The Race For Mobile Payments Is Heating Up In Southeast Asia

Zhi-Ying Ng

My recently published report, “The Mobile Payment Opportunity In Southeast Asia,” finds that mobile payments are hot in Southeast Asia, with online and mobile-based purchases already exceeding tens of billions of dollars. Venture capital firms are also investing close to $75 million in mobile payments, drawn by a combination of factors including a booming digital content market, increase in online and mobile commerce and favorable government policies.

Well aware of the mobile payment opportunity, banks are scrambling to build their own mobile payment systems. But it’s not just financial institutions that are competing against each other to provide the best mobile payment services to their customers. Surging smartphone penetration in the region has created revenue opportunities for mobile operators, credit card networks and financial technology startups, all of which are also rapidly ramping up their mobile payment capabilities to stay competitive.

The brutal reality is that there is a high risk some of the banks’ mobile payment systems will fail. How then can banks ensure the success of their mobile payment systems?

eBusiness professionals need to keep up with the shifting landscape by understanding the market trends, usage scenarios, and local mobile payment options available to consumers. We recommend that banks incorporate three market dynamics into their mobile payment strategies:

  • User scenario for mobile payments varies across Southeast Asia. P2P payment growth in emerging markets differs from developed markets. We expect remittances to continue to spur P2P payment growth in emerging markets, and P2P payments will continue to account for a small share of transactions in developed markets.
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The Data Digest: Window Shopping: Now A Popular Activity On Tablets

Nicole Dvorak

If you’ve noticed fewer window shoppers on the streets lately, it may be because they’re at home window shopping from their couches; that is, they’re discovering and exploring products without necessarily intending to purchase.

For our 2015 US Mobile Landscape report*, Forrester analyzed mobile audience data from our behavioral tracking panel to understand how consumers use smartphones and tablets in 2015. We found that although professionals often group both devices under the “mobile” umbrella, consumers use smartphones and tablets in very different ways. One notable difference centers on mobile commerce: While smartphone commerce is still struggling to get traction, for tablets it’s already one of the most common activities. In fact, Forrester’s US Mobile Phone And Tablet Commerce Forecast, 2015 To 2020 shows that total tablet retail purchases more than double those made on a smartphone.

Our behavioral data shows that in the first half of 2015, 68% of tablet owners visited a shopping site at least once in a given month — that’s more than the number who visited news/media, TV/video, or even social networking sites! And these tablet shoppers aren’t just visiting Only about half took to Amazon —the other half visited other online shopping websites that fit their interests, brand preferences, and lifestyle.


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Differentiate Your Customer Experience with "Signature Moments"

Ryan Hart

Every March, children run around, eagerly filling baskets with Easter eggs. The eggs come in all sorts of colors and sizes, some hard to find, some more easily discovered.  The ritual continues every year with the Easter Bunny (or parents in rarer cases) hiding eggs to impart joy and wonder in innocent children.

One can analogize that smart companies have taken over the role of the Easter bunny, trying to bring joy and delight to customers, not children.

While the holistic brand experience, or Easter egg hunt, looks at the sum of these interactions – each interaction can be broken down further into a series of microinteractions.  These small-scale opportunities, when carefully tied back to the brand, give birth to what Forrester calls ‘Signature Moments’ - which we define as: 

Memorably crafted and branded microinteractions that deliver delight and value to customers in an often subtle yet, recognizable way.

In my report, Differentiate your Customer Experiences with Signature Moments, I describe the ‘what, how, and where’ of Signature Moments, provide examples, and look at how they can be carefully designed and infused into broader customer journeys to delight, differentiate and ultimately resonate with local customers.

During ideation of these moments, take stock of the following:

■   Is it sufficiently differentiating?Assess whether the proposed microinteraction is like a literal signature, unique only to your company and not easily replicated by others in the market.

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The Transition to EMV Presents New Opportunities for Mobile Payments

Brendan Miller
Merchant EMV hardware and software upgrades at the POS pave the road for additional contactless mobile payment transactions. Most new EMV POS hardware equipment also comes Near Field Communications (NFC) ready.  In timely fashion many new mobile payments types are hitting the market (Apple Pay, Android Pay, Samsung Pay, PayPal) to take advantage of the new NFC/EMV payment acceptance hardware being installed in merchant locations.  This creates a new opportunity for both in-store and eCommerce merchants if leveraged appropriately.   
Tapping and paying with a mobile device removes the EMV experience friction points.   Tapping and paying with a mobile device is just as frictionless as swiping a card through a mag-stripe terminal. Consumers will find the NFC transaction more convenient than an EMV card transaction, which requires dipping it in an EMV terminal, waiting for it to read the card, remembering a PIN and then pulling it out of the reader.  Consumers will likely gravitate to the NFC simpler transaction process and become more habituated to using their mobile device to pay in-store.  Furthermore, as mobile payment providers move toward digitizing consumer loyalty credentials in-app will also help reduce additional check-out friction points.   
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Does The New Facebook Reactions Get A ‘Like’?

Erna Alfred Liousas

This week Facebook released “Reactions” for two pilot markets: Ireland and Spain. The new reactions available for posts? Love, haha, yay, wow, sad, and angry.

Myself and Forrester analysts Jennifer Wise, Samantha Ngo, Brigitte Majewski across mobile, social, and advertising pow-wowed on this new addition.  Here are our thoughts: 
  • Facebook wins from this move. Hello new and granular consumer data. Facebook can continue to optimize its own news feed experience, and grow monetization of its data with improved audience profiles and targeting for ads – on its site, and everywhere else.  
  • Brands may get better sentiment data... Marketers need to go beyond counting likes, so what about counting “angries” vs. “yays” instead? Counts can suddenly mean positive or negative sentiment. Funneling these sentiments into consumer insights can help 1) inform ad targeting with refined consumer preferences and affinities, 2) test emotional story arcs, and 3) fuel retargeting. A clothing retailer could target consumers who react “wow” to dress posts. But the big “if” is: will Brands own Reaction data? We’re hoping yes. 
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Is Your Business Social Enough To Create Great Customer Experiences?

