NOVEMBER 2012

Mobile Payments
Paying with a mobile device
mPayments (quick overview) Elevator Pitch Smartphonatics Cashing in on the opportunities

also in this issue

Trending issues Technology trends

contents
mPayments.................................................................................................4 Elevator Pitch ........................................................................................... 11 Global Snapshots ...............................................................................17 BBVA & Mobile Payments ......................................................22 SmartPhonatics...................................................................................24 Cashing in on the Opportunities ...................................28 Innovation Forecast ........................................................................31 In Depth....................................................................................................... 34 Sections .......................................................................................................36 Trending Issues............................................................................36 Technology Trends ................................................................. 43 Mobile Payments & Banking event .............................47 BBVA Innovation Center Open Day...........................48 Credits ...........................................................................................................50

mPayments
quick overview
The mobile payments trend, undoubtedly, is on its way of becoming a mainstream phenomenon. It will change how society thinks about monetary transactions. Lets take a look into mPayments, meet the main actors and gain a basic understanding of this fast moving trend.

04

Definition Mobile payments are payments made using a mobile device. Generally, there are two ways to pay by mobile: online payments and proximity payments. mPayments will transform customers lives. See video

Online Payments
Mobile payments for digital or physical goods. Digital goods payments refer to products/services consumed on mobile devices, such as app purchases or digital content. Also, person to person (P2P) payments may be considered as online payments. Physical goods payments refer to products/services delivered physically, but purchased via a mobile device.

Main Actors
Banks & Card Companies
Incumbents who are currently dominating the general payment landscape; as the overall leaders, they are generally taking a wait & see approach, looking for the right product at the right time.

Proximity Payments
Mobile payments for products & services purchases on-site via a mobile device (short range radio technologies, such as NFC). Generally used at POS terminals, transit, etc.

Example of wallets VISA ISIS (AT&T, Deutsche Telecom & Verizon) Google

Mobile wallets
Mobile wallets are platforms that bundle together products and services from several providers. In general, mobile wallets offer: A prepaid account (equivalent of cash in real wallets) Credit, debit & charge cards (payment instruments)

Loyalty programs & offers (coupons) Transit (public transportation) Other (ID, electronic key, etc.)

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Retail Companies
New entrants who are disrupting the payments business with mobile technologies, such as Starbucks and Amazon .

Technology companies
The financial services market is a new area for growth for these aggressive players. Armed with the latest and greatest in technologies, they are very active in experimenting with new value bundles and business models. Companies include Google eBay company). , Facebook , and PayPal (an

Also, the mobile device is being used to process transactions. Retail stores may now enable payments with a mobile device functioning as a POS, such as Square or PayPal Here .

Mobile Operators (MOs)

Looking for new avenues for growth, MOs are looking to mobile payments as a way to make their relationship with clients stickier by offering payment services, as a part of the overall voice & data portfolio.

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Mobile Payments Mobile Payments

mPayment & Value Bundles
The smartphone is simply an enabler not a driver of changing behavior.
Ron Shevlin, Aite Group

elevator pitch
Lets take visual journey through the mobile payment space. Well look at the users and usage, deployment scenarios, business models, and take a peek into the future and the market.

Mobile payments on their own are not sufficient to drive consumer adoption but the value bundle payments together with incentives and offers has a higher chance of persuading consumers to change their behavior.
Advanced Payments Report 2012, Edgar, Dunn & Company

Therefore, each actor is using or will use mobile payments to design and build the best value bundle for a given customer segment. Lots of collaborative models are emerging, such as ISIS and Boku which are collaborations between mobile operators and other entities.
See video (Boku)

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Mobile Payments
Users Deployment

What is happening with mobile payments?

In the next five years, insiders expect a majority of brick-and-mortar retail transactions to take place on mobile devices. That is a big change-up for a $5.5 trillion marketplace. Meanwhile, mobile devices users who utilize mobile payments are expected to swell from 6.8 percent in 2009 to 21.3 percent in 2012.

Millenials (18-26)

39%

Young Boomers (40-50)

18%

How is the mobile payment industry shaping up?

