27 March 2015


Alexander Peschkoff - TEDIPAY

105Posts 399,759Views 492Comments

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

What is your problem?

04 April 2013  |  3168 views  |  1

"The hardest thing of all is to find a black cat in a dark room, especially if there is no cat." It was Confucius who described the current problem that the payment industry is facing: there is none. At least, not the one they are solving.

It is easy, with all the hype around "mobile", "contactless" and "a trillion dollar industry", to forget that there is nothing fundamentally wrong with the current status quo. Do Mr and Mrs Average care how they pay for their latte (or which format their music and movies are delivered in)? Not at all, as long as it's convenient - it doesn't even have to be secure.

What really drives the (mobile) payment industry? It's all about cash replacement, i.e. increasing the volume of transactions on which banks and card schemes make money. It's not about you and me. Pure and simple.

Can you win consumers' hearts by thinking about your bottom (line)?

Before Apple introduced iPod, music players were niche products for geeks. What problem did Apple solve with iPod and iTunes? It provided mass non-tech consumer market with unparalleled user experience. That's what "killed" LP, MC and CD, not MP3 or MPEG.

NFC, QR and BLE will follow the same route: a new product (and service!) would allow any person to perform several mundane day-to-day tasks without even thinking about it (or about the underlying technology) - the joy of use will come of its transparency, similar to a light switch or a water tap. We may admire a beautifully designed tap, but we don't care how it works.

The key word there is "effortless", not "mobile" or "contactless". Until that day comes, mobile payments will struggle to cross the chasm.

TagsMobile & onlinePayments

Comments: (1)

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 05 April, 2013, 20:13

Brilliant post! It's going to be Apple that does it again: As I'd predicted at the time of its launch, iOS Passbook - once it starts supporting payment cards - is going to be the mobile wallet that crosses the chasm by making the "which app, which card" decision effortless. 

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location London
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I am the co-founder and CEO of TEDIPAY, the company that is bringing to the market a game-changing platform for secure mobile transactions.

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