Mobile Payments Kristen Meyer, PharmD Candidate Introduce self http://www.mobilemarketingwatch.com/wordpress/wp-content/uploads/2010/08/Mobile-Payment-Transactions-To-Reach-56.7B-By-2015-NFC-Adoption-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 Smartphone use Mobile technology utilized in pharmacy Mobile Payments Types of Mobile Payments Mobile Payments use in pharmacy practice Recent news in mobile payments Questions/thoughts/opinions

Smartphone Users on the Rise 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 Walgreens Mobile App Refill prescriptions Reminder text-messaging service Weekly Ads/Coupons Store locator Order photos Flu shot locator 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 Mobile-to-mobile payments Mobile devices as credit card processors Mobile devices used as credit cards

Mobile-to-Mobile Payments Merchant applications allowing instantaneous transfer of funds from one account to another via smartphone Examples: 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

Mobile Devices as Credit Card Processors Square, Inc. 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 Mobile credit card reader Cost 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 allaexpression.com http://www.multicellphone.com/category/mobile-payment/page/2/

Mobile Devices as Credit Cards Near Field Communication (NFC) Technology 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: Wells Fargo Google ISIS (partnership between AT&T, Verizon Wireless, T-Mobile, Discover Financial Services and Barclays) Costs: Approximately $200/reader Phones with microchips would cost an additional $10 to $15 Transaction fees? news.softpedia.com

Adoptability of NFC Technology 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 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 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

Recent News in Mobile Payments January 24, 2011 Starbucks launches mobile barcode-based service across the US Customers download the Starbucks Card Mobile App and can make payments by scanning the apps on-screen 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 iPhones & iPads to gain NFC Payment Features 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 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_credit-26090-1.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-to-explore-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-said-to-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?