Gen-xers (27-39)

31%

Old Boomers (51-61) Seniors (62+)

9%

Mobile carriers
DEPLOYED READY TO DEPLOY TRIAL STAGE PLANNING STAGE NO INTEREST SO FAR 5% 16% 16% 39% 25%

Financial institutions
17% 13% 38% 28% 3%

Merchants
8% 9% 28% 36% 19%

3%

Who is using mobile payments?

Usage

FOCUS
53% 66% 70% 27% 10% Retail purchase
12

47%

43%

HIGH MODERATE LOW

Handset manufacturers
DEPLOYED 10% 20% 37% 29% 3%

Payment service
19% 24% 45% 11% 1%

Application providers
22% 37% 30% 10% 1%
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20% 22% 12% Fast food 8% Mass transport 35% 18% Digital downloads

37% 16% Online purchase

READY TO DEPLOY TRIAL STAGE PLANNING STAGE NO INTEREST SO FAR

Mobile Payments
Business models The market (1)

What is the most viable business model?

By 2014, an estimated 13 percent of all smartphones will have built-in NFC capabilities.
*common platform shared by alliance of carriers and financial institution.

Mobile-financial institution partnership

43%

Third-party intermediation model

20%

Global E-payments: number of transactions (billion), 2009-2013F

Most payments are not mobile. Alternative payments, which includes mobile, will account about for 8% and 9% in 2013 of e-payments transactions.

Number of transactions (Billion) 15.1 0.9 17.9 1.2

30.3 21.3 1.5 25.4 2.0 2.7

Open federation model*

26%

Mobile carrier going solo Financial institution going solo

7%

4%

Total Alternative Payments

Non-banking competition

CAGR 09-13F 19.1% 32.1% 18.1%

14.2

16.8

19.8

23.4

27.6

2009

2010

2011F

2012F

2013F

Debit, credit, prepaid cards

Source: Capgemini I World Payments Report 2011, September 2011

The future

The market (2)

NFC-enabled payments Java-based payment application SMS-based payments

27%

Mobile carrier going solo

14%

13%

What will be the most popular mobile payment app in the near future?
As merchants, financial institutions, and mobile carriers work together to figure out the future of the mobile payment system. People should not be surprised if their phone starts to replace the contents of their wallet over the next few years.

Global M-payments: number of transactions (billion), 2009-2013F

Banks are still in charge, but the competition is growing faster. By 2013, the new entrants will have taken about 8% of the mPayment business, from a base of 0.5% in 2009.

15,284 Number of transactions (Million) 6,756 473 9,029 6,283 1,223 9,814 785 14,062

19%

Embedded credit cards

16%

10%
Other
USSDbased payments 1%

3,120 156 2,964

2009

4,587 272 4,315

2010

Percentage of respondents
14

Source: Deloitte.com

Total Non-bank providers Bank providers

CAGR 09-13F 48.8% 67.3% 27.6%

2011F

2012F

2013F

Source: Capgemini I World Payments Report 2011, September 2011

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Mobile Payments
The market (3)

The market
In 2010, the total volume of global credit card payments totaled The number of mobile payment users will reach We are forecasting a market with

Mobile Payments is a dynamic trend; and, as such, is drawing a lot of attention from around the world. This section takes a look at selected banks & card companies, retailers, mobile operators and technology companies and see what they are up to.

$6.2 212.2 448

trillion dollars million in 2012, up from 160.5 million in 2011 million users by 2016

snapshots
Source: Gartner, May 2012
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Global

AT&T, T-MOBILE AND VERIzON WIRELESS: ISIS

The Mobile Operators led consortium is offering a mobile wallet platform. The Isis mobile commerce network will be available to all merchants, banks, payment networks and mobile carriers.
Fuente: Pay with Isis

Banks & Card Companies

BARCLAYS: PINGIT
Users can send and receive money by using just a mobile phone number.
See video

Mobile Operators
TELEFONICA: O2 WALLET

TELIA, TELE2, TELENOR AND 3 (ThE SWEDISh BIG 4 MOS): WYWALLET

WyWallet, the mobile wallet joint venture from Telia, Tele2, Telenor and 3 has been launched with support for person-to-person money transfers, SMS transit and ticketing payments, and online shopping. Live tests of POS payments using NFC are set to start in July, with full-scale roll-out scheduled for 2013.
Fuente: WyWallet

