United Colours of Payments

Colors of Payments: Disruption brought to the payment industry by Apple, Android, Microsoft, Samsung, and many other players as now as “Pay”.

“Pay” is definitely the buzzword in the payment solutions world – every company seems to want a piece of the action! From my experience in Fintech, I’ve seen firsthand how diverse the payment landscape has become. It’s truly a “United Colors of Payments,” a global tapestry of how we exchange value.

This short blog aims to explore the diverse perspectives on payments from people across the globe. We’re talking different cultures, mindsets, industries, skill sets, languages, and job levels – a real melting pot. The central question is: what payment methods connect us all? And how can we make these systems even more inclusive and accessible, especially for those in emerging markets who might be left behind by rapid technological advancements? We also need to consider how these diverse payment systems can interact and integrate with each other, creating a truly seamless global payments experience.

“United Colours of Payments” refers to the diverse landscape of mobile payment methods and currencies used globally, highlighting the variations in how people transact across different regions.

Banks  & Currencies

We all know very well that Banks in countries like Indonesia, India, China, and the African Continent don’t seem overly concerned with banking the unbanked. If they were, we’d likely be seeing more initiatives to pull in the majority demographic as customers.

However, these consumers aren’t going to be transacting as much or as often as their more affluent middle-class counterparts. As such, profit margins reaped from this group won’t be too exciting.

This article explores the different modes of Mobile Payments, different types of payment colors, i.e., currencies, and different big brothers. ApplePay, Samsung, Microsoft, Google, Facebook (I guess it’s ok to call them big brothers), and many more, and where we are actually and where we want to be.

The advantages of using some of it and exciting news in the mobile payment space also put emphasis on the most important key point: the Mobile payment Revolution. The virtual currency aims to combine the advantages of direct cash transactions with the power of digital technology. Mobile Payments There are myriad ways mobile payments are already being used.

Transformation of Payment Methods

From shopping on phones to ditching change at the parking meter, consumers are embracing mobile payments for an ever-growing number of daily tasks. There is obviously room to grow, and we’re nowhere near banishing credit cards or cash just yet, but it’s clear that paying with a mobile device is gaining traction, hence creating an aroma for the united color of payments. In case you need detailed information or deliberation on any part, please feel free to get in touch directly.

Key Bullets

To me, Mobile Financial Services is my profession and I feel its my obligation to keep my system of this Fintech service up and running to bring best of the customer exp.

• The world is a rainbow of mobile payments! Just like currencies come in different colors, there are many ways to pay around the globe. From someone in the US sending money (maybe painted green!) to India or Africa (where the US dollar might be black and white), mobile payments make international transactions easier than ever.
• Speed is king, but for whom? As someone who’s been in the remittance tech trenches, I know speed is crucial. But is it for the customer getting their money faster, or the service provider looking to capture a bigger piece of the mobile payment pie? We need solutions that benefit everyone.
• Cashless society? Not so fast. A global ministry of innovation sounds cool, but the reality is, cash is still king (or queen!) in many places. Mobile payments are a powerful tool for financial freedom, but they shouldn’t replace cash entirely.
• The payment game is booming! Get ready for new players like Android Pay joining the party. With contactless payments, digital wallets, and mobile options everywhere, the way we pay is constantly evolving. It’s an exciting time to be in the mobile payment space!

Just imagine how powerful this central payment hub would be for consumers as the payment cake size continues to increase and upgrade with the new ecosystem, applications, and devices coming to market. Banks and Card companies are working restlessly in the U.S.,  a typical market where Credit card debt is still incredibly common—with 39% of Americans reporting unpaid credit card balances, it’s not far behind mortgages as a leading contributor to American consumer debt. While those balances are much lower than those for student loans, the high interest rates and revolving nature of credit card debt can make it a serious threat to consumers’ financial health.

Merchants and Billers – Acceptance of eMoney

To get merchant conversion for their acceptance religion from older magnetic stripe payment terminals to support NFC payments from mobile phones or smart cards and to EMV compliment cards, but a complete transition will take years, pay attention to “S” at the end of the word years in the last statement. If you’re among the 80% of Americans with debt, the best thing you can do is focus on managing your debt and credit well. Taking out loans or using credit cards can be a great financial strategy, but it’s important to go after the balances with a plan.

Thats where Mobile money remittances have proven and claimed that in Sub-Saharan Africa, cross-border remittances are projected to reach US$33 billion in 2015 as the services are growing above 6% in more than three countries with increasing mobile connectivity, according to WorldRemit, a United Kingdom-based online service company that lets people send money to friends and family in other countries.

Mobile Financial Services & Payment Intelligence

Payment methods do have uniqueness and commonalities, which are without a doubt mobile payments under mobile financial services. 

The secure authentication and payment validation technology underlying Mobile Payments is now catching up and getting attention for security. What technology is your phone using to ensure the transmission of secure information used to electronically sign transactions? A successful mobile payment should have the following basic support points:

• Enjoy lower tariffs with the flexibility to send, spend, and receive money across all networks (and across borders as well).
• Able to transact faster, easily, and conveniently with any phone, at any time, anywhere across the globe.
• All transactions should be done in a secured and safe manner with preventive measures to stop abuse, fraud, and AML.
• Auto verification for identity and location for cash-in, cash-out, and payments
• Every transaction generates a transaction receipt or ID each time. Using exciting new technology that brings several transacting channels together
• Able to transact with or without a bank account using a mobile phone as the bank account, ID, Payment instrument, etc.
• Transaction language should be as per the subscriber’s preferred language and currency.

All subscribers use phones to make payments, no matter what type of handset they have or which network operator they belong to. If they don’t need to modify your phone or load any special application to make payment in a secured manner, that would be the ideal and best method or solution.

