Mobile Payment Magazine

Report: Mobile Wallets in the US – Review and Analysis

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Mobile Wallets US ReportA new report entitled Mobile Wallets: The U.S. Landscape by Mercator Advisory Group identifies U.S. mobile wallets by category and technology.

The physical wallet might someday go the way of the checkbook, used by few and no longer a necessity. Growing consumer use of smartphones is creating a market for mobile wallets capable of serving many of the same purposes physical wallets served for centuries but now are able to take advantage of a plethora of new functions made possible in an increasingly digital marketplace. [Read more…]

Mobile Payments Report: Opportunities and Strategies for Credit Issuers

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Mobil - Credit IssuersA new research report from Research & Markets entitled Opportunities and Strategies for Credit Issuers, examines mobile payment opportunities For US credit issuers.

The major card networks began supporting contactless payments nearly a decade ago, but consumer and merchant adoption has lagged considerably. Several startups, as well as established firms outside of the financial services industry, are marketing enhanced mobile payment services capable of causing significant disruption to the consumer payments value chain. [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

Research Report: 2011 Contactless Near Field Communication (NFC) Mobile Payments

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Javelin Strategy and Research has release a new report entitled “2011 Contactless Near Field Communication (NFC) Mobile Payments: Framing Mobile Payments on the Foundation of Mobile Banking.”

Mobile payments have been the source of much excitement for over half a decade, with the latest focus being on near field communication (NFC) payments, which uses short-range wireless technologies to allow a consumer to tap or wave a supporting mobile phone to complete an in-store payment.

Late 2010 experienced a flurry of NFC-related mobile payments announcements, detailing pilot initiatives from numerous financial institutions (FIs), payment networks, mobile phone carriers, technology giants, and third-party developers.

Despite this activity, mobile contactless/NFC is a payment option that is battling limited availability of contactless-ready merchant terminals and mobile technology, as well as low consumer demand. In order to ensure the greatest opportunity for success, FIs should integrate NFC mobile payments with their existing mobile banking platform. Javelin data shows that mobile bankers are the prime financial demographic to jumpstart mobile payments, and FIs should promote the service accordingly.

Primary Questions

  • What is the current state of the contactless payment market, and how has it changed from recent years?
  • What are the key drivers preventing consumer adoption of contactless payments?
  • How should FIs integrate mobile contactless pilots within their existing financial infrastructure, and who should the target demographic be?
  • What are some of the current NFC programs in market today?
  • What is the demographic makeup of today’s contactless payment population, and how can that information be utilized to boost mobile NFC adoption?
  • How can FIs establish the value proposition of NFC among merchants, in an effort to increase merchant acceptance of the service?

Report Index

  • Overview
  • Primary Questions
  • Methodology
  • Executive Summary
  • The State of U.S. Contactless and Mobile Commerce
  • The Consumer Roadmap to Mobile Payments
  • Mobile Banking as the Springboard for Mobile Contactless Payments
  • Demographic Trends – Who Are the Likely Mobile Contactless Users of Today?
  • Mobile Contactless Payments: The Proverbial Chicken and the Egg Dilemma
  • Appendix
  • Related Research
  • Companies Mentioned

Table of Figures

Figure 1: Mobile Payments Ecosystem
Figure 2: Percent of Consumers Who Indicate That They Are Open to Using a Contactless-Enabled Card or Device, 2007-2010
Figure 3: Key Drivers Preventing Contactless Adoption, by All Consumers
Figure 4: Consumer Adoption Roadmap to Mobile Payments
Figure 5: Likelihood of Storing Credit or Debit Card Information on Mobile Phone to Complete a Mobile Payment, by Mobile Bankers and All Consumers
Figure 6: Factors That Drive Contactless Use, by Mobile Bankers and All Likely or Current Contactless Users
Figure 7: Last Time Made Purchase Using Mobile Device, by Mobile Bankers and All Mobile Phone Owners
Figure 8: Frequency of Mobile Purchasing in the Past Month, by Mobile Bankers and All Mobile Phone Owners
Figure 9: Average Mobile Purchase Amount, by Mobile Bankers and All Mobile Phone Owners
Figure 10: Desirability of Mobile Phone Functionality, by Frequent Mobile Bankers, Mobile Bankers (Past 90 Days), and All Mobile Phone Users
Figure 11: Likelihood of Using Mobile Contactless, by Gender, Generation, and All Consumers
Figure 12: Likelihood of Using Mobile Contactless, by Ethnicity and All Consumers
Figure 13: Likelihood of Using Mobile Contactless, by Smartphone Owners, Standard Mobile Phone Owners, and All Consumers
Figure 14: Likelihood of Responding to Mobile Marketing Coupons or Promotions, by All Mobile Contactless Users and All Mobile Phone Owners
Figure 15: Percent of Consumers Who Have Used Particular Contactless Payment Devices, 2009-2010
Figure 16: Likelihood of Using a Contactless-Enabled Card or Device, by Mobile Bankers and All Consumers
Figure 17: Average Times Per Month Consumers Use a Particular Payment Option Per Month for In-Store Purchases
Figure 18: Likelihood of Using Mobile Contactless, by Income and All Consumers
Figure 19: Likelihood of Using Mobile Contactless, by iPhone Owners, BlackBerry Owners, and Android Owners

More information: 2011 Contactless Near Field Communication (NFC) Mobile Payments

Fiserv Expands Digital Payment Suite

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Fiserv, Inc. , announced today that the CheckFree RXP money movement platform has been expanded to support account-to-account transfers and same-day bill payments. These new functionalities integrate with the existing bill payment and person-to-person payment capabilities available through CheckFree RXP to create a digital payments suite for financial institutions. While the elements of this suite can be utilized a la carte, they are designed to drive increased transactions when offered together. [Read more…]

Fiserv Named “Best Electronic Commerce Provider” by Global Finance Magazine

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-Fiserv, Inc., a provider of financial services technology solutions, was named “Best Electronic Commerce Provider” by Global Finance magazine. This is the fourth year in a row that the company has been honored by the magazine.

