Different Paths to Mobile Payments

There are many different angles to take in the mobile payments, mobile wallet and mobile money transfer segments of the mobile banking market. They are, in fact, often functionally distinct businesses.

All of them share one thing: the use of mobile devices to exchange money. But that’s just about where the similarities end. Here are a couple different services seeking roles in distinct parts of the larger ecosystem. Square already has found a viable niche as a mobile terminal for retailers who want to take card payments, but either cannot afford, or cannot use, a traditional point of sale terminal. That's one of the "device-driven service businesses" we already have seen emerge.

Then there are the peer-to-peer money transfer services, which are quite distinct. Think a mobile version of Western Union's funds transfer system. M-Pesa is a good example of that.

Google is chasing the mobile credentials or mobile wallet segment of the market. But lots of other segments and roles will emerge over time. Think of what was thought possible when Netscape first launched around 1995. Then think of all the things people can do using browsers today. Something similar will happens with the mobile payments, banking, wallet platforms as well.

4 very different mobile payment services