Abstract
Summary
Due to declining ARPU Japanese mobile operators are creating new streams of income independent of voice or data traffic. This paradigm shift led DoCoMo to invest in financial institutions, create a credit brand, and make a series of other investments including brick-and-mortar business, while competing operators follow different strategies. The present report gives a comprehensive overview of the variety of mobile payment services in operation in Japan, explains in detail how several proven mobile payment systems work, and explains the trends for mobile payments, transactions and mobile credit. The report describes the fundamental shift of paradigm occuring in the wireless communication industry and driven from Japan.
This report includes descriptions of the newest electronic money systems, including SUICA, PASMO, Nanaco, VISA-Touch, WAON and more.
Table of Contents
- Executive Summary: Mobile Payment and keitai credit - disruptive
innovation
- Mobile payments and keitai credit Market dynamics
- The competitive landscape for e-money, mobile payments, and keitai credit in Japan (chart)
- Prepaid ecash
- Postpaid keitai credit
- Wallet phones create a new layer in the credit business landscape (incl chart)
- Mobile payments and keitai credit as disruptive innovation
- Mobile payments as aew business models for the mobile communications industry Why are new business models needed for mobile communications?
- DoCoMo' s invstment in credit card companies: building new business
models
- DoCoMos investment in credit card companies
- Credit card payments are a much bigger market than mobile communications (graphic comparing Japans mobile communications market with Japans credit card payment market since 1990 with projection to 2010)
- Japans credit card payment and cash advance market (pie chart showing market shares of credit card companies)
- DoCoMos investment in credit card companies: implications
- Overview of DoCoMos recent strategic investments beyond the wireless communications field
- DoCoMo' s new iD credit brand
- Overview
- iD - trends and significance
- iD POS terminal including usage estimations
- POS terminal for iD
- ATM in convenience store with iD and Edy/Felica terminal
- Felia reader for bank ATM
- DoCoMo' s strategy
- iD - strategy
- DCMX Credit Card brand
- Overview
- branding strategy and introduction campaign
- trends and risks
- DCMX on the i-mode menu
- KDDI The Card
- Overview
- KDDI The Card and Quicpay
- KDDI money program
- SoftBank Card
- Overview
- QuicPay and the mobile payment promotion forum
- QuicPay Overview
- The mobile payment promotion forum: overview, purpose and history, list of stearing committee member companies, list of founding members, list of companies considering to join
- QuicPay prototype (2004)
- QuicPay demonstration (2005) purchasing music online
- QuicPay market introduction campaign and marketing message
- SmartPlus and Visa-Touch
- SmartPlus Overview
- Visa Touch Overview and usage numbers
- e-money in Japan
- Japan' s major e-cash systems
- Why electronic cash?
- National introduction of ecash
- Ecash is private business in Japan
- Requirements for electronic cash
- Legal situation and legal basis of ecash in Japan
- Ecash replacing coins in Japan, overview of coin circulation in Japan
- EDY Electronic Cash
- What does the name Edy mean?
- Edy overview
- Edy timeline and history
- Edy in FeliCa wallet phones: demonstration of basic functions - checking the balance, paying
- Cash register (POS) with Edy reader/writer
- Edy charger: loading cash into Edy
- Usage statistics: number of Edy cards issued (2001-2005, with projection to 2010)
- Usage statistics: number of Edy transactions per month (2001-2005, with projection to 2010)
- Usage statistics: number of Edy transactions per card and per month (2001-2005, with projection to 2010)
- BitWallet KK
- Company outline
- Shareholders and equity ratios
- Electronic cash at retailers - Seven-Eleven: Nanaco
- Outline
- JAVA application version for mobile phones and mobile payment
- main menu of electronic money JAVA application
- Comparing card and mobile phone version for electronic money
- Marketing message at introduction
- POS
- Customer relationship management (CRM)
- Nanaco: main characteristics
- Electronic cash at retailers - Aeon Group: WAON
- Outline
- Marketing WAON
- Kids' WAON
- Why does AEON issue WAON
- Tokyo-Mitsubishi mobile banking and link to Edy
- Mobile banking and transactions
- Tokyo-Mitsubishi mobile banking, with demonstrations of content and basic functionalities and user experience
