Mobile Payment Magazine

Mobile Contactless Payments Summit: Oct. 17-18, 2011, Chicago, IL

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Strategic Solutions Network (SSN) will welcome an estimated 400 executives from leading retailers, banks, carriers and technology companies to attend the Mobile Contactless Payments Summit  October 17-18th, 2011 at the W Chicago City Center.

The 3rd Mobile Contactless Payment Innovations Summit is part of the Alternative Payment Systems Innovations (APSI) series of conferences featuring the top visionaries in the mobile space who will examine the disruptive nature, promises and challenges of the rapidly evolving mobile payments industry.

“We have developed the agenda to focus on the most advanced and value-added developments within mobile payments. This has resulted in over threefold audience growth since our Inaugural event last October,” comments SSN CEO, Aron Barkan. “This illustrates that contactless payments is not just a trend, but will soon become a ubiquitous and universally adopted global solution.”

Conference organizers note that  senior executives should incorporate a sophisticated mobile payments strategy into their overall business plan. The World Payments Report 2011 projects that mobile payments will grow globally from 4.6 billion to 15.3 billion transactions between 2010 and 2013 – at a rate of 48.8 percent per year.

Additionally, a new study from Juniper Research has determined that the total value of mobile payments for digital and physical goods, money transfers and NFC (Near Field Communications) transactions will reach $670 billion by 2015, up 178% from the $240 billion estimated for 2011.

The two-day conference features best practice case studies, keynote presentations, panel discussion and networking sessions delivered by executives from leading companies such as Paypal, Google, Walgreens, Best Buy, Groupon, MasterCard, Bank of America, Nokia, The Home Depot, Polo Ralph Lauren, Jamba Juice, Discover Network, RadioShack, National Retail Federation, Barclaycard US, Citigroup, Verizon, National Restaurant Association, American Express and others.

For more information:  Payment Innovations

Analyst Cites eBay as Strong Investment Opportunity in Mobile Payments

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eBay provides one of the best investment opportunities to take advantage of the growth of mobile payments, according to Gil Luria, an analyst at Wedbush Securities.

“We believe PayPal will capitalize on its superior position in mobile payments extending its 25 percent to 30 percent growth, turning into eBay’s largest business by 2014 and leading to significant multiple expansion,” he said.
[Read more…]

Consumer Adoption of Mobile Banking Jumps Nearly 60% in 2011

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After two years of flat growth, consumer mobile banking jumped from 19% to 30% in 2011, corresponding to a rise in Financial Institutions’ offering mobile banking and an increase in consumer smartphone ownership, according to Javelin Strategy and Research. The triple play–mobile banking via SMS text, mobile browser, and downloadable apps–is emerging as the new norm, with four out of five vendors now offering it. However, security remains a top concern, as almost half of consumers cite fear of security as the main reason they do not use mobile banking.

“Mobile banking, once considered a ‘nice-to-have’, is now a ‘must-have’ for Financial Institutions who want to stay competitive and meet growing consumer demand for this channel,” notes Mary Monahan, Executive Vice President and Research Director, Mobile, at Javelin. “Our research provides key insights into how industry trends will shape mobile banking and what steps FIs and vendors need to take to stay ahead of these changes.”

Vendors seeking market leadership will also need a thorough understanding of how to incorporate these trends into the development of their solutions. For example, the mobile banking industry is consolidating, with players bringing mobile technologies in-house. Tablet adoption by consumers is growing at a tremendous rate, and FIs and vendors will need to provide access to mobile banking specifically designed for tablet users. Javelin also identified those operating systems that vendors will need to support, as well as the mobile banking features that consumers want.

“The results are in,” said James Van Dyke, President, Javelin. “Fiserv, FIS and Sybase received the highest scores. Fiserv won “Best in Class”, while mFoundry won “Path to Mobility”. With all these industry changes, it will be interesting to see how vendors fare in next year’s report.”

