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Mobile payment (also referred to as mobile moneymobile money transfer, and mobile wallet) generally refer to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history, it is only recently that the technology to support such systems has become widely available.

Mobile payment is being adopted all over the world in different ways. In 2008, the combined market for all types of mobile payments was projected to reach more than $600B globally by 2013, which would be double the figure as of February, 2011. The mobile payment market for goods and services, excluding contactless Near field communication or NFC transactions and money transfers, is expected to exceed $300B globally by 2013.

Investment on mobile money services is expected to grow by 22.2% during the next two years across the globe. It will result in revenue share of mobile money reaching up to 9% by 2018. Asia and Africa will observe significant growth for mobile money with technological innovation and focus on interoperability emerging as prominent trends by 2018

Twitter struggled to grow its user base in 2015 Photo: Dominic Lipinski/PA Wire Twitter has been racked by a fresh wave of senior departures, with shares in the troubled social network falling heavily yet again despite its chief executive Jack Dorsey attempting to reassure staff. Five executives, including Twitter’s head of media Katie Stanton and Jason Toff, the head of its video service Vine, are leaving the company, some after half a decade of service. It is the latest in a long line of departures at the social network, which is suffering as it struggles to keep up with rival social networks such as Facebook and Instagram. Shares have fallen by 26pc since the start of the year and 35pc since Mr Dorsey, who co-founded Twitter a decade ago, returned as chief executive. They dropped another 4pc on Monday after news of the departures was confirmed. Ms Stanton, who is credited with turning Twitter into a global business by opening its first international offices, said she wanted to spend more time with her family, while Mr Toff is joining Google to work on virtual reality. 5½ years, 600,000+ miles, 20+ countries & many friends. Un grand merci, Twitter, for the adventure of a lifetime https://t.co/7xF7qDOToJ— Katie Jacobs Stanton (@KatieS) January 25, 2016 Personal update! I'm joining Google to work on VR. So much exciting potential there.— Jason Toff (@jasontoff) January 25, 2016 The other departures are Alex Roetter, Twitter’s head of engineering; Kevin Weil, its head of product; and Skip Schipper, its HR chief. “I’m personally grateful to each of them for everything they’ve contributed to Twitter and our purpose in the world,” Dorsey wrote on Twitter. Was really hoping to talk to Twitter employees about this later this week, but want to set the record straight now: pic.twitter.com/PcpRyTzOlW— Jack (@jack) January 25, 2016 He said that other Twitter executives would be taking additional responsibility, and that Mr Dorsey himself would be working “day and night” to improve Twitter. The pledge comes despite Mr Dorsey also running Square, a mobile payments company he founded that floated last year. Twitter has gained popularity among celebrities, sports stars and politicians, who can use the service to broadcast short messages to millions of people. However, growth has slowed to a halt at just over 300m users, compared to 1.5bn for Facebook. The company is trying several initiatives to encourage novice users to join such as Moments, a feature that shows popular tweets around a topic, and is considering dropping the 140-character limit on tweets that has defined it for 10 years – a move that risks irritating its loyal users. Many people believe Twitter’s recent share price fall could make it a takeover target, with Google often mentioned as a candidate. Rupert Murdoch’s News Corporation denied it was interested last week. Tech giants' market caps compared [embedded content]
Walmart is offering its own mobile payments alternative to Apple Pay and Samsung Pay. Walmart Walmart is jumping into the mobile payments business, the first US retailer to make its own push for consumers to use their smartphones as mobile wallets. ...
