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Inside Bitcoins:
Fintech in China:
From Duplication to
Innovation
Zennon Kapron
January 29th, 2015
Overview
•  China Today
•  How the financial industry is changing
•  Setting the stage for financial innovation
•  Digital Currency
•  Challenges
•  Conclusions
15-2-2 2	
  
Macroeconomic / Financial Industry Development	
•  GDP Slowing
•  Shadow Lending
•  Increased focus on changing the industry
–  Regulation / government driven
China economy still strong, but growth has slowed / structural issues creeping in	
15-2-2 3	
  
6
8
10
12
Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2
GDP Growth: China
Q1 2010 - Q3 2014 Y-o-Y growth (%)
2010 2011 2012 2013 2014
10.3
9.6 9.8 9.7
9.5
9.1
8.9
8.1
7.6 7.4
7.9
7.7
7.5
7.8 7.7
7.3
7.5
7.3
China: China Basics – China Today
•  World’s biggest land-grab
•  1.5B+ people = competition for scare
resources
•  Increasingly wealthy middle-class
•  Sacrifices for economic growth (bad
pollution, poor medical care)
•  Developing country with modern
problems
–  Obesity
–  Income distribution
–  Health care
–  Starbucks…
•  It is in this context that we are seeing
one of the biggest shifts in how a
population interacts with the financial
industry anywhere…
4	
  
China is talking more on the phone: Mobile Uptake	
Mobile payments in China are increasing rapidly as more and more users start to
use smartphones and payment options increase. 	
15-2-2 5	
  
7.47 8.59 9.86 11.12 12.29 12.86
56%
64%
74%
83%
91% 93%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
2
4
6
8
10
12
14
2009 2010 2011 2012 2013 2014
China Mobile Phone Users and Mobile Phone Penetration: Unit
100 Million, Percentage
China Mobile Phone Users Mobile Phone Penetration
Chinese Phones are getting smart: Smartphone Penetration
Increased availability of faster data-services through 3G and 4G has supported an
already strong shift to smartphones.
224 266 390 449
30%
65%
88% 90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50
100
150
200
250
300
350
400
450
500
2011 2012 2013 2014
Smartphone sales volume and % of Overall Mobile Phone sales
2011-2014 (Unit: Millions & %)
Mobile Phone Sales Volume Smart Phones as % of Overall Mobile Phone Sales
615-2-2
People are doing more stuff on their phones: Mobile Internet Usage
Continued growth and availability of data and smart phones has driven mobile
internet usage setting the stage for increased e-commerce and mobile payments	
715-2-2
233 303 356 420 500 527
61%
66%
69%
75%
81% 83%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014
Mobile internet users and Mobile Internet Usage as % of Overall
Internet Usage
Number of Mobile Internet Users Percentage of Mobile Internet Usage
Buying online: E-Commerce	
•  In 2013, China became the world’s largest online market, surpassing the US.
China’s e-commerce industry has ballooned in the past few years, as consumers
become used to shopping online; still, it represents < 10% of total consumption	
461
783
1320
1885 1840.81
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2010 2011 2012 2013 2014Q1-3
China Online Retail Market, Units: Billion RMB
815-2-2
This is why E-commerce in China matters	
E-commerce in China is eclipsing that of the west
15-2-2 9	
  
Comparison of China's Singles Day to America's
Cyber Monday and Black Friday US$Billion
Source: Kapronasia, company reports
Singles Day Black Friday Cyber Monday
0
2
4
6
8
10
201420132012
5.75
9.34
2.29
1.2
2.65
1.51
3.04 1.04
1.98
Buying Online…on your mobile: Mobile E-Commerce	
Increasingly, Mobile shopping represents a growing share of overall e-commerce	
98.50% 94.20%
85.50%
70.00%
57.30%
47.30% 43.10%
1.50% 5.80%
14.50%
30.00%
42.70%
52.70% 56.90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014e 2015e 2016e 2017e
Breakdown of e-commerce purchasing Channels in China
Mobile
PC
Source: iResearch, Kapronasia
Analysis 1015-2-2
Paying Online: Mobile Payment Transaction Volume
•  E-commerce was specifically mentioned in the 12th five-year plan with mobile payment
being a crucial aspect of that.
•  Development of information and communication technology (ICT) is also a
measurement of the performance of local governments
	
