Skip to content

Posts tagged ‘PayPal’

Mobility and Payments

By Jeffrey Peel – One of the discussions at Mobile World Congress last week that could be described as ‘hot’ was the one around mobile payments. It’s clear that, suddenly, there is a jockeying for position going on. (For a round-up of the various angles to the debate, this post by Philip Stanfield does a great job).

Long and short, everybody wants a share of the action. The killer statistic is that cash still accounts for a vast percentage of payments – north of 80%. But in rural Africa, the mobile phone has become an important means of exchange – but in a very simple way, enabled by SMS.

VISA is of the view that there’s a market opportunity at the heart of the “cash is still king” conundrum – but PayPal, Mastercard, the big banks, oh and Google, are all of a similar view.

However, the operators, too, feel that they are the prime contractors in the relationship. After all, a financial relationship has been established between subscriber and operator. And quite a few operators have grouped together to agree standards for mobile payments (see the media release from the Wholesale Applications Community here).

As to who will win is anybody’s guess – or perhaps it’s a case of horses for courses.

This interview by Eric Savitz, over at Forbes with Bill Sheedy of VISA, provides a neat summary of where we’re at in terms of mobile payments, and how VISA is likely to respond to the market opportunity.

Mobile Payments and Direct Operator Billing

At the Mobile World Congress in Barcelona the subject of mobile payment was discussed at length in several of the keynote sessions. See this post. However, there are several different approaches to payment via mobile platforms. Obviously the major banks are keen to get a share of the action – especially in terms of funds exchange and money transfer. The credit card companies are buddying-up to the big mobile payment vendors like Google Wallet. Even Facebook was flexing its muscle in the mobile money market last week.

Bizarrely, the operators often don’t get a look-in. Mobile money, mobile payment, mobile wallets all seem to be going the same way as apps i.e. over the top of the operators.

However, not everyone agrees that this is necessarily the best way. The operators obviously want a share of the action.

I popped over to the SLA Mobile booth last week and asked Philip Stanfield about his view on mobile money and direct operator billing.

(The audio player is below.  Please note that on slow connections this may take a few moments to load).  

%d bloggers like this: