In a time when confidence in financial institutions is eroding, this represents an opportunity to develop alternative forms of payment. According to this study, the threat to existing banks is evident: "87% of those who use the services of alternate payment providers (such as PayPal and Obopay) indicated a strong interest in using mobile Short Message Service (SMS) or a similar method to initiate payments in physical stores." Our industry is in the best position to take advantage of its dual experience in payment and in mobile communication to propose solutions that will fit customer demand for a reliable, safe and convenient payment system.
Now, customers are used to internet shopping, they expect to find the same convenience during their mobile shopping sessions. But banks are not yet out of the game. If banks can agree with mobile payment providers, they have an opportunity to build on their image and provide a superior payment experience to end users. The differentiation may come from a variety of factors such as user friendliness of the system, security felt by the end user, links with other services, loyalty programs, …
As a technology provider in relation with all the partners in a payment experience, the electronic transactions industry has a role to play in accompanying the change of behavior of customers, and proposing technology solutions.