Wave Cash Goodbye

1
Wave Cash Goodbye?

• Tube Done
• Bus 2006
• On-street parking 2007?, 2008?
• Other candidates ???

2
There is a sizable and sustainable cash
micro-payments market in London and the UK. The
top 8 categories account for 50of the London
cash spend identified
London Estimated Total Transaction frequency vs
Average Transaction Size
16
Hairdressers
14
Taxis
Mobile phones (prepaid)
Airport express trains
DVD retail
12
DIY
CD retail
10
Top Up Groceries
Frequent payments less than 7
8
Average Transaction Size
6
Gambling
Book retail
Dry cleaning
National lottery
Congestion charging
Fast food
Off licences
Cinema
4
Post office
Pay-per-view
Petrol stations
Parking
Personal care
Internet cafés
DVD rental
Pubs / bars
Sandwiches
Stationery
CTNs
2
Restaurants (school)
Coffee
Vending machines
TfL
Pay phones
0
1,000
10,000
100,000
1,000,000
10,000,000
100,000,000
Source Deloitte analysis estimates
Estimated Total Transaction Frequency (Per Week)
Top 8 cash spend category by value
3
Many components need to be analysed when
developing this complex opportunity
Value Chain
Business design
Revenue Model
Cost Model
Cost
Revenue
Issuance
Transaction
Card
Load
Unload
Fraud
Card real estate
Fees
Float
Licensing / Other
Maint.
Merchant
Device
Settlement
Clearing
Promotion
eMoney Compliance Tax
Consortia
Processing
Card Distribution
Settlement
Merchant network
Infrastructure
E-Money Issuance
Servicing
4
Indicative high level plan for Oyster card
e-purse development
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
PQQ
Negotiations
Preferred Partner Negotiation
PIN
Phase
Prepare PIN
Prepare Roadshow
Conduct Market Sounding
PQQ Deadline
Min 307 days
Interested Parties develop response to PQQ/
Outline Proposal
TfL respond to queries
TfL Evaluate PQQ Outline Proposals
Partner Shortlist compiled
Key work areas
Prepare for negotiations
Deadline
Bid Clarification
Evaluate Bids
Select Preferred Partner
Preferred Partner Negotiation
Award Contract
ILLUSTRATIVE ONLY
Debriefings