In this issue

Contactless payment reaches watershed
2013 has seen contactless momentum in the UK grow significantly with 1.5 million Visa contactless transactions being made on London Buses since December, M&S processing over 230,000 contactless transactions every week and the Post Office installing contactless payment terminals in all of its 11,500 branches.

Mobile device crimeware evolves into global criminal marketplace
In a “post-PC” era, mobile devices increasingly present an attractive, practical and economical alternative to traditional desktops. In the coming years, global mobile payments are predicted to exceed $1.3 trillion, moreover, presenting a mother lode of opportunity for cybercrime gangs who appreciate the vulnerabilities of these peripatetic communications and computing platforms, the APWG’s analysis reports.

In this issue

Amazon patents anonymous mobile payment system
A new patent published by the USPTO (via PhoneArena) indicates that Amazon is looking into a way to limit the amount of data exchanged when two parties engage in a mobile payment transaction. The patent describes a way to sub in unique identifiers for information like name and email address that would otherwise be used to verify the identities of buyer and seller.

World Retail Banking Report 2013
Within the next six months, 10% of retail banking customers surveyed globally will likely leave their bank and an additional 41% of customers say they are unsure if they will stay or go finds the tenth annual World Retail Banking Report 2013 (WRBR 2013) released by Capgemini and Efma.

In this issue

Fresh fraud challenges says new UKFraud SIG
UKFraud (www.ukfraud.co.uk) has set up a new Special Interest Group (SIG) for the Mobile Payments sector. The new SIG will monitor, analyse and report on key market developments for use by stakeholders in the domestic fraud prevention sector.

The SIG consists of leading fraud prevention consultants coupled with representative input from a wide range of mobile payment industry specialists. In its initial review, the SIG will analyse those characteristics and challenges of the mobile payment market that are most likely to encourage fraudsters to target the sector. In particular, the SIG will investigate the factors that could give rise to an increased risk of fraud.

50% of US smartphone owners use mobile banking
As of November 2012, 28% of all mobile phone users and 48% of smartphone users had used mobile banking in the past 12 months. This is a significant increase from 21% in December 2011 for mobile phone users and 42% for smartphone users. While relatively less common, the use of mobile phones to make payments at the POS increased threefold over the same period, with 6% of smartphone owners having used their phone to make a purchase.

In this issue

Field notes from the Isis Pilot
Nearly three years since rumors began to swirl that the major mobile network operators (MNOs) sought to provide NFC payments, the Isis mobile wallet finally launched in late October 2012. While the initial rollout is focused on only two cities (Austin, TX and Salt Lake City, UT) and handset availability and merchant acceptance are still limited, Isis’s market entry is a milestone in the evolution of mobile payments. First Annapolis has been tracking the Isis launch (primarily in Austin) and testing the wallet, and below we provide our observations to-date.

MasterCard hit PayPal with digital wallet fee
“Payment networks are taking the gloves off,” Bill Carcache and Brian Nowak, analysts at Nomura Equity Research, wrote in a note to investors on Monday. “The incumbents will do everything in their power to prevent PayPal from riding on their rails without extracting a toll.”

In this issue

Rise of mobile payments could make checkout counters extinct
The growing foothold of mobile payment technologies such as Square in North America could potentially drive checkout counters into extinction, with Yankee Group projecting that mobile transactions will total $1 trillion by 2015.

Digital Wallets a Gold Mine for Credit Card Companies
The migration from a physical to a digital wallet could be a windfall for credit card firms, given the strong possibility that digital wallet providers will have to work with the major payment networks, thanks to the networks’ ubiquity, security, speed, and difficulty of replication.

In this issue

All the news from Mobile World Congress in Barcelona
As the annual Mobile World Congress shindig reaches its climax, we bring you the best of the weeks news from the show.

MasterCard introduces MasterPass
“Every device is becoming a shopping device,” explains Ed McLaughlin, chief emerging payments officer, MasterCard. “MasterPass brings together all of the ways we pay for things, from traditional plastic cards to digital wallets, and gives consumers the ability to make a payment from wherever they are and with one simple experience.”

