Mobile payments and m commerce activities sit

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Unformatted text preview: GHT TALK I T 21 transactional ones. Mobile payments and m-commerce activities sit squarely in the transactional category, and therefore both will gain greater prominence and usage as mobile banking takes root as a recognized, credible channel. Moreover, the results of our spending strategies research support the notion that banks also view mobile banking as the mechanism by which to drive revenues from mobile payments and m-commerce. Over one-third of surveyed banks are making investments in mobile payments during 2010. Ovum also suggests that banks’ new-found or renewed interest in mobile payments can at least be partially attributed to the competitive threat of PayPal, whose rapid rise as a recognized payment mechanism caught many in the banking industry by surprise. M-commerce plays a pivotal role in the adoption of contactless payments M-commerce also has a vital role to play in the adoption of the next generation of mobile payment instruments based on contactless technology. In the last 12 months, banks (in tandem with card schemes) have begun to make a concerted effort to promote contactless products. Unfortunately, retailers have displayed an apathetic attitude to this (ironically, in much the same way as banks were indifferent to m-commerce a decade ago). The role of m-commerce is central to the future evolution of mobile payments. The endgame will see consumers using mobile devices as real and virtual wallets, and the first step towards this is to encourage the linking of card accounts to mobile devices. From this point, the transition to contactless is seamless, as it then only changes how that linked card is used. We believe those banks that take a pragmatic view of the role of m-commerce will reap significant benefits, in the form of improved market share, increased revenues, tighter channel integration, stronger and deeper customer relationships, and a clear path to next-generation payment systems. As m-commerce does not demand massive technological re-engineering,...
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