Mobile Payments 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 Smartphone use Mobile technology utilized in pharmacy Mobile technology utilized in pharmacy Mobile Payments Mobile Payments Types of Mobile Payments Types of Mobile Payments Mobile Payments use in pharmacy practice Mobile Payments use in pharmacy practice Recent news in mobile payments Recent news in mobile payments Questions/thoughts/opinions Questions/thoughts/opinions

Smartphone Users on the Rise An estimated 73.3 million people in the United States own smartphones 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 Predicted that 1 in 2 Americans will own a smartphone by Christmas % of smartphone owners have downloaded an app 69% of smartphone owners have downloaded an app Text messaging remains the most popular feature Text messaging remains the most popular feature weblearners.com geek.com macworld.com manufacturer.com

Mobile Technology and Pharmacy Walgreens Mobile App Walgreens Mobile App Refill prescriptions Refill prescriptions Reminder text-messaging service Reminder text-messaging service Weekly Ads/Coupons Weekly Ads/Coupons Store locator Store locator Order photos Order photos Flu shot locator Flu shot locator bestapps.com walgreens.com

New Trend: Mobile Payments mybanktracker.com paymentscouncil.org.uk tomnoyes.wordpress.com katu.com iranmobin.com

Predicted Mobile Spending

Types of Mobile Payments Mobile-to-mobile payments Mobile-to-mobile payments Mobile devices as credit card processors Mobile devices as credit card processors Mobile devices used as credit cards Mobile devices used as credit cards

Mobile-to-Mobile Payments Merchant applications allowing instantaneous transfer of funds from one account to another via smartphone Merchant applications allowing instantaneous transfer of funds from one account to another via smartphone Examples: Examples: Paypal Bump Paypal Bump Bump phones together to receive account info Bump phones together to receive account info Or enter address to download Or enter address to download appropriate account info appropriate account info 1.9% - 2.9% + $0.30 transaction fee 1.9% - 2.9% + $0.30 transaction fee

Mobile Devices as Credit Card Processors Square, Inc. Square, Inc. Device acts a mini credit card reader inputting pertinent transaction information into the phone through Square App 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 Cost: 2.75% + $0.15/card swiped; 3.5% +$0.15/card keyed in Intuit Intuit Mobile credit card reader Mobile credit card reader Cost Cost Low Volume: $0/month, 2.7% + $0.15/swipe, 3.7% + $0.15/keyed in 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 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 payment/page/2/

Mobile Devices as Credit Cards Near Field Communication (NFC) Technology Near Field Communication (NFC) Technology Allows consumers to wave their mobile phone over a point of sale terminal to purchase retail items 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 Thought to threaten the existence of the wallet Companies set to launch pilot programs: Companies set to launch pilot programs: Wells Fargo Wells Fargo Google Google ISIS (partnership between AT&T, Verizon Wireless, ISIS (partnership between AT&T, Verizon Wireless, T-Mobile, Discover Financial Services and Barclays) T-Mobile, Discover Financial Services and Barclays) Costs: Costs: Approximately $200/reader Approximately $200/reader Phones with microchips would cost an Phones with microchips would cost an additional $10 to $15 Transaction fees? 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 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 Banks, merchants, phone makers, and wireless carriers would need to agree on transaction fees and technical specifications Security threats Security threats May be useful for small transactions (fast food, transit costs, etc.), but not predicted to be used for big purchases 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 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 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 Purchasing Rxs and merchandise in the pharmacy – gives patients additional option of payment Ease of payment for services provided outside the pharmacy Ease of payment for services provided outside the pharmacy Deliveries Deliveries Sales Sales Consultations Consultations

Recent News in Mobile Payments Starbucks launches mobile barcode- based service across the US 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 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 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 January 24, 2011

Recent News in Mobile Payments iPhones & iPads to gain NFC Payment Features iPhones & iPads to gain NFC Payment Features Technology will be introduced this year in new generations of iPhone and iPad2 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 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 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 Offering merchants free NFC payments terminals that are compatible with the services in their devices January 25, 2011

Works Cited Bannan, K. J. (2010, May 19). Cell phone payment system options mutiply. Retrieved January 8, 2011, from Fox Business: Bannan, K. J. (2010, May 19). Cell phone payment system options mutiply. Retrieved January 8, 2011, from Fox Business: Bell, S. (2010, October 13). In Accepting Mobile Payment, Merchants Face Higher Fraud Risk. Retrieved January 8, 2011, from Insurance Networking News: html Bell, S. (2010, October 13). In Accepting Mobile Payment, Merchants Face Higher Fraud Risk. Retrieved January 8, 2011, from Insurance Networking News: html html html Clark, Sarah. (2011, January 24). Starbucks will continue to explore NFC Clark, Sarah. (2011, January 24). Starbucks will continue to explore NFC. Retrieved January 24, 2011, from NFC World: explore-nfc/ Eichenbaum, P., & Collins, M. (2010, August 2). AT&T, Verizon to Target Visa, MasterCard With Smartphones. Retrieved January 8, 2011, from Bloomberg: to-target-visa-mastercard-with-smartphones.html Eichenbaum, P., & Collins, M. (2010, August 2). AT&T, Verizon to Target Visa, MasterCard With Smartphones. Retrieved January 8, 2011, from Bloomberg: to-target-visa-mastercard-with-smartphones.htmlhttp:// to-target-visa-mastercard-with-smartphones.htmlhttp:// to-target-visa-mastercard-with-smartphones.html Intuit, Inc. (2011). Service Fees. Retrieved January 24, 2011, from Intuit, Inc.: Intuit, Inc. (2011). Service Fees. Retrieved January 24, 2011, from Intuit, Inc.: Kharif, O. (2011, January 4). In the Works: A Google Mobile Payment Service? Retrieved January 8, 2011, from Bloomberg Businessweek: Kharif, O. (2011, January 4). In the Works: A Google Mobile Payment Service? Retrieved January 8, 2011, from Bloomberg Businessweek: Kharif, O. (2011, January 25). IPhones, iPads to Gain NFC Payment FeaturesRetrieved January 25, 2011, from Bloomberg Businessweek: Kharif, O. (2011, January 25). IPhones, iPads to Gain NFC Payment Features Retrieved January 25, 2011, from Bloomberg Businessweek: King, R. (2001, January 4). Wells Fargo to Employees: Leave Wallets Home, Pay by Phone. Retrieved January 8, 2011, from Bloomberg Businessweek: King, R. (2001, January 4). Wells Fargo to Employees: Leave Wallets Home, Pay by Phone. Retrieved January 8, 2011, from Bloomberg Businessweek: PayPal. ( ). Fees & Mobile Technology. Retrieved January 8, 2011, from PayPal: PayPal. ( ). Fees & Mobile Technology. Retrieved January 8, 2011, from PayPal: Square, Inc. (2011). Service Fees. Retrieved January 8, 2011, from Square, Inc.: Square, Inc. (2011). Service Fees. Retrieved January 8, 2011, from Square, Inc.:

Questions/Thoughts/Opinions?