As the trade media focuses on the still-fragmented activity in mobile proximity payments and the mobile wallet at the point of sale, financial institutions are being distracted from the real and immediate opportunities within mobile payments.
For financial institutions tasked with defining mobile payments strategies, it is best to start by considering the recipients of the payments.
What are the Four Pillars of Mobile Payments?
Paying SelfUsing a mobile device to make transfers and to deposit checks into a personal bank account, via mobile deposit and funds transfer capabilities
Paying Other PeopleMaking person-to-person (P2P) payments (domestic or international) to individuals and groups of individuals from a mobile device
Paying BillersMaking payments to a biller either through a financial institution mobile app or a biller mobile app; functionality may include eBill presentment and payment capabilities such as using the mobile device camera to capture an image of a bill to automate payee set up
Paying Merchants/RetailersMaking purchases either in a store via mobile proximity payments (near field communication (NFC), quick response (QR) code, cloud) or online via apps and mobile websites