skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Introduction

With the launch of Visa's Digital Enablement Program (VDEP), the economics of mobile payments are being transformed. VDEP will create standards for the industry which could upend the revenue models of some of the biggest entrants to the market.

Highlights

  • VDEP's no-fee transaction model will prevent participating wallet providers from acting as toll takers on transactions that pass through their platforms. This will require a fundamental rethink on how these wallet providers generate revenue, but will introduce enormous scope in terms of scalability and market reach.

Features and Benefits

  • Evaluates the implications of VDEP and what they mean for existing mobile wallet platforms.
  • Assesses the impact of Apple Pay's concession for 15 basis points per transaction and whether it is repeatable anywhere outside the US.

Key questions answered

  • What is VDEP and how will it affect the global rollout of mobile proximity payments?
  • How scalable is Apple Pay's revenue model? Can Google do something similar with Android Pay?
  • What are the long term implications of VDEP? Will this have an impact on mobile wallet design?

Table of contents

Ovum view

  • Summary
  • Apple Pay works, but not to the banks’ benefit
  • VDEP is allowing Visa to cement its place in the mobile payments value chain
  • Economics not technology will ultimately drive mobile proximity payments

Appendix

  • Further reading
  • Author

Recommended Articles

  • Internet of Things

    IoT Viewpoints 2018

    IoT Viewpoints explore the IoT opportunity in 2018 and beyond. Download our latest e-book to get our newest collection of thought leadership articles on the emerging IoT trends, technologies and opportunities.

    Topics IoT

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.

  • Enterprise Services

    5G: Another technology in search of enterprise use cases

    By Evan Kirchheimer 26 Apr 2018

    Service provider interest in justifying 5G investment through its potential to open new revenue streams from the enterprise segment is growing ever greater.

;

Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700


Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

Email us at ClientServices@ovum.com

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at pr@ovum.com

Contact marketing - 
marketingdepartment@ovum.com

Already an Ovum client? Login to the Knowledge Center now