech Field-Tested Software Solutions NFC Mobile Payments, Coupons/Loyalty Provisioning and Redemption/Payment 2009 India Citi Largest NFC mobile payments marketplace pilot (3K users) 2008 Singapore SingTel 2007 Taiwan MasterCard First OTA solution to support both coupons and payments NFC Mobile Payments (includes OTA provisioning and wallet services) 2011 US B of A Limited rollout 2010 US B of A 2010 Dubai MasterCard 2010 Kuwait VISA First tap-and-download prepaid Visa card 2008 Guatemala VISA 2008 Canada Citibank, MasterCard 2008 US Sprint, Jack in the Box 2007 US Cellular South 2007 Australia MasterCard 2007 US HSBC, MasterCard First NFC trial to provision credit and debit cards Contactless Sticker, Coupons and Loyalty • UK, Ireland AIB Merchant Services Commercial rollout to tier 3 merchants • 2009 Ireland Zapa, Insomnia Commercial rollout to hundreds of merchants Main learnings from field tests: consumers like mobile payment and marketing, merchants recieve more customer transactions at higher value
Benefits Summary for Merchants Benefits to Merchants Cost Savings • More effective Loyalty & Merchandising • Reduced fraud • Chargeback/fraud protection • Convert browsers into buyers • Drive traffic to stores through strategic touch points • Generate up-sell & deliver convenience • Steer retailer-branded card to top of wallet Revenue Growth One-to-One Marketing • Offer personalized promotions & loyalty programs • Deliver location-based real time offers • Generate high impact with “tap and go” Real-Time Customer Analytics • Collect demographic data • Gather shopping habits and customer insight • Measure campaigns/product-placement effectiveness
ViVOplatform Application Suite ViVOtech mContent Manager ViVOtech mTrigger Manager ViVOtech OTA/TSM Servers ViVOcomm Protocol ViVOwallet Integrated Checkout ViVOtech NFC POS Systems NFC mCommerce Ecosystem & ViVOtech Products Interoperable Products for the Mobile Payment and Marketing Ecosystem Applications Content Campaign/Offer Coupon Ticket Prepaid/Gift In-house 3rd Party Applications Loyalty Card Media Payment Card Loyalty, et al Channels Offer Matching & Preparation IP OTA Offer Discovery Offer Provisioning (OTA) Mobile Payment, Marketing & Promotion Ecosystem Stores Pay / Redeem Networks 3rd-Party NFC POS systems
ViVOtech Solution FrameworkViVOtech Provides Building Blocks & Tools To Deliver Powerful NFC mCommerce Solutions Up-sell / Cross-sell Customer Acquisition & Loyalty Personalized Shopping Assistance Mobile Marketing Payment & Ordering Solution areas for merchants and issuers End-to-end solutions developed by channel and software partners Solutions ViVOtech Application Platform • Tap to download location-relevant, time-sensitive offers • Drive near-store traffic into store with localized promotions • Tap to download loyalty /prepaid card • Tap to sign-up/check-in • Real-time rewards/ discounts • Shelf tag and touchpoint technology • Tap-and-receive product information • In-store ordering • Up-sell with time-sensitive offers • Personalized offers • Promote cross-product merchandise • Enable merchant payment card adoption • Automatic selection of preferred card • One-tap order-and-pay Pre-built solution functionality (for common use cases) Tools to extend and enhance solutions Workflow Manager and Extensibility Tool (e.g., BPM, BPEL) OTA Provisioning & Wallet Library Touch Services Marketing, Payment & Loyalty Apps NFC POS Systems & Firmware 3rd Party Products & Services Solution building blocks and products E.g., security, monitoring, reporting, logging Core services
ViVOtech Also Provides Widest Range of Contactless/NFC Enabling Hardware Appliances for Wide Variety of Point of Sale Environments In-Store Countertop & Drive Thru Taxi Cabs, Vending, Kiosks, ATMs, Transit, Buses, Parking Existing Kiosk / ATM Taxi Cabs / Drive-Thru Countertop / Mounted / Integrated and Contactless/NFC PINpad For New Kiosk/ATM
Pioneered ContactlessSold More Than 800,000 NFC Readers in 35 Countries - With 70% Share All Locations in United States: All Locations in Canada: In 35 Countries: Slide 28
Summary: ViVOtech Advantages Dual sales entry points into ecosystem - SW: Banks, MNO’s, Tier 1 retail - HW: Financial services, vending, transit, ISV’s, Tier 1 retail Sustainable End-to-End Product-Level HW Synergies Leadership in individual and end-to-end NFC mCommerce software solutions Broadest vision and ability to deliver NFC Provisioning Suite - Two-server architecture* - Consumer pull-provisioning* - Multi-functional wallet support* - Multi-SE form factor support HW-SW integration - 1-touch pay and redeem* - 1-touch order and pay* - Auto-select payment card* Products for all NFC mCommerce areas Leadership in patents awarded for critical innovations in NFC mCommerce NFC Touch Suite - Two-server architecture - Flexibility for content types Most interoperable products Most extensible product line NFC Application Suite - Only real-time product available - Flexible offer management Superior solutions for closed- and shared-loop NFC POS Systems - Widest variety of form factors - Richest functionality Reduced integration costs *Patent(s)
Mohammad Khan khanm@vivotech.com 415-609-0208 Thank You