As measured by value and volume, mobile payments are growing very quickly in
China	
1115-2-2
59
80
151 1,195 16,201
36% 89%
691%
1255%
0%
200%
400%
600%
800%
1000%
1200%
1400%
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2010 2011 2012 2013 2014Q1-3
China Mobile Payment Transaction Value and Growth
Rate: RMB Billion
Transaction Value Growth Rate
Mobile Payment Preferences
Chinese consumers are gradually shifting to contactless payments including NFC.
0.8%
1.9%
2.9%
4.0%
4.3%
11.7%
17.9%
27.5%
29.2%
0% 5% 10%15%20%25%30%35%
Others
Plug-In Reader
NFC Payment
Bar Code Payment
QR Code
Mobile Phone Bundled Card
Mobile Web Payment
SMS Payment
Mobile App Payment
Source: iResearch	
  
2012 2014
Source: Kapronasia Primary Research, 2014	
  
0.2%
1.5%
3.7%
8.7%
9.9%
18.0%
26.2%
31.7%
0% 10% 20% 30% 40%
Others
Plug-in Card Reader Payment
Barcode Payment
NFC Payment
Mobile Web Payment
SMS Payment
Mobile App
Mobile Phone Bundled Card
Payment (Quick Pay)
Question: What type of mobile payment
method do you prefer to use?
NB: Kapronasia does not know the sample set or specific methodology that iResearch used for collecting 2012, and
so 2012 vs. 2014 data should be used as a broad / general comparison only and should not be compared directly. 	
  
1215-2-2
Peer to Peer (P2P) Lending	
•  Small and medium enterprises have been starved of cash
•  Online P2P lending has been in existence since 2007, really only gained traction in
previous 4 years
•  The lending solves a problem => allowed by the government
The tacit acceptance of the government of P2P has allowed the industry to grow
rapidly	
15-2-2 13	
  
What is financial innovation?	
•  May not be 100% transparent to end customers
–  Credit scoring using big data => back-end
–  Fraud detection
•  May not be 100% sexy
–  Fraud detection
•  Both corporate and consumer
–  Corporate – Australia real-time payments
–  Consumer – Apple Pay
•  The last 5 years has been a renaissance in fintech investment
–  Silicon Alley in NYC
–  Silicon Roundabout in London
Leveraging technology to provide a product or service more effectively to a
customer.	
15-2-2 14	
  
What creates the perfect setting for financial innovation?	
•  Government is committed to reform, but can only move so fast
–  Crossing river by feeling for stones
•  The government is challenged to do it themselves
–  Speed
–  Agility
–  Knowledge
•  Consumers are getting restless and want more => skipping ‘personal financial manager’
The confluence of slowing economy, reforming financial industry and fast moving
technology providers is creating a ‘perfect ricebowl’ for financial innovation. 	
15-2-2 15	
  
What drives financial innovation? 	
•  Although 1.4 billion customers is a lot of people chatting, it is only 1.4 billion
•  Imagine if you can get those 1.4 billion to start booking taxis too => 2.8 billion
customers
•  In fact, tech companies are in a massive land grab and effort to create one-stop
platforms for consumers
•  Numerous examples of non-financial institutions leveraging tech to get ahead:
–  Mobile payments (Alipay, Wechat)
–  Big data for finance (Baifa)
–  P2P Lending (Dianrong, Creditease)
•  Majority of innovation helps the industry, so regulators are taking backseat…for now
•  Personal financial management is new in China -> retail investors are being given tools
So many customers, need more products.	
15-2-2 16	
  
