Banks and financial institutions launching mobile wallets in the immediate future should expect to enter a hotly contested market, crowded with own-brand solutions that are limited to the delivery of proprietary services only. This is the view expressed by Mobey Forum’s Business Workgroup, in ‘Structures and Approaches: The Changing Face of the Mobile Wallet’.
The paper outlines the current range of mobile wallet structures coming to market and outlines some of the key considerations that financial institutions should take into account when evaluating which approach is the most appropriate for them. The paper contends that the majority of financial institutions will, in the short term, attempt to develop their own proprietary wallets in a partner-independent manner. Only when a secure element (SE) is required, or when core functionalities become too difficult for financial institutions to achieve alone, are they likely to open their solutions and seek to cooperate with other stakeholders.
“The number, breadth and variation of mobile wallet solutions set to come to market is going to make getting to grips with the technology a challenge for the end-user,” comments Jordi Guaus, Chair of the Business Workgroup, Mobey Forum. “This means that banks and financial institutions should think very carefully about their chosen structure and approach to market. Decisions taken now will have a significant bearing on the value they are able to deliver to customers and, in a crowded market, value will be the key to earning the loyalty of end-users.”
As the demand for immediate payments implementation grows in the United States, Iliad Solutions have identified one of the largest risks to face the payments industry over the next few years.
Barclays has signed contracts with six of the fintech startups that just graduated from its second New York accelerator programme.
Company card killer Pleo has raised $3m in new funding as it prepares for public launch in the UK and Denmark.
Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.