Mobile Payment Magazine

Admeris Payment Systems

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In the past year, Admeris Payment Systems has quietly built a strong
base of developers and merchants using our OneTouch mobile payments credit
card platform.

As opposed to m-wallet solutions proposed by Visa, Google
and Paypal, Admeris simplifies the approach to m-commerce by removing
restrictive barriers to user adoption such as account login or
passwordsbut firmly enhances security protocols with a patent-pending
dual-layer encryption methodology between end user and smartphone to deliver the
most secure m-commerce solution on the market. For the company’s partners, this
has been a key driver to higher conversion rates for credit card
transactions on smartphones and tablets today.
[Read more…]

Banking the Unbanked: Report Examines Mobile Banking in Emerging Markets

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World Economic Forum, prepared in collaboration with The Boston Consulting Group.

Despite the broad awareness that mobile financial services can serve as a means for “banking the unbanked” on a global basis, widespread adoption has yet to be achieved, according to the Mobile Financial Services Development Report 2011, a new report released by the World Economic Forum and The Boston Consulting Group. According to the report, to meet the financial needs of underserved populations, most countries—even those that have achieved scale with mobile money transfer—should focus on the flexibility of regulatory provisions for nonbank players, the competitiveness of market structures, and the strengthening of financial literacy skills of individuals.

The report provides a comprehensive analysis of more than 100 variables across 20 countries in Africa, Asia, and Latin America. It measures the critical factors necessary to achieve meaningful scale of mobile financial services and meet the needs of billions excluded from the formal economy, and notes that the adoption of mobile financial services is currently confined to a few countries where, historically, access to financial services has been constrained and the scope of services limited to mobile money transfer. The findings suggest that financial services such as savings, credit, and microinsurance are only now becoming available and that regulatory environments, market competitiveness, and financial literacy of end users all need to be collaboratively addressed before meaningful scale can be achieved.

Countries such as Kenya and the Philippines are among the few covered by the report that have achieved adoption levels of more than 10 percent of the total adult population. A defining characteristic of these countries is a dense network of agents—retail access points where it is possible to register account holders and handle cash transactions. However, as these countries look to achieve scale in mobile financial services other than payments, it will be critical for them to focus on factors such as government disbursements through the mobile platform, the competitiveness of their financial and telecom sectors, and better data collection and monitoring to facilitate “test and learn” approaches.

“Including millions in the formal economy by providing them with tools to transact and save can have strong positive economic and social benefits,” said Marc Vos, a partner in The Boston Consulting Group’s Technology, Media & Telecommunications practice. “But public and private stakeholders must first get the basics right: solid and efficient distribution networks close to the consumer, and regulations that combine openness to innovation with protection of consumers and broader financial stability.”

In terms of the array of enabling factors covered in the report, several countries, such as Brazil and India, demonstrate areas of relative strength when compared with countries that have already achieved scale in mobile payments. The ability to leverage existing agent networks and consumer protection in Brazil may facilitate the development of more complex financial services through the mobile platform. The widespread availability of mobile phones within India, the degree of competition within its telecom sector, and recent regulatory changes may drive dramatic improvements in adoption levels.

Estimates of the levels of adoption of mobile financial services in the 20 countries surveyed were compiled through an analysis of deployments done in collaboration with the GSMA Development Fund. A survey of regulators, conducted jointly with the Alliance for Financial Inclusion, provided data on regulations specific to mobile financial services. Data from a number of secondary sources such as the Consultative Group to Assist the Poor were also integrated into the analysis. The report contains a profile for each country featured in the study, including a summary of the relative advantages and disadvantages within its mobile financial-services ecosystem, as well as an extensive listing of data tables showing results for each variable used in the country profiles. The data set is available for download and can also be analyzed online with other World Economic Forum data sets for deeper and customized analysis.

Some report highlights:

  • Few countries have achieved meaningful scale in mobile money transfer—mobile savings and credit services are still in the initial stages of development.
  • Dense agent networks are characteristic of countries that have achieved scale in baseline mobile money-transfer services.
  • Government disbursements through the mobile platform, continued cooperation and innovation among industry sectors, and improvements in the quality of data sharing are opportunities to help unlock growth.