Bringing it all together: Platforms that Work	
China’s large internet services have also provided social ‘hubs’ with integrated
payment functions, completely avoiding the need to work with MNOs and Banks	
•  Wechat, an online chat app from Tencent => incredibly popular in China.
•  Functionality: Book taxis, Pay friends, Buy movie / show tickets, Pay bills, Mobile top-up
•  Platforms are underlying innovation
1715-2-2
Bringing it all together: Platforms that Work – for the consumers	
Websites in China are notoriously cluttered – initial focus was on supporting that –
increasing focus on fluidity	
1815-2-2
Check Point China	
•  Economy is not in the best of shape, but still better than most
•  Consumers are getting online and getting mobile – mainly on smartphones
•  As more people are mobile, shopping and payments are following
•  Younger generation is increasingly used to doing everything online
•  Regulators are pushing change – 2013-2016 reforms:
–  Direct Banks Implemented
–  Private Banks on the way
–  P2P lending continuing w/o regulation
–  HK / Shanghai connect
–  Deposit Insurance
–  Stock Options
–  Financial Futures
–  Interest Rate Liberalization
–  Online Finance
–  Growth Enterprise Board
–  Negotiable Deposit Certificates
–  NFC Standards
–  Credit Asset Securitization
An increasingly online / mobile user base is enabling a massive shift to online
payments and finance.	
15-2-2 19	
  
And the list goes on…..
Opportunities for Digital Currencies / Digital Technology	
•  Younger generation, and increasing the older generation are used to new technology
•  QQ coins have been around for ages => population is used to virtual goods
•  Solutions that focus on making something easier
•  Chinese government’s attitude towards Bitcoin
•  Will they regulate further?
•  Law targeting virtual currency in 2009; forbade virtual currency for purchase of real
items.
•  Focused on Q Coin, paid for online services such as games. However, it seemed to
be easily applied to Bitcoin
•  Unlike Q coin, the Ministry of Commerce and the Ministry of Culture can’t target a
company or entity to regulate or to submit the circulation and transaction volumes
of Bitcoin.
•  Is the government happy enough with the status quo? Not much has changed,
what were they unhappy about before?
China’s financial industry is still relatively immature => scope for providing new
and innovative solutions	
15-2-2 20	
  
Why should you care?	
•  Although 1.4 billion customers is a lot customers, it is only 1.4 billion
•  Compare:
–  Alipay 1.4 billion native potential customers => why expand?
–  Paypal 250 million native potential customers (US) => they had to expand
•  Western financial industries are either hampered by regulation or don’t care…
•  Some have tried
–  Paypal’s online money platform => closed
–  Amazon wallet => closed
•  Significant opportunity for domestic companies expanding abroad	
China’s tech companies have a massive userbase to test financial solutions and
products at scale => lessons learned for moving abroad	
15-2-2 21	
  
Challenges	
•  P2P Lending allowed as fits with reform and helps the industry by reducing risk
•  Bitcoin was speculation => didn’t solve any issues in the market
•  Too many business models for too few users => demand needs to increase
•  Crypto is a solution searching for a problem
•  Current Bitcoin business models don’t fix much in China:
–  Merchant fees are low with CUP cards
–  Security no longer seems to be a concern for users
–  Real time domestic payments through banks or 3rd party platforms
–  Exists on its own – not tied into social
However, solutions need to fit with the government’s path for the economy and
reform	
15-2-2 22	
  
Conclusions	
•  We will look back at China’s financial industry in 5 years as the most innovative globally
•  Crossing the river by feeling the stones => path to reform
•  Government is not anti-bitcoin, they are just anti-risk
•  Business models that will succeed are those that help the industry from the beginning,
not hurt
15-2-2 23	
  
Visit www.kapronasia.com or send us an email: research@kapronasia.com
Twitter: @chinafintech
Thanks / Q&A
Backup	
15-2-2 25	
  
Source: Kapronasia Primary Research, 2014	
  
NFC – Preferences and Reasons for Using NFC
Metric
Would Pick
NFC
1
Likely to
Pick NFC
2
No Impact
3
Likely to Pick
Other Mobile
Payment
Method
4
Would Pick
Other Mobile
Payment
method
5
Notes
Transaction
Speed
Convenience of
Bundle w/
bankcard
Example: Quickpay
Convenience of
wallet
functionality
Current SIM-NFC solutions
often have multiple cards in
a single mobile wallet
Simplified
Operation
Perception that NFC
payment simplifies payment
Higher Security
NFC payments’ generally
seen as safer
Widely Known
and Used
NFC marketing has helped
awareness
Broad Usage
Available solutions in the
market
Try New
Payments
Curious about new
payment methods
Used Currently for
Payment
Many users are used to
their current payment
method, so there seems to
be stickiness.
2.33
2.50
2.24
2.42
2.22
2.65
2.42
2.13
2.83
2615-2-2

