Alcatel-Lucent Ventures on Mobile Payment Challenges

 Brian Stout, Alcatel-Lucent Director, Alcatel-Lucent Ventures, talks about the challenges of offering a mobile payments solution. 


"It really is about consumer adoption," says Stout. "How do you replace the leather wallet?" As simple a question as that might be, the answers are complex because the existing business already is complex, and might be disrupted if a mobile can displace a credit card or debit card.


Mobile operators, merchants and banks all have customer relationships, but who owns the customer in a mobile payments context?  And make no mistake: changing the status quo is really key. Mobile operators want to lower churn and get revenue from non-traditional means. Merchants want loyalty. 


"Our vision is that you have to create value beyond payment," says Stout. And the whole business has to get to critical mass as well. 



Beyond payment, there are other values. Can you replace library cards and other information vehicles? Mobile payment systems will  have to integrate with existing back office and customer care systems; support multiple stored-value accounts;  cash, loyalty points, coupons and other offers. 


Digital signage apps also are part of the ecosystem, says Stout. Advertising, location services, voice and social media also will be part of the solution.