Just before Black Friday and Cyber Monday, a report comes out claiming that the top 10 mobile payment apps are all missing critical security controls. As Americans prepare for the spending bonanza that is Black Friday and Cyber Monday, many will choose to use mobile payment apps. However, according to Bluebox Security, many of those consumers might want to think twice about doing so, as security in at least 10 popular apps across Apple iOS and Google Android isn't what it should be. The 2015 Payment App Security Study, authored by Bluebox Security, found that none of the payment apps examined encrypts data stored on users' devices. In addition, Bluebox found that all of the apps it examined are at risk from tampering that could potentially enable an attacker to reroute funds. Bluebox Labs selected and tested five apps on Android and the same five on iOS, according to Andrew Blaich, lead security analyst at Bluebox. Bluebox selected the apps based on searches for the top mobile payment apps and rankings from the app stores. All apps were run on a combination of jailbroken and non-jailbroken phones to fully understand how secure the apps are. While Bluebox is reporting that there are flaws in mobile payment apps, it is not disclosing the names of the apps themselves. "The purpose of this research is to bring to light the issues present in payment-related mobile apps so enterprise security teams can reassess the protections they have in place and remediate any flaws that may leave their users vulnerable," Blaich told eWEEK. "We have decided not to release the specific names of the mobile payment apps in order to protect users of these apps from being exploited and to avoid distracting from the larger message to developers and enterprise security teams around the need for more stringent application security." While Android malware tends to dominate the mobile security headlines, when it comes to mobile payment apps, the security of Android and iOS ones is roughly equivalent, according to the Bluebox analysis. "The iOS apps and Android apps were both on par with the amount—or lack of—security they contained," Blaich said. "Neither platform was more secure than the other." Bluebox Security is a vendor of mobile security technologies intended to help enterprises secure mobile apps. Blaich noted that as part of the investigation into mobile payment apps, Bluebox researchers used a combination of tools, including smali/baksmali, IDA and mitmproxy as well as some custom tools that Bluebox has developed for internal use. One particular area of mobile security focus in recent years has been the use of Secure Sockets Layer/Transport Layer Security (SSL/TLS) to properly encrypt data transmission. In 2014, security vendor FireEye found that 68 percent of the top downloaded free apps from the Google Play store had some form of SSL/TLS-related risk. The Bluebox study did not specifically focus on the SSL/TLS risk in mobile payment apps, though it does provide some visibility into the use of self-signed SSL/TLS certificates. Self-signed certificates represent a potential risk as they are not validated by a third-party certificate authority (CA). "As the scope of the research focused on the app-level security and the channels it creates to the back end, we didn't look into the server-side settings specifically," Blaich said. "However, none of the payment apps we investigated used a self-signed server certificate, but we have encountered mobile apps that do use a self-signed certificate and include the certificate with their app in order to validate the server." As to why security is lacking in mobile payment apps, Blaich said security has always been an afterthought in the development process for most developers and companies. "The focus largely in the mobile industry is to have a visually appealing app that can do what it needs to do, and if a security problem comes up, then they'll figure a way of fixing it later," he said. "However, security needs to be integrated early in the development process with threat modeling occurring at each step of the way to determine what is and is not a risk factor to ensure that the security gets built properly." Sean Michael Kerner is a senior editor at eWEEK and InternetNews.com. Follow him on Twitter @TechJournalist.
LG wants to get into the mobile payments game too. CNET Just when you thought there couldn't be more tech companies tackling the notion of mobile payments, in walks LG. The Korean electronics conglomerate said Thursday it plans to launch LG Pay, a s...
Mobile payment service Venmo is improving security measures after a user’s account was compromised and nearly $3,000 siphoned out of his bank account. The theft was possible because Venmo did not notify users when account details were changed. The first thing victim Chris Grey new of the compromise was when his bank notified him of a $2,850 payment via Venmo to a recipient that was not known to him, according to news site Slate. According to Grey, he was not notified that his password had changed, that another email was added to his account, that another device was added to his account, or that a lot of his settings had changed. The theft is another case of an online service that is not as secure as it could be by default or design, but is forced to take action when users are compromised. Within weeks of the compromise of the New York developer’s account, Venmo has introduced email notifications of any changes to a user's email address, password or phone number. The mobile payment service is also implementing multi-factor authentication for user logins in the coming weeks, reported The Verge. Venmo’s initial response to the compromise was to list the