News & Views - Savantor

M-payments needs a clear message

Friday, 29 July 2011

Over 141 million people around the world will use their mobile phones to make payments this year, up 38% on 2010, yet the market is actually growing slower than expected, according to a report from Gartner. The report says that m-payment volume is forecast to increase 76% year-on-year to $86.1 billion, which contrasts with a claim made last month by Juniper Research which predicted that the total value of mobile payments this year would be $240 billion.  A significant difference in forecasts for a year that is half over. The report also indicated that significant barriers are holding back adoption in both the developing and developed worlds.  Standards and security issues may well be seen by many as key issues to resolve but changing consumer behaviour and reducing confusion are also important.

Despite the changes in behaviour already made in getting consumers to see mobiles as something more than phones, getting them to use it for payment is perhaps a more significant step than many believe.  What has happened recently in the payments world isn’t exactly reducing confusion.  First we’re going to remove cheques then we’re not, but we are taking away the cheque guarantee system.  We put great emphasis on PIN protection and then say for contactless cards we don’t need it.  But we say that after 3 contactless transaction you must then do a chip and PIN transaction but don’t make it clear what happens after 3 transactions with an NFC mobile.  Will the payment app have an expiry date as cards do?  No doubt these are all easily solvable by the industry as technical issues but getting the message across to the consumer will be the real test.

Setting an end date for cheques when the system would probably have died a natural death anyway may not have been the best idea so let’s learn from the consumer backlash there and get clear messages out to consumers about how m-payments can work without making it sound like a fait accompli that cash is dead because that’s the one way to make sure that it isn’t!

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Business and Platform Strategy

"Savantor successfully advised Rabobank during preparing of the platform migration for cards. Savantor demonstrated thorough knowledge of business processes and market players combined with a practical approach."

Evert Fekkes, Business Information Manager - Rabobank - Nederland

Market Insights

"Savantor did a good job in helping us understand the dynamics of a key growth area for Trionis. Savantor's ability to listen and their degree of commitment have always impressed me. They have been of great help in providing us important market insights and I would not hesitate to work with them again in future."

Ernst Verbeek, Managing Director - Trionis - Belgium

New Payments Initiative

"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."

Sophie High, Head of Innovation Delivery - Cancer Research UK

Acquirer Transformation

"We needed a programme manager for a complex transformation who also brought a broad understanding to help stakeholders through the change. We have been delighted with the delivery and outcomes from this engagement with Savantor."

Michael Liquornik, Executive Vice President - Neovia Financial - UK

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Acquirer Risk Assessment

"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."

Mark Healy, Chief Risk Officer - NEOVIA Financial - UK

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.