Tag: mobile payments report

These large institutions are using data and offers to help to ensure that they hold the market.

Bankers have always seen transactions as their own domain, to the point that they are virtual owners, says recent Finextra research, and now they are hoping to use their might in this arena to lead the mobile payments sector, as well.

To do this, Finextra has reported that they will be deploying data and discounts to eliminate the competition.

The research from Finextra suggested that in order to become the most powerful player in mobile payments, they will be using their data and applying discounts as massive weapons in the battle to hold control over transactions and to be able to provide services that step above and beyond making a purchase.

The Finextra research was based on the responses given by over 180 bankers who were surveyed.

These survey participants were asked about what Finextra referred to as “key issues” in the realm of monetizing mobile payments. Some of the findings produced by the study include that 81 percent of the participating banks are seeking to add value beyond the actual transaction itself. This included making relevant offers to consumers directly at the point of sale.

Moreover, about two out of every three survey participants (67 percent) explained that they were seeking to own and manage the markets not only for the money of a consumer, but also all of the other elements of an individual’s wallet, such as points cards, memberships, and coupons.

Other mobile payments survey findings from the respondents included:

• 60 percent felt that a “trusted banking environment” is the most appropriate place for mobile payments, as opposed to third party smartphone apps.
• 43 percent said that they had a digital wallet offering in the pipeline within the next 6 to 12 months.
• 49 percent would take part in some form of open industry digital wallet initiative.

In terms of the future of mobile payments “big data”, 44 percent of the banks explained that they did not have adequate resources to take full advantage of it, and an additional two out of every three respondents said that smartphone monetization would be a primary big data usage driver, offering the required insight for personalizing targeted offers to consumers.

Report highlights fragmentation in mobile payments

Mobile payments have been showing strong growth throughout the U.S., but this growth has not been as steady as had initially been expected. This week, the Federal Reserve Banks of Boston and Atlanta have released a new report concerning the expansion of mobile payments. The report suggests an emerging fragmentation in the mobile commerce sector that has served to derail some of the progress that has been seen in mobile payments over the past few years.

Mobile commerce shows modest growth over past two years

According to the report, entitled “U.S. Mobile Payments Landscape — Two Years Later,” the mass adoption of mobile commerce is unlikely without strong support and collaboration from multiple organizations and industries. Over the past two years, mobile payments have grown more popular but have done so under harsh criticism. Mobile commerce has been dogged by concerns regarding security and many of the issues that consumers have with mobile payments remain unresolved due to the lack of interest many companies have in this field.

Multiple approaches lead to slower growth

The report claims that the advent of mobile devices has created an effective way to create a dynamic marketplace for consumers. As mobile commerce entered the limelight, companies, particularly banks and telecommunications organizations, began teaming up to engage consumers in a new form of commerce. Various such partnerships and collaborations have formed over the past few years, with each partnership experimenting with ways to make mobile payments more attractive to consumers. This has lead to some fragmentation as the various parties focus on very particular aspects of mobile commerce.

Non-banks introduce more risk to mobile payments field

While innovation has been encouraged in mobile commerce over the past two years, this also comes with significant risks. Non-bank organizations that are getting involved in mobile payments represent the majority of the risks associated with this sector. This is due to the fact that these organizations rarely have the security experience that financial institutions have and are not held to the same laws that banks are.