Retail
STARBUCkS: ANNOUNCES DEAL WITh SQUARE
The coffee giant chooses Square to process payments in all of its stores and also takes an equity investment. The focus is on the experience, and putting that above everything else, says Square founder Jack Dorsey about Starbuckss stores. FastCompany added, Square treats payments a lot like Starbucks treats coffee: by focusing on the experience around a product that is more or less a commodity.
Source: Starbucks

A deal with Facebook, Google, Microsoft, and RIM allows a Telefonica subsidiary customers (O2) to pay for digital goods and services directly through the mobile phone bill.
See video

COMMONWEALTh BANk: kAChING

Allows customers to make payments to email, to Facebook, to mobile, and to PayPass (MasterCard) contactless terminals.
See video

ChASE: INVESTMENTS & PARTNERShIPS

Square, ISIS

GoPago (investor) (partner)

Source: GoPago

ChASE: QUICkPAY
Allows customers to make P2P payments to emails or mobile phone.
Source: Chase

AMAzON MPS
Amazon allows its merchant partners to accept mobile payment with its Amazon Mobile Payment Service (Amazon MPS). On the other end, Amazon offers its customers to make payments via mobile devices. Additionally, Amazon facilitates P2P, sending money to an email or a mobile number.
Source: Payments. Amazon

MASTERCARD: PAYPASS WALLET

Its a digital wallet service that makes online shopping safe and easy by storing payment and shipping information in one convenient and secure place. With PayPass Wallet, customers simply shop, click and checkout faster online.
Source: PayPass
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amount of buzz as Facebook continues to grow and the company is uniquely positioned to completely revolutionize commerce.
Source: Thedailybeast l June 2012

Other notable companies

BANkS & CARD COMPANIES (TEChNOLOGY PROVIDERS TO BANkS)
Telepin Customer Corfire MChek First

SQUARE
With Square, small business owners and merchants can accept card payment using an Android phone, iPhone, or iPad. Also, the company offers pay with Square, allowing customers to pay with their mobile device at the POS.

TEChNOLOGY COMPANIES
POS SOLuTIOnS
Charge

Software Engagement

Anywhere

VeriFone InTuiT Roam

Technology Companies
GOOGLE WALLET
Fast and easy payments, with any card. Google Wallet now supports all major credit and debit cards, from Visa, MasterCard, American Express, and Discover. Google Wallet stores cards online so theyre available wherever customers go in the real or virtual worlds.
See video

Source: Squareup

PAYPAL hERE
Keeping up with its competitor, PayPal recently launched PayPal Here, allowing customers to accept cards and also checks. Also allows users to invoice and track cash payments. Of course, PayPal continues to win mindshare as it facilitates payments, including mobile devices. Recently, a survey revealed that 8 of 10 consumers would use PayPals wallet, if it were to be available.
Source: PayPal

Data Braintree JMango

MOBILE OPERATORS (IN APP PURChASES, BILL TO MOBILE COMPANIES)

Bango PayOne Mopay Dimoco BilltoMobile

GoPayment Data RedFin network Moneris Solutions Corduro Handpoint

LOyaLTy PROGRaMS
Foursquare Mogley Swagg

nFC
DeviceFidelity Giesecke Ingenico Oberthur Vivotech Xius

LEVELUP
A new mobile payment network, LevelUp provides a QR code pay-by-phone application for consumers and a terminal system for merchants. Recently it raised $21 million ($9 million coming from the venture capital arm of Deutsche Telekom) in a 2nd round funding.
See video

APPLE: PASSBOOk
With the iOS 6, Apple introduced the Passbook, a mobile app which manages boarding passes, tickets, store cards, and coupons. The leading mobile technology company is expected to further pursue its iWallet strategy. The company launched Passbook with it newest OS, the iOS 6. Apple controls the hardware and the mobile OS, and now with Passbook, it provides brand app developers the ability to link their products to a centralized and easy management.
Source: Forbes | What CIOs Need to Understand about Apples Passbook Service, October 2012.

