Monday, March 5, 2012

No "Wallet War?" Really?

According to Michael Abbott, Isis CEO, “there is no mobile wallet war out there. ” The statement will strike some as a bit of bluster, good manners or delusion. But there always is a time, early in the development of a market, when it is helpful for lots of firms to enter the business.


The existence of multiple competitors helps to legitimize the market. That is probably the sense in which Abbott says there is no wallet war. It obviously is not based on a lack of substantial would-be competitors. 


Also, at the moment, there are niches within the broad mobile commerce space, including "payments" systems, wallet or credentials systems, point of sale systems and money transfer systems, for example. 


Those somewhat distinct niches will blur, over time, once the market begins to take more definite form. It won't be so easy to distinguish between payment, wallet, money transfer or terminal roles, for example. 


Nor will it be so easy to distinguish between firms that engage in online commerce, or brick and mortar retail. 


At the same time, many contestants will gain one footfhold in the market, and then use those positions to add other market roles, as Square is doing, for example. 

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