- Edy and mobile banking, with demonstrations of content and basic functionalities and user experience: transfering cash from the bank account to Edy on the mobile phone
- Edy and mobile banking: viewing the transaction record (user experience)
- Mobile consumer banking and ecash
- i-Mode and mobile FeliCa wallet phone examples
- AM/PM convenience stores
- Payment with Edy and wallet phone at the point of sale (POS)
- Customer relationship management with FeliCa wallet phones
- Customer Club experience via FelIca wallet phone (mobile CRM)
- Ticket Pia
- Electronic mobile event tickets
- Edy and mobile Felica wallet phone partner: All Nippon Airlines ANA
- Customer relationship management (CRM) and mileage club for Edy and
wallet phones
- JAL - Japan Airlines
- Customer relationship management (CRM) and mileage club for Edy and
wallet phones
- FeliCa and Mifare
- Overview and system description
- Felica chip and NFC antenna
- Felica and Mifare (example: London' s Oyster card)
- SONY and NXP joint venture
- Overview and system description
- FeliCa Wallet phones: What are wallet phones and why
- How many wallet phones are there in Japan? (graphics for DoCoMo wallet phones, and all operators, data for 2004-2007 with projection to 2011)
- Wallet phone system overview
- Overview
- Example: P506iC (introduced on July 10, 2004)
- i-Mode Felica transaction partners
- Why wallet phones, what are wallet phones
- DoCoMo i-Mode Felica wallet phone description
- Schematic overview of the i-Mode Felica System
- Why wallet phone
- Trends of mobile communications, phases of development
- Mobile phone - stages of development
- Implications for the mobile carrier
- Business models and the FeliCa/mobile FeliCa ecosystem
- Overview
- Business models and the FeliCa/mobile FeliCa ecosystem
- Graphical view of the ecosystem, including a schematic presentation of revenues for DoCoMo and the key players
- Japan' s mobile internet as a platform for mobile payments
- Mobile payments today in Japan
- The i-Mode Ecosystem
- Mobile internet penetrates Japan (graphics showing mobile internet subscriber numbers for 1999-2005)
- Todays 3G i-Mode in a nutshell: users pay for content
- M-commerce, mobile payments and mobile transactions
- Japans mobile internet supports a range of m-commerce and m-transactions
- Mobile mail order, e-commerce and m-commerce (market size estimations: 1998-2010)
- Payment for mobile content: mobile music
- Overview of mobile music market
- Mail order via mobile internet: Online purchasing, mobile shopping
malls
- Online purchases by mobile phone
- Examples of most effective mobile commerce
- Commerce features unique to mobile phones
- M-commerce: shopping by mobile phone
- Examples of mobile phone online bookstores
- Examples of mobile phone online music stores
- Mobile shopping mall
- Event tickets by mobile phone, example of leading mobile store
- Selling flowers by mobil phone
- Mobile auctions
- Overview
- AU auctions via mobile phone
- AU auctions
- DoCoMos Auction strategy: strategic investment in online and mobile
auctions
- Overview
- KDDI/AU' s mcommerce initiatives
- Overview
- AU shopping and auction menu
- AU shopping
- Au auctions via mobile phone
- AU records and EZ music store
- AU style
- Phones as train tickets: SUICA
- Overview
- Mobile SUICA
- SUICA users: (graphics for 2001-2007 with projections to 2008, number of
SUICA cards, number of monthly train passes vs prepaid fare cards, number of
combined SUICA and credit cards)
- SUICA as ecash in competition to Edy
- Reserving and paying with mobile phone for train travel: example -
ExpressCard
- Overview of the ExpressCard
- Table of key data, market size, usage characteristics, and sales volume estimation
- ExpressCard mobile selling system description
- Seat reservation and purchase via PC internet site
- Seat reservation and purchase via mobile phone, screen image of top menu
- Mobile reservation, and purchase site, login screen image and description
- Researvation and purchase sequence, screen images
- Paper ticket issue of tickets purchased by mobile phone
- Estimation of market size
- Reserving and paying with mobile phone for train travel: example -
Odakyu romance car club
- Overview of the Odakyu romance car club
- Mobile reservation, and purchase site, login screen image and description
- Researvation and purchase sequence, screen images
- Summary
- PASMO
- Overview: PASMO
- Marketing
- Bar codes and QR codes to pay bills
- QR codes for paying bills at a convenience store
- Paying bills by mobile phone
- Mobile bill paying system
- DoCoMo coin
- Overview of DoCoMo coin system
- Summary: Mobile payment, e-money and keitai credit