The findings were published in Javelin Strategy & Research’s latest research report — “2011 — 2012 Mobile Banking Vendor Scorecard: Mobile Banking Has Moved from a “Nice-to-Have” to a “Must-Have” Channel” — analyzes best practices and top trends in this rapidly shifting industry and reveals the best mobile banking solutions available today. Javelin scored the offerings of 15 major vendors, using data from surveys conducted with more than 10,000 consumers and executive interviews with six financial institutions (FI). The report provides strategic guidance to FIs for development of their mobile banking strategies and selection of vendors and key insights on critical features and functionality for vendors when designing the next versions of their solutions.

Javelin highlights a number of trends which will significantly affect mobile banking for FIs, vendors, and consumers.

Selected Key Report Findings — 2011 — 2012 Mobile Banking Vendor Scorecard

  • In-depth individual profiles and detailed comparisons of 15 mobile banking vendors
  • The operating systems vendors will need to support and why
  • How tablets will alter mobile banking forever

Source: Business Wire

Pyramid Research Offers Research Service Covering Best Practices in Mobile Payments

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Pyramid Research  identifies Mobile Payment opportunities with the Mobile Commerce Landscape Insight Pack , a new research service that combines Pyramid’s extensive database resources with high-level expert analysis.

The Mobile Commerce Landscape Insight Pack offers analysis on current trends and best practices in mobile payments in emerging and developed markets. The Mobile Commerce Landscape Insight Pack includes up-to-the-minute data and market forecasts, an in-depth research report and a live session with a senior Pyramid analyst, giving you quick and direct insight into key trends.

The service includes:

  • A Research Report delivered in PDF format
  • A Forecast Excel file containing all the data underlying the report
  • An Insight Session via telephone to be scheduled at your convenience

More information: Pyramid Research

Merchants – How to Accept Google Wallet

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If you’re a small or medium-sized business, if you can’t already accept contactless payments today, you’ll need to upgrade your system, which is likely out of date with the latest technologies.

First data offers updated systems so you’ll be able to accept Google Wallet, other contactless payments, and of course traditional payment forms, with a single package.

If you already accept contactless payments, you’re ready for Google Wallet. [Read more…]

Google Wallet is Now Available!

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Google has announced the availability of Google Wallet for the Sprint Nexus S 4G:

“Google Wallet has been designed for an open commerce ecosystem. It will eventually hold many if not all of the cards you keep in your leather wallet today.”

“And because Google Wallet is a mobile app, it will be able to do more than a regular wallet ever could, like storing thousands of payment cards and Google Offers but without the bulk. Eventually your loyalty cards, gift cards, receipts, boarding passes, tickets, even your keys will be seamlessly synced to your Google Wallet. And every offer and loyalty point will be redeemed automatically with a single tap via NFC”

More information: Google Wallet.

Visa Europe Launches Mobile Person-to-Person Payments

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Visa Europe today announced the launch of Visa Mobile Person-to-Person payments for making payments via mobile phone.

Announced this morning by Visa Europe Chief Executive Peter Ayliffe in his keynote speech at the EFMA conference in Paris, the new services give Visa Europe’s member banks the tools to respond to growing consumer demand for fast, secure, convenient and innovative ways to make and manage payments using their mobile phones.

“The way we pay is changing, driven by the rapid uptake of new technologies and growing consumer demand for more flexible payments. Today’s announcement is the first in a series of new products and services that Visa Europe will be launching in the coming months to reflect the fundamental shift in consumer behaviour. We are already seeing early adoption of mobile payments, and in the coming months we will see the arrival of mainstream NFC technologies, advanced loyalty and e-commerce services, and ultimately, the launch of a new digital wallet,” said Ayliff.

Visa Mobile Person-to-Person payments allow registered users to transfer funds to any Visa cardholder in Europe from their mobile phone, backed by all the security and expertise of Visa Europe’s industry-leading processing systems. The app makes it easy to send money to an address book contact, to a mobile phone number, or to a specific Visa card number – whether or not the recipient is registered with the service.

