Financial Services

Rush Hour – Mobile Payments

Abstract – This post “Rush Hour – Mobile Payments and Financial Services” was originally published on 26-April-2015 on Linkedin. This article explores the different mode of Mobile Payments i.e. ApplePay, Samsung, Microsoft, Google, Facebook and many more and where we are actually and where we wanna be. Advantages of using some of it & exiting news in mobile payment space also put emphasis to the most important key point as Mobile Payments Revolution. The virtual currency aims to combine the advantages of direct cash transactions with the power of digital technology. “Speed to market is The King” for who consumer or service providers? Are we heading towards Cashless Payment i.e a new Society which is CASHLESS as the Future Next.

Introduction – Apple Pay’s launch some additional context about the state of mobile payments in general, which includes much more than just Apple Pay now after six months if we see where it is answer is still in very small balloon . The hectic pace of change in payment systems. All of this is because of the fact that this physical/digital world is converging. Online, mobile, virtual wallets and smart watches, among others – means that all businesses need to remain alert to the latest trends and developments. They and their customers will almost certainly start paying for goods and services in new ways in the future. A month after Apple Pay launched, MasterCard was quick to remind analysts in the company’s third-quarter earnings call that Apple Pay wasn’t the only player innovating the mobile payments space. All these new ways will continue to change and proliferate as time goes on. Some provider of payment solutions for the financial industry, retailers, hospitality, and e-commerce.

Main Story – Apple is a well known and trusted brand and so the whole world was talking about Apple Pay for a while but now dust has settle down or can say the noise has calmed down so now we are getting voices for Samsung’s, Google’s, Facebook and Microsoft Pay services these are from big players but here are thousands of regional trusted small brand and MFS providers who are also coming into play to claim their share of hot cake pie, and all the banks are launching their own version, then there is MasterPass and Visa Checkout.

AP_bklApple Pay adoption is progressing, but it still has a long way to go — as recently released data from the InfoScout and PYMNTS survey of iPhone 6 users indicated. Eighty-five (85) percent of iPhone 6 users haven’t even tried to use Apple Pay. Only 9 percent had even tried it, and just 6 percent revealed they were users of the service. The biggest reason – those who tried Apple Pay in the past who didn’t convert to users likely just forgot to use it again. In fact, 32 percent of respondents said they simply forgot to use Apple Pay again. In todays time subscribers/customers wants value, convenience, ease in their life and If you those ingredients people will taste it and if they like they will continue and will be ready to pay small extra fee.

Now question is if not cash then which route as mentioned in last article Payments – “Cash, Internet, Cards, Mobile and Paper”. Mobile payments cover many types of transactions which fall into two categories: transactions with ‎a remote merchant or proximity payments at the merchant site. There is no standard definition of the terms mobile money transfer, mobile payment and ‎mobile banking. There are some proposed definitions from industry associations (e.g. GSMA and ‎Mobey Forum) and the European Union but there is no agreement on a common definition.

Technology changes very quickly and service provider habit of now now to the market and give new ways and means to consumer quickly but on the other hand consumers style and adoption to technology move at a slower pace compare to what service provider wants. It takes a lot to create a mindset shift. Consumersmay not also be ready to switch over to one payment method option simply because the trust cant be build over night in same example Apple took decades to gain that kind of trust. Leaving all other instruments of payment aside and consumer will move to just Mobile Payments will cost too much time, efforts, hard work , money and sweats from all services providers and assumption is there is no security issues around (Which is practically impossible we all know as new born baby can start dance & run on day one)

Apple Pay talk about their mobile payment growth, and at the end of the day, yes, they’ve done a great job and it’s excited the market, but it’s still a very small percentage of what the total number of transactions are and now they already have competition from other wrestlers (FB & MS etc). MasterCard has also indicated its own digital wallet services (MasterPass), which would be another buddy & supplements in mobile payments space.

According to data gathered from London-based Currency Cloud, a FinTech company: “Nowhere is the M-banking market developing more rapidly than in Africa and China. While economically and culturally divergent in many ways, these two territories represent a fertile testing ground where mobile payments fill the financial services void for the vast ‘unbanked’ portion of their respective populations.”

There are articles, news headlines & posts flying about Mobile Payments will be 64 billion USD market , 70 billion USD Market or even 84 billion USD market (As my reading goes on google) by 2019 as World is running to get their bite of share from Payment cake including Apple, Microsoft, Facebook and many many other BIG players and off-course small ones are also millions of them . or should I call it as World Payments War where only one motive for everyone capture as much as possible and become the best pie part of this hot cake; who will get how much; I am highly exited and super worried what will happen to Mobile Payments.

The research firm reckons the Middle East and Africa region is the biggest market for mobile money services. In Africa in particular there are large numbers of people who have no access to traditional banking services, and the mobile payments market is growing fast along mobile phone adoption. But the report said it expects increased traction for mobile money services also in the APAC and North American regions within the next five years. Six months after release, this incredibly informative data shows some encouraging things for Apple—usage is getting better and those who use it love it so much they would make merchant choices based on whether they accept it,” said MPD CEO Karen Webster, referring to the InfoScout report. “But Apple still appears to be struggling to get beyond a small percent of early adopters.”

Financial inclusion and the concept of the unbanked has become a buzzword when it comes to mobile payments innovations. Who are the unbanked, who are the mobile money companies reaching, and where are there still gaps? And why? To some Apple critic’s points, getting consumers to change means giving a reason to stop what they are doing today and to start something new. More than one-third of the people surveyed said that they didn’t try Apple Pay because they didn’t have a reason to change from their current payment method, and one-fifth said that they preferred an alternative method of payment.

Now after all these studies my questions to me for Which I am still looking for responses.

  • All MPSP are just focusing on disrupting the market? or any action to create such market
  • What all initiatives are going on by Mobile Payment Service Providers (MPSP) to create such needs where consumer feel for Mobile Payment Systems / Services
  • Whom we are acquiring consumers or merchants
  • Do we have those many mobile phones handset penetration (As other devices may not be used for payments in store or on road) to handle such huge volume of 80 billion USD (I am assuming averages of all those figures which are flying all over internet)
  • And there are many many more questions are jumping ….. looking for some responses to share later on
  • As said by my friend — ‘I think your questions have merits. Someone called the mobile payment industry, “a solution looking for problem” ‘. So if that is true hope we find our problem soon for the solution we have created before hand
  • Are creating need now after got solution at hand


Sign-tConclusion –I guess my analysis is reasonable but conclusion at this time might be a bit pre-mature. The clearing houses gets real-time payment data to apply their expertise also have a vision beyond their current rails and the pockets to support it. Further, more data sources are added all the time. Start and grow businesses and prevent frauds by taking security before innovation. Transactions and data generated out of them will then be safe, quick and easy. An efficient domestic payment system infrastructure is key to reduce costs of remittance services, especially in receiving countries. Remittances are part of an individual’s access to financial services. A good remittance product improves value to the user in the short term and access to other financial products in the long term it also increases competition and could move transactions to the formal sector. Consequently, the data sources being compiled need to be secured in order to address security policies and compliance mandates.


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