“We are particularly honored to receive this award in the year that mobile banking has been added to the criteria, as our research shows consumers want their primary bank or credit union to also connect with them via the mobile channel.”

The award is based on 12 categories of input from industry analysts, corporate executives and technology experts. This year, a new category “mobile banking” was one on which judges selected the best-in-breed provider. Other categories on which the company was judged include volume, market share, and scope of global/regional coverage; examples of cutting edge technology deployment and product innovation on a regional/global level; and examples of regional/global solutions that delivered significant benefits and cost savings for clients wanting to re-engineer their cash management processes.

”More than 16,000 financial institutions and business around the world trust Fiserv to help them solve complex business challenges,” said Steve Olsen, group president, Digital Payments, Fiserv. “We are particularly honored to receive this award in the year that mobile banking has been added to the criteria, as our research shows consumers want their primary bank or credit union to also connect with them via the mobile channel.”

Fiserv provides its clients with traditional electronic payment solutions including debit, ACH, cards and online bill payment, as well as emerging solutions such as person-to-person payments. According to the company’s year-end 2010 earnings statement, Fiserv expanded its payments footprint by signing 537 electronic bill payment clients and 218 debit clients. The company also processed 3 of 4 online bill payments, delivered more than 330 million e-bills, managed more than 1.4 billion online bill pay transactions processed through financial institutions and has an EFT payments network with more than 1.5 million point-of-sale locations.

Source: Business Wire

Fiserv Acquires M-Com to Boost Mobile Banking Offerings

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Fiserv, Inc., a provider of financial services technology solutions,  has acquired Mobile Commerce Ltd. (M-Com), an international mobile banking and payments provider, to enhance Fiserv’s existing mobile channel capabilities. The two companies have been partners since 2008, developing and delivering Mobile Money from Fiserv to hundreds of financial institutions. Financial terms of the acquisition were not disclosed.

M-Com, founded in 2000, is based in Atlanta, Ga., with an office in New Zealand. M-Com CEO Adam Clark and all employees of M-Com will join Fiserv as part of the transaction.

“Technology advancements and consumer usage patterns are converging across online and mobile channels,” said Steve Olsen, group president, Digital Payments, Fiserv. “The acquisition of M-Com will enhance our ability to provide anywhere, anytime access to consumers who want their finances at their fingertips. Together, we will deliver best-in-class digital solutions for our clients, enabling a superior user experience for their customers.”

As strategic partners, Fiserv and M-Com have hundreds of mutual customers in the U.S. and several in international markets, and the combination of the two companies will accelerate the development of innovative solutions for these clients. In addition, Fiserv will have the ability to integrate M-Com mobile banking and payment technology into current product offerings, as well as leverage that technology for transformative new solutions. Current M-Com clients will benefit from Fiserv’s digital banking and payments expertise, deep resources and ongoing investments in mobile financial services.

“Offering robust services through the mobile channel is now critical for financial institutions,” said Mr. Clark. “With the addition of M-Com’s proven technology and deep employee expertise, Fiserv is positioned to continue delivering with excellence in the rapidly evolving mobile space, both domestically and internationally. Together, we will set the pace for mobile banking and payments.”

Source: Business Wire

U.S. Mobile Payment Market to Top $200 Billion by 2015, Says Research Report

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A recent report from Aite Group forecasts that U.S. mobile bill payments will reach more than $200  billion in 2015.

Aite Group interviewed more than 60 companies in the Fall of 2010 and produced a 65 page report that defines and segments the mobile payment industry, and includes an analysis of the competitive and market trends.

Each one of the multiple categories of mobile payments defined in the report will experience double-digit growth, with mobile payments accounting for  US$214 billion in gross dollar volume by 2015, up from US$16 billion in 2010–a 68% compounded annual growth rate (CAGR) between 2010 and 2015.

The report references the following companies: Allstate, Amazon, American Express, Apple, AT&T, Bango, Bank of America, Barclays, Bill2Mobile, BlackBerry, Bling Nation, BOKU, Brink’s, C-Sam, Cashedge, Cellfire, Chase, Chase Paymentech, Cimbal, ClairMail, coupons.com, Coupons Sherpa, Visa’s Cybersource, Device Fidelity, Diebold, Discover, Eagle Eye Solutions, eBay, Euronet, Facebook, First Data, FIS, Fiserv, Foursquare, Gemalto, Global Payments, Google, Gowalla, Green Dot, Groupon, Harland Financial Services, Heartland Payment Systems, Hipcricket, iLoop Mobile, Inside Contactless, Intuit, Jack Henry/iPay Technologies, Kubra, MasterCard, mFoundry, Mobile Coupons, Mocapay, MoneyGram, Monitise Group, mopay, MyWebGrocer, NCR, NetSpend, Nokia, Oberthur Technologies, Obopay, OfferIQ, Online Resources, PayPal, Plastyc, Pyxis Mobile, Research-in-Motion (RIM), Roam Data (Ingenico), Roamware, Rocketbuxx, SK C&C USA, Square, Starbucks, Sybase, T-Mobile, Tetherball, 3i Infotech, Tier Technologies, TransferTo, TSYS, Twitter, U.S. Bank, VeriFone, Verizon, Vesta, Visa, ViVOtech, Waspit, Way Systems, Western Union, Wincor Nixdorf, WirelessLoyalty, Xipwire, Yelp, and Zong.

More information: Aite Group Mobile Payment Report.

Source: Aite Group