Citigroup, Inc. · NYSE:C
Citigroup — Conference Presentation (February 2013)
27 slides from Citigroup's conference presentation, February 2013
Slide 1: Upwardly Mobile: A Long & Winding Road for Mobile Payments
Upwardly Mobile A Long & Winding Road for Mobile Payments February 2013
Slide 2: Introducing the Speaker
Introducing the Speaker Tomasz Smilowicz is a Managing Director and Global Head of Mobile Solutions with Citi Transaction Services (CTS). Tomasz created the global mobile solutions business for CTS. He started the effort in 2009, and within three years under his management the bank has achieved a gl
Slide 3: Universal Interest in Mobile Payments
Universal Interest in Mobile Payments The driver behind interest in Mobile Payments varies depending on the entity Mobile Payments = A potential lucrative new revenue source Why are Industry Participants Optimistic About Mobile Payments? The vested interest in the eventual widespread adoption of M
Slide 4: Investment Direction in Mobile Payments
Investment Direction in Mobile Payments Mobile Payments is an incredibly exciting and fast-moving field 6 months of > 10 announcements / day* ISIS, the mobile commerce joint venture created by AT&T, T-Mobile and Verizon, made its mobile wallet available in Austin & Salt Lake City ParkMobile USA is l
Slide 5: Participants in Mobile Payments
Participants in Mobile Payments We consider 5 key categories of participants investing in Mobile Payments. Their achievements include: Unveiled incremental details about their respective wallets Worked on expanding their funding reach beyond traditional bank relationships by Card Networks invest
Slide 6: This is just the beginning…
This is just the beginning… As quick as the market is moving, the Mobile Payments is still in its infancy Although we are now able to take a guess at the lay-of-the-land for a future Mobile Payments ecosystem, we still look for a multi-year path to reasonably widespread adoption It may be a long
Slide 7: 1. Processing “Rails” & Transactions
1. Processing “Rails” & Transactions
Slide 8: Processing “Rails” & Transactions
Processing “Rails” & Transactions Introducing mobility comes along with introducing changes to the payment value chain There are potentially two ways in which the mobile payment transaction differs from a traditional transaction Integration to a Commerce Transaction Mechanism Platform The mobile p
Slide 9: 2. Card Network Incumbents and their actions
2. Card Network Incumbents and their actions
Slide 10: Card Network Incumbents: Visa, Mastercard, Amex
Card Network Incumbents: Visa, Mastercard, Amex Although card network incumbents are not at the risk of material disintermediation of their business model, they have invested in non-traditional models to increase market relevance Visa - Drive more volume and MasterCard - Drive more volume and commit
Slide 11: 3. Targeted Offers & Data Ownership
3. Targeted Offers & Data Ownership
Slide 12: Targeted Offers
Targeted Offers Given the trend in advertising industry towards tangible return on investment based on efficient targeting, financial transaction data is considered a extremely valuable resource Targeted Offers: Examples Data Type Data Collected Offer Made Customer has Sporting Goods Store Merchant-
Slide 13: Financial Transaction Data: Ownership & Access
Financial Transaction Data: Ownership & Access The ownership of financial transaction data is a tricky with each player having access to different elements Card CardNetworks Networks && Merchants Card CardIssuers Issuers Acquirers Merchants Acquirers Customer Purchase Summary Purchase Summary Mercha
Slide 14: 4. Ecosystem Evolution
4. Ecosystem Evolution
Slide 15: Ecosystem Evolution
Ecosystem Evolution New and existing players are increasing their offerings in the Mobile Payments space Mobility clearly complicates the traditional payment ecosystem and process flow. It introduces to the picture more steps, more roles and more role-players in the ecosystem. We are no longer deali
Slide 16: 5. The Technology Choice
5. The Technology Choice
Slide 17: The Technology Choice
The Technology Choice Which technology is likely to win and become the global standard for Mobile Payments? Radio- Quick Cloud-based Near- Field Frequency Response SMS Technology Communications Identification Code Technology (Internet & Wi-Fi & GPS) • Presumed de- • Uses radio • Uses two- • Very use
Slide 18: 6. Global Standards & Regulation
6. Global Standards & Regulation
Slide 19: Mobile Payments Regulation in US: A case study
Mobile Payments Regulation in US: A case study Consumer protection is of paramount importance and many regulators are focused on this area Federal Deposit Office of the National Credit Federal Reserve Insurance Comptroller of Union Board (FRB) Corporation the Currency Association (FDIC) (OCC) (NCUA)
Slide 20: Mobile Payments Regulation in US: A case study
Mobile Payments Regulation in US: A case study We expect regulation to be a focal point as the industry grows Better Mobile Consumer Specific Wide spread Protection Technology consumer Regulation (Ex : Facial adoption Recognition ) Source: Fumiko Hayashi, Federal Reserve Bank of Kansas City, July 20
Slide 21: 7. Mobile Wallet Attributes
7. Mobile Wallet Attributes
Slide 22: Desirable Mobile Wallet Attributes
Desirable Mobile Wallet Attributes Desirable attributes differ based on participants but a few characteristics are universal Security Consumers Speed & Ease of Use Technology Banks & & Internet Financial Companies Processors Ubiquity Mobile Convenience wallet End to end experience Card …….. Networks
Slide 23: Desirable Mobile Wallet Attributes: Examples
Desirable Mobile Wallet Attributes: Examples End to end experience • It Works Today: Does not need any additional hardware or a special phone Payments • Not Just Payments: Takes consumer centric approach by consolidating useful consumer tools “Starbucks Mobile • Loyalty/Rewards: Makes it easy to ear
Slide 24: 8. Consumer Adoption
8. Consumer Adoption
Slide 25: Consumer Adoption: The Holy Grail
Consumer Adoption: The Holy Grail We remain believers in the multi-year adoption of mobile payments. There are several factors that support our view Consumers Behavioral Broad adoption typically adopt if change is in of ecosystem they see value progress players • M-Pesa • Level Up • Including small
Slide 26: Questions?
It’s time for your Questions?
Slide 27: IRS Circular Disclosure
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have bee