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.
Singapore to Develop NFC Mobile Payment System
The Infocomm Development Authority of Singapore has issued a Call for Collaboration (CFC) to accelerate the proliferation and adoption in Singapore of mobile payment services using Near Field Communications (NFC) technology, a secure form of short-range wireless technology built on open standards.
With NFC, consumers can use their phones to make a wide variety of payments, including credit card payments as well as most CEPAS e-payment services using FlashPay and ez-link cards, simply by holding the phone in front of card readers.
The CFC would be awarded by June, 2011, and the target date for commercial rollout of the NFC payment system is February, 2012.
via AsiaOne Business: Get ready to pay with your mobile phone.
London to be First City in Europe with Complete NFC Mobile Payment System
London will be the first city in Europe to have a mass market, NFC-based, mobile payments system, according to Pablo Montesano, Telefonica’s Director of Mobile Financial Services.
Montesano said that the 2012 Olympics would push the introduction of the technology into the London market, making it the first mass market deployment outside of Japan and Korea.
via Mobile Europe – London to lead way in NFC mobile payments.
CPNI’s Serbian Mobile Payment Messaging Hub
CPNI, a provider of mobile commerce solutions, has announced that its Phone Authorized Transfer (PAT) mobile payment messaging hub platform is now available in Serbia. The local partner is now committed to provide mobile payment messaging hub for and between institutions providing mobile payments.
CPNI’s Serbian partner is engaged with various large organizations in Serbia to offer mobile phone based payment services. These services include mobile P2P payments, mobile banking, pre-paid payments for utilities such as electricity and water and also covers high transaction volume operations such as payments for taxi services.
via Mobile Europe – CPNI announces mobile payment messaging hub in Serbia.
Isis Mobile Payment Network Annonced by ATT, T-Mobile, and Verizon
Payment by mobile phone is one step closer now, as AT&T, T-Mobile, and Verizon Wireless have announced the launch of a joint venture called Isis, to build a national network for subscribers to make purchase in physical retail stores using their smartphones. [Read more…]
PayNearMe Closes $16 Million Funding Round from Khosla Ventures
PayNearMe, the cash payment network, today announced that it has closed a $16 million round of financing led by Khosla Ventures. New investor August Capital and current investors True Ventures and Maveron also participated in the round. The company will use the funds to expand its network of retailer payment locations and payees, and to launch new service offerings, including its new mobile payment option, announced separately today.
PayNearMe also announced that payments veteran Mark Britto, CEO of BOKU and former BillMeLater board member, will join the company’s board of directors.
“We look to work with great entrepreneurs in big markets undergoing disruptive change,” said David Weiden, general partner of Khosla Ventures. “Danny has brought together a terrific team, and we are confident payment services with otherwise un-banked and under-banked consumers will change fundamentally over the next decade.”
“We like to invest in companies that solve problems in large, underserved markets,” said David Hornik, general partner of August Capital. “By combining the broad appeal of cash with PayNearMe’s highly flexible technology platform, the company can serve consumers and payees in almost every industry, including ecommerce, lending and transportation.”
“When I realized that PayNearMe could significantly improve consumers’ financial lives by offering cash payment services that are better, faster and significantly less expensive than existing alternatives, I wanted to get involved,” said Mark Britto, PayNearMe’s newest board member. “Plus, I know from my experiences at BOKU, BillMeLater and FirstUSA how valuable a new payment network can be to merchants if, like PayNearMe, it allows them to unlock large segments of new demand.”
“Every entrepreneur wants to work with board members and investors who share their passion for breaking the mold and building important businesses,” said Danny Shader, CEO of PayNearMe. “With David, David and Mark’s support, we will continue to build our suite of convenient, reliable, inexpensive and fraud-free offerings for consumers and payees across the United States.”
Source: PayNearMe
Google to Integrate NFC in “Gingerbread” Android OS
Google CEO Eric Schmidt has indicated that the coming “Gingerbread” Android release will have integrated Near Field Communication (NFC), which will allow for interaction with hardware devices, and may well lead to a revolution in proximity payment processing via mobile phones, and a new boom of mobile payment startup companies. Schmidt made his comments during the Web 2.0 conference in San Francisco earlier today.
Using “tap and pay,” says Schmidt, the theory is that you will be able to walk into stores and do commerce, and eventually replace credit cards.
“Ultimately the technology is personal, secure, and an aggregating technology,” according to Schmidt. Google would expect to partner with payment processors, and the credit card industry believes the losses will be a lot less than with standard credit cards, he added.
View the full interview here:
Mobile Banking in Africa
Mobile operators and industry experts see the mobile payment, also called Mobile Banking, MBanking, M-payment or SMS
Banking, as the future of a cashless society.
The mobile payment works by storing a consumer’s credit or debit card within the SIM card and employing the near-field communication (NFC) technology1 or sending money by text message. Clients can convert cash into electronic money (and vice
versa) through any retail outlets and then use their mobile phone to instantaneously send and receive money wherever they have cell coverage.
via Financial Technology Africa | Will You Pay By Credit Card? No, I Have My Mobile Thanks.
New Mobile Banking via SMS in Jamaica
Anyone with a mobile phone can now bank on the go, thanks to FirstCaribbean International Bank’s Mobile Banking service. Customers of FirstCaribbean can do their banking via SMS text messaging and immediately receive their account information via return SMS text.