In this issue

Consumer confidence in mobile commerce at all time high
BuzzCity has issues its latest quarterly report on the current trends dominating the global mobile advertising industry. The report reveals the appetite for mobile commerce is at an all-time high, with consumer confidence diminishing previous fears over security of payments – 3% compared to 27% a year ago.
Dr KF Lai, CEO of BuzzCity comments on this shift: “It is clear that consumers are now far more receptive to mobile commerce than ever before; this comes as a result of continuous education by the mobile industry to overcome concerns such as trust and security, combined with falling data costs and increased capabilities of smartphones and tablets.”
The unstoppable proliferation of mobile devices, along with the convenience they provide, has put online stores and the ability to compare and research purchases directly into the hands of consumers.

Mobile NFC – what’s all the hype about
Mobile NFC has been discussed intensively over the past 24 months. Various players have geared up to enter the payment market, the loyalty and couponing market, the advertising market and other adjacent markets. Billions of dollars are at stake, but the winners are not yet in sight.
In this article, incorporating the results of a recent ADL global survey comprising 70 interviews, we try to shed light on this often-discussed and highly controversial topic.
In theory NFC is nothing more than another technology enabling short-range communication between two devices. Already today passive NFC chips are widely deployed in contactless cards, but for this article we are referring to NFC embedded in mobile devices, which widens the possibilities of NFC considerably:
1. Mobile NFC offers additional use cases: Contactless cards can only be used in the “card emulation” mode, meaning the information stored on the chip can be read. Mobile NFC also offers “tag reading” mode, i.e. scanning and reading of information, and “P2P” mode, i.e. sharing of information between two NFC devices.
2. Mobile NFC offers opportunities for real-time management of multiple applications: Whereas the card is “dumb” in that applications can only be loaded once (i.e. when handing out the card), mobile NFC provides the benefit of being able to manage multiple applications over-the-air, meaning applications can be added, removed, extended or renewed at any time.

In this issue

Telefonica pushes P2P mobile money service
Telefonica says it will be the first network operator in Germany to enable its customers to perform mobile-to-mobile transfers using the ‘mpass Geld senden’ service. This service will enable money to be transferred from one mpass account to another by only needing mobile phone numbers.

Citibank launches mobile payment system
“The secured paperless transaction not only does away with managing charge slips but also combines the many benefits enjoyed by Citibank card customers, including instant redemption of reward points and ability to opt for EMI payment option while using this new payment alternative,” comments Anand Selvakesari, Country Business Manager, global consumer group, Citibank India.

In this issue

Overcoming the mobile payments adoption chasm
Are m-payments here to stay? Considering ISIS has launched, Square has established with Starbucks, Google Wallet is accepted in over 150 US merchants and the MCX is developing its own m-payment solution, it appears the answer is yes.

Who moved my money?
By 2015 the volume of mobile money transactions will reach $1 trillion. Global companies must tackle five key challenges to make the most of this opportunity.

In this issue

C-SAM and MasterCard announce strategic partnership
Mobile wallet and transactions platform provider C-SAM and MasterCard announced a global partnership, plus a minority investment by MasterCard.

CorFire integrates PayPal
CorFire announced a strategic integration with PayPal to advance the adoption of mobile commerce services by merchants and their consumers.

In this issue

China Unicom launches NFC mobile wallet
Mobile operator China Unicom is partnering China Merchants Bank to launch a mobile wallet service in Shanghai for NFC enabled phones.

PointsPay sees strong user adoption
PointsPay successfully launched in October together with launch program partner Etihad Airways converts virtual currency, such as miles and points.

In this issue

IDC forecasts purchase volume over mobile to exceed $1 Trillion
IDC Financial Insights have a new report which presents a worldwide forecast of consumer and business spending over mobile networks from 2012 to 2017.

Vodafone and Visa deploy SmartPass
Vodafone and Visa have announced SmartPass, a mobile payments system a worldwide initiative which will be in Australia in 2013.

In this issue

Vodafone select CorFire for mobile wallet
CorFire is providing m-wallet capabilities to Vodafone, enabling customers to use their smartphones to conduct transactions.

