The future of Payments A Perspective

1. The future of PaymentsA Perspective Dave Birch, Consult Hyperion

2. the future of payments • David G.W. Birch • co-founder consult hyperion • chair digital money forum • research fellow centre for the study of financial innovation

3. what is going to change? • >

4. Technology magnetic stripes and smart cards are already old technologies,we now have the internet, mobile phones, biometrics, virtual worlds…

5. mobile there is no doubt that the most important technology to most people in most of the world most of the time is the mobile phone

6. contactless all of the evidence from around the world suggests that people like “touch and go” because convenience always wins

7. nfc combining contactless and mobile together delivers on a promise of innovation and tells a story that people are expecting to hear

8. Business it’s a time of change and as consultants always tell us,change means opportunity

9. new opportunities electronic cheques, remittance and invoicing, mobile, conditional anonymity, real-time A2A, pre-paid, dispute and error handling…

10. infrastructure we’ve got a stable infrastructure that works, and this may be holding businesses back, leaving us open to disruptive innovation

11. non-banks the opportunities are available to non-banks as well as banks, and there are retailers, transit systems, mobile operators who can play

12. Social as technology push and business pull align for launch,it could be the social factors that light the blue touchpaper

13. inclusion around the world, the “next billion” need access to financial services, starting with payment systems

14. locality the definition of local is changing in a networked world,so “think global, act local” means something different

15. regeneration there are people who think it is time for some new thinkingabout the role of money in society

16. value the idea of wealth might well change, and therefore the store of value will change with it and this can then be monetised

17. Predictions with a loss of faith in “money”, people will be more open to new and different means of exchange, perhaps not involving £$€

18. cash is a stealth tax it isn’t just about technology or business, but reducing the social costs of cash, and this is a good thing to do

19. ‘3g” networks it used to be girls, games and gambling that drove new requirements,what if now it’s social networking?

20. commodity or community? but will the new “local” groups want to usecommodities (eg, gold or mobile minutes) or communities (eg, reputation or platinum pieces)?

21. Thank you • consult hyperion www.chyp.com • digital money forum www.digitalmoneyforum.com/blog • csfi www.digitaldebateblogs.typepad.com/vrf • iTunes “consult hyperion” or www.chyp.com/podcasts.php • david g.w. birch www.dgwbirch.com