Banks and financial institutions globally need to develop mobile point of sale (mPOS) strategies now, as the technology evolves beyond its sole trader roots to major high street retailers, says the bank-backed Mobey Forum.
In the second in a series of white papers focusing on the mPOS market the Mobey Forum offers a strategic evaluation framework designed to help banks maintain their position and take advantage of the changing market dynamics brought about by the technology.
The paper examines how mPOS disrupts the established four-party model (cardholder, merchant, acquirer, issuer) and identifies the potential winners and losers in the marketplace, addressing issues surrounding interchange models, payment service provider models, networked commerce and the merchant-customer relationship. The paper proposes a structure through which banks and other stakeholders can weigh their strategic options, protect their interests and move to take advantage of the wave of change occurring in this complex environment.
Sirpa Nordlund, executive director, Mobey Forum, comments: "Banks that have chosen a 'wait and see' stance on mPOS now need to get serious about evaluating this market. This paper is intended to help them do just that."
Looking to the future, Nicolas Dinh, Mobey Forum mPOS Workgroup member and VP, mobile lead (Canada) at MasterCard, adds: "In 2014 we are likely to see alliances form where merchants integrate value added services and launch low-energy Bluetooth-enabled payment zones. The mainstream adoption of 'smart' wearables such as glasses and watches is also around the corner, which is likely to simplify mobile payment acceptance even further. Banks have a real opportunity to align their services with these innovations, but they must adopt a strong mindset if they are to maintain their current competitive position in payments and extract value from the market at the same time."
The paper includes previously unpublished mPOS market research from global management consultants, McKinsey, and contributions from a variety of leading banks and service providers, including: Bank of America, BAMS, Calman & Co. LLC, Capital One, CIBC, Danske Bank, DNB Bank, Elevon, Fiserv, Gemalto, Infobip, MasterCard, Metaforic, Monitise, Nets , Nordea Oberthur, RBS, SAP, Tieto, US Bank and Visa.