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Consumers and Mobile Financial Services – Free Report

Mobile phones have increasingly become tools that consumers use for banking, payments, budgeting, and shopping. Given the rapid pace of developments in the area of mobile finance, the Federal Reserve Board began conducting annual surveys of consumers’ use of mobile financial services in 2011. This 78-page report, “Consumers and Mobile Financial Services” (March, 2015) examines trends in the adoption and use of mobile banking, payments, and shopping behavior and how the emergence of mobile financial services affects consumers’ interaction with financial institutions.

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Google to Launch Mobile Payment Service

January 7, 2011 by Mobile Payment Magazine

There are a number of companies getting involved in getting mobile phones to be able to make purchases and charge either your mobile phone bill or directly to your bank account.

Google is now planning to launch a new mobile payment service that will be based on Near Field Communication or NFC. This new service would provide the ability for people to make purchases with their mobile phones at retailers. To make a payment for the items being purchased, all a customers would have to do is wave their mobile phone or tap their mobile phone on a device at the register. These in store devices would also have the ability to slide a credit or debit card through them to make the purchase if not making a purchase with your mobile wallet.

via TechInsider.

Filed Under: News Tagged With: google

Millennial Media Mobile Ad Network Raises $27.5 Million

January 5, 2011 by Mobile Payment Magazine

Mobile ad network Millennial Media has raised $27.5 million in new funding from Bessemer Venture Partners, Columbia Capital, Charles River Ventures, and New Enterprise Associates. This investment has brought the Baltimore-based company’s total funding to more than $65 million.

Millennial, which is the largest remaining independent ad network (AdMob was bought by Google and Apple acquired Quattro), has had a banner year as the mobile advertising market explodes. In terms of mobile advertising marketshare, the IDC estimates Millennial follows in a close third to both Google and Apple. Millennial’s ads reach 63 million of a total of 77 million mobile web users in the U.S., or 81 percent of the U.S. mobile web.

Read More: TechCrunch.

Filed Under: News Tagged With: Millennial Media

Mopay Forecasts Major Growth for Mobile Payments Industry in 2011

January 5, 2011 by Mobile Payment Magazine

mopay, a payment solutions provider for online merchants, forecasts major momentum and movement in the global mobile payments industry in 2011. mopay has identified several trends to watch in 2011 that will have a significant impact on the burgeoning mobile payments industry, including massive growth of the market in North America, increased consolidation and lower transaction costs.

In 2011, mopay estimates the following industry trends will occur:

  • Mobile payments will become a significant method to pay for goods and services online. AT&T and Verizon Wireless have recently announced they will open their networks, signaling a major opportunity for mobile payment penetration in the U.S. In 2011, mopay predicts that major merchants, particularly ecommerce merchants, will add mobile as means of payment and it will become ubiquitous before the 2011 holiday season.
  • 2011 will be known as the year of major investments and consolidation in the global mobile payments industry. In 2010, there was much discussion on this topic as major venture capital deals closed. In 2011, the opportunity for increased consolidation is plentiful, with major industry players – such as credit card issuers, handset manufacturers, telecommunications companies and blue-chip Internet heavyweights – likely to acquire top mobile payment providers.
  • New forms of currency will continue to grow. Facebook Credits launched in 2010 and have already emerged as a meaningful form of currency. Many players in the payment space have introduced their own virtual currency in recent months, but it’s questionable if all of them make sense and will survive. In 2011, major entertainment and social networking providers will continue to introduce their individual forms of currency or branded checkout system.
  • Mobile payments will officially expand beyond the digital realm and into the physical goods environment across the globe. Almost all mobile payment providers are currently focusing their products and deals on virtual and digital goods merchants. This is about to change; mopay already supports the purchase of physical goods through its platform in 28+ countries, and expects this number to go up significantly in 2011 as the acceptance of mobile payments will grow rapidly. Korea and Japan, where mobile payments for physical goods is commonplace, are good examples of how mopay sees the payment future in the physical goods space.
  • Lower transaction costs will be available from all major U.S. carriers. A virtual good has a margin which still makes high transaction costs commercially feasible. Digital goods, often bounded with royalties and concessions, require much lower transaction fees; the usually high production cost and thus low margin of physical goods almost always rules out high transaction fees. The mobile payments industry has joined forces with mobile network operators globally to find a remedy. Although mobile payment transactions will remain more expensive than traditional credit card transactions, 2011 will see major movement towards the new global transaction cost benchmark of 10-15 percent.

“This past year was a boom year for the mobile payments industry around the globe. With the foundational work that occurred in 2010 past us, 2011 is shaping up to be the year that mobile payments see widespread penetration around the globe,” said Kolja Reiss, managing director of mopay, Inc. “At mopay, we have been thrilled to see that the leadership we built in Europe and Asia is resonating in North America; U.S. consumers and merchants alike are ready for mobile payments and we predict that 2011 will be a true turning point for the industry.”

