1. Mobile Payments Kristen Meyer, PharmD Candidate
Introduce self
Kristen Meyer, PharmD Candidate
University of Charleston School of Pharmacy
PCCA CPMS Intern
January 3, – February 3, 2011

2. 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

3. 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

4. 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

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

6. Predicted Mobile Spending

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

8. 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 address to download
appropriate account info
1.9% - 2.9% + $0.30 transaction fee

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. Works Cited
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:
Clark, Sarah. (2011, January 24). Starbucks ‘will continue to explore NFC’ . Retrieved January 24, 2011, from NFC World:
Eichenbaum, P., & Collins, M. (2010, August 2). AT&T, Verizon to Target Visa, MasterCard With Smartphones. Retrieved January 8, 2011, from Bloomberg:
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 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:
PayPal. ( ). Fees & Mobile Technology. Retrieved January 8, 2011, from PayPal:
Square, Inc. (2011). Service Fees. Retrieved January 8, 2011, from Square, Inc.:

17. Questions/Thoughts/Opinions?