MOBILE WALLETS
Serve Magtek MasterCard MobilePay Cimbal Tabbedout

& Devrient Tecnologies

Innovate Lead

IzETTLE
Europes answer to Square, iZettle allows businesses to take card payments using an iPhone or iPad.
See video

NoMoreCards

DWOLLA FACEBOOk
Facebook has scrapped its Facebook Credits and has everyone wondering what they will do in the mobile payments arena. There is a tremendous
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The companys product allows anyone with an internet connection to safely send money to friends or businesses.
See video
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BBVA &
BBVA Bancomer recently launched Mobile Money, a new service that allows customers to send money anywhere in the country using a mobile phone. This service will provide access to banking to 1.5 million users, contributing to their financial inclusion.

Mobile Payments

The Channel Director of BBVA Bancomer, Mauricio Pallares, highlighted during the presentation that the company is turning to electronic banking to lead its strategy to bank the unbanked and promote financial inclusion. With Mobile Money, the group intends to extend banking services to 1.5 million customers and reach a volume of 19.5 million transactions in the first year of operations. BBVA Bancomer Mobile Money results from an interest in developing a modern and innovative bank that offers alternatives that facilitates access to low-cost, financial services while ensuring safety, proximity, availability, time savings, and convenience. The new service launched by BBVA Bancomer is also available in Spain under the name, dinero mvil.
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Smartphonatics
Are a group of consumers who are driving the demand for mobile payments. They aggressively change the way they shop and pay for products and services.

Importance of mPayments
smarphonatics!

Very important

4%

24%

smartPhonatics The rise of the mobile class

Customer surveys always seems to facilitate understanding. In this section, well take a look at the recent survey results related to mobile payments and some insights they reveal.
24

Less important

41%
Low

31%
Interest in
High

mPayments ussage

Based on a global survey of 4,200 consumers (realized in Q1 2012), Aite Groups research reveals leading mobile payment consumers, the Smartphonatics.
Source: Aite | The Global Rise of Smartphonatics: Driving Mobile Payment and Banking Adoption in the Americas, EMEA, and Asia-Pacific, May 2012.

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Where are they?

11% Sweden 16% UK 8% France 10% Germany 27% Italy 34% U.A.E

Smartphonatics / Key Findings

31% China

7% Canada 20% U.S

60% India

24% Singapore 37% Brazil 16% Australia 42% South Africa

Are twice as likely than non-Smartphonatics to adopt mobile payments. Are driving mobile payment adoption around the world . Offer clues to creating and meeting demands for mobile payments (albeit at different rates across the globe).

Who are they?

36% 32%

Mobile payment usage

Smartphonatics

Represent a countrys mobile maturity level. Do not necessary use smartphones (its all about the behavior). Will continue to use a myriad of payment options, including mobile.

18%

70%
6%

Others consumers

23% 23%
has used mobilephone to make a payment in the last six months.

Senior

Boomer

Gen X

Gen y

Source: Aite | The Global Rise of Smartphonatics: Driving Mobile Payment and Banking Adoption in the Americas, EMEA, and Asia-Pacific, May 2012

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Cashing in on the
Whoever creates the most meaningful financial value bundle for a given customer segment will win marketshare. The walls between industries are beginning to breakdown and the market is turning into a free for all. Can the banks be competitive?

opportunities
New business models

e part of someone elses value bundle! Banks can collaborate with platform providers for value delivery. For example, Chase, CapitalOne and Barclays are part of ISIS mobile wallet, a consortium of mobile operators.

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Meaningful Value Bundle

For banks, mobile payments are not an end to itself. In a world of customer experience as the new value proposition, products by themselves do not offer a competitive advantage. Together with other building blocks of the business model, banks can leverage mobile banking and put together a value bundle that can delight customers and regain their trust and confidence, such as offering value added financial products/services; such as helping customers to save, to invest, and to borrow. In other words, banks are positioned to provide a meaningful experience to customers when it comes to addressing their financial needs/wants, including the ability to pay for purchases via mobile devices.

