Mobile Payment Going Mainstream Soon - Page 2

Jul 18, 2011

CIO Update Staff

Banks, which scored the highest in level of importance in the value chain, and credit card companies will have the most important roles, according to business leaders globally. They placed telecommunications companies third, ahead of specialist online payment players (e.g., PayPal, Boku, Obopay), online service provider giants (e.g., Google, Facebook, Amazon), retailers and technology companies.

Among U.S. respondents, online service provider giants placed third, followed by specialist online payment players and telecommunications companies, which were rated of equal importance, retailers and technology companies.

Mobile payment methods

Each of these companies' success can be tied to the prospects for the five current payment methods which are battling for a share of the market. The KPMG survey respondents, globally and in the U.S., see specialist online systems leading the pack, due to the fact that this method already has significantly greater penetration than alternatives, and its penetration is expected to increase. Respondents said that specialist online systems have the greatest prospect for success, followed by mobile banking, NFC, carrier billing and the "mobile wallet." (See definitions below.)

"While KPMG believes that these forms of mobile payment will all gain some traction, our view is that M-Wallet is one of the most exciting and promising payment opportunities. M-Wallet provides the momentum to move beyond payments to participate in the entire chain of mobile commerce, from consideration and brand awareness to purchase after-sales loyalty and care," said Tudor Aw, Technology Sector head, KPMG Europe, in a statement.

M-wallet – Uses mobile device as a wallet with account and transaction information stored on the devices' SIM card.

M-banking – Provides for direct access to bank services and information via the mobile device.

NFC – A short-range (millimeters) wireless communication technology that enables exchange between devices, such as between a cell phone and a point of sale device at a checkout counter.

Specialist online systems – Online payment processing systems such as Google checkout and PayPal.

Carrier billing – Purchases are charged to the mobile phone bill.

About the survey

The Global Mobile Payments survey examined the leaders, opportunities, advantages and barriers in mobile payments, and was carried out by KPMG's global Information, Communications and Entertainment practice. Covering the Americas, Europe, Middle East, Asia/Africa, and Asia Pacific, the study surveyed 970 business people, including 250 in the U.S., in primarily the financial services, technology, telecommunications and retail industries.

More detailed survey results are available in the report 2011 KPMG Mobile Payments Outlook that is available upon request. In addition, KPMG also has available Monetizing Mobile: How Banks are Preserving their Place in the Payment Value Chain, a separate report based on data from the survey that focuses on the banking industry's outlook for mobile payments.

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