More information: Mobile Financial Services Development Report 2011

 

Source: Boston Consulting Group (BCG)

Younger Generation Will Drive Demand for Mobile Payments

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Increasingly, technology is changing what we consider possible, from unlocking a car from inside the house to recording a movie remotely. With this evolution, the mobile phone has become the most important technology accessory, with younger generations fueling this movement.

Consumers are now poised for the next step – using their smartphones as mobile wallets, according to a new survey by MasterCard Worldwide. The study, conducted by Kelton Research, shows 62 percent of Americans who use a mobile phone would be open to using their device to make purchases wherever their errands may take them.

“Consumers are already living a mobile lifestyle so using their phones to make payments on a daily basis is a natural next step,” said Mung-Ki Woo, group executive, mobile at MasterCard Worldwide. “2011 is the beginning of the NFC mobile payments era, and consumers are eager to get their hands on the first commercial deployments in the U.S.”

Defined as a mobile generation with its pulse on digital trends, 18-34 year-olds are particularly ready to take their transactions to the next level:

  • According to the study, 63 percent of 18-34 year olds would be at ease using mobile phones to make purchases versus those age 35 or older (37 percent).
  • Consumers ages 18-34 (65 percent) feel more naked without their phones than their wallets, compared to 34 percent of those in the 35 and older group.

In a separate 2010 survey conducted by MasterCard Advisors, respondents under 30 years of age showed this demand has also been building for the past few years. This group is increasingly hungry for mobile payment options and access to their funds:

  • Between 2009 and 2010, respondents showed a 67% increase (15% in 2009 to 25% in 2010) in the number of purchases made with their mobile phones.
  • In this time period, this audience also increased their daily mobile phone access to their bank’s online banking service by 79% (14% in 2009 to 25% in 2010).

Perception is Important

This growing willingness to use a mobile phone for payments supports the role mobile phones play as a reflection of personality, and consumers’ desire not to carry a traditional wallet. According to the study, consumers value mobile phones not just for the functions they can perform, but for what they say about them too. Over half (54 percent) of respondents think that someone’s phone is more telling of their personality than their wallet.

“When credit and debit cards were first introduced, consumers welcomed the improvements they made to the speed, convenience and reliability of transactions,” said Woo. “Now with the mobile wallet ready to revolutionize this experience again, consumers have even more to gain as their phones take on additional functionality and value in their lives.”

Gender Divides How Consumers Evaluate Mobile Payments

As the mobile wallet goes mainstream, gender will play a role in how it’s perceived and used. While men see their phones as functional necessities, women take a more personal approach to their mobile devices. According to the survey, men tend to be more willing to use their phones for payment transactions, and they perceive the transactions in a positive way:

  • More men than women (51 percent vs. 40 percent) who have a mobile phone would be at ease using it to make purchases.
  • More men than women (49 percent vs. 45 percent) would be impressed by someone who paid a bill with a mobile application than with a credit card.

While women are slightly more conservative about mobile phone purchasing decisions, they highly value the content stored on their phones:

  • Women more so than men (50 percent vs. 36 percent) feel more exposed without their mobile device than their wallets.
  • Of women, 45 percent (vs. 34 percent of men) would rather have their phones than their wallets surgically attached so they’d always remember them when leaving the home.

Trust and Privacy are Critical to Consumer Comfort

Despite reliance on mobile devices and general consumer readiness for mobile payments, the survey revealed that overall safety is a significant comfort factor in the decision to pay by phone. Nearly two in three respondents (62%) said they need confirmation that their personal information is safe in order to be comfortable making a transaction, underscoring trust and privacy as paramount factors in changing payment behaviors.

Survey Methodology

The MasterCard Mobile Survey was conducted by Kelton Research between April 15th and April 22nd 2011 via email invitation and an online survey. Quotas are set to ensure reliable and accurate representation of the total U.S. population ages 18 and over.

Source: Business Wire

Barclaycard US Names New U.S. Mobile Business Chief

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Dekkers Davidson has joined Barclaycard US, the payments business of Barclays in the United States, as Head of its US mobile business.  Mr. Davidson will report to Amer Sajed, Chief Executive of the Barclaycard US unit, and serve on the executive committee for the business.

