Monday, July 13, 2009
M-payments & e-money grow exponentially
E-money transactions (including mobile e-cash) grow exponentially in Japan, and we expect to see 1 Billion e-money transactions/month around 2014 (this figure would be much bigger if contactless train travel tickets were included). e-Money now represents about 2% of all cash (banknotes + coins) in circulation in Japan, a recent examination of e-money by the Bank of Japan shows. More below, and a detailed analysis in our mobile payment and e-money report, where we combine the newest data from the Bank of Japan with our own research data.
Exponential growth: The number of e-cash payments per month increases by a factor of 10 about every 4 years.
We expect 1 billion e-money transactions per month around 2014. Green curve shows payments with Suica, Pasmo and Edy (not including train travel). The blue curve shows data for all e-money transactions researched by the Bank of Japan.
Research by the Bank of Japan shows that e-money has reached the level of 2% of all cash in circulation (bank notes and coins).
To know more - and to find detailed statistical data: read our mobile payment collection of essential reports on mobile payments and e-money in Japan
Exponential growth: The number of e-cash payments per month increases by a factor of 10 about every 4 years.
We expect 1 billion e-money transactions per month around 2014. Green curve shows payments with Suica, Pasmo and Edy (not including train travel). The blue curve shows data for all e-money transactions researched by the Bank of Japan.
Research by the Bank of Japan shows that e-money has reached the level of 2% of all cash in circulation (bank notes and coins).
To know more - and to find detailed statistical data: read our mobile payment collection of essential reports on mobile payments and e-money in Japan
Labels: e-cash, e-money, edy, felica, mobile payment, mobile suica, suica
10 years e-cash and mobile payments
10 years ago - 1999 - the global mobile payment revolution started in Japan: with i-mode introducing an essentially Japan-only highly successful micropayment system for online content and brick-and-mortar based m-commerce, and SONY's Edy starting e-cash experiments in Tokyo's Osaki district. In 2003 SONY's Felica IC semiconductor chips were combined with mobile phones to introduce the first "wallet phones" ("saifu keitai"). Today the majority of mobile phones in Japan are wallet phones.
For the last 10 years, Japan has been a laboratory for mobile payments and e-cash, conducting a test on 125 million population on which mobile payment and e-cash models work and which don't. -> We can all learn from Japan's 10 years of experimentation which mobile payment business models are likely to work, and which might fail!
Edy stands for Euro, Dollar, Yen... expressing the hope for global success - Intel Capital believes in this success and has invested in the company that runs Edy: BitWallet (backed by SONY).
Which are the most effective e-cash systems?
While SONY has distributed the largest number of cards, in our view the world's largest (by payment volume) and most effective e-cash and mobile payment system is operated by the world's largest railway company: SUICA and mobile SUICA.
he world's most effective railway company in our view also operates the world's most effective mobile commerce system: The Express Card / EX-IC system.
Although we only have official figures for FY2008, we estimate that in 2009 about US$ 3 billion worth of train tickets are sold via JR-Tokai's Express card system for a single train line - and much of this by m-commerce via mobile phone. JR-Tokai's Express card system is an entirely different system than the i-Phone - but an equally friendly and efficient design solution. (For a case study of JR-Tokai's Express card system download our report).
More: download our Mobile Payment Collection
For the last 10 years, Japan has been a laboratory for mobile payments and e-cash, conducting a test on 125 million population on which mobile payment and e-cash models work and which don't. -> We can all learn from Japan's 10 years of experimentation which mobile payment business models are likely to work, and which might fail!
Edy stands for Euro, Dollar, Yen... expressing the hope for global success - Intel Capital believes in this success and has invested in the company that runs Edy: BitWallet (backed by SONY).
Which are the most effective e-cash systems?
While SONY has distributed the largest number of cards, in our view the world's largest (by payment volume) and most effective e-cash and mobile payment system is operated by the world's largest railway company: SUICA and mobile SUICA.
he world's most effective railway company in our view also operates the world's most effective mobile commerce system: The Express Card / EX-IC system.