security features that were already in place, but the company gave no explanation of why it had not used multi-factor authentication from the start. Some commentators have suggested Venmo may have avoided introducing multi-factor authentication sooner because of fears it would slow down transactions. Venmo is very keen to preserve the easy user experience, with chief executive Bill Ready saying the company usually preferred to address fraud without alerting the user for experience reasons. "In many of these cases, we want to handle it seamlessly so we're working behind the scenes," he told The Verge, but he said his team would take a look at changing their policy. The fact that at least one user account has been compromised illustrates the danger of service providers neglecting security in favour of making services easier to use. In a blog post shortly after reports of the account compromise, Venmo general manager Michael Vaughn said the company maintained fraud rates “favourable to industry standards”. For this reason, he said Venmo was “comfortable” guaranteeing users’ money if they were hit by fraud or unauthorised transactions. Vaughn said security measures included fraud protection algorithms, encryption of all financial information, encryption of payment card information, payment limits, and automatic logout after a period of inactivity. Vaughn added that prior to the user account compromise, the company had been compliant with the payment card industry data security standard. He also attempted to deflect blame from Venmo by saying users were responsible for their own security. Vaughn said users should use a strong and unique password, set a passcode lock on the Venmo app in addition to a phone lock, and set options to receive notifications of transactions and a “wide range” of other app activities. Email Alerts Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox. By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy. Read More Related content from ComputerWeekly.com RELATED CONTENT FROM THE TECHTARGET NETWORK
On the eve of Mobile World Congress 2015 in Barcelona, Visa Europe has made a number of announcements around its mobile payments strategy and says the mobile payments sector is rapidly reaching a tipping point for user acceptance and adoption. Visa Europe executive director of mobile, Jeremy Nicholds, told Computer Weekly that Apple’s entry into the market was uplifting the mobile payments scene. The Apple Pay service, launched in the US in October 2014, enables iPhone 6 and iPhone 6 Plus users to pay for goods and services using a mobile wallet and fingerprint authentication. Just one month later, the service accounted for 1% of all digital payments made in the US, which analysts at ITG said was remarkable given the limited number of merchants signed up and the fact that it was available only to users of Apple’s latest devices. “Certainly I think recent events, along with the entry of Apple, have galvanised a lot of people,” said Nicholds. “I am sure we will see many more entrants into the payments market.” Nicholds said growing awareness and acceptance of mobile payments among end-users would help the payments industry redefine what banking and financial services are all about, making a rather staid industry more responsive to customer needs, for example. There was still an educational task at hand to introduce people to contactless and, ultimately, mobile payments, he added. Nicholds noted that with 40 million contactless payments made since Transport for London (TfL) introduced contactless capabilities in September 2014, coupled with frequent public address announcements on the London Underground about the technology, the effort was progressing well. “We are most excited about the behaviour changes we are seeing around contactless,” said Nicholds. New secure payment services At Mobile World Congress, Visa will show off a number of new products and services, including peer-to-peer payment capabilities and a secure payment tokenisation system. Visa Direct – formerly Visa Personal Payments – will now extend its offering beyond Europe to create a global peer-to-peer payment service for customers of member banks. It will be available in 20 languages and will support multiple currencies to enable users to send money to friends and family using just their mobile phone number. Visa claims the service now has more than 200,000 users and has seen a total of €43m transferred since its launch two years ago. At the same time, a partnership with Singapore-based Fastacash will enable member banks to extend social payment features, letting customers send peer-to-peer payments across the Visa network using Facebook, LinkedIn, Twitter and WhatsApp. Meanwhile, the launch of tokenisation technology, which Visa will roll out to financial institutions in April 2015, will help protect the personal data of customers using their smartphones and wearable devices to make payments. Tokenisation technology works by swapping out the payment account information usually found on a credit or debit card and replacing it with a series of one-time use numbers that can be used to authorise a payment without exposing account details over the air. Visa said the service would support the ongoing fight against fraud by enabling banks to control the environments where the token can be used. For example, it claimed, a token set up for contactless payments cannot be used to make an online purchase. Finally, visitors to Visa’s stand at Mobile World Congress will be able to explore a new partnership with the UK branch of Hearst Magazines, publisher of titles such as Cosmopolitan, Esquire and Good Housekeeping. Hearst will integrate the V.me by Visa digital wallet service to enable its readers to buy publication subscriptions to Hearst titles. Further phases, such as the ability to buy from Hearst’s e-commerce channels, are set for launch in the coming months. Email Alerts Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox. By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy. Read More Related content from ComputerWeekly.com RELATED CONTENT FROM THE TECHTARGET NETWORK
