Blog Archives

Users are not ready for this. Which key player will win?

Hello all,

A quick post to introduce two important articles and one video that resumes well the slow or conservative point of view to this “revolution”.

Today the market is not ready for the revolution both from a consumer and a merchant side:

http://www.americanbanker.com/issues/176_184/google-wallet-mobile-payments-isis-lightspeed-1042421-1.html

The second one is to discuss what is usually forgotten into that revolution – payments is not really painful as it is but this revolution will need to bring a whole set of value added services (Offers, Coupons, what else?) to the ecosystem to make a real dent into the current modus operandi:

http://gigaom.com/2011/09/26/mobile-payments-mobilize-2011/?utm_source=social&utm_medium=twitter&utm_campaign=gigaom

Again, I like the approach here. You ll here it more and more, consumers and merchants are not ready for this. Even the professionals are saying it. What they are also saying is that they are all working to make this happen and make happen this faster in their own way using their own strengths.

List of questions and random thoughts from me:

– Will PayPal be right at assuming that NFC will be too slow to deploy and that merchants will try to embrace added value services experiences through players like themselves?

– Will the giants that are Visa, MasterCard and others be able to digitalise fast enough their offline offering?

– Will hardware deployment be the determinant limiting factor?

– Can we look at Google, Facebook, Apple and other non traditional payment players to be completely disruptive into their approach and leverage their data at payments to provide the best added value services both for merchants and consumers?

All I can say is it does look like a race and a pretty bloody one too.

Another thought is that I think that people still try to ameliorate a system that in the US and other mature markets works pretty well already. But what about emerging markets? What about the billions of people who are still un-banked/un-carded and don’t have access to that vast world of choice, depth and breath of products that mature markets do. Maybe the future winner will be the one(s) that will bring those two worlds together.

Happy to talk about it, let me know,

Sincerely,

David Pardo