Friday, January 20, 2012

The Brazilian middle class endorses the mobile payment

The banking remains one of the biggest appeals for the adoption of NFC (Near Field Communications) in Brazil, says a study released by the GSM Association (GSMA), this Wednesday, 18/01, in São Paulo. In the survey, produced in partnership with Booz & Company, the entity also points out that the Olympics in London this year, will have a strong impact on the consolidation of technology, which allows, among other things, the mobile payment securely.
The report argues that the use of NFC in mobile phones is the best way for the Brazilian population has no access to banking services. That's because for a large portion of the population, the ability to take cards stored in their phones for ease of payment is a much more attractive option than having to travel long distances to use regular bank branches and ATMs.In addition, the Brazilian middle class consumers are also increasingly likely to adopt the NFC because of its ability to integrate the core value proposition with other digital consumer products, such as loyalty, social media, and location-based services (eg, coupons).
Remember that the NFC is a technology that allows two wireless devices - that are inches away from each other - to transfer small amounts of data securely. This technology allows for payments for goods and services such as tickets, entertainment tickets and identification, transforming the phone into a mobile wallet.
For retailFor the retail sector, the study indicates that benefits are concentrated on how NFC can improve their relationship with their customers and retailers have more efficiency in their cost margins. Stimulating the volume of transactions through the segmentation of the distribution of coupons and advanced data analysis, the NFC may increase the existing sales channels in the retail sector through the following features:
• Increased sales by retailer• Increased ability to reach consumers at the point of decision• seamless user experience• Improved data around customer segmentation and analysis of sales• Market segmentation tools that optimize sales campaigns
In addition to stimulating the volume of transactions, NFC has the potential to offset the operating costs of retailing. Centered on the costs associated with queuing, for fraud and manipulation of money, the NFC has the potential to create operational efficiencies, such as:
• Reduction of queues due to the reduction of time at check-out• Reduced operating costs due to less need for staff• Reduced fraud due to a greater use of authentication and auditing• Increased consumer awareness in relation to the theft of handsets• Reduction of cash handling by changing the physical to electronic payment
With the costs of implementing upgrades concentrated mainly on points of sales, direct benefit to retailers can be significant, since there is sufficient scale and infrastructure for NFC transactions in the market.
This scale and its infrastructure are being built steadily in Europe, where Visa and MasterCard have aggressively expanded its base of devices and contactless terminals. Its strategic partnerships for PayPass and payWave with large networks, such as Krispy Kreme, McDonalds and Subway, have been a source of quick success and is an important basis for the expansion of retail acceptance of NFC.
There are also a number of other specific initiatives. Of these, the research points to one of the most interesting in the accelerated adoption of point of sale terminals and contactless development of its infrastructure in London, before the 2012 Olympics. This effort has taken place through close collaboration among various players.
MasterCard's sponsorship of the underground system for London Underground, Visa's sponsorship of the Games and the proactive engagement of the major banks in the country shows how intersectoral collaboration can set the stage for more rapid and widespread development of infrastructure.
This led to the cooperation not only between banks and processors, but between the central and local, who combined their efforts to generate momentum for contactless payments in different sectors. Although it represents a local initiative, efforts and visibility associated with the London Games have the potential to validate different aspects of the value proposition and give more weight to global models go to market.
Other initiatives in Australia such as MasterCard PayPass, are driving the adoption of new points of sale terminals and could serve as an important kickoff for the adoption of NFC. These initiatives suggest that the rate of implementation could grow because MasterCard announced that from October 2012 all cards issued in Australia include PayPass contactless technology.
SecurityParticularly with regard to fraud, research indicates that standardization can reduce the net liability of retailers. NFC can reduce fraud in three ways:
1. Consumers are more aware of the loss or theft of mobile phone than the loss or theft of cards - accelerating time communication devices associated with the missing.
2. Transactions made in the cell are safer than those made with cardboard due to multi-factor authentication (since mWallet have this protection.)
3. MWallet If the account is compromised, the core platform NFC provides greater visibility into unauthorized transactions and greater ability to eliminate the information security apparatus.
For the consumer are also pointed out a number of benefits, particularly:
1. Convenience for consumers: the NFC enabled device can be used to transport tickets in all markets, ensuring ease of use for consumers. For example, a consumer uses NFC-enabled handset to pay for a ticket to use public transport on a trip to a London airport. At the airport the consumer utilizes the handset again to board the plane. After arriving in Madrid, the consumer uses the handset again to buy a metro ticket in Madrid. Throughout the trip the customer experience is exactly the same as reducing the need for queues, dealing with different types of tickets and money.
2. Increased competition leading to benefits for consumers: mobile NFC reduce the barrier to access for small service providers with no economies of scale in relation to major players in the market. This leads to greater competition, more choice for consumers and lower prices - all the benefits to the consumer.
3. Service portability: the SIM-based solution enables the deployment of various services by downloading applications and ensures a full-service portability - the user can have their services even when they change carriers or handsets.
4. Increased security: handsets and SIM-based NFC enabled to benefit from strong security features, such as PIN numbers to access services, strong authentication techniques to protect the mobile wallet (such as digital signature, OTP), as well as the ability of operators to enable or disable services "over the air" if the handset is lost or stolen and reinstall the OTA every time a handset is replaced by another.

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