The survey revealed that just 1 percent of respondents believe using a third-party mobile payment provider is a safe way to pay for in-store purchases. More than 40 percent of respondents believe using a third-party payer such as PayPal or Google Wallet is the safest way to pay for goods online, according to a One Poll survey of 2,011 consumers from the United States and the United Kingdom, which was commissioned by security and compliance solutions specialist Tripwire. The survey revealed that just 1 percent of respondents believe using a third-party mobile payment provider such as Apple Pay or Google Wallet is a safe way to pay for in-store purchases. More than half (53 percent) of U.K. consumers believe paying by credit card is the safest way to pay online versus 37 percent of U.S. consumers, and 26 percent of U.S. consumers believe that using a wired Internet connection instead of a wireless one will make online payments more secure. "Consumers are understandably concerned about payment card security after a long swath of breaches. Mobile wallet providers aren't immune to that sentiment, and it certainly doesn't seem to be going away," Tim Erlin, director of IT security and risk strategy for Tripwire, told eWEEK. "These providers can win in the marketplace by making security central to their overall marketing message. Consumers are ready to respond to a security-centric message." The study also found that 62 percent of respondents believe that the 'lock icon' is a sign that their online transactions are kept secure, and 47 percent of U.S. consumers will check the URL to see if the page is using Secure Sockets Layer (SSL), while only 15 percent of U.K. consumers check URLs. "There's a fairly stark difference in confidence around credit card purchases between the U.S. and U.K. While surprising, I think that finding is explained by the investments in tangible credit card security outside the U.S.," Erlin said. "Regardless of the actual impact on rates of fraud, if consumers can see the chip in their card or experience a security-oriented change in their use, their confidence will go up. U.S. consumers haven't experienced security in the same way." In addition, 78 percent of U.S. consumers surveyed said they thought cyber-criminals can attack Internet-enabled mobile devices like smartphones and tablets the same way they attack computers, and a lowly 6 percent said it is safe to click on shopping links they receive in emails on Black Friday or Cyber Monday. "The threat landscape is constantly shifting, so there's no way that consumers can be adequately educated," Erlin said. "Whatever information they have is out-of-date quickly. That's why it's up to the retailers, banks and other providers to handle the security aspects of the payment system. The average consumer shouldn't be posting pictures of their credit card on Facebook, but we shouldn't expect them to understand the differences between encryption algorithms." When it comes to hesitating to provide personal information in exchange for a chance to win money in an online drawing or sweepstakes, 62 percent said they would, 17 percent said they would not and an enterprising 10 percent said it would depend on the amount of money offered. The survey also indicated U.S. consumers are at least basically educated when it comes to commerce-related threats, as a robust 89 percent of respondents said they understood the term phishing email to be an email designed to trick them into providing personal information about themselves.  
NEWS ANALYSIS: Upcoming Apple Pay NFC system will complement, not disrupt, the current card and mobile ecosystem by using current infrastructure. Apple's Sept. 9 introduction of the Apple Watch and the two new, larger iPhones was big in the device world, but the most important long-term news clearly was CEO Tim Cook's announcement of Apple Pay. "Every day between credit and debit, we spend $12 billion. That's more than $4 trillion a year, and that's just in the United States," Cook said in introducing the new payment system at the company's Sept. 9 launch event in Cupertino, Calif. "We think we have a better way to handle those transactions." If Apple Pay works, it can be a major game-changer in the U.S. economy. Devices like smartphones and watches come and go, but a payment method that is simple to use and cuts off security problems at the knees could be around for a long, long time. Apple Pay (shown in photo) is an NFC (near-field communications) payment system that uses a special chip to send a radio signal between the device and the point-of-sale receiver, which is usually a computer terminal at a cash register. It requires either iPhone or Apple Watch to touch the device; a biometric (fingerprint) second ID is also required. There is no card number entry and no need to type addresses. No personal account information is shared with the merchant or with Apple. The transaction data -- and it's all encrypted -- remains between the bank and the buyer; the merchant simply ends up with the money in his/her account. Progress in Mobile Payment Industry Has Stalled This is a huge step forward from the now-simplistic plastic, magnetic-strip credit/debit cards that have been breached innumerable times in their 50-year history. Other providers, such as PayPal, Google Wallet and Square have reached a certain level of success in the mobile payment market, but progress has been stalled for lack of widespread participation in the retail industry.   