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.
Apple and Square to Partner for iPhone 5 Mobile Payments?
One of the most common iPhone 5 rumours is about Near Field Communication (NFC), the technology that allows mobile payments with a wave or “tap” of a device. Jack Dorsey, the founder of Twitter and mobile payment company Square, is now officially available in the iPhone store.
Radu Tyrsina at IT Pro Portal, “Square seems to be a pretty comfortable way to perform mobile payments. The device that one uses to perform the card credit swipe is a small square-shaped object that can be attached to an iPhone, iPad or other smart device to perform the transaction. This throws into doubt whether the iPhone 5 will come with NFC technology after all.”
via ITProPortal.com.
Qualcomm iPhone Chip to Incorporate NFC Technology
According to two people with knowledge of the inner workings of a coming iteration of the Apple iPhone — although not necessarily the next one — a chip made by Qualcomm for the phone’s processor will also include near-field communication technology, known as NFC.
This technology enables short-range wireless communications between the phone and an NFC reader, and can be used to make mobile payments. It is unclear which version of an iPhone this technology would be built into.
via New York Times.
Hottest Mobile Payment Startups
Here’s a preliminary list of the hottest mobile payment startups. Feel free to add to the conversation:
Carrier Billing
Purchase in App (not billed via carrier)
- Apple (iTunes)
Contactless / Mobile Contactless:
P2P Transfer
- Obopay
- PayPal Mobile
- Venmo
Mobile Checkout
- Square
- Verifone
China
- UMPay
- SmartPay
- LianLian
India
- Paymate
Philippines
- Globe GCASH
Japan
- Mobile Suica
- Edy
Reference: GusFundler
Google and Apple NFC Mobile Payments Battleground
Recent reports have suggested that the Apple iPad and the iPhone 5 will have integrated Near Field Communication (NFC) capabilities that can be used for mobile payments, as well as other applications. NFC involves a chip that transmits a short range, high frequency signal in order to communicate with nearby devices or transfer payments.
Google also has grand plans in the mobile payment space through Android OS phones. Google’s Eric Schmidt talked about Google and mobile payments at the recent Web 2.0 Summit when he announced that the “Gingerbread” Android release will have integrated NFC.
More via Search Engine Watch.
NFC for Apple iPhones and iPads Could Disrupt Mobile Payment Industry
Apple could cause some serious disruption in the mobile payments market if it enters that arena as reported, say analysts.
Reports noted earlier this week that Apple is planning to embed Near-Field Communications NFC technology into its next-generation iPhones and iPads. What’s likely to make Apple’s offering vastly different, however, is the company’s huge base of 160 million iTunes users, said Avivah Litan an analyst at Gartner. That base gives Apple the ability to operate largely as a “closed payment system” with minimal need to interface with credit card companies and banks, she said. “They can largely shut out credit card companies if they choose to,” and operate in much the same way that PayPal has done in the virtual world, she said.
via Computerworld
iPhone and iPad Will be Equiped with NFC for Mobile Payments, Says Consultant
Apple Inc. plans to introduce services that would let customers use its iPhone and iPad computer to make purchases, said Richard Doherty, director of consulting firm Envisioneering Group.
The services are based on “Near-Field Communication,” a technology that can beam and receive information at a distance of up to 4 inches, due to be embedded in the next iteration of the iPhone for AT&T Inc. and the iPad 2, Doherty said. Both products are likely to be introduced this year, he said, citing engineers who are working on hardware for the Apple project.
via Bloomberg.
Mobile Payments Research Report 2011: Battle in a Fragmented Market
Research and Markets has announced the addition of the “Mobile Payments – A Battle of Giants in a Fragmented Market” report to their offering.
This study spotlights the mobile payment market, provides details about the related services and their technological aspects, analyses the usages and the industrial structure with a drawn of the value chain. The report makes an in-depth look in examining several business models – for NFC, SMS, Fixed/mobile wallet & App Stores – their impacts and upcoming opportunities.
Key Questions
- What are the different mobile payment services and which technologies are being used?
- Who is using M-payment and how do they use it?
- How are this emerging market and its value chain structured?
- What are the existing business models and who is the furthest along with their deployments?
- What are the market’s key figures and what are the main forces driving development?
- What does the competition landscape look like?
- What sustainable opportunities are available to the different kind of players?
Key Topics Covered:
- 1. Executive Summary
- 2. Introduction
- 3. Market structure and key factors
- 4. Organisation & Industrial Strategy
- 5. Strategic analysis
- Tables
- Figures
Companies Mentioned:
- Amazon Mobile Payments
- American Express
- Apple
- BarclayCard
- Billing revolution
- Boku
- Carrefour
- Deutsche Telekom
- Gemalto
- McDonald
- MoBeePay
- NFC
- Nokia
- NTT docomo
- Obopay
- Orange
- PayPal
- PTC
- Sprint
- Starbucks
- Subway
- Telecom Italia
- Telefonica
- Venmo
- Verifone
- Visa
- Zong
More information: Research and Markets
Mobile Payment Players to Watch in 2011
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.
2010 Mobile Banking Scorecard Research Report
Javelin Strategy and Research has released its 2010 Mobile Banking Scorecard: How 19 Top Financial Institutions Compare on Mobile Channel Retail Delivery. The survey presents an overview of mobile banking services offered by 19 of the 30 largest U.S. financial institutions (FIs) based on deposits. The survey covers five key areas of mobile banking: marketing and security messaging, mobile access, general features, short message service SMS features and security.
As part of the data collection process, mystery shoppers also were employed. They searched each FI’s website and contacted each FI’s customer service representatives CSRs a minimum of four times. Of the 30 FIs researched and contacted in June and July 2010, 19 offer mobile banking services to their customers.
When scoring the FIs, Javelin reviewed a total of 47 criteria. Based on a quantitative analysis of the criteria, FIs were awarded either a gold, silver or bronze status. This report further includes a profile of Bank of America.
More information or to download a report summary: Javelin Strategy – 2010 Mobile Banking Scorecard.
Top Smartphones for the Holidays
Smartphone reviews and top smartphone models available by carrier. If you’re upgrading your smartphone for 2011, here’s a list of the hottest smart phones for the holidays.
Aaccording to research firm Gartner, Android made up 25.5 percent of smartphone sales to end users in the third quarter, up from 3.5 percent in the year-ago quarter. Another theme is the emergence of the tablet as a hot device for the holidays. Apple’s (NASDAQ:AAPL) iPad is currently dominating the market, and is now available at both AT&T Mobility (NYSE:T) and Verizon Wireless (NYSE:VZ). However, Samsung plans to make a big push as well, and will have its Android-powered GalaxyTab available from all four Tier 1 carriers this season. Finally, Microsoft also hopes its Windows Phone 7 platform catches fire amid the crowded market.