NEW YORK July 13, 2011
New Competitors Vie for Market Share
The KPMG report cited the potential of mobile network operators working with device manufacturers to develop a system independent of the traditional payment infrastructure. Others, however, foretold of an even more serious threat in the form of new market entrants, such as specialist online payment players and online service provider giants.
Nevertheless, banks are still perceived to have an edge, according to executives from the technology, telecommunications and retail sectors who also participated in the survey. These executives overwhelmingly agreed that banks will likely continue to play an important role in the evolving mobile payments value chain.
Significant Challenges Ahead
According to the KPMG survey, respondents highlighted a number of significant and evolving challenges that are hampering the adoption of mobile payments. More than 70 percent of banking and FS executives cited security concerns as their biggest challenge, an issue that has only been accentuated by a spate of recent high-profile online security breaches.
The survey also revealed that a lack of technology standards and infrastructure are also posing major barriers to the wide-spread roll-out of mobile payments. And while very few respondents to the survey were willing to categorically endorse any single payment technology, most pointed to the emergence of Near Field Communication (NFC) as the technology with the most promise and ease-of-use for customers.
Corporate Mobile Payment Services
According to the KPMG report, commercial banks also are showing a growing interest in utilizing mobile platforms as a key differentiator and potential revenue generator.
"Many innovative banks are finding that they can actually drive revenues from their mobile offerings by bundling enhanced corporate services, such as cash management tools and key back-office functionality for their corporate clients," added Siegel. "Mobile payment solutions can help these clients by speeding up and automating authorization procedures related to reviewing and approving payments."
About the Report
In compiling the report, KPMG surveyed executives and mobile channel leaders at more than 145 retail and commercial banks, payment processors, acquirers, card services providers, retailers and payment technology vendors, and also conducted in-depth interviews in the first quarter of 2011.
About KPMG LLP
C ontact Tim Connolly
SOURCE KPMG LLP