The gravitas that Apple, arguably the world's most profitable and successful company, brings to the table changes the environment in great measure. Apple Pay will not disrupt the payment business to a great extent, as some people fear. It's is being set up as another easy-to-use channel for consumers to buy what they want. Apple Pay will rely on existing infrastructure rather than creating a new one of its own; it will simply be a lot more secure and easy to use. Happy with this approach, all the major U.S. banks already have bought into it (do they have any choice?), and leading retailers such as Disney, Target, McDonald's, Whole Foods, Subway, and a list of others are already making accommodations for it. In the Apple Pay scheme, participating card issuers will pay Apple a small fee per transaction, so they stand to make slightly less money than a regular 2 percent credit-card swipe at the cash register. But Visa, MasterCard, Amex and Discover, et al, plan to more than make up that Apple Pay fee as the number of new, simplified electronic payments is expected to increase. "It's not like someone has to lose for Apple to win," True Venture partner and IT analyst Om Malik, founder of GigaOm.com said Sept. 9 on the "Bloomberg West" cable show. It's Theory at this Point, but Still Promising However, this is still theory at this point. A lot of evangelizing needs to be done; Apple Pay stations will work only in stores where merchants have upgraded their equipment to accept the NFC touch system, and that will take some investment on their part. Will enough merchants buy into Apple Pay to make it a daily occurrence on Main Street? Nobody knows for sure, but the major first-mover financial-service companies are betting on it. Thus, Apple realistically is looking at 2016 or 2017 for this to begin to make a difference in the POS and online transaction world. Does Apple also stand a chance to replace the first-move e-wallet providers, in the face of several other worthy competitors who have been spinning their wheels for a few years?   "I hope so, it's high time," Malik said  "I was amazed by the Apple Pay announcement; it is seamless. They've done a great job and brought in all the right partners. The ecosystem is already there. What Apple has done is give the mobile payments system a massive jump start." Visa, MasterCard, American Express, Facebook, Twitter, Pinterest, Nike, BMW, Starwood (hotels) and a list of other lesser-known companies are already developing their own systems for this device. The credit-card companies have been looking for something, anything to replace plastic cards for years; perhaps this is the break they need. After all, the less friction involved with making a payment of any kind means more sales, more payments taking place over electronic networks, and fewer cash transactions. Getting the Transactional Friction Out "We use it (credit- and debit-card payments) so many times a day and there's so much friction in it," Piper Jaffray analyst Gene Munster said on the Bloomberg show. "Apple's in a unique place to take a lot of that friction out and also in a unique place to capture a small fraction of that payment processing. What they're doing in payments is going to be game-changing." In 2014, credit and debit cards represent more than half of the purchases made for retail goods and services in the United States. Cash, as it always has, is the most-used in small transactions. A recent Federal Reserve consumer survey reported that cash represented 66 percent of transactions under $10 and 58 percent of transactions under $25. When the transaction was more than $50, cash was used in less than 20 percent of the payments. Those numbers will change drastically over the next few years if systems like Apple Pay become daily routines.
A mobile payment app has been withdrawn and all customer information deleted after concerns were raised over its security. The LifeLock electronic wallet had been available to download from a number of mobile stores, including Google Play, since December last year. However, it has since been found that the technology is not properly compliant with payment industry standards - the Payment Card Industry Data Security Standards (PCI DSS) - and the company has withdrawn it as a result. "We have determined that certain aspects of the [LifeLock Wallet] mobile app may not be fully compliant with PCI security standards," wrote LifeLock CEO Todd Davis in a company blog. "For that reason, we are removing the LifeLock Wallet application from the App Store, Amazon Apps and Google Play, and when users open the LifeLock Wallet, their information will be deleted in the app. "We have taken steps to delete all stored information for the mobile app from our servers. Even though we have no reason to believe the data has been compromised, we believe this is the right thing to do. "As a company dedicated to online security and safety, we are committed to doing everything we can to ensure those who trust us with their personal information can do so without question." PCI DSS has been criticised by payment professionals for being expensive and ineffective. However, in the UK, according to lawyers at Pinsent Masons, the Information Commissioner's Office has warned that retailers that fail to store payment data in accordance with PCI DSS "or provide equivalent protection when processing customers' credit card details" could be held to be in breach of the Data Protection Act, opening them up to fines of up to £500,000.
