Mobile:
Mobile Transactions in Europe - The Challenge of Implementation and Ramifications of EU Directives
ARC Group
Market Study July 2004
Mobile Transactions in Europe - The Challenge of Implementation and Ramifications of EU Directives, a new Executive Briefing from the ARC Group, collates the views of the players involved in the mobile payments value chain - including operators, vendors, service providers, financial institutions and transaction providers.
The report discusses key challenges facing the players and suggested solutions, providing readers with invaluable insight from all those involved directly with the issues at hand.
- Insightful and in-depth picture of the development of mobile transactions in relation to EU regulatory developments - understand how to influence the evolution of mobile payments and mobile content-based services
- 360 degree view of the issues facing all parties in the mobile payment arena - base your decisions on primary data and expert analysis of the opinions of companies in the mobile payment value chain. Organisations included in the survey are operators, MVNOs, handset vendors, content service providers, application developers, merchants, financial institutions, transaction processing and clearing services
- Instructive, insightful and detailed analysis developed from interviews with senior legislative contacts in the EU and analysis of legal ramifications from legal experts -develop successful strategies to tackle new business and legal requirements
- Unique case studies of selected EU states - including amongst others, the UK, Italy, Portugal, Finland, Germany, Estonia and Slovenia - analyse the progress, consequences and impact on all players concerned of the implementation of the EU e-money and distance selling directives
And much more!
Answers the following key questions
- What impact will the e-money directives (have on prepaid forms of stored value payments?
- What relationship will external parties, including premium SMS and content resellers have with operators? How will this relationship impact e-money and those parties who will be required to be licensed as Electronic Money Institutions (EMI’s)?
- How is mobile payment developing in the European Union in both existing and new member states in light of the EU e-money Directives?
- What are the key challenges of the distance selling and e-money Directives for each member of the mobile payments value chain?
- What are the main legislative challenges involved in protecting against fraud and money laundering?
- How will new EU regulations impact mobile security issues?
Who should buy this report
Software vendors - understand the impact of new regulation on the mobile payments market and on application development and identify new areas of investment and business opportunity
Operators - understand the new legislation regarding mobile payments and its impact on your company’s plans and revise your strategy
Financial institutions –understand the ramifications of new legislation on financial institutions and their relationship with operators, merchants, content providers, clearing houses and content providers
Handsets and component manufacturers - evaluate the impact of developments designed to regulate mobile transactions on mechanisms of payment built into the handset e.g. mobile wallets; identify potential market opportunities; evaluate whether mobile payment is a viable investment target for hardware based solutions
Content providers and resellers - evaluate the impact of the e-money directive on business opportunities; understand the major issues facing prepaid mechanisms of payment in relation to e-money directives and premium SMS
Consultants, analysts and venture capitalists –evaluate current market position, potential developments and identify key factors both influencing and hindering mobile payment development in Europe.