As leader of the mobile business, Davidson will oversee all efforts to understand the US market potential of mobile payments and commerce, identify the right approaches, partnerships and technologies to leverage Barclaycard’s global leadership and experience in mobile banking and contactless technology – to allow consumers to shop and pay for things on the go and access unique shopping offers and experiences.

“We believe that mobile represents the future of payments and for commerce,” said Mr. Sajed.  “Mobile payments can be a competitive differentiator in attracting new customers and in making payments easier and more rewarding for existing customers.  We will combine the mobile telecommunications expertise and new business launch experience Dekkers brings with our understanding of the needs of the US consumer to create a powerful business.”

Davidson joins Barclaycard US from Oliver Wyman, a leading global management consulting firm that combines technology industry knowledge with expertise in strategy, operations, risk management, organizational transformation and leadership development.  While at Oliver Wyman, Davidson was practice leader for the North American telecommunications sector and worked with many of the leading mobile network operators (MNOs) and Smart Phone makers operating in North America and Europe.   He has had experience advising the ISIS consortium over the previous two years.

In January of 2011, Barclaycard and Orange announced the first contactless mobile phone payment solution for UK consumers.

There are now more than 11 million contactless-enabled Barclaycards and Barclays debit cards, helping retailers reduce queuing and cut the cost of card transactions.  Barclays and Barclaycard are the leading providers of contactless terminals in the UK with 56,000 live and accepting payment throughout the country for retailers such as Pret A Manger, Subway, and EAT.

The Absa unit of Barclays was the first bank in South Africa to introduce mobile banking – allowing customers to conduct banking transactions such as payments, account transfers and balance checks while on the go.

“With device manufacturers, software developers and payments providers all aligned toward the same future, the US market is ready for mobile payments,” said Davidson.  “Barclaycard’s global expertise and know-how will help our existing and future co-branded card partners successfully transition into mobile, as we work with leading solution partners to pave the way for consumer and merchant adoption. I feel fortunate to have joined one of the world’s leading mobile payments companies at such an exciting time in the payments space.”

Prior to his time at Oliver Wyman, Davidson held several executive leadership roles in the mobile, networking and retail sectors.   Davidson was a Venture Partner at Fidelity Ventures where he focused on wireless retailing, mobile payments and commerce investments.  Before that, he was Chief Executive Officer at Cetacean Networks, a next generation data networking startup funded by leading venture capitalists.  At Rogers Cantel, Inc., Canada’s largest wireless carrier, he was President of the Ontario region responsible for driving s business turnaround – and helping to launch the first wireless prepaid service in North America.  Davidson launched Sprint PCS in the New England Market as Area Vice President and directed the startup wireless operation in the New England area.  Earlier in his career, Davidson was a Visiting Instructor at Harvard Business School and Domestic Telecom Advisor to the Assistant Secretary of Commerce.  Davidson began his career with AT&T as an account executive.

Davidson holds a master’s degree in business administration from Harvard University and a bachelor’s degree from St. Lawrence University.

Source: PR Newswire

Fi-Mobile Launches New Banking App Platform

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Fi-Mobile Inc. has announced the release of UniFI, a new mobile banking application platform that allows financial institutions to deliver and manage a branded mobile presence.

Designed to help credit unions and banks deliver a unified mobile banking experience to account holders and members, UniFI provides instant access to critical financial services and information so that customers can do their banking on the iPad, iPhone, Android, Blackberry devices, and any other browser-enabled smart device. [Read more…]

PayPal, Apple and Nokia Lead in Mobile Payments Brand Trust

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Trust and familiarity are the key drivers in consumer preference for mobile payment services, according to a new study. The survey by GfK NOP, a global market research agency, covered nine countries (US, UK, France, Italy, Germany, Spain, South Korea, Brazil and China) and included 8,603 online interviews, with each country’s sample designed to represent their online population.

The findings revealed that what consumers are looking for, before they feel comfortable adopting a mobile payment service supplier, is the trust of a financial brand and familiarity of a mobile brand.

Consumer appeal for mobile payment services varies across all countries, which, broadly speaking, fall into two categories: countries with established financial payment infrastructures, and countries whose financial infrastructure is young and still developing.

Of the nine markets where research was conducted, South Korea was the only nation that offered established mobile payment services to the consumer market. Globally, 62% of consumers find mobile payments appealing. This is higher among certain key groups, including: younger consumers aged 16-24 (75%); innovators / early adopters (74%); and current smartphone owners (72%).