Source: Business Wire

Filed Under: News Tagged With: AT&T, Facebook, Facebook Credits, mopay, Verizon

Wells Fargo to Conduct Mobile Payment Trial in San Francisco

January 5, 2011 by Mobile Payment Magazine

Using 200 of its San Francisco staff, the bank will test mobile-phone payments for six months—and may launch a commercial service soon after. Wells Fargo (WFC) is again trying to make mobile payments at restaurants and retailers mainstream, three years after an earlier attempt lost steam. Peter Ho, product manager of card services at the bank, led a test several years ago that let executives use a Nokia phone, rather than a debit or credit card, to pay for fast food and other items. While he liked the convenience, Wells Fargo didn’t end up offering the service to customers, partly because only the one handset was capable of transmitting payment information at the time.

This month, Ho gets another chance as the bank kicks off a mobile-payment trial with 200 employees in San Francisco using a technology that can be inserted into existing phones with microSD cards. To make payments at participating retailers, employees will simply open the Wells Fargo Mobile Banking app, select the pay-with-phone button. and wave the phone in front of special mobile-payment readers.

“We have made an investment in this technology, and we hope this investment pays off,” says Ho, who declined to give the amount of the investment in so-called near-field communications (NFC) technology that uses short-range wireless connections to transfer payment or other information between devices.

via BusinessWeek.

Filed Under: News Tagged With: MicroSD, NFC, San Francisco, Wells Fargo

Mobile Payment Players to Watch in 2011

January 4, 2011 by Mobile Payment Magazine

As consumers increasingly adopt smartphone technology and all the new app’s that go with it, mobile payment is becoming much more used and accepted, and companies including Google, Apple, and other smartphone players are providing mobile-payment enabling technologies such as near-field communications (NFC) into their devices, while other service like Foursquare and ShopKick are engaging consumers at the point-of-purchase locations like never before.

Editors at Advertising Age have done a round-up of some potentially hot product and services offerings for 2011, covering PayPal, Rightcliq, Square, iConcessionStand,  and Zong.

“The rewards for savvy brands that build relationships with consumers on these new payment platforms go beyond just publicity and profit – it may just be a way to create meaningful relationships with consumers at the point of purchase and far beyond.”

More: Meet the Next-Generation Payments Systems Set to Drive Future Commerce.

Filed Under: News, Products Tagged With: Apple, google, iConcessionStand, Jack Dorsey, Jim McKelvey, PayPal, Rightcliq, ShopKick, Zong

Wells Fargo to Test Mobile Payments with DeviceFidelity Technology

January 3, 2011 by Mobile Payment Magazine

During the first half of this year, Wells Fargo will test mobile payments with 200 employees. With DeviceFidelity’s technology, employees can use their existing BlackBerrys or iPhones to make payments at a number of fast food restaurants and retailers.

via BusinessWeek.

Filed Under: Mobile Partnerships, News Tagged With: DeviceFidelity, Wells Fargo

mFoundry Provides Mobile Banking Solution for Washington Trust Bank

December 16, 2010 by Mobile Payment Magazine

mFoundry, a provider of secure mobile banking and payment solutions, has launched a fully-integrated multi-mode mobile banking solution for Washington Trust Bank, the oldest and largest privately-owned commercial bank in the Pacific Northwest. Washington Trust customers now have access to a mobile banking solution that includes text, mobile web and mobile applications.

“We are pleased to provide our customers with the greatest range of options for their mobile banking needs,” said Jim Brockett, CIO of Washington Trust Bank. “As we set our mobile strategy, our primary goal was to offer a mobile solution that served our customers regardless of the phone they have, while still providing deep functionality. Of all the options available to us, mFoundry’s solution delivered best on both fronts.”

“Washington Trust Bank is a perfect example of our ability to help banks of any size quickly develop and deploy multi-mode mobile banking solutions,” said Drew Sievers, Co-Founder and CEO of mFoundry. “With more than 250 financial institutions running our software, including three of the top five banks in the country, we have a unique level of experience helping banks and credit unions of all sizes and scale launch successful mobile banking initiatives.”

The WTB Mobile application is available on iPhone, iPod Touch, Android, and many RIM BlackBerry devices, including touch-enabled versions. Using WTB Mobile, users can check balances, pay bills, make transfers, and find WTB branches or ATM locations.

Customers can also use Washington Trust Bank’s enhanced mobile Web to access their online banking via any device with a mobile web browser. The mobile web experience delivers optimized rendering if the customer is using an HTML5-based phone, such as Palm WebOS (in addition to iPhone/iPod Touch, Android, and the most recent RIM BlackBerry devices). With the text banking commands, users can inquire about account balances and transaction history from almost any phone.

WTB Mobile is available for immediate download in both Apple iTunes AppStore and Android Marketplace.

Source: mFoundry

Filed Under: News Tagged With: mFoundry, Washington Trust Bank

Money Off Coupons Via Smartphone Very Useful, Say Consumers

December 13, 2010 by Mobile Payment Magazine

A global survey by Accenture on mobile devices and shopping shows that smartphone users would find it useful to download money-off coupons to their phones (79 percent), and receive instant money-off coupons as they pass by an item in a store (73 percent). Conversely, fewer than half (48 percent) of smartphone users have downloaded a coupon from their PCs. The survey results highlight how the growing use of smartphone technology and the economic downturn have encouraged cost-conscious consumers to explore alternative retail channels, such as online and smartphones, to secure bargains.

