Mobile wallets,
NFC-technology based product and service launches, and
high-profile product roll-outs made contactless a hot topic for
2011. But the technology is still
to truly take off.
2011 was the year of the
birth of the m-wallet, which in many instances supports NFC
technology.
Google went live with its consumer-targeted version in the US
in October, while in the UK,
YESPay launched its offer shortly after.
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Visa has already
granted Google a global license to use its NFC-based payment
technology payWave, which will link Visa card issuing banks’ debit,
credit and prepaid cards to Google Wallet.
However, according to
ABI, MNOs provide the majority of NFC-based m-wallets – but ABI
expects their
market share to decrease between 2012 and 2016 as the likes of
Google and Apple claim their share.
Meanwhile, one MNO that has been particularly
aggressive this year was Telefónica, which partnered with RIM in
Spain on a
pilot for m-wallets on Blackberry devices. It also partnered
with
MasterCard to offer mobile financial solutions to Vivo customers in
Brazil. Vivo is one of the largest wireless operators in Brazil
and was acquired by the Spanish-headquartered operator last
year.
In the US,
Gemalto was selected by Isis, the mobile commerce joint venture
between AT&T Mobility, T-Mobile USA and Verizon Wireless, to
secure its m- commerce platform in the US to provide consumers and
merchants with an open and secure mobile commerce platform that
will drive new ways for consumers to shop, pay and save.
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By GlobalData
Mainstream attention
When it comes to alternative payments
technology and methods, Turkey
is one country that stands out. The innovative streak of the
country’s banks even attracted the attention of the BBC in
November, when it
published a programme on contactless payments adoption in
Turkey – and Cards International was asked to
contribute to.
The technology even seems to be finally taking
off in the Nordic countries, as well. Only a few months ago, Visa’s
prepaid division had described as “cold” towards contactless just a
few months ago: In Sweden, mobile operators Telia,
Tele2, Telenor and 3 are going to launch a mobile payments service
next year and are planning to develop and market one service
offered to both contract and prepaid consumers. The operators
indicated that a joint company for all types of mobile payments
would make payments easier and safer for consumers, while enabling
users to change operator at greater ease.
Norway, meanwhile, recently launched its first NFC mobile
payments trial, a
collaboration between DnB NOR, Telenor and MasterCard.
Norway has a very well functioning national
debit scheme and it is really fast service. Contactless service
offers therefore need to provide extra convenience to the
consumers. According to industry insiders, there are discussions on
whether NFC payments should go directly to mobile or on contactless
cards first.
The ball has started rolling, albeit at a
slower pace than in other markets.
PayPal estimates that 2016 will be the year UK shoppers are
able to use their mobile phones to pay for their shopping on the
high street with digital money rather than cash, cheques or cards,
while
ABI found that Google wallet is creating a sense of optimism
surrounding contactless payment methods among retailers. The
study predicts 85% of terminals shipped worldwide will be
contactless-enabled by 2016.
As in the case of prepaid and other new
payments methods, merchant and consumer education is the key to
success. Although many industry insiders expect mass adoption of
NFC and e-/m-wallets by 2013, it is unlikely that these will become
market leaders for payments so soon. The consumer’s trust lies with
the merchant, so m-wallet providers need to get merchants on board
not only to grow their acceptance network, but also to promote it
to the consumer.