TJ Keitt

Your customer experience (CX) is the product of the interactions between your employees, partners, and customers within your operating environment. Forrester has labeled this as a customer experience ecosystem. It's important to understand CX ecosystems' two components — the people and the operating environment — for two reasons: 

  1. People participate in the ecosystem if they get value from it. Each actor in the CX ecosystem is asking, "What's in it for me?" Employees want things like professional development, recognition, and advancement. Business partners want access to customers, sales support, and strong revenue growth. And the customers expect quality products and services that meet their needs.
  2. The operating environment affects people's definition of value. Every ripple in the operating environment changes what employees, partners, and customers value and how they expect that value to be delivered. The economic downturn, for example, meant that many workers valued stable work over things like personal fulfillment — which is reflected in Gallup's report that just 32% of US workers are engaged. Many software companies transitioning from delivering server-deployed software to cloud services has changed how those vendors' traditional channel partners are compensated, going from large payouts on perpetual licenses to annuities from subscriptions. And disruptive sharing-economy upstarts, like Uber, have reset consumers' expectations of how they find and use services as diverse as car services, hotels, and office rentals.
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New Fraud Targets: The Impacts of EMV Chip Card Migration Brings New Challenges

Brendan Miller
EMV chip card arrival to U.S. shores does not mean fraud is going away.  It will most likely shift to new channels and verticals post EMV implementation.  Past EMV transitions throughout the rest of the world have shown that EMV plays a big role in reducing in-store fraud.  Consequently, fraud flows to other channels such as Card-Not Present (CNP) environments where cards and users are more difficult to authenticate, as well as SMB in-store merchants where hardware and software has not been installed.  In this post we'll look at some of the impacts of EMV chip card migration in the U.S.
The U.S. will Most Likely See an Increase in eCommerce Fraud
 The U.K. saw an increase of 62 percent in card-not-present fraud after its implementation of EMV, as criminals shifted their efforts to other channels of least resistance*.  France, Canada and Australia all cite higher than 50% more instances of CNP fraud in the years following EMV implementation.  
  • Prepaid eGifts will become a particularly vulnerable fraud target.  Online gifts  require little information to send and receive, and as a result become a high-value target for fraudsters.  The growing trend of electronic gifting helps satisfy consumer demand for an instant product that is sent to anyone’s inbox around the world in seconds.  While physical gift card shipment usually takes a few hours or few days to process the merchant has time to verify the validity of the receiver.  Most fraud decisions about eGifting have to be made in real-time.  
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Merchants That Accept EMV Chip Cards Reduce Some Payment Risk, But Not All

Brendan Miller
Much has been written about the impacts of the recent U.S. October 1, 2015 Fraud Liability Shift milestone and the migration to chip cards.  Some retailers geared up for the fraud chargeback liability shift long before October 1st by upgrading POS software and hardware systems to accept the new EMV chip cards.  Most U.S. merchants are still sitting on the EMV sidelines and have not made the commitment to upgrade.  
When considering EMV acceptance upgrades retailers need to look at their total risk profile when it comes to fraud, security, and PCI Compliance.  The EMV chip card standard was developed as a way to minimize in-store fraud.  After October 1, 2015 card present merchants will be accepting more risk as transactions made with counterfeited EMV cards will now be the merchant's responsibility if it decides not to accept EMV chip technology at the POS.  The benefit of the investment in new payment system upgrades needs to outweigh the risk of fraud and customer perception for the merchant.    
Fraud and EMV in the Context of Risk
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The Data Digest: Wear, Why, And What Next?

Anjali Lai

For US online adults, wearable technology is no longer the stuff of myth. Over the past year alone we’ve witnessed the launch of the Apple Watch and iterations on early wearable products. Wearable devices are now making their media cameo across a variety of channels and topics ranging from politics to pop culture.

According to Forrester’s Consumer Technographics® survey data, around one-fifth of US online consumers use a wearable gadget. While the adoption rate is higher among young, wealthy males, wearables are already breaking into segments that aren’t typically considered among the early adopters. Most individuals tend to use the technology for health- and fitness-related activity; however, consumers demonstrate a growing interest in using wearables for several different functions:

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Introducing The Marketing Measurement and Insights Playbook

Tina Moffett

It’s no secret that marketers are under increasing pressure to be accountable, while an increasingly fragmented media environment compounds the perennial challenges of marketing measurement.  Meanwhile, consumer insights pros are improving skills and gaining ever more powerful tools to harvest and analyze the data from web, mobile, and social marketing. The scale and speed requirement of today’s marketing world strained legacy marketing measurement approaches like attribution and marketing mix modeling .  

We knew the convergence of different marketing analytics approaches was inevitable so earlier this year, my colleague Jim Nail and I began sharing our ideas on where marketing measurement was headed.   We agreed each approach provides only a partial answer to the marketing ROI puzzle and they shared enough methodological similarity that merging them was plausible.

We’ve just completed research that shows that our intuition is correct and in our new report, Embrace Unified Marketing Impact Analytics to Deliver Value Across Interactions, we dubbed this converged approach as Unified Marketing Impact Analytics (UMIA), defining it as:

blend of statistical techniques that assigns business value to each element of the marketing mix at both a strategic and tactical level. 

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