There is, however, considerable variation between nations. Developing markets in China (82%) and Brazil (73%) find mobile payment services the most appealing, whereas the more established payment systems in developed markets, like the US and Europe, mean appeal in these nations is more limited (around 50%), since the existing chip-and-PIN systems offer a convenient and already trusted route.

Why the delay in Mobile Payments?

Near Field Communications (NFC), the technology that supports close proximity mobile payment services, has been around for many years. However, the NFC-enabled mobile devices and service support have been delayed year on year. Why, when the service seems so attractive to consumers and businesses alike?

One of the reasons for this delay to market is that there are so many brands from different industry sectors interested, posing the critical question: ‘Who should own the relationship with the customer?’ The incentive for financial institutions is that Mobile Payment embodies a critical evolutionary step. It will modernise their service offering and refresh their brand image – things that are much needed after the negativity of the recent financial crisis.  For mobile network operators, the attraction of this fledgling sector is the opportunity to diversify their revenue streams – to branch out from their core business of voice, text and data. And, for Smartphone handset and operating system (or OS) providers, mobile payment services represent an important new data source, that brings together online and offline purchasing behaviour – something that will enhance the value of their ecosystem to advertisers.

Working out how all these different companies work together, and – importantly – who owns the customer relationship, has been the key barrier to rolling mobile payment services out for most countries.

The adoption funnel: trust, consideration and preference

At a category level, GfK’s study shows that the financial brand category has the highest levels of trust, consideration and – importantly – preference among consumers (48%). Within this category, high street banks have the highest levels of trust, consideration and preference. Consumers feel they can be relied upon to safely process payments and manage personal finances, and view the move to mobile payments as a natural next step.

Mobile and telecommunication brands receive significantly lower levels trust, when it comes to controlling financial transactions (10%). Within these brands, mobile network carriers have the highest levels of trust, consideration and preference, although still lag behind financial brands. Within this category, mobile network carriers have the highest levels of trust, consideration and preference out of all the mobile brands, but they are still quite far behind financial brands. Adoption scores for network carriers, mobile handset and OS providers do, however, see significant uplift among smartphone owners, younger consumers and early tech adopters.

Consumer preference for mobile payments providers. Source: GfK NOP

At brand level, PayPal, Nokia and Apple came out very strongly, amongst the brands that we tested. PayPal has experience in delivering remote mobile payment services to consumers and boasts high levels of trust and consideration. Most interestingly, it has the highest brand preference of all those tested in this research. At a global level, trust usually drives mobile payment service preference. However, for PayPal, the drivers are completely different. The fact that consumers have already used PayPal to send or receive remote mobile payments before drives consumer preference for the brand when it comes to proximity based mobile payments. Closely following this familiarity of PayPal’s remote service (30%) comes the fact it is deemed a specialist in processing payments generally (21%).  Trust (17%) remains important for PayPal, but is only the third most important stated purchase driver.

 

Nokia in China is among the most trusted brands of any category in the research, receiving a score of 38% – much higher than its global average of 14%. The reason for this level of Chinese consumer preference is, again, trust – one-in-two people in China stated trust as the main driver of preference. Nokia has built a strong brand in China over the years, based on delivering reliable mobile solutions to a large proportion of the Chinese population.

Apple also has a very strong brand and this has driven higher levels of trust among their existing customer base – raising their global trust average of 11% to 38% among iPhone owners. Those that own iPhones are already used to using their iTunes account to pay for apps and media content, so the step to paying for physical products with their iTunes account is less of a stretch.

These three brand examples show that, whilst financial brands have built up high levels of trust, mobile-based brands such as Nokia and Apple, and relatively new financial brands like PayPal, have the potential to quickly disrupt this seemingly comfortable position.

Ryan Garner, Director in GfK Technology, comments, “Creating a mobile payment service that consumers are comfortable adopting means leveraging the trust placed in financial brands, but it is also vital to have a presence in the mobile sector. By tapping into all of these strengths, a mobile payments solution would quickly gain momentum with consumers and put an end to the delays experienced by NFC-based services in recent years.”

