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Banks should therefore not ignore the golden

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Unformatted text preview: these benefits are within easy reach. Banks should therefore not ignore the golden opportunity that lies 22 S TRAIGHTTALK I T before them. Those that hesitate will find themselves at a distinct competitive disadvantage in 2010 and beyond. M-commerce is the foundation layer to other mobile payment initiatives On a strategic level, the need for a “gateway” mobile product is essential. Consumers will not leap from avoiding using mobile handsets in payments to employing a full suite of mobile banking and payment services overnight. This is very much a case of evolution rather than revolution, which is a view that is shared by the industry. Growth in the penetration of smartphones and their use for mobile web browsing already provides the first sign of this crossover in customer use of the mobile, and the bridge to payments is not then a big one. Even more so than in mobile banking, the jump from current browsing activity to payments is small. M-commerce will help the payment industry to broaden its portfolio In this way, m-commerce acts as a bridge for the consumer to wider mobile activity. It also provides a way for the payment industry to develop a complete suite of product offerings. Whatever the difficulties in encouraging consumers to invest their intellectual, emotional, and (where new hardware is needed) real capital in new mobile services, these are magnified many times when the number of stakeholders involved in providing those services is considered. The challenges in bringing together mobile operators, card issuers, card schemes, and merchants into a single business model (and these players represent only a fraction of the number of firms in the value chain), in order to create mutually beneficial business models and both agree on and invest in new products are many times those involved in encouraging consumer take-up. Looking at the world from the perspective of the card industry, the opportunities in m-commerce should be viewed across the short, medium, and long term: BANKS SHOULD NOT IGNORE THE GOLD...
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