The future of money is digital.
Instead of carrying credit cards or cash around we will more and more use our smartphone as a safe and convenient way to make daily payments. An industry discussion on the road forward and roadblocks with David Marcus (President PayPal), René Schuster (CEO Telefónica Germany), and Dr. Markus Braun (CEO Wirecard AG).
The panel started with a discussion between David Marcus and Joe Schoendorf (accel partners) about PayPal and the transition of David Marcus from a small company owner who sold his company to PayPal and then became the president of PayPal. Now PayPal is taking a new road into offline business, e.g. instore payments. It's the bigger piece of the pie. PayPal wants to solve offline payment problems, but it's not the payment process itself, it's everything around who makes it a worse experience. Think about your last restaurant dinner. How long did you wave until you could pay your bill?
David Marcus want to insure to help the people to shop wherever and whatever they want to shop. PayPal want to deliver more value to the customers.
René Schuster (Telefónica Germany) & Joe Schoendorf (accel partners, right)
René Schuster's talk with Joe Schoendorf was focussed on the mpass product, a kind of micropayment you can send money from mobile to mobile. Mobile payment will be the future. In 2014/15 the future will learn to fly and the especially the young people will never know a wallet. But will this happen at Germany, the most cash-dominant society in Europe?
Roman Friedrich from booz & co. then talked to Markus Brown from Wirecard AG which includes the Wirecard Bank. Wirecard offers a powerful multichannel platform, developed for mobile and online as a whitelabel solution with an automated payment process. This minimized the fraud. Mobile Payment will be part of our lifestyle. We now have a wallet fully integrated in the smartphone - NFC (Near Field Chip) can be a standard and rolled out globally, every smartphone can communicate with a QR-Code. A lot of smart and technical elements are already good preconditions for globally mobile payment.
First of all: mobile payment has to become part of your behavior, and behavior change is evolutionary.
And what about the security? It's typical German to talk about Data Security. Wirecard is a bank product and has a fully comply with bank standards. But every technology can be manipulated to the negative.
Dr. Markus Braun (left) & Roman Friedrich
Within the discussion we found out that m-payment business cases now looks attractive to big companies. M-Payment will bring up new and better tailored products for consumers, e.g. insurances for one day or maybe one hour. Mobile payment today already has a large impact on so-called "underbanked regions", e.g. Latin America. Now it's all about the way PayPal and others partner and about speed and roll-out of LTE. Without a good and fast mobile internet the mobile payment solution is useless.
Something to think about: "You left your home with 3 things every morning: keys, wallet, money, but smartphones become the remote control of your life." - René Schuster