All post by: John Doornbusch

1. Mobile Payment Drivers

What drives people to use their phone to make a mobile payment? It all depends on the alternatives available to them. In Australia, where I am writing this post from, we tend to be early adopters of technology and are very fortunate in that we have a number of payment methods available to us – credit/debit cards, cash, cheque, online payments, bank transfers, etc. Although the national payments network is showing its age (no Real-Time Gross Settlement yet), we have embraced a wide range of payment methods for retail and B2B transactions. In the last couple of years, both Visa and Master Card have introduced contactless payments that are now accepted by the majority of retailers. More recently, signatures have been phased out in favour of PINs for purchases using cards from the main scheme operators. For ease of use, nothing Read More...

2. Mobile Wallets and Privacy

As mobile wallets and payment options continue to grow, retail organisations are seeing increased opportunities to collect customer data and track usage patterns to be used for targeted marketing and promotions. To achieve this they offer their customers a branded digital wallet with inbuilt “loyalty” functions, allowing them to collect data on individual customer’s purchasing patterns, and in return offer discounts, bonuses, and promotions. A customer’s mobile phone is the perfect device to use to access the digital wallet, and onto which to push targeted advertising and marketing messages. A recent report from Forrester stresses the importance of mobile wallets as rich marketing platforms, offering unprecedented access and reach to consumers to drive customer engagement and sales. Such finely tuned advertising and marketing requires analysis of buying patterns, ha Read More...

3. Code of Conduct for Mobile Money Providers

In November 2014, the GSMA released a code of conduct for Mobile Money service providers.  Two years in development, the Code aims to ensure that the services offered by mobile money providers are sound, secure, and fair to the customer.  This is an important initiative which, if adopted by the mobile money providers, can only lead to growth in digital finance services and improved rates of financial inclusion in developing nations. The primary beneficiaries of this Code are mobile money customers, with a number of the Code’s principles directly addressing key customer concerns:

  • Safeguarding customer funds by ensuring that funds equivalent to the mobile money liabilities are securely held in one or more real bank accounts, and protected from the Provider’s creditors.
  • Improving the services provided by those who interact with customers through due dil Read More...

    4. Mobile Money Interoperability

    Mobile Money services have boomed over the last several years in developing nations and have provided much needed financial services to the poor and unbanked populations of these countries. There is no doubt that the success of Mobile Money services is dependant on having a strong and diverse ecosystem – a good mix of agents, merchants, banks, and service organisations that all actively participate and benefit from the Mobile Money service. However, in many of these countries, there are multiple Mobile Money service providers (typically each mobile phone operator offers their Mobile Money service), each with a closed-loop ecosystem with no interoperability with other Mobile Money service providers and ecosystems. This means, for example, that if I have a Mobile Money account with mobile operator X, then I cannot use Mobile Money to send money to my brother or friend (or pay a mer Read More...