Mobile G BANKIN

Mobile T PAYMEN

Mobile S WALLET

d financial Value-adde/SERVICES ODUCTS PR

GFUL MEANIN VALUE E BUNDL

Innovation

forecast

Mobile Payments is a trend that is gaining a lot of momentum and, as such, banks and other financial services companies are watching it closely. In this section, well take a quick look how banks should understand mobile payments and how to approach it.

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Insights

Suggestions

Take the Long View

The Long View

Group in their recent article, how Banks Can Take the Lead in Mobile Payments, offers some insights for banks:
The

etween the seemingly imminent domination of mobile payments as seen in the news and knowing that they represent a small percentage of total payments lies the true relevance this trend. Mobile payment is a business opportunity for banks... its just a matter of timing. For now, most banks are dipping their toes to see how the water is... and dont seem to be in a hurry to dive in. In this context, the Boston Consulting

The article also offers suggestions for banks on how to seize the moment:
Invest

value will be in deals and offers, not in payments. Cards will not disappear anytime soon. mPayments are not yet superior to traditional payment methods. Banks are the masters of their own destiny.

to gain experience. a house view on the m-wallet. Preserve the attractiveness of cards. Establish security protocols.
Form

Sources: BCG | How Banks Can Take the Lead in Mobile Payments, June 2012

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In depth
A list of sources to other useful tools and resources that you may find useful as a supplement to the information offered on the Mobile Payments report.

On the Web
Amazon | Amazon Mobile Payment Service Barclays | Pingit Boku | Introducing Boku Accounts. Smarter phone, smarter payments (Vimeo), February 2012. Boston Consulting Group | how Banks Can Take the Lead in Mobile Payments, June 2012. Business2Community | Facebook Credit Card As Your New Universal Payment Solution?, July 2012 Chase | QuickPay Commonwealth Bank | kaching Daily Beast | Universal Wallet: Facebooks Very Bright Future Brandon McGee | Mobile Banking Blog (covers mobile payments as well) Mobile Money Mobile Payments Today New York TImes, Technology | PayPal here is More Than a Square Imitator, July 2012 NFC World Payments News Pymnts.com: Whats next in payments PayPal here PayPal | PayPals Global Mobile Solution Unveiled: Merchants Around the Globe (YouTube), May 2012. PayPal | PayPal here: how It Works (YouTube), March 2012. SapientNitro | The Future of Money and Mobile Payments (YouTube), June 2012. Square | Boccalone Gets Paid with Square (Vimeo), December 2011. Square | Pay with Square Starbucks | Mobile Apps Starbucks | New! Starbucks iPhone Apps (YouTube), September 2009. TechCrunch | Apple Announces New Passbook App To Store Movie Tickets, Retail Cards, And Boarding Passes, June 2012 Telefonica (O2) | Mobile Wallet Visa | Visa Digital Wallet (YouTube), May 2011. WyWallet (Telia, Tele2, Telenor and 3 - the Swedish Big 4)

Books & Publications

Aite | The Global Rise of Smartphonatics: Driving Mobile Payment and Banking Adoption in the Americas, EMEA, and Asia-Pacific, May 2012. Capgemini | World Payments Report 2011, September 2011. Capgemini & EFMA | 2012 World Retail Banking Report, April 2012, May 2012. Celent | Preserving Merchant Relationships When Mobile Comes to the Retail POS, January 2012 presentation Deloitte | Cell me the money: Unlocking the Value in the Mobile Payment Ecosystem, 2011. Forrester | 2012 US Mobile Banking Functionality Rankings, April 2012. Forrester | Consumers Bankers Association Survey, June 2012. Deloitte | Mobile Payments: a Deloitte Analysis -Managing change in the mobi-payscape. Edgar, Dunn & Company | Advanced Payments Report, March 2012. EFMA | EFMA Global Yearbook 2012, May 2012. Ernst & Young | Global Banking 2020: Foresight & Insights Gartner | Forecast: Mobile Payment, Worldwide, 2009-2016, May 2012. IDC Financial Insights | Consumer Payments Survey, July 2012. Juniper Research | NFC Mobile Payments No Contact Required, June 2012. kPMG | 2011 kPMG Mobile Payments Outlook, July 2011. kMPG | kPMG Banking Outlook Survey, June 2012. kPMG | Monetizing Mobile: how banks are preserving their place in the value chain, July 2011. MasterCard | The Mobile Payments Readiness Index, May 2012. Pew Internet & American Life Project | The future of money: Smartphone swiping in the mobile age, April 2012.

