Video: Pay Wars - The Future of Mobile Payments
September 25, 2013
Hardly a day goes by without a story about mobile payment methods appearing in the press. Despite being the subject of heated debate, however, most consumers have yet to start incorporating mobile payment into their everyday lives. Network operators, various hardware and credit card companies and major internet players are ready and waiting and have already started experimenting with a number of pilot projects. Yet retailers remain unwilling to set up the necessary terminals at the point of sale. Among other reasons, retailers are reluctant because many consumers have been slow to adopt web-based payment technology or cannot even use the new methods yet. It is a typical chicken-and-egg dilemma that could continue for a while. One possible way out of this quandary could be collaboration between cross-industry providers of innovative payment methods and retailers that takes consumers’ desires into account.
Traditional financial institutions would be well advised to get in on the still-fresh battle to secure market share. After all, the market environment for banks in the competition for mobile, web-based financial services is highly dynamic. New competitors are forcing their way into the market. Many of the innovative, web-based digital payment ideas are coming from non-banks. In particular, big internet platforms are putting out feelers (or extending them even farther) and are investing in new online services and technologies across a variety of sectors. They are looking for partners in order to continue expanding their own market positions. Some non-bank providers have already obtained banking licences so that they can offer certain financial services, whereas other providers have e-money licences. At the same time, established players – such as credit card and telecommunications companies – are stepping up their efforts to also get into the market for digital payment solutions.
Many experiments involving a wide range of web-based technologies are currently underway. Business models that live up to evolving, modern consumer demands will definitely have lucrative potential for growth in the future. People prefer products and services that fulfil their requirements in terms of mobility, connectivity, communication, interactivity, information and security.
Link to the publication: The future of (mobile) payments: New (online) players competing with banks