Apple Pay – Presenting Old Technology In a New Wrapper

Apple Pay has launched some additional context about the state of mobile payments in general, which includes much more than just Apple Pay.

After 12 months, if we see where it is, the answer is still in a very small balloon. The hectic pace of change in payment systems All of this is because the physical and digital worlds are converging. Online, mobile, virtual wallets, and smartwatches, among others, mean 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 in the mobile payments space.

All these new ways will continue to change and proliferate as time goes on. Some providers of payment solutions for the financial industry, retailers, hospitality, and e-commerce Android Pay, ApplePay, Samsung’s, Google, Facebook, and Microsoft Pay services are from big players, but there are thousands of regionally trusted small brand and MFS providers who are also coming into play to claim their share of the hot cake pie, and all the banks are launching their own versions. Then there is MasterPass and Visa Checkout.

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.

What People Buy

“It’s Apple, right? iPhones are a sensation globally, and here too, everyone’s eager to use them. The ever-growing number of iPhone users now have the convenience of a digital wallet right in their pocket. That’s a powerful shift.

Samsung’s S6 offered a similar solution, which was an interesting attempt, though I’m not sure how widely it was adopted. In my years in Fintech, I’ve seen this play out time and again: cloud services offering almost identical functionality, hardware configurations, and even support levels, yet with cost differences of 20x or more. This really brings home the point that the value we perceive – the “joy,” as I like to call it – is often tied to the brand and experience, not just the raw features. A one-dollar apple and a twenty-dollar apple, while both apples, evoke vastly different feelings. This difference in perceived value can significantly impact adoption rates.

Now, after seeing these trends and working to build robust and scalable payment systems, some key questions keep coming up for me, and I’m still exploring the answers: How do we ensure equitable access to these technologies, so everyone can benefit from digital finance, not just those who can afford premium devices? How can we balance innovation with security and privacy, especially as mobile payments become even more integrated into our lives?

Interoperability and Open Standards – Roles

What role do interoperability and open standards play in creating a truly global and inclusive payment ecosystem? And finally, how do we educate users to navigate this complex landscape safely and confidently?”

• All Mobile Payment Service providers, along with some Social Media Service providers, are just focusing on disrupting the market. or any action to create such a market
• What all initiatives are going on by Mobile Payment Service Providers (MPSP) to create such needs where consumers feel for Mobile Payment Systems and services?
• Whom we are acquiring consumers or merchants
• And there are many, many more questions that are jumping around, looking for some responses to share later on.
• As said by my friend, I think your questions have merit.” Someone called the mobile payment industry “a solution looking for a problem.” ‘. So if that is true, I hope we find our problem soon with the solution we have created beforehand.
• Are you creating need now after having a solution at hand?

My understanding of everything going on around the world on the mobile payments front is that we should avoid a creative mess, stop innovating, and start improving. As the test, measure success and repeat what works for me very well (of course, the innovation process does not stop completely). Developing something new on top of other “things” is not always the answer; sometimes un-developing something existing to uncover the hidden gems already there is useful. Can I ask if you like Un-Develop to Innovate?

Food For Thought

However, this differs per country and per part of the world. In most European countries, for example, people have adopted debit and credit cards as their primary forms of payment. Contrary to cash, this is an intangible form of payment, just like mobile payment. The step between paying via card and mobile payment is smaller than between cash and mobile. Therefore, in Europe, consumers are adopting many forms of mobile payment.

• Stronger opening phrases: Instead of “Conclusions,” using phrases like “In conclusion,” “So, what’s the bottom line,” or “After observing…” makes the writing more engaging.
• More concise wording: Removing redundant phrases like “to my best understanding and knowledge” makes the text more direct.
• Emphasis on market context: Highlighting the importance of considering the specific market and business context is crucial, especially when discussing global payment trends.
• Focus on key questions: Framing the conclusions as questions can be effective in prompting further thought and discussion.
• More natural language: Using phrases like “probably not,” “possibly for some,” and “definitely” makes the tone more conversational and less formal.

When we look at the merchant processing fee, which becomes the biggest issue we face, If we use some International Payment Merchants as an example, the fee for a transaction is 2.9% plus $0.30 per transaction (in many markets). If a standard physical POS is considered retail, it can fall to as low as 1.3% in Singapore or even lower if you are an electronics store with a large transactional volume. With razor-thin margins, the MPF weakens the innovation factor. This MPF is on top of the other transaction costs. Mobile payments will get better once the MPF becomes more competitive.

Conclusions: After observing the rapid evolution of mobile payments, I’m left with some important questions. Will this trend truly transform the world as we know it? Probably not entirely. Will there be significant wins for some players? Certainly. Perhaps some clever hacks and workarounds will emerge. But ultimately, it feels like we’re navigating uncharted territory. From my experience, the most crucial factor is aligning your payment system with your specific business context. What works in one market might not work in another. And despite the hype around mobile payments in smartphones, I remain skeptical about their ability to sway purchase decisions in countries where cash is still king.

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Points to Note:

All credits if any remains on the original contributor only. We have covered all basics around FinTech Payments, its working models and the importance of quality financial services to the masses. In the next upcoming post will talk about implementation, usage and practice experience for markets.

Books + Other readings Referred

• Research through open internet, news portals, white papers and imparted knowledge via live conferences & lectures.
• Lab and hands-on experience of  @AILabPage (Self-taught learners group) members.

Feedback & Further Question

Do you have any questions about Telecom, FinTech or their new enablers i.e AI, Machine Learning, Data Science or Big Data Analytics? Leave a question in a comment section or ask via email. Will try best to answer it.

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