Innovations in mobile payments is at an all time high. In 2015, I've lost track of the number of new mobile payments related solutions I've come across- both globally and in India. From cab booking apps to grocery ordering apps to hiring a personal assistant to mCommerce for all kinds of spending, there are too many mobile payments solutions / apps vying for the user attention. While some have a mind-blowing product idea, some have an unparalleled consumer experience, some have the first mover market advantage, some have an enviable customer base and some have a high brand equity. Some of these solutions seem to be growing very rapidly, and some appear to struggle even for a few months. The one's that seem to be doing all right are doing more than one thing right. So ever thought about what are the key factors which will determine the long term success of a mobile payments solution? In this post, I am sharing my views of 5 points which I think will make all the difference...

(1) Catch them young, and create their payment habits - Else be prepared to move into oblivion. Consumer payments are about habit formation, and how you start your payments journey will determine how you will continue to make every day payments - unless there is a compelling reason to do this differently. Somewhat like Newton's 2nd law of motion. Just pause and think.. How do your parents make their every day payments? How do your grandparents make their everyday payments? How do your kids make their everyday payments? Do you see a pattern? 

(2) Have a differentiator which is hard to replicate - The thing about innovations in mobile payments today is that there are just so many of them, and just so many "Me too" solutions. If the idea is way too easy to replicate, then in the medium to long term, there is really no reason for a consumer to stick to your solution. The differentiator can be a product patent or a closed loop collaboration / consortium or an exclusive partnership - Something which the end consumer values, and will not be able to get anywhere else, apart from your solution

(3) Find Benevolent investor(s) - The business world is all about money, or rather economic drivers determine most decisions. In other words, your idea / business needs to earn money and should make profit(s) to survive and even have a chance at success. The reality about most mobile payments solutions are that they are long term investments - They take time to take-off, they take time to make money, and they can take really long to be profitable. And till then, having benevolent investor(s) who are willing to invest - both financially and others (in terms of access to the right ideas / resources / partners / ecosystem, etc.) only amplifies the probability of survival and success.

(4) Consumer spend patterns is determined by phase of life he / she is in ; So ensure your solutions address these transitions - What a consumer buys, where, how and how much is determined by which phase of life he / she is in, and where they live. So a single 21 year old guy's spending will be very different from a 40 year old father. So it is critical to know what target group your mobile payments solution is addressing, and how it is designed to handle life transitions between life stages like single, married, parent, grandparent, etc.

(5) Every generation has different value drivers, so the solution should connectwith these value drivers - According to the 2014 CEB Study "Inside the Millenial Mind", every generation has different value drivers. To have a chance at success, the mobile payments solution should align with a value driver relevant to the user base. For e.g: The value drivers for millenials is Happiness, Passion, Sharing, Discovery and Diversity. So, if a mobile payments solution depicts how it can make a millenial happy or help them achieve their passions - it would be more acceptable to this audience. On the other hand the value drivers for the elder generatios revolved around justice, integirty, duty and family. So to connect with this group, the solution should perhaps help them perform their family duties. However cool the idea / innovation, if it does not connect with the end consumer and does not make their everyday payments simpler, easier and enjoyable - The possibilities of mass adoption are ?

That's my view.. What do you think? What will be the key determinants in the long term success of a consumer payments solution? Leave a comment to let me know