About the Survey

GfK conducted 8603 online interviews in the following countries; UK (n=853), US (n=1004), France (n=1000), Germany (n=999), Italy (n=1103), Spain (n=997), Brazil (n=987), China (n=659) and South Korea (n=1001)

The sample in each country was designed to be representative of the online population. In the UK, US, France, Germany, Italy, Spain and South Korea internet penetration is high enough to capture a sample that is broadly representative of the population as a whole. However, in China and Brazil the interviews collected online will not be representative in the same way. The research conducted in Brazil and China will be representative of the online population, but these people are more advanced in their views on technology, live in more urban areas and are likely to be wealthier, than the population as a whole.

Source: GfK NOP

Paytoo Mobile Wallet Platform Debuts in the U.S. Market

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Paymotech, a provider of telecommunications and mobile payment solutions and  Top-Up or instant account refills for international prepaid mobile phone users, has signed an agreement with Prepay Nation that will make Paytoo’s mobile money solution accessible through Prepay Nation’s extensive retail distribution network.

The Paytoo service provides users with the ability to store money in mobile wallet accounts and to transfer money internationally through the Paytoo Network. Through their partnership with Prepay Nation, Paytoo will allow mobile phone users to add credit to their Paytoo account at retail locations throughout North America.

The initial alliance is focused on those Paytoo customers within the United States sending money to the South American and Asian markets. Additional countries will be added to the network toward the end of 2011, including countries in Africa.

“Working alongside one of the world’s leading hubs for mobile Top-Up will build more confidence and trust in our services,” said Michel Poignant, CEO of Paymotech.

Paymotech, Paytoo’s parent company intends to become the leading international mobile wallet solution offering payment services to any GSM network in the world.

“We are delighted to be partnering with Paymotech,” said Jessica Bishop, Prepay Nation’s Vice President of Business Development. “Their unique solution to help address the needs of mobile phone users–from those who travel a lot to those who don’t have a bank account–fits perfectly with our existing portfolio of services. The expansion into using our platform and network for mobile money processing is a natural evolution for us.”

“This partnership reinforces our goal to enable a truly global mobile remittance ecosystem,” said Bishop.

Source: PRWeb

Google Ventures Startup, Corduro, Integrates Payment Services to Lower Transaction Costs

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Corduro has announced its new app for iPhone and Android devices. According to the company, now sole proprietors, charities or retail establishments can leverage reader-free card payments via smartphone and tablet devices at a lower cost, and also benefit from a host of social integrations that can turn recurring payments into long term relationships. The app is also an ewallet that facilitates easy and quick payments to any individual or business on the Corduro network.

“Our goal is to allow customers and donors to make payments in the most convenient way possible for them — whether that is credit, debit, check, e-check or cash — and to allow merchants and charities to accept and process these payments in the most cost effective and advantageous way for them,” said Robert Zeigler, CEO of Corduro. “This is the only mobile payment app that makes taking and making any payment, anywhere in the world simple and less expensive than it’s ever been.”

Like other mobile and online payment systems, users begin with Corduro by downloading the app from either the Apple iTunes store or the Android marketplace and entering their information. But unlike other mobile solutions that charge a set fee for every transaction, Corduro’s platform scans the payments network to select the least expensive option for routing each payment. Merchants and individuals accepting payments via Corduro  pay the lowest fee on every transaction — in many cases up to 30 percent less than other services that also require additional hardware and set up.

“For most businesses today, ‘payments’ is more than just accepting and processing credit cards. It’s about managing and building a complete relationship, today and in the future, with customers,” said Joe Kraus, partner, Google Ventures. “Corduro takes an innovative approach to the whole payments challenge by providing an end-to-end solution for mobile transactions making it seamless and easy for businesses to transact with customers anywhere in the world.”

The Corduro mobile app is free, and can process payments via credit or debit card, e-check, or PayPal, and the funds are deposited directly to an organization’s account. Multiple devices can be authorized to collect and contribute funds or sales to a single account providing flexibility and scalability as needed.

Corduro also provides customer relationship management platform for all its user clients as well as free shopping carts services and Helpdesk support. There are no limits on transaction amounts and all funds are immediately available in user accounts. In addition, Corduro can accept payments anywhere in the world, in any currency.

