Sunday, October 28, 2007
Mobile Payments & Mobile Banking
As we have all learned by now it is not easy to develop a business case for mobile banking. Predominantly, this is due to the fact that it’s not free to develop the service; yet, clients expect to receive it for free since they can access online banking via their personal computer at no charge.
The more you read the more you discover that many experts feel that the revenue potential exists within the realm of mobile payments. Therefore, I have begun to immerse myself in learning about the nuances of the space, and you will notice that I have begun to develop a more robust listing of the mobile payment vendors along the right-hand column.
Additionally, here are a few snippets of data that I have uncovered so far:
* Meijer reports a 44% monthly sales left for customers paying with contactless cards
* BP will start accepting PayPass at 3,000 U.S. locations
* USA Technologies is currently installing contactless payment on 7,500 additional vending machines for Coca Cola Enterprises.
* The total payments market in the U.S. is estimated to be over $7 trillion
* One forecast predicts that mobile phone-based contactless payments will account for over $36 billion of worldwide consumer spending by 2011
* The case for mobile transactions has been well proven by recent pilots. In a country such as Kenya there are 400 bank branches, 600 ATMs and 10 million mobile phones.
* In heavily wired Korea, 70% of all digital content -- valued at more than $1 billion last year -- is charged directly to cellphone bills instead of traditional credit cards, the company says.
* There are 6 million places where you can use your credit card, 45,000 (contactless acceptance locations)
* Pilots have been announced for:
Wells Fargo & Visa
Discover Financial & Motorola
Citi, Mastercard AT&T, and Nokia
Cellular South, Kyocera, and VIVOTech
Citi & Obopay
First Data & mFoundry
Verizon & Obopay