MasterCard expands global mobile payments deployments
MasterCard has boosted its m-payment strategy by announcing partnerships with T-Mobile and Orange in Poland.

In this issue

Vodafone Italy rollout NFC
in 2013
Vodafone Italia is the latest operator to disclose plans to launch its own payment application, with its announcement that it will commercially launch NFC in 2013.

New era for open mobile API’s
Telefónica and Telenor have joined forces in the field of mobile APIs, with Telenor making its APIs available through Telefónica’s BlueVia.

In this issue

Financial transactions originating from mobile device
iovation announced that 12% of all financial services transactions it protects originate from mobile devices.

SFR roll out NFC SIMs
France’s SFR is the latest telco with plans to get into the payments market, rolling out a contactless co-branded prepaid card with MasterCard Worldwide.

In this issue

McDonald’s test PayPal
PayPal is in the early stages of what may be a blockbuster mobile payments deal with McDonald’s.

Google simplifies approach to mobile payments
Google announced that consumers would have the ability to enlist their own financial card information onto their Google Wallet.

In this issue

IZettle forced to stop accepting Visa payments
European “Square” competitor iZettle has sent out an email informing users that it was forced to withdraw support for Visa card payments.

Apple moving into NFC?
Apple has agreed to pay $356 million for AuthenTec who make NFC chipsets and other mobile security products.

In this issue

Telefónica and Visa Europe form strategic relationship
The agreement will see both companies co-invest in the development of innovative products and services.

PayPal to handle $10 billion
eBay has reported that revenue for Q2 ended June 30, 2012 increased 23% to $3.4 billion, compared to the same period of 2011.

In this issue

France takes NFC lead with Cityzi
Bouygues Telecom, NRJ Mobile, Orange and SFR announce more than 1 million Cityzi mobile phones sold in France in H1 2012.

Mobile payment for all Swedes
WyWallet, the joint venture by the four big mobile network operators in Sweden, covers from start 97% of mobile users in Sweden.

In this issue

NFC still not living up to hype
It could take four to six years for widespread deployment of NFC at the retail POS.

Burger King pilots m-payments
Firethorn and Burger King have announced the launch of the “BK Mobile Crown Card pilot program”.

In this issue

Bank of America reaches
mobile milestone
Bank of America says that it has surpassed 10 million mobile banking customers.

Google Wallet strife continues
Google Wallet continues to have major teething problems.

In this issue

Barclays opens up PingIt
The innovative Barclays PingIt smartphone app, which allows easy money transfers, has now been opened up to members of any UK bank.

MasterCard launches PayPass Wallet
MasterCard has announced PayPass Wallet Services, a new global offering for banks, merchants and partners.

In this issue

Wallets begin to roll out
O2 has released its new digital wallet in the UK. Visa Europe launch V.me.

Mobile services key to inclusion
Mobile phones can play an important role in alleviating global poverty.

In this issue

Barclays suffers major contactless set back
A flaw has been discovered in Barclays contactless bank cards that could allow data to be stolen.

Bump Pay iOS App
Bump has unveiled its new application Bump Pay.

In this issue

Apple Contactless NFC
Apple to enter payments market? …Unlikely.

PayPal unveils “PayPal Here”
PayPal Here, “world’s first global mpayments solution for small businesses to accept almost any form of payment”.

In this issue

Payments score big in Barcelona

Isis makes major breakthrough
Isis has snagged deals with Chase, Capital One and Barclaycard.

Western Union partner with WIND for MMT

In this issue

Wallet Woes…

Google Wallet security fears
Researchers find gaping security holes.

O2 Wallet delayed
O2 delays launch of its mobile wallet payment service for further internal tests.

In this issue

Were not all so ‘Appy about Apps!

Visa Europe sets sights on mobile
Around £1 in every £3 in the UK was spent on Visa cards in 2011, with growth in debit and e-commerce payments fuelling a strong year for the European card scheme, which is now training its sights on mobile services.

In this issue

Google Wallet in trouble with present strategy?

Major NFC roll-out…next year!
2012 was going to be the year that the new era of NFC-based mobile commerce had finally arrived – but as 2011 closed, a different picture emerged.