Mobile Banking Updates - Sept 22

Tyfone Receives Patent for Mobile Electronic Wallet Technology
"Tyfone has announced the it was awarded a second patent - US 7,581,678, is entitled “Electronic Transaction Card - for its innovations in smart card-based electronic wallet technology. According to Tyfone, 'using time-varying magnetic fields, Tyfone’s patented technology enables the use of a memory card as an electronic wallet and/or the ability to use that memory card for the secure transmission of financial information.'"

Mobile Banks in the Developing World Prove Simpler is Better
"Recent initiatives designed to make U.S. consumer financial products simpler and intelligible to customers, reminds me of a study we did on Mobile Banks† in the developing world. Designed to work on the simplest mobile devices and originally targeting the unbanked, mobile banks evolved from simple services (transfer of mobile air time) to become widely used money-transfer and mobile payment systems. In the Philippines, over $100M flows through the GCASH system daily. GCASH and rival SmartMoney are accepted in establishments that take credit cards, giving the unbanked the ability to conduct cashless transactions, a benefit previously limited to credit card customers. In Kenya, the number of transactions that flow through M-PESA is comparable to the number of all ATM transactions in the country."

Just How Hot Are Virtual Currencies and Mobile Payments?
"Take a look at the Inside Facebook blog and the ads from its sponsors - including Zong, SuperRewards, Allpass, PaymentPin and OfferPal. Also, notice the survey results discussed in this article - none of the major consumer credit card companies or issuers made the top 10! Have you signed up to use virtual currency or pay for digital goods using your mobile phone?"

APPetite for Disruption—Should Financial Institutions Consider iPhone Applications?
"The Apple iPhone is indisputably a “disruptive technology”— one that has redefined what a cell phone is and does, has expanded Internet reach, rekindled data revenues for mobile operators and brought a whole new phrase to our lexicon: “App Store.” In short, the iPhone is sexy, and companies, including those within the financial services industry, are very excited about being a part of the phenomenon. However, there are a number of aspects that banks need to consider before committing time and money to developing and launching an iPhone application for banking clients."

Javelin: Contactless Payments Have Little-to-No-Mutual Realization of Value
"Javelin Strategy & Research (www.javelinstrategy.com ) today released a report revealing that the contactless payments ecosystem is presently a series of “islands” with little-to-no mutual realization of value among the various constituents. The report indicates that the success of contactless solutions depends on some disruptive factor or wide-scale deployment that bridges the gaps and allows for value creation among all constituents that connects the islands."