Although we only have official figures for FY2008, we estimate that in 2009 about US$ 3 billion worth of train tickets are sold via JR-Tokai's Express card system for a single train line - and much of this by m-commerce via mobile phone. JR-Tokai's Express card system is an entirely different system than the i-Phone - but an equally friendly and efficient design solution. (For a case study of JR-Tokai's Express card system download our report).
More: download our Mobile Payment Collection
Labels: e-money, edy, m-commerce, m-payment, mobile payment, mpayment
Wednesday, February 18, 2009
Top 10 mobile trends for 2009
Answering the question "Top 10 mobile trends for 2009: what would you choose?" We answer from our perspective here in Tokyo:
- Mobile payments and wallet phones
see our mobile payment report - GPS and location based services (LBS) such as navigation and mapping
see our location based services (LBS) report - Mobile search including location related search
- QR codes and other 2D bar codes for information input into mobile phones
see our location based services (LBS) report - Ultra low cost mobile phones for low end not only in emerging markets but also in advanced countries in economic crisis times
- Subsidized $1 mini-laptops with flat rate HSDPA (7.2Mbps) data plans
- WiMax networks come into commercial service
- Embedded B2B applications
- Beautiful OLED ultra-high resolution screens (bigger than iPhone displays)
- Mobile agent services
Labels: LBS, mobile payment, oled, QR, trends, walletphone
Monday, April 23, 2007
Nanaco - e-cash and m-cash for Seven-Eleven
This week two of Japan's largest retail chains roll out electronic and mobile cash: Monday April 23rd the Seven & I Holdings Group started "nanaco" and tomorrow, Friday April 27th, 2007, the AEON retail group will start "WAON".
At first sight the massive roll-out of electronic cash and mobile payments systems during March and April this year here in Japan has been smooth and without problems (except for PASMO underestimating the success and running out of cards). However, when we look below the surface, clouds of a competitive storm are brewing. This storm might be followed by consolidation. Here are some examples:
PASMO cards were sold out within the first three weeks, and PASMO is now losing market share (and commission payments) to SUICA day-by-day - PASMO became a victim of it's own success.
7-11's "nanaco" offers twice as much discount as AEON Group's "WAON". Clearly "nanaco" is on a more aggressive course than "WAON". We expect competition to heat up.
Slashdot It!
At first sight the massive roll-out of electronic cash and mobile payments systems during March and April this year here in Japan has been smooth and without problems (except for PASMO underestimating the success and running out of cards). However, when we look below the surface, clouds of a competitive storm are brewing. This storm might be followed by consolidation. Here are some examples:
PASMO cards were sold out within the first three weeks, and PASMO is now losing market share (and commission payments) to SUICA day-by-day - PASMO became a victim of it's own success.
7-11's "nanaco" offers twice as much discount as AEON Group's "WAON". Clearly "nanaco" is on a more aggressive course than "WAON". We expect competition to heat up.
Slashdot It! Labels: e-cash, ecash, m-cash, mcash, mobile payment, nanaco, pasmo, seven eleven, suica, wallet-phone, walletphone, waon
Sunday, March 18, 2007
PASMO: IC cards for transport
On Sunday, March 18, 2007, about 100 transportation companies in the Tokyo region switched to the near-field electronic money and payment system PASMO. Electronic money is a new battle field which JR-East pioneered with SUICA. 7 & I is still to throw it's weight into the battle - read about today's status of the electronic money marketplace in our "Mobile Payment and Keitai Credit" report.
A new multi-billion dollar power? Here is the character for PASMO: with an antenna on the hat, a pocket on the chest to store PASMO away, and wheels on the shoes, and in cherry-blossom pink... Does this cherry-blossom-pink guy look like he represents a new US$ multi-billion economic power?
Slashdot It!
