Thursday, November 12, 2009

Beyond Mobile Payments

I recently was invited to write an article for FST and I have selected the topic of the future of mobile payments. I will add a link to the article later but in the meantime I am going to share a short preview.

Celent predicts that by 2015, the U.S. market alone could encompass between $1.8 and $5 billion in mobile payments related revenue. With such revenue potential, financial institutions that embrace early and actively move to provide mobile money wallet solutions will become the provider of choice for consumers.

However to reach the mainstream and transform the way people shop and pay for their purchases, industry players will need to look at the behaviors and needs of the most sophisticated mobile consumers to design services that meet the future needs of consumers.

Consumers are looking for the cool factor (I can't wait to use the Starbucks new mobile app to pay for my Latte) as well as convenience and flexibility of payment options.

Offering mobile payments as standalone capability will not be enough to become a market leader. Rather than solving for today’s needs innovative companies should consider key emerging trends and look at the future opportunities.

The list of Key Trends impacting mobile payments includes:

* Alternative Payment Models.

* Mobile Apps with mash-ups that integrate payment capabilities with location-based advertising and customer analytics.

* Mobilizing Payments:

Bill Pay & Invoicing
P2P Money Movement
POS payments with contactless
Stored value card (like the Starbucks mobile apps)

Once again in today's User Driven World the consumers are driving innovation. Mobile Apps built on the top of open source software such as Google Android will dictate the way people use mobile devices rather than the other way around where consumers had to wait for companies to bring innovation into the market place.