According to Accenture, the findings of its study of 1,000 consumers in 10 countries suggest that couponing could become a more important part of the retail experience as smartphone technology becomes more widespread, and if retailers are adept at using customer analytics to target messages and deals to consumers. Notably, 48 percent of conventional cell phone users plan to buy a smartphone in the next 12 months.

The results of the survey also indicate that smartphone technology is changing the relationship between customers and retailers. Many smartphone users said that they prefer using their mobile device rather than interacting with a store employee for simple tasks. According to the survey, 73 percent favor using their smartphone to handle simple tasks compared to 15 percent who favor interaction with an employee. Similarly, 71 percent favor using their smartphone to identify a store with a desired item in stock, while 17 percent would prefer to get that information by speaking to an employee.

“Smartphones will permanently change the relationship between the store and the shopper,” said Janet Hoffman, managing director of Accenture’s Retail practice. “Today’s tech-savvy consumer wants a seamless shopping experience across store, mobile or online at a time that suits them. Ultimately, this trend will lead to a new definition of the store; purpose, place and size are all up for debate. Already we are seeing some shoppers treating stores more like a showroom to test products and then making their purchase online.”

Privacy, however, remains a key concern of consumers, and could have a negative impact on the growing use of smartphones for shopping. More than half of respondents (54 percent) worry that using smartphones will erode their privacy. Among the other smartphone shopping concerns voiced, 59 percent of respondents fear losing the personal touch from store employees, and 39 percent believe that products would get more expensive.

“The greater use of smartphones for shopping creates opportunities and challenges for retailers in equal measure,” Hoffman said. “Companies need to use all of their customer information to better understand how and when their customers want to engage with them, ask them questions or just check some basic product details. Only then can they deliver a personalized and enjoyable experience, while lessening the risk of alienating customers through unwanted approaches.”

According to Andy Zimmerman, global managing director of Mobility Services at Accenture, these survey results are an early indicator that mobile applications will transform how businesses compete with one another and interact with their customers. “Companies that successfully integrate the location-based services, commerce, payment and other capabilities of the smartphone into their traditional businesses stand to gain significant competitive advantage over the coming years.”

Among the additional survey findings:

  • 69 percent of smartphone users are aware of smartphone applications from large retailers and 48 percent have downloaded at least one application,
  • 90 percent of consumers who have downloaded an application from a large retailer found it “very useful” or “useful”,
  • 56 percent believe smartphones will make the shopping experience more enjoyable.

Methodology

The survey was programmed and hosted online by Lightspeed Research and designed to obtain interviews with 100 respondents in ten markets; U.S., France, Spain, Italy, U.K., Germany, Brazil, Japan, China and India.

To qualify for the survey, respondents needed to have home access to the Internet through a computer or netbook and carry a mobile phone or smartphone with them when they leave home.

Within each country’s sample, quotas were set as follows:

  • 50 male, 50 female,
  • 50 respondents aged 18-35 years of age, and 50 respondents over 35 years of age,
  • 70 respondents who carry smartphones when they leave home, and 30 respondents who carry conventional cell phones. Some report carrying both.

Source: Accenture; Business Wire

Filed Under: News, Research Tagged With: Accenture, Mobile Coupons

U.S. Mobile Shopping on eBay Grows 127% to $5 Million

December 13, 2010 by Mobile Payment Magazine

The second Sunday in December is a peak shopping day for mobile shoppers. In the U.S. mobile gross merchandise volume (GMV) grew 127 percent over the same Sunday last year, generating nearly $5 million in GMV; worldwide, mobile GMV grew 165 percent generating $13 million in GMV. [Read more…]

Filed Under: News, Research Tagged With: eBay, mobile shopping

How to Take Your Small Business Mobile

December 10, 2010 by Mobile Payment Magazine

2010 is the year of the mobile smartphone, and all the useful app’s that go with them.
Back in March, 2010, Laura Kolodny wrote in the New York Times, “Web sites are old school, and mobile is a growing requirement for every industry and business.” iPhone sales have been off the charts, and this week Google’s Andy Rubin wrote that there are 300,000 Android phone activations each day–yes every day!

In July,  Shop.org, the National Retail Federation’s digital division, found that “nearly three-quarters (74%) of online retailers either already have or are developing a mobile strategy. One in five boasts having a fully-implemented mobile strategy in place already.”

Taking your small business mobile could be as easy as creating a simple iPhone app, but more often than not, with competition in the mobile space heating up, it’s likely to be a bit more complicated than that.

Raam Thakrar has outlined the process in an excellent article in Mobile Commerce Daily. Here are some of the key tasks:

  • Finding a developer
  • Designing your app
  • Choosing your features
  • Analytics
  • Payment Methods
  • Testing

Read the complete article: Mobile Commerce Daily.

Filed Under: News Tagged With: Small Business

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