Mobile Payments
http://www.mobilemarketingwatch.com/wordpress/wp-content/uploads/2010/08/Mobile-Payment-Transactions-To-Reach-56.7B-By-2015-NFCAdoption-Stands-At-1.7-Percent.jpg
Kristen Meyer, PharmD Candidate
University of Charleston School of Pharmacy
PCCA CPMS Intern
January 3, 2011 – February 3, 2011
Outline
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Smartphone use
Mobile technology utilized in pharmacy
Mobile Payments
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Types of Mobile Payments
Mobile Payments use in pharmacy practice
Recent news in mobile payments
Questions/thoughts/opinions
Smartphone Users on the Rise
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An estimated 73.3 million people in
the United States own smartphones
Predicted that 1 in 2 Americans will
own a smartphone by Christmas 2011
69% of smartphone owners have
downloaded an app
Text messaging remains the most
popular feature
manufacturer.com
geek.com
weblearners.com
macworld.com
Mobile Technology and Pharmacy
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Walgreens Mobile App
Refill prescriptions
 Reminder text-messaging service
 Weekly Ads/Coupons
 Store locator
 Order photos
 Flu shot locator
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bestapps.com
walgreens.com
New Trend: Mobile Payments
katu.com
iranmobin.com
mybanktracker.com
tomnoyes.wordpress.com
paymentscouncil.org.uk
Predicted Mobile Spending
http://money.cnn.com/2011/01/24/pf/end_of_credit_cards/
Types of Mobile Payments
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Mobile-to-mobile payments
Mobile devices as credit card processors
Mobile devices used as credit cards
Mobile-to-Mobile Payments
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Merchant applications allowing instantaneous
transfer of funds from one account to another
via smartphone
Examples:
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Paypal Bump
Bump phones together to receive account info
 Or enter email address to download
appropriate account info
 1.9% - 2.9% + $0.30 transaction fee
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Mobile Devices as Credit Card
Processors
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Square, Inc.
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allaexpression.com
Device acts a mini credit card reader inputting
pertinent transaction information into the phone
through Square App
Cost: 2.75% + $0.15/card swiped; 3.5%
+$0.15/card keyed in
Intuit
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Mobile credit card reader
Cost
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Low Volume: $0/month, 2.7% + $0.15/swipe, 3.7%
+ $0.15/keyed in
High Volume: $12.95/month, 1.7% + $0.30/swipe,
2.7% + $0.30/keyed in
*Also additional fees for non-qualified transactions
http://www.multicellphone.com/category/mobilepayment/page/2/
Mobile Devices as Credit Cards
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Near Field Communication (NFC) Technology
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Allows consumers to wave their mobile phone over a point of sale
terminal to purchase retail items
Thought to threaten the existence of the wallet
Companies set to launch pilot programs:
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Wells Fargo
Google
ISIS (partnership between AT&T, Verizon Wireless,
T-Mobile, Discover Financial Services and Barclays)
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Costs:
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Approximately $200/reader
Phones with microchips would cost an
additional $10 to $15
Transaction fees?
news.softpedia.com
Adoptability of NFC Technology
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Multiple transaction systems (like with credit
cards) would need to be put into place before
the technology would work
Banks, merchants, phone makers, and wireless
carriers would need to agree on transaction fees
and technical specifications
Security threats
May be useful for small transactions (fast food,
transit costs, etc.), but not predicted to be used
for big purchases
Others
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Some carriers have considered allowing
consumers to use their phone as a payment
device and their purchases are added to their
monthly phone bill
Consumers would used their telephone number
in place of a credit card number or utilize NFC
technology
Use in Pharmacy
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Purchasing Rxs and merchandise in the
pharmacy – gives patients additional option of
payment
Ease of payment for services provided outside
the pharmacy
Deliveries
 Sales
 Consultations
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Recent News in Mobile Payments
January 24, 2011
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Starbucks launches mobile barcodebased service across the US
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Customers download the Starbucks
Card Mobile App and can make
payments by scanning the apps onscreen barcode at the register
The app allows customers to manage
their Starbucks Card account, check the
balance, reload money on the card with
any major credit card, earn rewards and
find nearby stores
blogs.oracle.com
Recent News in Mobile Payments
January 25, 2011
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iPhones & iPads to gain NFC Payment Features
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Technology will be introduced this year in new generations of
iPhone and iPad2
Service would access credit card numbers, iTune gift card
balances, and bank information and hold loyalty credits and
points
Cut costs of credit card processing fees to Apple by directly
accessing customer bank accounts, thus cutting costs to
retailers who sell Apple products
Offering merchants free NFC payments terminals that are
compatible with the services in their devices
Works Cited
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Bannan, K. J. (2010, May 19). Cell phone payment system options mutiply. Retrieved January 8, 2011, from Fox
Business: http://www.foxbusiness.com/personal-finance/2010/05/19/cell-phone-payment-options-multiply/
Bell, S. (2010, October 13). In Accepting Mobile Payment, Merchants Face Higher Fraud Risk. Retrieved January 8,
2011, from Insurance Networking News:
http://www.insurancenetworking.com/news/insurance_technology_mobile_payments_risk_fraud_credit26090-1.html
Clark, Sarah. (2011, January 24). Starbucks ‘will continue to explore NFC’ . Retrieved January 24, 2011, from NFC
World: http://www.nearfieldcommunicationsworld.com/2011/01/24/35709/starbucks-will-continue-toexplore-nfc/
Eichenbaum, P., & Collins, M. (2010, August 2). AT&T, Verizon to Target Visa, MasterCard With Smartphones.
Retrieved January 8, 2011, from Bloomberg: http://www.bloomberg.com/news/2010-08-02/at-t-verizon-saidto-target-visa-mastercard-with-smartphones.html
Intuit, Inc. (2011). Service Fees. Retrieved January 24, 2011, from Intuit, Inc.:
http://payments.intuit.com/products/basic-payment-solutions/mobile-credit-card-processing.jsp
Kharif, O. (2011, January 4). In the Works: A Google Mobile Payment Service? Retrieved January 8, 2011, from
Bloomberg Businessweek:
http://www.businessweek.com/technology/content/dec2010/tc20101231_087039.htm
Kharif, O. (2011, January 25). IPhones, iPads to Gain NFC Payment Features Retrieved January 25, 2011, from
Bloomberg Businessweek:
http://www.businessweek.com/technology/content/jan2011/tc20110125_174308.htm
King, R. (2001, January 4). Wells Fargo to Employees: Leave Wallets Home, Pay by Phone. Retrieved January 8, 2011,
from Bloomberg Businessweek:
http://www.businessweek.com/technology/content/dec2010/tc20101231_921299.htm
PayPal. (1999-2011). Fees & Mobile Technology. Retrieved January 8, 2011, from PayPal:
https://www.paypal.com/
Square, Inc. (2011). Service Fees. Retrieved January 8, 2011, from Square, Inc.: https://squareup.com/
Questions/Thoughts/Opinions?