Mobile Phone Credit Card Reader

Group 6
Abhishek Sachdev ITM 02
Harshvardhan Oswal ITM 09
Zishan Fahim ITM18
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview
 Need Gap Analysis
 Product
 Price
 Place
 Promotion
 Competitor Analysis
 QFD
 SWOT
 Porter’s five forces
 Challenges and Constraints
 Future Augmentations
 Plastic money in India - Snapshot

12.7
Transaction Growth(%yoy)
48

Credit Card
Debit Card
24.38
Penetration(million)
137.4

0 40 80 20
1

data dated April, 2009

Credit/Debit card market
 According to Visa research, only 28% of
affluent Indians have credit cards

 Plastic purchases in 2009 totalled $6 billion

in India which is less than 1 per cent of
overall personal consumption expenditure

 the average spending has gone up from

$368(Rs16,560) in 2000 to approximately
$450(Rs20,250) in 2007
Mobile phone Credit Card Reader

 Credit/Debit Card Market Analysis

 Card Transaction Overview
 Need Gap Analysis
 Product
 Price
 Place
 Promotion
 Competitor Analysis
 QFD
 SWOT
 Porter’s five forces
 Challenges and Constraints
 Future Augmentations
Card transactions - Overview

Transaction process.swf
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview
 Need Gap Analysis
 Product
 Price
 Place
 Promotion
 Competitor Analysis
 QFD
 SWOT
 Porter’s five forces
 Challenges and Constraints
 Future Augmentations
 Penetra
Need analysis Limited number of merchant
●
●

establishments accept card

tion payment – limiting card penetration

Mobility
Fixed nature of card terminals
●
●

limit usage to fixed

establishments

Cost and ●
● Setup time and cost for

time fixed terminals high

Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview
 Need Gap Analysis
 Product
 Price
 Place
 Promotion
 Competitor Analysis
 QFD
 SWOT
 Porter’s five forces
 Challenges and Constraints
 Future Augmentations
Mobile Phone Card Reader

•This device converts mobile phone into a credit card

reader/POS(Point of sale)

•This device can be plugged into the phone and credit/debit

cards can be swiped through it

•This will allow merchants to accept credit card payments by

swiping the card through the device connected to the phone
Product Description

Device plugged into mobile

Magnetic
●

phone and credit card is

Card Reader swiped through it

Applicatio Installed on Mobile Phone.

●

Needs to be compatible with

n Software different Mobile OS

USB Micro Required for ensuring

●

compatibility with different

Cable mobile phone slots
Product Specification - Hardware

Product Category: Magnetic

Strip Card Reader/Case

Estimated Shipping
Weight: 1 lbs

Product Dimensions: 2.62

in x 5.49 in x 0.65 in

Package Content: USB

micro cable, User Manual
 Work Flow
Application send card
Card
Unlike swiped
voice
information
device
tra nsmission,
to de dicate d
uses a freq.
through
merchant‘s
to the
da ta exchange device
credit card
(GPRS/3G).
and
Separate
the
processor. transaction
freq.Within 3-5
provide rapid
transfe r & reliable
seconds,tion data
is processed
communica
verification takes place

Data
is
sent
to
lend
er’s
data
base
,
and
appr
ove
d or
reje
cted
.
Infor
mati
on
sent
back
to
appl
icati
on
and
rece
ipt(s
ms
or
mail
)
gen
erat
ed
Product Features
Innovative Design:
Magnetic Reader concealed inside of a
soft touch case

Customer Receipts:
Automatically sends an electronic receipt
to the customer along with the location
and time of transaction

Encrypted Card Data

Credit Card data is encrypted once the
card is scanned. No information is
actually stored on the Phone
Product Features
Quick Transactions
Digital signatures using stylus, paperless
receipts and the ability to take payment
virtually anywhere

Security
Secured using VeriSign SSL certificate to
protect against the fraudulent use of a
credit card

Payment App
Compatible with most mobiles. Versions:
Java, Symbian, Android
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview

 Need Gap Analysis

 Product

 Price
 Place
 Promotion
 Competitor Analysis
 QFD
 SWOT
 Porter’s five forces
 Challenges and Constraints
 Future Augmentations
Product Pricing
 Pricing Objective
◦ Short term – Survival and market capture
◦ Long term – Maintain competitive advantage

 Pricing Strategy
◦ Keeping price low as compared to competitors
◦ Existing credit card readers comes in range of $60 – $600
◦ Price must justify the features and functions
◦ Frequency and pattern of buying
Costs Involved
Manufacturing ●
● Outsourcing – Keep production costs
extremely low.
and distribution ●
● This is possible as the device itself uses
cost: existing off the shelf components.

