Of Special Interest


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26th August 2011

Worth reading report on mobile payments

For all of interested in mobile payments, want to know about usage and impact on traditional bank services or key information on major entrants to the mobile payments arena a new report - Mobile Payments -
A study of the proximity payments ecosystem and its inhabitants while building a business case by Cherian Abraham is recommended reading.

The report is a concise and referenced summary of previous research into the mobile payments market. Whilst it is primarily based on the US market there are lessons from the US experience that are relevant to other countries.

Cherian Abraham states in the introduction:

"The advent of the ubiquitous smart phone has along with it brought dramatic shifts in customer behavior and payment modalities. Banks are finding themselves in an unenviable position of choosing to wait until a secure and safe standard emerges for “Digital”, or take the plunge in to these murky payment waters. There is a battle waging for the customer mind-share and emerging revenue streams, between traditional and non-traditional players - who are ever more emboldened by advances in technology and disappearing barriers to entry.

"The objective of this study is to build a business case for banks evaluating the opportunities and challenges present in building out mobile payment solutions, including direct and indirect revenue generation. This study paints a roadmap of current mobile payment initiatives undertaken by Financial institutions, Telco’s and technology upstarts, and to highlight the risks of building payment solutions which are not centered around the payment context. This study summarizes the challenges ahead for mobile payments, including a lack of interoperability, consumer apathy and a general lack of understanding of its merits."

The report can be downloaded free of charge at:


Also worth a look is this Deloitte report: