00:00:01
well so Mobile wallet is um think of it
00:00:05
as your leather wallet but it's virtual
00:00:06
and it sits in the cloud somewhere and I
00:00:09
know that's a little unnerving for
00:00:10
people to to think about that from many
00:00:13
different regards but but that's
00:00:14
essentially what it is it's a it's a
00:00:16
wallet that sits in the cloud and in
00:00:18
that wallet you can put various things
00:00:20
you can of course put money so cash um
00:00:23
you can put credit cards debit cards
00:00:26
credentials of various types uh Loyalty
00:00:29
cards loyalty points coupons U boarding
00:00:32
passes tickets you know you name it
00:00:34
anything that you can put in that
00:00:36
leather wallet you can sort of put in
00:00:37
the virtual wallet and so it that that's
00:00:41
that's what it is there are different
00:00:42
ways it's implemented uh in an Emerging
00:00:45
Market the wallet is really essentially
00:00:48
a stored value account and things get
00:00:51
into the wallet it's cash cash gets into
00:00:54
the wallet and cash gets taken out of
00:00:56
the wallet in some form or other it's
00:00:59
generally in an Emerging Market not
00:01:01
connected to traditional payments
00:01:02
mechanisms like credit cards and and and
00:01:05
such I think that will change over time
00:01:07
but that's not where it is today in the
00:01:10
developed markets it's it is it is it's
00:01:13
got to be open to traditional payment
00:01:15
mechanisms good example of a wallet
00:01:17
perhaps people don't think of is that is
00:01:19
the Starbucks application that you can
00:01:21
have on your your iPhone and uh
00:01:24
essentially you can put money in there
00:01:25
either cash at the cash register they'll
00:01:27
put value on your card uh or you can
00:01:30
connect it to a credit card and and by
00:01:33
connecting it to the credit card you can
00:01:35
reload the card uh you re reload the
00:01:37
wallet in your application and and uh
00:01:40
use it when you visit Starbucks that's
00:01:42
an example of a of a mobile wallet that
00:01:45
some people might be familiar with well
00:01:47
it's interesting you know uh many people
00:01:49
say the reason Starbucks did this was to
00:01:51
make the payment process more convenient
00:01:53
for consumers I don't think so I think
00:01:56
the the convenience factor between
00:01:59
either paying back cash or swiping a
00:02:01
card that the register versus uh having
00:02:04
the barcode on the on the app scanned I
00:02:06
think marginal difference the real the
00:02:09
real reason Starbucks did this was was
00:02:12
about the data because if uh in the
00:02:16
preapp phase Starbucks had uh their gift
00:02:19
cards you know we all got them in our
00:02:20
Christmas stockings you know then and uh
00:02:23
$20 and and so we'd use them Starbucks
00:02:26
had 40 million of those cards in
00:02:27
circulation they knew nothing about
00:02:29
those customers absolutely nothing and
00:02:32
so they implemented the app and they've
00:02:34
quickly grown that I think they have
00:02:35
after just a couple years or so they
00:02:37
have about 30 million users of the app
00:02:40
and uh they now know who the customer is
00:02:44
their address their phone number their
00:02:46
credit card details what they buy when
00:02:49
they buy where they buy and they have
00:02:52
data so they know the customer so they
00:02:54
now have they've gone from 40 million
00:02:57
completely Anonymous customers of those
00:02:59
cards to 30 million customers that they
00:03:01
know all that detail about and that's
00:03:04
the real reason that's the value to
00:03:06
Starbucks not the convenience factor in
00:03:09
making the payment