Applicati ●
● Outsourcing – Low development cost

on Cost
& no infrastructure required

Marketin ●
● Initial promotional cost

g Cost
●
● Advertisement cost
Projected Financial Statement

Microsoft Office
Excel Worksheet
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview

 Need Gap Analysis

 Product

 Price

 Place
 Promotion
 Competitor Analysis
 QFD
 SWOT
 Porter’s five forces
 Challenges and Constraints
 Future Augmentations
Target Market

businesses which follow direct selling or accept

payment at remote sales locations

small merchants

individual online sellers

Channel Design
Online ●
●Dedicated website
●Postings in online auction sites like
●

Media EBay

Store ●
●Sell through retail chains – Ezone,
Chroma
Chain ●Shop in Shop
●

Direct ●
●

●
●
For B2B selling to medium to large enterprises
Dominos

Selling
●
● Eureka Forbes
●
● Yellow Cabs
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview

 Need Gap Analysis

 Product

 Price
 Place

 Promotion
 Competitor Analysis
 QFD
 SWOT
 Porter’s five forces
 Challenges and Constraints
 Future Augmentations
Promotion Strategy
 Direct selling to businesses

 Tech fests & trade shows

 Virals (online and mobile)

 Newspaper

 Word of mouth
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview

 Need Gap Analysis

 Product

 Price
 Place

 Promotion

 Competitor Analysis
 QFD
 SWOT
 Porter’s five forces
 Challenges and Constraints
 Future Augmentations
Competitor Analysis
 POS credit card terminals
 Requires a fixed terminal setup
 Requires a landline connection
 High price range (Starts from $60)
 Setup time required – 1 week approx.

 Wireless credit card reader

 Mobile
 Fixed range – depends on reachablity of
Wi-Fi or Bluetooth connection
 Very high price of the reader ($200 -
$600)
 Setup time required – 4 to 5 days
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview

 Need Gap Analysis

 Product

 Price
 Place

 Promotion
 Competitor Analysis

 QFD
 SWOT
 Porter’s five forces
 Challenges and Constraints
 Future Augmentations
QFD

Microsoft Office
Excel Worksheet
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview

 Need Gap Analysis

 Product

 Price
 Place

 Promotion
 Competitor Analysis

 QFD

 SWOT
 Porter’s five forces
 Challenges and Constraints
 Future Augmentations
 Strength
New product
Weakness
Mobility
New player in
Affordable
market
Low setup
cost/time

Opportunity
Opportunity
First
First mover
mover
advantage
advantage Threats
Exponential
Exponential growth
growth Competition
in
in card
card penetration
penetration
Advent
Advent of
of
User
individual
individual sellers
sellers acceptance
Growing
Growing usage
usage ofof
smart
smart phones
phones
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview

 Need Gap Analysis

 Product

 Price
 Place

 Promotion
 Competitor Analysis
 QFD
 SWOT

 Porter’s five forces

 Challenges and Constraints
 Future Augmentations
Porters Five Forces
 Bargaining power of suppliers - LOW
◦ Easy to manufacture
◦ Off the shelf components
◦ No specialized manufacturing capability required
◦ Multiple vendors available

 Bargaining power of customers - MEDIUM

◦ Targeting B2B, bulk orders
◦ Not an essential product
◦ First mover advantage, unique offering

 Threat of new entrants – VERY HIGH

◦ Low entry barrier
◦ Product easy to manufacture
◦ Idea cannot be copyrighted
◦ Low initial setup costs

 Threat of substitutes – LOW

◦ Substitutes available are expensive
◦ They are not usable in all cases (E.g. salesmen)

 Competitive Rivalry within industry - LOW

◦ New Product, unique offering
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview

 Need Gap Analysis

 Product

 Price
 Place

 Promotion
 Competitor Analysis
 QFD
 SWOT
 Porter’s five forces

 Challenges and Constraints

 Future Augmentations
Challenges & Constraints
●
Initial manufacturing limit – no demand forecast

●
Possibility of stock out due to sudden demand

●
Threat from new competitors

●
Selective group of users

●
User acceptance - Trust issue

●
Price constraint
Mobile phone Credit Card Reader
 Credit/Debit Card Market Analysis
 Card Transaction Overview

 Need Gap Analysis

 Product

 Price
 Place

 Promotion
 Competitor Analysis
 QFD
 SWOT
 Porter’s five forces
 Challenges and Constraints

 Future Augmentations
 Future
Augmentations

Facility for Digital Biometric

Loyalty Cards Signature using Authentication
(Ex – Shoppers Stylus for Smart – Voice/Face
Stop) phones. Recognition
Thank You