Dwolla FinExtra Google | Google Wallet Google | Introducting Google Wallet (YouTube), August 2011. GoPago Intuit | The Marketplace in Your hand, 2012 ISIS ISIS (PayWithIsis) | The Isis Vision (YouTube), February 2012. izettle Lafferty | QR code to boost mobile payments dramatically, September 2011 (subcription article). LevelUp MasterCard | PayPass

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Trending issues
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.

Mobile banking

Which Way to Go?

Most mobile banking apps in the market today are native apps. That is to say, the kind of apps you purchase from an app store for a particular mobile platform, such as Apples App Store, Googles Play, etc. These apps currently provide the best experiences for customers as it integrates the functionalities of the smart devices into the mobile banking app, such as camera or GPS. However, keeping the mobile banking up to date for each platform can quickly run up the costs. With the coming of html5, banks can write once, publish in many platforms; not only html5 can save money, but also decrease time to market. Banks will have more choices regarding mobile banking applications in the post PC era. Which way to go?
Source: Finextra | Apps, a continuing debate: html5 vs. native, 12 August 2012

Core banking platform

Have the need to better understand customers and the value bundle? Go back into the core.
Banks need to seriously consider core renovation. Core renovation allows modern architecture to deliver new functionality like dynamic pricing and product and pricing simulations which help banks to understand, at an enterprise level, the value of customer relationships and the potential of any given product offer or bundle.
Source: Finextra

New formats

Enterprise 2.0

30% 25% 20% 15% 10% 5% 0%

would not be happy, but would keep the same deposits would switch banks

The future of bank channels, as seen by Cisco

Cisco Internet Business Solutions Group Global Research reveals new ways for banks to prosper in the omnichannel world: the future of the branch. The old branch is dead; long live the omnichannel branch Mobile: The promise of embedded banking in consumers lives Social: The potential is herewhen will banks be ready? Video: Seeing is believing

The Knowledge Economy is coming

The knowledge workers revolution will come from a renewed workstation, and it will live in the cloud, whether it is public, private or hybrid, fueled by Desktop as a Service, Social Desktop or whatever it may be called. Currently, the challenges enterprises face include: Growing number of communication channels: email, Facebook, Twitter, Skype, RSS, etc. Dispersed knowledge (internal and external) Short-term vision of social integration

25%

would not be happy and would reduce deposits

22%

7%
virtual banking

Source: Cisco

Source: Forbes | July

November 2012 | MOBILE PAYMENTS 37

36

Trending issues
Social Media Crowd finance

SOCL (Global X Social Media Index Fund) Nasdaq GM. 2 - Aug - 2012 SOCL (Daily) 11.93 Open 12.07 high 12.10 Low 11.84 Close 11.93 Volume 125.4k Chg -0.15 (-1.24 %) 15.8 15.6 15.4 15.2 15.0 14.8 14.6 14.4 14.2 14.0 13.8 13.6 13.4 13.2 13.0 12.8 12.6 12.4 12.2 11.93

The social bubble seems to be bursting

A quick look at the Global X Social Media Index Fund pretty much tells the whole story. The fairy-tale story is ending and its time for social media companies to begin delivering real value to consumers and businesses.
Source: Seekingalpha

Put your money where your mouth is

Crowd-sourcing is used to fund innovative farm and food projects. ThreeRevolutions.com offers food and farm enterprises an opportunity to raise funds from appreciative consumers who are eager to support and connect with their favorite businesses and really put their money where their mouths are ...
Source: Marketwatch | July

Sep

Oct

Nov

Dec

2012 Feb

Mar

Apr

May

Jun

Jul

Aug

Mobile payments

Digital Marketing

20 % of Europeans already make payments with mobile

According a recent report from Forrester, 1/5th of european consumers. Banks need mobile payments to protect their retail payments businesses from digital disruption.
Source: Internetretailing | July

