A survey commissioned by financial services
technology solutions provider Fiserv has revealed US banks and
credit unions believe the m-payments market needs to further mature
before they will make any sizeable investments in the
technology.
The research, conducted by Forrester
Consulting, shows while the banks and credit unions surveyed plan
to enhance the value of mobile banking by enabling support for
newer operating platforms and devices and adding more robust
functionalities, they hold more of a ‘wait-and-see’ attitude
towards m-payments.
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‘Very few’ of the surveyed financial
institutions have clear mobile payment strategies in place, which
Fiserv claims leaves them at risk of falling behind other companies
entering the space.
“Mobile payments were a hot media topic in
2010 but not all mobile payments are created equal,” writes Brad
Strothkamp, principal analyst for eBusiness and Channel Strategy at
Forrester Research.
“In 2011, bill payment and transfers via
mobile devices will undoubtedly increase as the availability and
utilisation of mobile services grow. Contactless payments will not
have the same success…these types of mobile payments have major
impediments to success, including technology, merchant, consumer,
and issuer issues.”
Banks and credit unions are said to be keeping
a close eye on such variables but want to ensure they have a
business case in place before committing to significant
investments.
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By GlobalDataMore defined technology and process standard,
merchant readiness, increasing competitive pressure from other
companies or financial institutions and the emergence of a clear
value proposition are some factors that would prompt banks and
credit unions to act more quickly and increase their investments,
according to the research.
“While financial institutions are reluctant to
invest heavily in mobile payments today, this is the right time to
be developing a strategy for the future,” said Erich Litch,
division president for digital channels at Fiserv.
“Waiting for all the pieces to fall into place
before starting to think about mobile payments will leave the door
open for third parties to take business away from financial
institutions. Taking the time to map out a strategy will ensure
that decisions and infrastructures being put in place today will
facilitate support a broad range of mobile payments in the near
future.”