Reflecting its founder’s interest in supporting non-profit organizations, a separate section of the app is specifically designed to help non-profit and charity organizations easily and quickly drive fundraising and awareness campaigns. Users can select specific organizations they’d like to support and immediately make a cash donation to that group and then share that support with their social network. The app also lets nonprofits and other organizations mobilize their volunteers in a whole new way. Users can share their passions by inviting others to register with Corduro and join the charitable groups that they support.

“It’s a powerful tool,” says Jared Paul, founder and executive director of A Good Idea. “When you’re running a nonprofit, you need two things — volunteers and money. The Corduro app lets our current volunteer base spread the word and also introduces our organization to other users, so we can continually expand our network and connect people in need with people who want to help.”

Source: Market Wire

Visa Introduces Digital Wallet

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Visa Inc. has  announced the a number of new offerings, including a secure cross-channel digital wallet and a range of customized mobile payments services.

“Our new solutions deliver greater consumer choice, convenience and control while helping our clients grow their businesses. By helping to reduce abandoned online shopping carts and bringing new account holders into the Visa network, we create a win-win-win for merchants, consumers and financial institutions,” noted Joseph W. Saunders, Chairman and Chief Executive Officer of Visa Inc. “In addition, we believe Visa’s new payments products and services will help expand financial inclusion to the billions of mobile subscribers today who currently lack access to traditional financial services.”

In certain countries with established electronic payments infrastructures, expansive Internet usage and broad mobile network penetration, Visa will be introducing a digital wallet and services platform. The digital wallet will store Visa and non-Visa payments accounts, support NFC payments through the innovative Visa payWave application and deliver a wide range of transaction services to accommodate multiple commerce scenarios–including eCommerce, mobile commerce, micropayments, social networks and person-to-person payments.

Visa is working with various leading payments card issuers, community banks, credit unions, acquirers, payments processors and merchants to launch the digital wallet. Among the financial institutions and organizations supporting Visa’s wallet strategy are:

  • Barclaycard US
  • BB&T Corporation
  • Card Services for Credit Unions (CSCU)
  • ICBA Bancard
  • First Financial Bank of Ohio
  • Nordstrom fsb
  • Pentagon Federal Credit Union
  • PNC Bank
  • PSCU Financial Services
  • Regions Bank
  • Royal Bank of Canada
  • Scotiabank
  • TD Bank Group (US and Canada)
  • US Bank

Visa expects to launch the digital wallet in the U.S. and Canada in fall 2011.

Key features of the wallet are expected to include:

  • Click-to-buy: Consumer enters an email address, alias or online ID and password, instead of a billing address, account number and expiration date. In addition, Visa is exploring dynamic authentication technologies that will bring added layers of security to online purchases.
  • Cross-channel payments solution: The wallet consolidates multiple Visa and non-Visa payments accounts and can be used in mobile, eCommerce, social network and retail point-of-sale environments.
  • Preference management: A menu that enables consumers to set preferences for how their wallet will work, allowing them to customize and control the features of their personal wallet from privacy settings to designating which account will be accessed based on merchant type or purchase amount.
  • Merchant offers: A service that allows consumers to personalize their shopping experience by opting-in to receive money-saving discounts or promotions from participating merchants.

“The widespread adoption of Internet and mobile technology is changing the way people connect and transact across the globe, so we’re focused on delivering locally-tailored payments products and services,” said Saunders. “We are introducing new solutions for eCommerce and mobile devices that provide the same ‘Visa-quality’ experience–convenience, reliability and security–people enjoy when using their Visa cards at a retail location. In doing so, we are accelerating the global shift to digital payments by harnessing our brand, products, network and 50-plus years of payments experience.”

Mobilizing Payments in Emerging Economies

In certain emerging geographic markets with significant mobile penetration, Visa will work with financial institutions and mobile-network operators to provide consumers with a secure, reliable and globally accepted form of payment and the ability to transfer and receive funds, manage financial accounts or top-up wireless air time using their mobile handset. The wide range of features and functions being developed for the digital wallet will allow Visa to pursue a number of strategies to tailor or bundle services to local needs.