After a successful launch of this new service in Barbados, Cayman, and the Eastern Caribbean Islands, FirstCaribbean is making this service available to Jamaica customers starting today.
With FirstCaribbean Mobile Banking, customers can:
- Request their account balance
- Request the last 5 transactions that occurred during the past 30 days.
- Transfer funds between their accounts
- Set up weekly account balance alerts
- Set up threshold alerts. For example, they can set an alert to come to them if their account balance falls below a certain amount or if it goes above a certain amount.
FirstCaribbean’s Chief Marketing Officer, Peter Steenveld, noted that the new service means the bank’s customers can now do their banking anywhere, at any time and on the go. “What’s so exciting about our service is that you can access it on any type of mobile phone. You don’t need to have one of the latest models of smart phone to be able to use our mobile banking service. Any phone that can send or receive text messages will put your latest account information right in the palm of your hand. Our service is safe, convenient, and it’s fast, so there’s no waiting for web pages to download.”
Customers signing up for FirstCaribbean Mobile Banking can access up to 6 of their Checking or Savings accounts, and is available to customers of any mobile phone service provider. SMS charges will be the same as what any customer would pay for their cellular service provider for text messages.
Apart from being convenient and easy to use, FirstCaribbean’s Mobile Banking service is safe. Stringent security measures are in place to protect their customers’ financial information and details. Text messages will only be sent to the mobile phone number that is registered with the bank by the customer, who must verify his/her identity at the time of registration. Account details or any financial information will not be sent to any third party. Account numbers are never sent to the mobile phone.
Director, Retail, Wealth & Small Business Banking in Jamaica, Christopher Denny added: “Our staff participating in the pilot this new service, loved it. We received many positive comments about the speed and convenience of the service. One feature that was particularly well received was the balance threshold alerts. People testing the service were pleased to be able to get an alert when they received a deposit – for example when their salaries were deposited to their accounts – or if their balances went below a certain limit, and then to be able to transfer from one account to the other – all without setting foot in the bank!”
FirstCaribbean is not charging any fees for the Mobile Banking service.
Source: FirstCaribbean
Starbucks Mobile Payment Test Expands to New York City
Starbucks today announced the expansion of its Starbucks Card Mobile payment test to nearly 300 company-operated stores in New York City, and Nassau and Suffolk counties on Long Island. This builds on the successful launch of Starbucks Card Mobile App for select BlackBerry smartphones, iPhone and iPod touch, and the Starbucks mobile payment test which started in fall 2009. Now, Starbucks next mobile move will offer customers in the New York City area an enhanced Starbucks Experience, including the ease and convenience of paying for their favorite Starbucks beverage with their mobile phone.
“Mobile technology is part of our customers’ daily routine and with the expansion of mobile payment in our test cities, we’re seeing more and more customers using their smartphones as their mobile wallets,” said Brady Brewer, vice president Starbucks Card and Loyalty. “We’ve heard from our customers on My Starbucks Idea that they want a faster, more convenient way to pay. Now we’re inviting customers in New York City and Long Island to experience mobile payment and the fastest way to pay at Starbucks. Mobile is just one of the ways we continue to innovate and enhance the experience for our customers.”
In response to customer feedback, the Starbucks Card Mobile App was first developed for select BlackBerry smartphones and iPhone as these devices are used by more than 71 percent of Starbucks smartphone-carrying customers. To experience mobile payment at participating New York City-area Starbucks, customers just need to download the free Starbucks Card Mobile App on their supported BlackBerry smartphone, iPhone or iPod touch. In addition to the mobile payment feature, the app allows customers to manage their card account, reload their card balance directly from their smartphone with a major credit card, check their My Starbucks Rewards status, or find nearby Starbucks stores. With the Starbucks Card Mobile App, customers will have a barcode on their screen that they’ll hold in front of a 2-D scanner on the counter to pay for their purchase.
The expansion of mobile payment into New York City builds on the successful test program currently in 16 stores in Seattle and Northern California and at more than 1000 Starbucks in U.S. Target stores. The overall Starbucks Card program is experiencing impressive growth and performance, and currently almost one in five of all in-store transactions are paid for with a Starbucks Card, an activity made even more convenient with the introduction of Starbucks Card Mobile App. Customers are on track to load more than $1 billion on Starbucks Cards this year, and at the end of the third quarter, sales of cards were up 17 percent over last year and the reload on existing cards was up more than 59 percent compared to last year.
“With the expansion of mobile payment to New York City, we expect to see more and more customers trading their plastic Starbucks Cards for the digital version on their mobile phone. In addition to the payment capability, customers can also keep track of their My Starbucks Rewards status and reload their card while they are on the way to Starbucks or in line,” said Brewer. “Expanding our mobile footprint gives our customers a new way to connect with Starbucks on the go and transforms the way customers experience their Starbucks Card through the mobile app.”
Retailers See Huge Opportunities in Mobile
With the explosion in consumer usage of smartphones, retailers are moving forward their mobile sales and marketing plans.
According to a recent Forrester Research study, 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. The survey of 109 companies is part of “The State of Retailing Online” research series, which provides eBusiness professionals with an annual industry benchmark for marketing and business investment and activities. [Read more…]
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