Those that hesitate will find themselves at a

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Unformatted text preview: EN OPPORTUNITY THAT LIES BEFORE THEM. THOSE THAT HESITATE WILL FIND THEMSELVES AT A DISTINCT COMPETITIVE DISADVANTAGE IN 2010 AND BEYOND ■ Short term (present to three years) The short-term approach is enabling consumers to purchase through a mobile in the same way as they do now online. The incremental extra business in terms of additional transactions is negligible for the full market (excepting mobile-specific digital content such as apps or ringtones, and potentially some mobile-specific news content). There is, however, an opportunity for issuing banks to encourage their customers to link their cards to their mobile accounts. For example, a consumer who links a card to their iTunes account is unlikely to change that because they are not prompted to do so. ■ Medium term (three to seven years) The medium-term method is creating business models whereby merchants deliver coupons or discounts to their customers. Either this is something that they fund (in terms of offering the discounts) and that issuers can benefit from, or they actually pay for the privilege. The latter case is perhaps unlikely because the consumer will register with the merchant at some point, so there will be no need for the merchant to pay to market to its own customers. Still, this is something worth aiming for. ■ Long term (seven or more years) The long-term target is full integration with near-field communications (NFC) as the means of delivery. Ticketing shows particular promise, with the potential there for a consumer to buy a ticket through their handset via an over-the-air (OTA) payment and redeem it through NFC. This is simple and highly compelling for the customer, but a complex issue has to be overcome behind the scenes, due to the need to roll out appropriate infrastructure and create suitable business models. Bringing together OTA payment technology, applications, and the NFC chip in a handset would also be a significant technical challenge, but the ability to use a payment card as an identifier when collecting tickets purchased through the Internet...
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