Tech giant Microsoft has made its mobile money move, adding a digital wallet and SIM-based NFC to its latest operating system, Windows Phone 8.
"Secure SIM-based system"
The question - to which there seems to be no clear answer at present - is about the control of that secure element.
8,430 active banks in the USA. Will all of them have access to that SIM? Which party has authority to allow a particular bank (or a consumer, for that matter) to add a given card to Microsoft's m-wallet: Microsoft itself, handset OEM, SIM suppier, MNO,
Visa/MC, third party TSM or me (just kidding)?
Directly related to the question of secure element control, is the issue of liability? Does that depend on the type of transaction (offline vs online)?
Going down the route of using the SIM was a bad idea. Transferring from device to device doesn't rely on using a SIM. The Mobile Operators will have too much control of the Business Design of this service - rather than the Financial Institutions.
So does microsoft expect droves of merchants to add Microsoft wallet to their checkout pages/POS/MOTO call centres.... Why? Who will have a Microsoft mobile wallet that does not have a faster/simpler/more secure/more prevalent payment method available to
them now, than Microsoft Wallet.... I could say the same for Google wallet and Paypals barcode POS wallet system (has a few upsides)
If so - what will the merchants have to pay for the dubious benefits of accepting microsoft wallet.... I assume its not a free service and that MS want to make money from it... or will MS want to charge the user for services, or sell data on spending habits...
BTW NCR announced a new slower more complex Mobile phone based ATM system recently... they are looking for partners too
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© Finextra Research 2014