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Zennon Kapron Inside Bitcoins Singapore 2015

  • 1. Inside Bitcoins: Fintech in China: From Duplication to Innovation Zennon Kapron January 29th, 2015
  • 2. Overview •  China Today •  How the financial industry is changing •  Setting the stage for financial innovation •  Digital Currency •  Challenges •  Conclusions 15-2-2 2  
  • 3. Macroeconomic / Financial Industry Development •  GDP Slowing •  Shadow Lending •  Increased focus on changing the industry –  Regulation / government driven China economy still strong, but growth has slowed / structural issues creeping in 15-2-2 3   6 8 10 12 Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2 GDP Growth: China Q1 2010 - Q3 2014 Y-o-Y growth (%) 2010 2011 2012 2013 2014 10.3 9.6 9.8 9.7 9.5 9.1 8.9 8.1 7.6 7.4 7.9 7.7 7.5 7.8 7.7 7.3 7.5 7.3
  • 4. China: China Basics – China Today •  World’s biggest land-grab •  1.5B+ people = competition for scare resources •  Increasingly wealthy middle-class •  Sacrifices for economic growth (bad pollution, poor medical care) •  Developing country with modern problems –  Obesity –  Income distribution –  Health care –  Starbucks… •  It is in this context that we are seeing one of the biggest shifts in how a population interacts with the financial industry anywhere… 4  
  • 5. China is talking more on the phone: Mobile Uptake Mobile payments in China are increasing rapidly as more and more users start to use smartphones and payment options increase. 15-2-2 5   7.47 8.59 9.86 11.12 12.29 12.86 56% 64% 74% 83% 91% 93% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 2 4 6 8 10 12 14 2009 2010 2011 2012 2013 2014 China Mobile Phone Users and Mobile Phone Penetration: Unit 100 Million, Percentage China Mobile Phone Users Mobile Phone Penetration
  • 6. Chinese Phones are getting smart: Smartphone Penetration Increased availability of faster data-services through 3G and 4G has supported an already strong shift to smartphones. 224 266 390 449 30% 65% 88% 90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 50 100 150 200 250 300 350 400 450 500 2011 2012 2013 2014 Smartphone sales volume and % of Overall Mobile Phone sales 2011-2014 (Unit: Millions & %) Mobile Phone Sales Volume Smart Phones as % of Overall Mobile Phone Sales 615-2-2
  • 7. People are doing more stuff on their phones: Mobile Internet Usage Continued growth and availability of data and smart phones has driven mobile internet usage setting the stage for increased e-commerce and mobile payments 715-2-2 233 303 356 420 500 527 61% 66% 69% 75% 81% 83% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0 100 200 300 400 500 600 2009 2010 2011 2012 2013 2014 Mobile internet users and Mobile Internet Usage as % of Overall Internet Usage Number of Mobile Internet Users Percentage of Mobile Internet Usage
  • 8. Buying online: E-Commerce •  In 2013, China became the world’s largest online market, surpassing the US. China’s e-commerce industry has ballooned in the past few years, as consumers become used to shopping online; still, it represents < 10% of total consumption 461 783 1320 1885 1840.81 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2010 2011 2012 2013 2014Q1-3 China Online Retail Market, Units: Billion RMB 815-2-2
  • 9. This is why E-commerce in China matters E-commerce in China is eclipsing that of the west 15-2-2 9   Comparison of China's Singles Day to America's Cyber Monday and Black Friday US$Billion Source: Kapronasia, company reports Singles Day Black Friday Cyber Monday 0 2 4 6 8 10 201420132012 5.75 9.34 2.29 1.2 2.65 1.51 3.04 1.04 1.98
  • 10. Buying Online…on your mobile: Mobile E-Commerce Increasingly, Mobile shopping represents a growing share of overall e-commerce 98.50% 94.20% 85.50% 70.00% 57.30% 47.30% 43.10% 1.50% 5.80% 14.50% 30.00% 42.70% 52.70% 56.90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2011 2012 2013 2014e 2015e 2016e 2017e Breakdown of e-commerce purchasing Channels in China Mobile PC Source: iResearch, Kapronasia Analysis 1015-2-2
