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Mobile wallets, Twelve percent of consumers have used a phone with a
barcode scanner to comparison-shop, and 65 percent of
mobile payments, them admit to changing their minds after comparing prices.
Those percentages are only going to increase, placing
enormous competitive pressure on merchants and sellers.
mobile banking All of this data indicates that mobile banking and mobile
payments – the precursors of mobile wallets – are slogging
By Ralph Dangelmaier along and gradually gaining acceptance. Meanwhile, on
the e-commerce front, things are moving fast. According to
BlueSnap comScore Inc., mobile wallets and the businesses in their
ecosystem will probably outpace the mobile banking and
ctor Alec Baldwin asks, "What's in your wal- mobile payment systems, with innovations and market-
let?" when he urges you to buy something with based answers to questions that the banks don't address.
his favorite credit card. The TV networks will
A probably be retiring that popular commercial Useful old rails
soon, sending Baldwin off to live with Speedy Alka-Seltzer.
Why? Leather billf olds and plastic credit cards are on the Innovators will still depend on the payment and settlement
way to obsolescence. rails that we already have, however. After all, those rails
are mature and trusted, and setting up a whole new
This revolution started back in the early 1980s when banks system would be prohibitive. But the market will probably
began to offer telephone access to balance information. introduce new ways to ride those rails. Consumers will
Now we have the mobile wallet – almost. But remember: reinforce this aspect. Even as their shopping experience
mobile banking is not mobile payments. Mobile payments evolves – as their mobile devices arm them with instantly
are not mobile wallets. available information on pricing, product reviews, special
offers, available coupons and reward points – consumers
will keep demanding a consistent and familiar payment
Digital distinction experience.
In fact, "mobile wallet" is a little misleading. What's coming
is the "digital wallet," with the user's payment credentials Think of how, in some African and Asian countries, mobile
stored in the cloud and accessed by a mobile number or payments and phone-based e-commerce are the only
password. The device may or may not use near field games in town because there's not enough reliable banking
communication technology to make payments, because the infrastructure and few land-based telephone systems.
physical presence of a piece of hardware – at a checkout Something will always emerge to meet a growing demand.
counter – will no longer be necessary.
And even here in America, that demand is showing itself
The POS will be anywhere that the seller and buyer and driving the players whose businesses are circling
communicate and exchange payment for goods or services. around the phenomenon of the mobile wallet. We're not
That POS could be in the aisle of a traditional retail store – there yet, but we're getting there. And merchants and their
where shoppers still like to go and see what they're buying customers will lead the way.
– or it might be a web connection to a seller on the other
side of the world. Remember that the desired end game is a digital wallet
that is open, accepted everywhere, and that enjoys the
There's been much convergence and blurring of lines confidence and acceptance of consumers. It can't be based
between brick-and-mortar commerce and virtual business. on card platforms with a smattering of loyalty programs. It
New players are on the field; new channels are open. The can't have a bunch of sequestered segments that frustrate
players in the game of retail e-commerce – those who have people and merchants who want to take part.
big stakes in digital wallets – are banks, mobile network
operators, hardware manufacturers, payment card Requisite cooperation
networks, merchants and consumers.
It is going to require a statesmanlike approach by all players
to make the digital wallet work for the good of everyone.
Consumer driven That is, they've got to be able to separate the things they
Consumers and merchants will determine how far and do "for the good of the game" from the things they do to
how fast mobile e-commerce evolves. All signs point to outperform their competitors in that game.
their growing embrace of all things mobile. According to
researchers at the Federal Reserve, 87 percent of Americans As the Fed's working group noted, there should be
have mobile phones; 44 percent of them are smartphones. collaboration and sharing of relevant data that will allow for
36
Mobile wallets, Twelve percent of consumers have used a phone with a
barcode scanner to comparison-shop, and 65 percent of
mobile payments, them admit to changing their minds after comparing prices.
Those percentages are only going to increase, placing
enormous competitive pressure on merchants and sellers.
mobile banking All of this data indicates that mobile banking and mobile
payments – the precursors of mobile wallets – are slogging
By Ralph Dangelmaier along and gradually gaining acceptance. Meanwhile, on
the e-commerce front, things are moving fast. According to
BlueSnap comScore Inc., mobile wallets and the businesses in their
ecosystem will probably outpace the mobile banking and
ctor Alec Baldwin asks, "What's in your wal- mobile payment systems, with innovations and market-
let?" when he urges you to buy something with based answers to questions that the banks don't address.
his favorite credit card. The TV networks will
A probably be retiring that popular commercial Useful old rails
soon, sending Baldwin off to live with Speedy Alka-Seltzer.
Why? Leather billf olds and plastic credit cards are on the Innovators will still depend on the payment and settlement
way to obsolescence. rails that we already have, however. After all, those rails
are mature and trusted, and setting up a whole new
This revolution started back in the early 1980s when banks system would be prohibitive. But the market will probably
began to offer telephone access to balance information. introduce new ways to ride those rails. Consumers will
Now we have the mobile wallet – almost. But remember: reinforce this aspect. Even as their shopping experience
mobile banking is not mobile payments. Mobile payments evolves – as their mobile devices arm them with instantly
are not mobile wallets. available information on pricing, product reviews, special
offers, available coupons and reward points – consumers
will keep demanding a consistent and familiar payment
Digital distinction experience.
In fact, "mobile wallet" is a little misleading. What's coming
is the "digital wallet," with the user's payment credentials Think of how, in some African and Asian countries, mobile
stored in the cloud and accessed by a mobile number or payments and phone-based e-commerce are the only
password. The device may or may not use near field games in town because there's not enough reliable banking
communication technology to make payments, because the infrastructure and few land-based telephone systems.
physical presence of a piece of hardware – at a checkout Something will always emerge to meet a growing demand.
counter – will no longer be necessary.
And even here in America, that demand is showing itself
The POS will be anywhere that the seller and buyer and driving the players whose businesses are circling
communicate and exchange payment for goods or services. around the phenomenon of the mobile wallet. We're not
That POS could be in the aisle of a traditional retail store – there yet, but we're getting there. And merchants and their
where shoppers still like to go and see what they're buying customers will lead the way.
– or it might be a web connection to a seller on the other
side of the world. Remember that the desired end game is a digital wallet
that is open, accepted everywhere, and that enjoys the
There's been much convergence and blurring of lines confidence and acceptance of consumers. It can't be based
between brick-and-mortar commerce and virtual business. on card platforms with a smattering of loyalty programs. It
New players are on the field; new channels are open. The can't have a bunch of sequestered segments that frustrate
players in the game of retail e-commerce – those who have people and merchants who want to take part.
big stakes in digital wallets – are banks, mobile network
operators, hardware manufacturers, payment card Requisite cooperation
networks, merchants and consumers.
It is going to require a statesmanlike approach by all players
to make the digital wallet work for the good of everyone.
Consumer driven That is, they've got to be able to separate the things they
Consumers and merchants will determine how far and do "for the good of the game" from the things they do to
how fast mobile e-commerce evolves. All signs point to outperform their competitors in that game.
their growing embrace of all things mobile. According to
researchers at the Federal Reserve, 87 percent of Americans As the Fed's working group noted, there should be
have mobile phones; 44 percent of them are smartphones. collaboration and sharing of relevant data that will allow for
36
