Sunday, July 10, 2011

Consumer Savings Likely will Drive Developed Market Mobile Payments

From a demand-side stand point, emerging markets have a unique characteristic, the ubiquitous use of cash for most everyday transactions, say Alberto Jimenez, IBM mobile payment leader, and Prasanna Vanguri, IBM consultant. Cash has well-documented and understood weaknesses that allow mobile payments providers to offer a compelling value proposition to end-users.

In developed markets and high-income segments in emerging markets, the circumstances for both providers and end-users are completely different. Most end-users already have efficient payments instruments that are widely accepted and appear to present no pain points.

“For developed markets, we believe that the initial adoption drivers will fall into two categories, (1) Direct savings and (2) Improved experiences,” they say. “Furthermore, we believe that only in specific segments will Improved experiences act as a true adoption driver and that the majority of ecosystems will be initially driven by direct savings.”

There is currently a large, unfulfilled role within the developed markets mobile payments and commerce ecosystem: the role of an aggregator. An aggregator would provide a single place where multiple payment instruments can be accessed quickly, simply,
and effectively, and where discounts, deals, and awards appear contextually and automatically.  

Read the study results here.

No comments:

Directv-Dish Merger Fails

Directv’’s termination of its deal to merge with EchoStar, apparently because EchoStar bondholders did not approve, means EchoStar continue...