  • 11. Paying Online: Mobile Payment Transaction Volume •  E-commerce was specifically mentioned in the 12th five-year plan with mobile payment being a crucial aspect of that. •  Development of information and communication technology (ICT) is also a measurement of the performance of local governments As measured by value and volume, mobile payments are growing very quickly in China 1115-2-2 59 80 151 1,195 16,201 36% 89% 691% 1255% 0% 200% 400% 600% 800% 1000% 1200% 1400% 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 2010 2011 2012 2013 2014Q1-3 China Mobile Payment Transaction Value and Growth Rate: RMB Billion Transaction Value Growth Rate
  • 12. Mobile Payment Preferences Chinese consumers are gradually shifting to contactless payments including NFC. 0.8% 1.9% 2.9% 4.0% 4.3% 11.7% 17.9% 27.5% 29.2% 0% 5% 10%15%20%25%30%35% Others Plug-In Reader NFC Payment Bar Code Payment QR Code Mobile Phone Bundled Card Mobile Web Payment SMS Payment Mobile App Payment Source: iResearch   2012 2014 Source: Kapronasia Primary Research, 2014   0.2% 1.5% 3.7% 8.7% 9.9% 18.0% 26.2% 31.7% 0% 10% 20% 30% 40% Others Plug-in Card Reader Payment Barcode Payment NFC Payment Mobile Web Payment SMS Payment Mobile App Mobile Phone Bundled Card Payment (Quick Pay) Question: What type of mobile payment method do you prefer to use? NB: Kapronasia does not know the sample set or specific methodology that iResearch used for collecting 2012, and so 2012 vs. 2014 data should be used as a broad / general comparison only and should not be compared directly.   1215-2-2
  • 13. Peer to Peer (P2P) Lending •  Small and medium enterprises have been starved of cash •  Online P2P lending has been in existence since 2007, really only gained traction in previous 4 years •  The lending solves a problem => allowed by the government The tacit acceptance of the government of P2P has allowed the industry to grow rapidly 15-2-2 13  
  • 14. What is financial innovation? •  May not be 100% transparent to end customers –  Credit scoring using big data => back-end –  Fraud detection •  May not be 100% sexy –  Fraud detection •  Both corporate and consumer –  Corporate – Australia real-time payments –  Consumer – Apple Pay •  The last 5 years has been a renaissance in fintech investment –  Silicon Alley in NYC –  Silicon Roundabout in London Leveraging technology to provide a product or service more effectively to a customer. 15-2-2 14  
  • 15. What creates the perfect setting for financial innovation? •  Government is committed to reform, but can only move so fast –  Crossing river by feeling for stones •  The government is challenged to do it themselves –  Speed –  Agility –  Knowledge •  Consumers are getting restless and want more => skipping ‘personal financial manager’ The confluence of slowing economy, reforming financial industry and fast moving technology providers is creating a ‘perfect ricebowl’ for financial innovation. 15-2-2 15  
  • 16. What drives financial innovation? •  Although 1.4 billion customers is a lot of people chatting, it is only 1.4 billion •  Imagine if you can get those 1.4 billion to start booking taxis too => 2.8 billion customers •  In fact, tech companies are in a massive land grab and effort to create one-stop platforms for consumers •  Numerous examples of non-financial institutions leveraging tech to get ahead: –  Mobile payments (Alipay, Wechat) –  Big data for finance (Baifa) –  P2P Lending (Dianrong, Creditease) •  Majority of innovation helps the industry, so regulators are taking backseat…for now •  Personal financial management is new in China -> retail investors are being given tools So many customers, need more products. 15-2-2 16  
  • 17. Bringing it all together: Platforms that Work China’s large internet services have also provided social ‘hubs’ with integrated payment functions, completely avoiding the need to work with MNOs and Banks •  Wechat, an online chat app from Tencent => incredibly popular in China. •  Functionality: Book taxis, Pay friends, Buy movie / show tickets, Pay bills, Mobile top-up •  Platforms are underlying innovation 1715-2-2
  • 18. Bringing it all together: Platforms that Work – for the consumers Websites in China are notoriously cluttered – initial focus was on supporting that – increasing focus on fluidity 1815-2-2