Table of Contents
1 -Excutive Summary 1-1
2 -Mobile Commerce and EU Regulation 2-1
The Telecommunications Challenge 2-2
Defining the Regulatory Playing Field 2-3
The Mobile Commerce Challenge 2-3
3 -EU Strategic Approach to Next Generation Transactions 3-1
eEurope 2005 3-1
Key Value Chain Players,Challenges and Solutions 3-2
Identifying Future Challenges 3-2
Fragmentary Nature of EU Departments 3-5
The European System of Central Banks (ESCB)3-6
Value Chain Player Faith in the EU 3-6
Distance Selling Regulations 3-6
Challenges for Mobile Transactions 3-7
Progress:Consultation Processes and EU Country Implementation 3-9
EMI Directive 3-10
EMI Overview 3-11
The Wider EU Strategy for the EMI Directive and e-Money Licensing 3-13
Development of the EMI Directive and Mobile Mechanisms of Payment 3-13
e-Money Defined 3-14
Problems of Premium SMS 3-14
EMI Regulation and Operator Billing System Software/Hardware Implementation 3-16
EMI/e-Money Consultations 3-16
Premiums SMS,Prepaid and EMI Regulation 3-17
Core Approaches 3-17
4 -Regional Analysis 4-1
European Payments Status Overview 4-1
Factors Influencing Development of Mobile Payments in Europe 4-6
Customer Awareness 4-6
Standardisation of Security 4-7
The Changing Influence of the Players in the Mobile Payments Value Chain 4-8
The Relative m-Commerce Development of the EU Countries 4-9
Cross Border Issues 4-9
The Challenges for New EU Member States 4-9
5 -Country Profiles 5-1
Austria 5-1
Background 5-1
Payment Mechanisms 5-1
Policy/Regulatory Issues 5-2
Security 5-2
e-Money Directive 5-2
Estonia 5-3
Background 5-3
Payment Mechanisms 5-3
Policy/Regulatory Issues 5-5
Security 5-6
Italy 5-6
Background 5-6
Payment Mechanisms 5-6
Policy/Regulatory Issues 5-8
Security 5-9
Portugal 5-10
Background 5-10
Payment Mechanisms 5-11
Policy/Regulatory Issues 5-11
Security 5-12
Slovakia 5-12
Background 5-12
Payment Mechanisms 5-12
Policy/Regulatory Issues 5-13
France 5-14
Background 5-14
Payment Mechanisms 5-14
Policy/Regulatory Issues 5-15
Security 5-16
Finland 5-18
Background 5-18
Payment Mechanisms 5-18
Other Payment Providers 5-19
Perception of Electronic Payments in Finland 5-19
Policy/Regulatory Issues 5-20
Security 5-20
Sweden 5-21
Background 5-21
Payment Mechanisms 5-21
Policy/Regulatory Issues 5-22
Cross Border Issues 5-23
United Kingdom 5-23
Background 5-23
Payment Mechanisms 5-24
Policy/Regulatory Issues 5-24
Distance Selling Regulations 5-27
Cross Border Issues 5-27
6 -Conclusions 6-1
A1 -The ARC Group MCS Survey A1-1
Survey Data A1-1
Survey Questionnaire A1-2
G -Glossary G-1.1 -Executive Summary 1-1
Figure 1.1:Survey Response to Question of Whether EU Facilitates or Hampers Mobile Commerce/1-3
Payment Development
3 -EU Strategic Approach to Next Generation Transactions 3-1
Figure 3.1:Survey Response to Question of Whether EU Facilitates or Hampers Mobile 3-6
Commerce/Payment Development
Figure 3.2:Response to Question of Forced Implementation of EMI/FinancialInstitution 3-11
Licences/Regulation
Figure 3.3:Worldwide Data Service Revenues ($m)by Application,2003 –2008 3-12
4 -Regional Analysis 4-1
Figure 4.1:Survey Response to Question of Importance of Mobile Payment in Current Planning 4-2
and Strategy Development
Figure 4.2:Survey Question of Importance of Mobile Payment by Respondent Type 4-3
Figure 4.3:Survey Response to Question of Timescale Within Which Mobile Microtransactions 4-3
Will Become Prevalent (>5%)In Europe
Figure 4.4:Survey Response to Question of Mobile Payment ServicesOffered In Respondent Country 4-4
Figure 4.5:Consolidated Figures for Respondent Rating of Importance/Use of Mobile Payment 4-5
Mechanisms,2004 –2009
Figure 4.6:Survey Response to Question of Consumer Knowledge of Payment Services 4-6
Figure 4.7:Consolidated Figures for Respondent Rating of Factors Impacting Mobile Payments,4-7
2004 –2009
5 -Country Profiles 5-1
Figure 5.1:Survey Response to Question of Mobile Payment Technology Pre-eminence,5-19
Rating from 1 –4
Figure 5.2:Survey Respondent Rating of Importance/Use of Mobile Payment Mechanisms 5-26
by Percentage of Respondents in the UK,2004 –2009
A1 -The ARC Group MCS Survey A1-1
Figure A.1:Respondent Composition A1-1
Figure A.2:Areas of Work/Expertise A1-2
List of Figures
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