Interesting digital marketing stats: people use tablets in the evening & interactivity is best in tablets
Taken from weekly stat monitoring by Econsultancy, a digital marketing firm: Between 7.30pm and 9pm more people click on tablet ads than on mobile ads A quarter (25%) of respondents said they would be likely to click interactive ads
Source: Econsultancy

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Trending issues
New Gizmo era New banking concepts

3D printers to go
Couple of MIT students developed the first truly portable 3D printer that fits inside a metal briefcase, a personal fabrication machine. In a short period of time, consumers will become mobile manufacturers. What could that enable? Time will tell.
Source: Arstechnica

Its not a bank; its a banking store: The Virgin Money Store
The first Virgin Money Store opened its doors in July, with plans to open some 70 plus more stores in the future. The stores feature free WiFi, iPads and iMacs, and a no hard-sell policy adopted by staff. Customers can simply come in, take the weight off their feet, enjoy a cup of tea and use our free facilities.
Source: Thefinancialbrand

App ecosystem

Join & enjoy

Theyre finally here: enterprise app stores

Now big software vendors hope to streamline the searching and buying process by following in Apples footsteps. SAP and other enterprise software companies are opening app stores and hoping that they can monetize the app ecosystem, such as The SAP Store.
Sources: PC Advisor / EcoHub.

Only 1.6% of Facebook users spent money on virtual goods

In percentages, its pretty paltry. But ... when expressed in dollars, that becomes over 1 billion dollars. Uh, that would be nine zeros. The newly launched Facebook App Center will spur payments usage. In addition to in-app purchase, app developers (not only social games developers) now have the flexibility to charge users one-off flat fee and/or subscription.
Source: Forbes | August 2012

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Trending issues
Smart cities + urban mobility

Technology trends
The following section outlines the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.

According to Daimler AG, its the best way to get from A to B

Moovel, brings together entirely different means of travel and presents the options so that they can be seen at a glance transparently, in a user-friendly way and on an equal footing. The recommendations are based on the offers of the mobility service providers. A pilot program is launched in Stuttgart and another one is planned in Berlin. As of July, the app is available for download in Apples App Store.
Source: Media Daimler

3D Printing
3D printing is a process of making three dimensional solid objects from a digital file. 3D printing is achieved using additive processes, where an object is created by laying down successive layers of material. In other words, 3D printing turns bits into atoms.

Health

Is there a doctor in the phone?

There is an explosion of mobile medical apps, beyond the diet and exercise kind. The president of the American Academy of Physicians, Glen Stream states, People want to be empowered to take care of their health and are asking for apps for help. Current apps include: Diabetes monitoring Heart EKG monitoring Blood pressure monitor (wrists) Electrocardiogram device E. coli sensor Ear infection checker

Source: USAtoday l August 2012

3D printing makes it as cheap to create single items as it is to produce thousands and thus undermines economies of scale. It may have a profound impact on the world as the coming of the factory did. Just as nobody could have predicted the impact of the steam engine in 1750 or the printing press in 1450, or the transistor in 1950 it is impossible to foresee the longterm impact of 3D printing. But the technology is coming, and it is likely to disrupt every field it touches.
Source: The Economist

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Technology trends

he market for 3D printing and related products and services are expected to grow because additive manufacturing essentially makes the cost of complexity free (or almost free). Massive personalization doesnt mean massive costs. In terms of manufacturing, personalization becomes essentially free.
The

The

material base is expanding. Plastics, metal alloys, ceramics, food, etc. model creation is being democratized. What was a complex & expensive is now simple & affordable; and readily accessible.

3D

Technology as marketing
WHEN TECHNOLOGY BOOSTS MARKETING CAMPAIGNS
Building a product is just the beginning. Once in the market, users will evaluate if the application developers have been working on during the last months is good enough or not. It is true that this evaluation depends on a never-ending number of variables - customer satisfaction, needs covered, look and feel, expectations, overall experience - which makes the success almost impossible to predict.

cost of 3d printers is dropping dramatically. The cost of basic home 3D printer is dropping to about $1,000 and a industrial 3D printer to about $10,000.