  • 19. Check Point China •  Economy is not in the best of shape, but still better than most •  Consumers are getting online and getting mobile – mainly on smartphones •  As more people are mobile, shopping and payments are following •  Younger generation is increasingly used to doing everything online •  Regulators are pushing change – 2013-2016 reforms: –  Direct Banks Implemented –  Private Banks on the way –  P2P lending continuing w/o regulation –  HK / Shanghai connect –  Deposit Insurance –  Stock Options –  Financial Futures –  Interest Rate Liberalization –  Online Finance –  Growth Enterprise Board –  Negotiable Deposit Certificates –  NFC Standards –  Credit Asset Securitization An increasingly online / mobile user base is enabling a massive shift to online payments and finance. 15-2-2 19   And the list goes on…..
  • 20. Opportunities for Digital Currencies / Digital Technology •  Younger generation, and increasing the older generation are used to new technology •  QQ coins have been around for ages => population is used to virtual goods •  Solutions that focus on making something easier •  Chinese government’s attitude towards Bitcoin •  Will they regulate further? •  Law targeting virtual currency in 2009; forbade virtual currency for purchase of real items. •  Focused on Q Coin, paid for online services such as games. However, it seemed to be easily applied to Bitcoin •  Unlike Q coin, the Ministry of Commerce and the Ministry of Culture can’t target a company or entity to regulate or to submit the circulation and transaction volumes of Bitcoin. •  Is the government happy enough with the status quo? Not much has changed, what were they unhappy about before? China’s financial industry is still relatively immature => scope for providing new and innovative solutions 15-2-2 20  
  • 21. Why should you care? •  Although 1.4 billion customers is a lot customers, it is only 1.4 billion •  Compare: –  Alipay 1.4 billion native potential customers => why expand? –  Paypal 250 million native potential customers (US) => they had to expand •  Western financial industries are either hampered by regulation or don’t care… •  Some have tried –  Paypal’s online money platform => closed –  Amazon wallet => closed •  Significant opportunity for domestic companies expanding abroad China’s tech companies have a massive userbase to test financial solutions and products at scale => lessons learned for moving abroad 15-2-2 21  
  • 22. Challenges •  P2P Lending allowed as fits with reform and helps the industry by reducing risk •  Bitcoin was speculation => didn’t solve any issues in the market •  Too many business models for too few users => demand needs to increase •  Crypto is a solution searching for a problem •  Current Bitcoin business models don’t fix much in China: –  Merchant fees are low with CUP cards –  Security no longer seems to be a concern for users –  Real time domestic payments through banks or 3rd party platforms –  Exists on its own – not tied into social However, solutions need to fit with the government’s path for the economy and reform 15-2-2 22  
  • 23. Conclusions •  We will look back at China’s financial industry in 5 years as the most innovative globally •  Crossing the river by feeling the stones => path to reform •  Government is not anti-bitcoin, they are just anti-risk •  Business models that will succeed are those that help the industry from the beginning, not hurt 15-2-2 23  
  • 24. Visit www.kapronasia.com or send us an email: research@kapronasia.com Twitter: @chinafintech Thanks / Q&A
  • 26. Source: Kapronasia Primary Research, 2014   NFC – Preferences and Reasons for Using NFC Metric Would Pick NFC 1 Likely to Pick NFC 2 No Impact 3 Likely to Pick Other Mobile Payment Method 4 Would Pick Other Mobile Payment method 5 Notes Transaction Speed Convenience of Bundle w/ bankcard Example: Quickpay Convenience of wallet functionality Current SIM-NFC solutions often have multiple cards in a single mobile wallet Simplified Operation Perception that NFC payment simplifies payment Higher Security NFC payments’ generally seen as safer Widely Known and Used NFC marketing has helped awareness Broad Usage Available solutions in the market Try New Payments Curious about new payment methods Used Currently for Payment Many users are used to their current payment method, so there seems to be stickiness. 2.33 2.50 2.24 2.42 2.22 2.65 2.42 2.13 2.83 2615-2-2