A new multi-billion dollar power? Here is the character for PASMO: with an antenna on the hat, a pocket on the chest to store PASMO away, and wheels on the shoes, and in cherry-blossom pink... Does this cherry-blossom-pink guy look like he represents a new US$ multi-billion economic power?
Slashdot It! Labels: ecash, electronic money, mobile payment, nanaco, nfc, pasmo, rfid, suica, tokyo
Tuesday, March 06, 2007
Mobile payment and the future of money
CLSA - Asia-Pacific Markets - last week organized the "CLSA Japan Forum" here in Tokyo. About 800-1000 investment bankers, portfolio managers, investors, analysts came together. Since last year interest of global investors in Japan has increased a lot.
Eurotechnology Japan KK participated actively, and on Friday March 2, 2007, gave a presentation on:
"Impact of mobile payment and the future of money"
The presentation covers the following agenda:
- Can e-money and mobile payment replace cash?
- Example: mobile payment for the world's busiest train line
- DoCoMo's target for mobile payments
- Japan's mobile payment and keitai credit landscape
- Free markets vs regulation
- Mifare and Felica chips and radio communications (NFC)
- Who drives mobile payments
- Growth of SUICA
- DoCoMo's mobile payment and keitai credit strategy
- Edy - electronic cash
- A major bank's mobile payment system
- Impact
- Where to invest - who to watch
- Summary
"Impact of mobile payment and the future of money" (download here)
"Mobile payment and keitai credit (download here)
Slashdot It!
Eurotechnology Japan KK participated actively, and on Friday March 2, 2007, gave a presentation on:
"Impact of mobile payment and the future of money"
The presentation covers the following agenda:
- Can e-money and mobile payment replace cash?
- Example: mobile payment for the world's busiest train line
- DoCoMo's target for mobile payments
- Japan's mobile payment and keitai credit landscape
- Free markets vs regulation
- Mifare and Felica chips and radio communications (NFC)
- Who drives mobile payments
- Growth of SUICA
- DoCoMo's mobile payment and keitai credit strategy
- Edy - electronic cash
- A major bank's mobile payment system
- Impact
- Where to invest - who to watch
- Summary
"Impact of mobile payment and the future of money" (download here)
"Mobile payment and keitai credit (download here)
Slashdot It! Labels: docomo, edy, felica, mobile payment, suica, walletphone
Saturday, November 11, 2006
Barcodes for mobile payment
Japan's mobile operators DoCoMo, KDDI/AU and SoftBank are expanding their business into mobile payment and mobile credit, traditionally the realm of banks, credit card companies, financial institutions and cash. With the bubble/post-bubble bad loans problem largely resolved and the mega-mergers completed, Japan's banks are now ready again to develop new business.
Customer's camera phone reads the barcode or QR-code on an utility bill or mailorder invoice, and forwards secure payment instructions to the customer's bank account.
What is the expected impact?
(1) Expect positive impact on Mizuho's earnings.
(2) Today such payments are typically made by walking to the nearest convenience store: expect negative impact on convenience stores which handle much of the barcode based bill payments today.
(3) Expect additional competitors with alternative methods to compete with Mizuho in the domain of mobile phone based bill payments.
More about mobile payments in our "Mobile Payment and Keitai Credit Report"
More about QR codes in our "QR Code Report"
Customer's camera phone reads the barcode or QR-code on an utility bill or mailorder invoice, and forwards secure payment instructions to the customer's bank account.
What is the expected impact?
(1) Expect positive impact on Mizuho's earnings.
(2) Today such payments are typically made by walking to the nearest convenience store: expect negative impact on convenience stores which handle much of the barcode based bill payments today.
(3) Expect additional competitors with alternative methods to compete with Mizuho in the domain of mobile phone based bill payments.
More about mobile payments in our "Mobile Payment and Keitai Credit Report"
More about QR codes in our "QR Code Report"
Labels: 2D barcode, barcode, mobile payment, QR