  • In countries like India and Russia, where card issuance and mobile subscriptions are high, but card usage is relatively low, Visa will help drive account activation and usage by working with financial institutions and mobile operators to link existing card portfolios with mobile devices to give handsets payments functionality.
  • In countries within Africa and the Middle East where mobile device usage is high and traditional electronic payments infrastructure is less developed, Visa will work with mobile network operators to link new virtual mobile prepaid Visa accounts to mobile phone numbers to enable cash-in, cash-out, personal payments and mobile payments –including bill payments and wireless airtime top-up. Visa also intends to connect existing “closed loop” mobile money services that today provide basic mobile banking and payments services to unbanked and under-banked consumers to its global, open loop network–VisaNet. The integration will open closed loop systems, and provide consumers and merchants with unprecedented scale, functionality and acceptance beyond their existing local geographic footprints.

Across all emerging geographic markets, Visa’s payments technology and significant work in establishing global payments standards will aid in navigating the complexity of the myriad of network operators, handset models and operating systems in use globally, helping to enable millions of new and existing Visa account holders to simply use mobile technology for payments services.

Expanding Capabilities of Visa Network

Visa is developing its next generation services by integrating VisaNet, its global processing network, leading credit, debit, prepaid and commercial product platforms, new capabilities it has acquired through its subsidiaries CyberSource, Authorize.net and PlaySpan, and the unique expertise and services of key commercial partners. In deploying flexible solutions that are locally relevant and globally interoperable, Visa aims to attract more participants to its network and better enable them to connect and transact.

“Our build, buy and partner approach puts Visa in a unique position to deliver the speed-to-market and scalable solutions needed to stay ahead of new demands created by the convergence of Internet, mobile and electronic payments technologies,” said Saunders. “Visa and our subsidiaries are working with financial institutions, merchants, mobile network operators, and innovative technology providers to bring new ways to pay and be paid to more consumers and merchants around the globe.”

Source: Business Wire

Bankons Launches Mobile Merchant Offer Platform

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Bankons recently launched its mobile merchant offer platform, which provides financial institutions a platform to engage with their customers via smartphones. Bankons delivers mobile merchant funded offers that are geo-located and linked to a customer’s transaction history.

Linking geo-located offers from local merchants with geo-located transactions, the Bankons platform then incorporates customer bank transaction history making the offers highly targeted and timed to the moment of purchase intent by delivery to a smartphone app rather than a paper bank statement or an email buried in an inbox. According to the company, this helps financial institutions increase customer loyalty by delivering repeated savings to the consumer at the most useful moment.

Linking transaction history to geo-location lets financial institutions offer suggestions at the moment of purchase and can provide an additional revenue stream to financial companies through mobile merchant funded offers, adding a new income stream independent of interchange fees and requiring no account managers to oversee custom programs. Bankons is available as a co-branded white label application, or it can be embedded as a native experience inside existing mobile applications via Bankons API integration.

“With Bankons financial institutions are able to connect with their customers on daily basis whenever the customer checks their smartphone for anything from a bank balance to directions to their favorite restaurant,” said Joshua Greenough, founder and CEO. “The power of our platform to link transaction data to a customer’s location makes it possible to deliver highly targeted and welcomed offers, creating new and repeated revenue opportunities for financial institutions and savings opportunities for consumers. It’s a win-win situation.”

Bankons makes the consumer experience simple with no complicated demographic profile for the customer to fill out. They simply enter their bank login information into the consumer app and the transaction data is linked to geo-location data through the powerful platform. Customers are then presented with a variety of local offers, based on where they are and their purchase preferences. Bankons provides information on nearby discounts and deals along with directions on how to get there.

“While slow to adopt new technologies, the financial sector has really embraced innovation in recent years,” said George Nguyen of George Nguyen Consulting, a marketing and business alignment consulting firm. Currently consulting with clients such as the Fed and Wells Fargo, Nguyen was formerly in Business Intelligence with Coupons.com and Washington Mutual. “They know that their future success depends on winning customers over by delivering the best experience possible. With Bankons, Joshua and his team have developed a product that creates a positive consumer experience, repeatable on a weekly if not daily basis, while also providing a repeat revenue opportunity for financial institutions without effort on their part. I’m excited to watch as banks begin to take advantage of the enormous opportunity that Bankons has created.”

According to The Mobile Movement Study by Google/Ipsos OTX MediaCT earlier this year, 9 out of 10 searchers have taken action as a result of a smartphone search. The patent-pending Bankons platform creates a new opportunity for banks and consumers to reap greater benefit from these searches than ever before.

Source: PR Newswire