At launch Visa Mobile P2P payments will be available through an English-language Android application and will support transfers in a single currency for Visa and V PAY cardholders within Europe. Support for other mobile Operating Systems, multiple currencies and payments to and within non-European countries will be added over following months.

Visa Mobile Person-to-Person Payments was developed by Visa Europe in partnership with Monitise, the first of many services that will be made available through the partnership announced in early 2011.

 

Why Google Wallet Will Own the Mobile Payment Space

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Almost four months after Google first revealed its new mobile payments application, Google Wallet, the app is finally rolling out to the masses this week. Unfortunately, only a few smartphones – including the Samsung (SEO: 005930) Nexus S and Nexus S 4G – currently have the revolutionary chip built in. That’s why competitor services like PayPal, Square and the ISIS platform from Verizon, AT&T and T-Mobile are hoping to swoop in and corner the mobile payment market. And many experts are predicting that they could do just that. But they’re dead wrong!

I’m not convinced that any of these services can compare to what the Google Wallet platform has to offer. And here are three reasons why…
[Read more…]

Regulatory Uncertainty Casts Doubts On Legal Status of Mobile Payment Services

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The emergence of new technology that enables consumers to pay for things with their smartphones has exposed shortcomings in the laws governing financial transactions. As it stands now, no one law or government authority oversees the burgeoning field of mobile commerce. At the same time, regulators have yet to explain what, how, and to whom existing laws may apply.

The federal Gramm-Leach-Bliley Act of 1999, for instance, governs the use of personal information maintained by financial institutions. The Fair Credit Reporting Act of 1970, along with its 2003 amended version, the Fair and Accurate Credit Transactions Act, establishes rules for access to, and dissemination of, consumer reports. Regulation E, first issued by the Federal Reserve Board in 1979 under the authority of the Electronic Funds Transfer Act, provides protection for electronic fund transfers to and from a consumer’s bank account.
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USAID Grants Aim to Help Create Mobile Banking System in Afghanistan

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“In 2002, fewer than 200,000 people in Afghanistan had access to telephones. Today, some 15 million Afghans use mobile phones and a full 85 percent of the population lives within the combined network coverage of the four major telecommunications companies. This technological leap connects Afghans to each other and to the economy in ways that were unimaginable just a few years ago,” the Administrator of the United States Agency for International Development (USAID) Rajiv Shah said recently in Kabul when announcing three USAID grants for further technological innovations, totaling more than $2 million.

The wide availability of mobile phones opens up possibilities for finding new solutions to challenges that Afghans face every day. These three USAID grants aim to help create a mobile banking system that all Afghans could use.

The Afghan Education Minister recently highlighted the urgent need for mobile payments when a staff member of the Education Ministry was killed while transporting cash in northern Afghanistan to pay teachers. In fact, thousands of Afghan teachers had to wait months to get paid due to the difficulties and dangers of transporting money. “I am delighted that USAID is able to help seed a partnership between the Afghan Education Ministry and a mobile phone operator to begin paying teachers . . . thus ensuring that they get paid in time, and more importantly, that no Education Ministry employee loses his life for a duffle bag of cash,” Administrator Rajiv Shah said.

The second grant is designed to connect the new Afghan electricity utility with mobile phone billing and payment for electricity service. “Delivering electricity to all Afghans will require a revenue model that will sustain operations, motivate more public and private investment, and expand Afghanistan’s energy grid so that fewer communities live in the dark,” Administrator Rajiv Shah said.

The third grant funds a partnership of another telecommunications company with a micro finance consortium whose clients are predominantly women. “Running loan extensions and repayments over mobile phones significantly reduces the need for loan officers and clients to travel. This cost savings can be passed on to the customers, making credit more affordable,” Administrator Rajiv Shah concluded. “I am proud that United States Agency for International Development is able to help unleash Afghan innovation.”

Source: VOA News