EVOLUTION OF BANKING
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NON BANKS: DIGITAL WALLET, MULTIPLE PLAYERS<br />
Early adoption<br />
Incorporating more than just payments has always been important and is where many NFC (Near Field<br />
Communication) trials have fallen down. Trying to get people used to tapping a phone to pay needs<br />
something more – a reward or loyalty incentive, as contactless credit cards and cash already give the<br />
customer what they need in terms of convenience.<br />
The use of mobile wallets is on the increase; mainly on mobile websites and apps, then more slowly<br />
through Google Wallet Cards or through tapping to pay. Consumers don’t want dozens of merchant apps<br />
on their smartphones. Mobile wallets can be a general purpose solution for payment and store loyalty.<br />
The big challenge, both conceptually and technologically, is sorting out the ‘tap and pay’ model to<br />
actually pay for goods in-store with a mobile wallet. Consumers are much happier using an enabled<br />
credit card to tap, and the technology for tapping smartphones isn’t yet standardised (there are still<br />
disagreements around which party – bank, phone provider, merchant, has the imperative to ensure<br />
security).<br />
Customer research globally at this time appears to suggest PayPal may be leading in this race in<br />
developing the customer’s trust.<br />
The near future is likely to see progression of innovative<br />
customer payment mechanisms including near Field<br />
Communication solutions.<br />
The Evolution of Banking and Financial Services | 27
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