News and insights from the Mobile Money industry, by Monitise Senior Vice President, Industry & Investor Relations, Andrew Griffin.
Celent on Payments Trends: Celent’s “Top Trends in Retail Payments: A Year in Review” report covers many of the important issues that banks should be taking notice of, including: the power shift to merchants and consumers, direct from bank account payments, merchant offers, mPOS and tokenization. The overall message is that banks need to broaden their offerings to suit consumers’ expanding needs, in the same way that merchants and new players are already doing.
Aite on mPOS in Europe: Focusing on lessons which can be learned from the US market, Aite believes that mPOS in Europe should be seen as a way to leverage the mobile phone as a platform for innovation and customized solutions. In a new report, Aite forecasts mPOS in Europe will have 2.3 million users and a transaction volume of $19 billion by 2017. The complexity of local regulation and payment methods is examined.
Celent on Branch Traffic: Celent analyst Bob Meara posted an article noting that 90% of US bankers surveyed expected at least a 10% decline in branch numbers over the next 5 years, with 45% expecting the decline to be 25% or more. Branch numbers have declined 9% in just the last 3 years. He notes that it could be worse: US retailer foot traffic has halved in the last 3 years.
Yankee Group Predicts a $3.1 Trillion Mobile Economy: Yankee Group projects the new mobile economy will become a $3.1 trillion opportunity by 2017, which is 7% higher than the $2.9 trillion they predicted in October 2012. All four mobile sectors – devices, commerce, broadband and apps & cloud are expected to continue to grow; the mobile commerce sector in particular is growing faster than previously forecasted, with a predicted market size of $906 billion by 2017.
Mobey Forum Meeting in Oslo: The quarterly member meeting from the bank-driven business association, which aims to accelerate the evolution of mobile financial services, was held last week in Oslo. Norwegian bank DNB, which hosted the event in their amazing new headquarters, revealed mobile sales conversion rates on mortgages to be 16% – almost identical to desktop conversion rates of 17%. Dutch banks ING got payment transaction time down to 10 seconds using mobile, compared to 18 seconds for cash, and PayPal said that their mobile order ahead service had increased McDonald’s’ sales up to 30% in France, but also that 43% of Swedes don’t know what they do (possibly due to the success of pay-on-delivery company Klarna). Fingerprint Cards AB suggested that biometric security could save a company with 45,000 end users the annual cost of manual password management – $10million. Other speakers included TSM provider Bell ID, GSMA, Intervale (the Russian mobile solution developer), MNO OneCell, TSM Nordic and the Danish Bitcoin Association (no affiliation to the US organisation). The next meeting will be held in Las Vegas on May 7-9 May. Click here for more information.