3D printing comes in all shapes and sizes. For example, they can go big or go small and everything else in between.
Source: Forbes

3D printed passenger planes

Printing Houses

E
Fat, even at nano-scale

ven the most simple solution needs a marketing campaign accompanying the launch it may not be mandatory but it really helps! Spreading the word can be done in many different ways, but surprising the final users is becoming harder and harder. Google has detected the opportunity and their teams are creating amazing examples about how to take their products to the limit. In other words, Google uses the technology beyond their product as the marketing campaign. Lets enjoy with a few examples.

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Technology trends

Events
Mobile Payments
Mobile payments are on their way to become a mass phenomenon. Analysts believe that on the next five years most of the transactions done in physical commerce will be executed through mobile devices. This payments will shape the way monetary transactions are seen in the future by the society as a whole, and will surely transform the clients lives.

Play the Cube

PlayMapsCube is a tilt-to-roll marble game using 3D and the Google Maps API. The game is a tutorial for Google Maps but it includes some features that make it an addictive game. Is it really needed to explain how Google Maps works? For most of the people probably not, but it is cool and it will be useful during the maps war for sure.

Chaos to perfection
The Google Cultural Institute has created an amazing 3D virtual tour of the Palace of Versailles. This example shows the true power of Google Chrome navigator working with WebGL for rendering interactive 3D graphics without the use of plug-ins.

World Wonders Project

Another example created by the Google Cultural Institute to show how Google Street View works. Google makes world heritage sites available to users across the globe by using the Street View technology including videos, photos and in-depth information. Users can now explore the world wonders just as if they were there.

The Mobile Payments event will be held on November 29th.

From 9.30 to 2.00 pm. BBVA Innovation Center Plaza de Santa Brbara, 2, 28004. madrid

Videos, pictures and all the info

More info

Other events
INICIADOR
Iniciador Madrid with Enrique Burgos Keys to developing your personal Brand. Iniciador Madrid dismissed the 2012 season with an interview to Enrique Burgos (Chief Marketing Officer at QDQ Media) to discuss the main keys to creating a personal brand. Date: December 12th, 18.00 in BBVA Innovation Center

KNOWSQUARE
know Square Workshop: Creating an optimal present. The crisis has led to a further weakness in the already difficult world of channeling emotions. This workshop aims to familiarize and empower main mindfulness, from the standpoint of both theoretical and practical. Date: December 18th at 18:30 BBVA Innovation Center

Check out the videos and photos of the event in our web www.centrodeinnovacionbbva.com

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Where we are

la B

Open day
BBVA Innovation Center Madrid, is a place where ideas become reality. Would you like to know? You can see the prototypes we created to model the bank of the future, to understand how we crossed the barrier of convention to seek new sources of value for our customers and to observe new forms of work that we have deployed to support our innovation methodology. Just make a reservation the day that want to come

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Plaza de Sta. Brbara, 2. 28004 Madrid.

The first few days available for the month of December are:

December
3 10 17 24 31 4 11 18 25 5 6 7 12 13 14 19 20 21 26 27 28

December 4th at 18:00 December 12th at 10:00 December 19th at 18:00

1 2 8 9 15 16 22 23 29 30

www.centrodeinnovacionbbva.com

Follow us:
www.facebook.com/centrodeinnovacionbbva www.youtube.com/user/centroinnovacionbbva twitter.com/cibbva www.slideshare.net/CIBBVA

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BBVA Innovation Edge is the first corporate magazine focused on innovation. Innovation Edge aims to explore new trends and technologies that may impact the financial industry, especially retail banking.

BBVA Innovation Edge is the result of a collaborative work done by all the people who are involved in innovation at BBVA Group.
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CONTRIBUTORS TO THIS ISSUE: Maria Pilar lvarez Alfonso Bey Reyes Bolumar Jose Fernndez Antonio Garca Eduardo Gabriel Garca Mara Hormaeche Carmen Lpez Javier Lpez Marcos Marrodn David Martn Luz Martn Manolo Moure Marcos Pastor Jay Reinemann Alicia Snchez Javier Sebastian Luis Uguina Gustavo Vinacua Jose Manuel Villa Sang Gu Phil Yim Pedro Francisco Zago

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DL: M-38720-2012

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