The range of players involved in the mobile payments ecosystem, its integration with the online world and its role in both remote and point-of-sale (POS) payments all suggest that the marketplace will continue to evolve rapidly.
Mobile payments refer to a wide range of services. Basic mobile banking services have existed for a decade, while many established mobile remittance services began life as peer-to-peer airtime transfer services.
At the same time, early mobile web and Wireless Application Protocol (WAP) interfaces for mobile payment have progressed to include payment on mobile application storefronts and online wallets on the handset.
An inside look: the mobile payments marketplace
Looking ahead, the mobile handset is seen playing a key role in services that combine payment with related customer data around purchasing preferences and identification, such as customer loyalty programs and event ticketing.
SMS-based services are the best-established, while other mobile payment channels, such as mobile internet and near field communications (NFC) have relied upon associated developments in web services and device capabilities.
The range of players involved in the mobile payments ecosystem, its integration with the online world and its role in both remote and point-of-sale (POS) payments all suggest that the marketplace will continue to evolve rapidly.
Mobile payment technologies and scenarios1
Newcomers are driving change in handset payments
Smartphone penetration allied with a more mature e-commerce market is producing a new wave of innovation in handset payments. For POS payments, start-ups are driving solutions that bypass the need for handsets with built-in NFC capability.
Beyond this, there are various solutions that promote the use of contactless stickers on handsets.
The role of credit card issuers remains fluid as they look to boost acceptance rates in developing markets and offer additional value-added services.
Meanwhile, large web and technology players are also looking for opportunities in the payment market, and are filing patents for mobile payments. Even payment hardware providers are getting involved.
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1Ernst & Young analysis.
