A Finextra member 23 May, 2008, 01:16 0 likes

You are right Dan, as you point out on your blog, security could be an issue. I assume your mates lock their phones when out drinking, otherwise they'd be always at home paying off their phone bills and lost phones.

"is it really a device that people want to have their full bank details".

No - it is not. I would not recommend that anyone adopt any solution which required that, the risk is unacceptable.

Certainly the risk of pumping a few billion pounds into new infrastructure has to be carefully considered, however in the case of the mobile phone, the infrastructure is already there, so infrastructure risk is very minimal.

A mobile solution potentially leads to less infrastructure and lower costs. Even with some mobile solutions where special readers are required, using a mobile would substitute for having at least 4 billion cards and sending them out in the post etc (with all that associated risk).

If your security concerns were satisfied would you have no objections to using your mobile as a stored value payment device or even your credit or debit card for instance?

Would you consider using your mobile as your driving licence if it can't be used by anyone else, even your biologically identical twin brother?

A Finextra member 23 May, 2008, 07:09 0 likes

I agree with the point that mobile payment carries lot of risk especially carrying full banking details as such, but as far as small ticket payments are concerned, it is still better and convenient option out of avialable one.

 Especially in emerging market area and some part of Europe and USA as well, mobile payment proved to be a very handy solution.

Again looking at risk perspective, information about money/trade location is always remained area of concerned since ages, but evolution and growth always enforces society to make these things flexible.

A Finextra member 27 May, 2008, 16:50 0 likes

I agree that a good kick-off for mobile payments lies strongly on small payments. One important thing to remember in terms of commercializing any payment solution is to find every which way to implement it without needing banks participation, i.e., find a way to disintermediate the banks and offer it directly to consumers. But let's not forget that consumer's confidence is paramount. Therefore, universal security is a must.

Let's face it, bankers aren't exactly innovators - unless you have someone like Richard Branson at the helm. They are bankers. Innovation is not their core competency.

I also understand a recent survey that says that most consumers are not interested in mobile banking. Personally, I don't feel secure using my mobile to do online banking.  

I don't feel the same with mobile payments (small payments). My limit for these small payments might even go up depending on the control given to me by the security that comes with the payment mechanism.

A Finextra member 28 May, 2008, 16:53 0 likes

You're right, small payments first. People are paying for their parking by phone & text now and that's only going to ease the mind into feeling more secure with mobile payments.

 All that needs to follow is more widespread small services in other sectors like shops, stalls which will build up further confidence.

 Hopefully what will follow is people not really knowing how they bought things without their mobile device...