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architecture, designed for $100 transactions, and now we're hitting the schemes. "Everybody is looking for a
limitations," Djurdjevic said. He doesn't believe changing the interchange game changer," Nathanel said. "It's
fee structure will help either. "Mobile solutions that are cost effective will be very unlikely there will be a hardware
welcomed by merchants who will then provide incentives to drive consumer game changer."
acceptance," he said. "Merchants are in the best position to influence consumer
behavior." Today the most successful mobile
program is run by Starbucks Coffee
Cardis developed an aggregation technology that slashes processing costs for Co., which uses the Square mobile
mobile payments by combining multiple small-dollar purchases at various wallet app. The smartphone app
merchants into a single payment transaction that gets cleared through the displays bar codes that can be read
automated clearing house, a low-cost electronic network. by Starbucks POS devices. According
to Berg Insight, U.S. smartphone
Headquartered in London, Cardis recently entered the U.S. market, partnering users purchased $500 million worth
with mobile commerce solution provider Spindle Inc., which is deploying of products and services with
the platform to support unattended vending and cafeteria clients. Spindle those devices last year, and most of
developed the MeNetwork360 mobile wallet, which is used by an estimated those transactions were rung up at
300,000 consumers and accepted by about 6,000 merchants. Starbucks, which boasts an average
of 3 million mobile payments a week.
In October 2013, Spindle heralded a deal with vending machine manufacturer
Multi-max to integrate the MyNetwork360 technology with Multi-max's K-Cup Mary Monahan, Director of Mobile at
line of vending machines. Cardis is also working to support interoperability Javelin Strategy & Research, said the
with other mobile wallet providers, Djurdjevic said. winners in the mobile wallet race will
need scale. "Although it is undeniable
And the winners are? that considerations beyond the
user experience will shape the use
Amid a flurry of activity, no real winners have emerged yet among mobile wallet
of mobile wallets, the providers
left standing as the space matures
will need to capture consumer and
merchant scale," she said, adding that
it would be a "mistake to assume that
consumer attraction to a particular
technology," like QR codes or NFC,
will determine which wallets gain
universal acceptance.
Pricing will also be a critical factor.
"Merchants are hoping the technology
will provide a lower cost structure,"
Moudgal said. He also noted that
merchants "need tools that can help
them grow their businesses."
It's doubtful one, and only one, mobile
wallet scheme will ever dominate.
And in that way, mobile wallets may
come to resemble traditional wallets.
"We might end up with one or two
that become universal wallets,"
providing universal acceptance, in
addition to numerous private-label
wallets like Starbucks, Misasi said.
"In that way, the mobile landscape
will end up looking a lot like the card
landscape."

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