29 July 2016
Find out more

US faces long wait for mobile payments at PoS - Boston Fed

26 May 2010  |  7392 views  |  1 US flag

Mobile payments are unlikely to take off on a large scale in the US for at least the next three years, according to an analysis by the Federal Reserve Bank of Boston.

The prospects for the nascent technology are considered in a public policy discussion paper issued by the bank, which suggests that the investment costs currently outweigh the potential benefits.

On the demand side, consumers and merchants are well served by the current card system, and face a low expected benefit-cost ratio, at least in the short run, suggests the paper. On the supply side, low market concentration and strong competitive forces of banks and mobile carriers make coordination of standards difficult.

"Although it appears that some useful standards, both proprietary and open, will be available in the short or medium term, they will not be widely adopted until a business model develops that gives industry participants incentives to support this product, or until consumer demand for mobile payment services increases substantially," the paper concludes.

It suggests that the Fed could intervene in a policy push to establish appropriate regulatory oversight for mobile payments and encourage private industry stakeholders to work together to establish common industry standards.

Read the full paper:» Download the document now 448.8 kb (PDF File)

Comments: (1)

Nick Ogden
Nick Ogden - C B Infrastructure Limited - London | 26 May, 2010, 09:30

Humm, not what I've heard, or know :-)

 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Nice turns into mobile contactless city

Nice turns into mobile contactless city

21 May 2010  |  10316 views  |  0 comments
Chinese players form m-payments alliance

Chinese players form m-payments alliance

13 May 2010  |  9476 views  |  0 comments
Google Ventures invests in m-payments start-up Corduro

Google Ventures invests in m-payments start-up Corduro

04 May 2010  |  10082 views  |  0 comments
PayPal launches developer library for mobile payments

PayPal launches developer library for mobile payments

12 February 2010  |  8559 views  |  0 comments
Dutch to ditch cash by 2015 - report

Dutch to ditch cash by 2015 - report

10 February 2010  |  14262 views  |  11 comments
Nacha to rewrite rule book for mobile payments

Nacha to rewrite rule book for mobile payments

22 September 2009  |  8453 views  |  0 comments
Jump in mobile payments users this year - Gartner

Jump in mobile payments users this year - Gartner

28 May 2009  |  8911 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Find out moreVisit VocaLink.comVisit www.abe-eba.eu

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9610 views comments | 10 tweets | 4 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6823 views comments | 16 tweets | 22 linkedin
hands typing furiouslyManaging Big Data After Brexit
6029 views 0 | 6 tweets | 8 linkedin
UK and South Korea build 'fintech bridge'UK and South Korea build 'fintech bridge'
5977 views comments | 13 tweets | 14 linkedin
Finextra paper explores blockchain as an enabler of operational resilienceFinextra paper explores blockchain as an e...
5421 views comments | 12 tweets | 9 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job