More and more mobile device users are buying products and services in the cloud—whether it's through a Web-based application or a natively installed one. Thus, the U.S. mobile payment software market is on schedule to reach $90 billion in 2017, according to a 2013 report from Forrester. Mobile payments are changing business models for banks and credit card issuers and introducing huge new opportunities for many startups. However, these new models also introduce security challenges that must be addressed by all stakeholders, including consumers.

This slide show looks at the two different models for new-gen mobile payments: "trust in the phone," which relies on a secure chip inside a mobile phone accessed via near field communications (NFC); and "trust in the cloud," which relies on user credentials stored in the cloud. It addresses the differing security approaches of each model, as well as the factors that are pushing payments into the cloud. One common theme is the need for high-assurance data protection. Finally, it explains why a universally accepted model will be key to revolutionizing the mobile payments landscape—and winning consumer trust. Resources for this slide show include Jose Diaz, director of Technical and Strategic Business Development with Thales e-Security; Forrester Research; and eWEEK reporting. Mobile Payment Security: An Essential Factor for Mass Adoption by Chris Preimesberger Mass Adoption of Mobile Payments Getting Closer The industry has been talking about the arrival of mobile payments for almost a decade, and positive steps are being taken toward mass adoption. Some big players in the retail market have invested a considerable amount in mobile payment platforms, including Starbucks, which invested $25 million in a mobile payment venture, and Square, which last August enabled its customers to use a Pay with Square smartphone app. But Some Problems Must Be Solved First Visa and MasterCard have invested heavily in pilots for mobile NFC secure element solutions. Business model and technical challenges are making it difficult for banks to go to live rollouts, especially when the cost of provisioning the phone is greater than a plastic payment card. Plus, the industry is still a long way off from having one universally accepted model; too many business issues are still unresolved. Those include global interoperability, revenue split, risk/liability and consumer perception of inadequate security. The Evolutionary Model The "trust in the phone" model, the most broadly standardized approach to mobile payments, focuses on effectively turning the phone itself into a mobile wallet. In this evolutionary model, card issuers/card schemes/acquirers collectively depend on the presence of a specialized security chip within the phone to protect the critical payment keys that enable the consumer to initiate a contactless mobile transaction at a point of sale terminal. The Evolutionary Model Precursor The evolutionary model makes use of the existing four-party model payments infrastructure and is the mobile payment mechanism of choice for the card schemes.

The cost to issue the payment application is higher than a chip card, and the interchange revenue for the bank could be lower if the customer pays by mobile compared to a magnetic stripe signature transaction.

This calls to questions why banks would rush to spend more and get less. The Revolutionary Model The alternative revolutionary model focuses on "trust in the cloud"; new market players such as PayPal, Google, Apple and innovative startups such as Square favor this. In this approach, trust lies not in the phone itself, but in the cloud; the phone is simply a way of connecting to the cloud.

The biggest technical difference between this approach and the trust in the phone model centers on consumer authentication, with user credentials stored in the cloud. Benefits of the Revolutionary Model With high-assurance data protection at the top of the agenda in the mobile payments arena, one of the key arguments in favor of this approach is that it is much easier to secure a common cloud service than millions of individual phones. Mobile phones offer little or no physical security and can be maliciously modified to access sensitive information, if not stored inside a secure element. Inherent Challenges in the Revolutionary Model The cloud-based approach is certainly not immune to security concerns, however. It is only a matter of time before fraudsters set their sights on mobile, and when they do, they will no doubt start with attacks on the cloud databases.

This will bring a range of challenges, as payment providers will need to develop rigorous encryption strategies.

This increased focus on secure user credential registration and storage will need to be accompanied by comprehensive operating rules to cover security, risk and liability. Key Factors Pushing Mobile Payments to the Cloud These include: 1) the promise of a complete commerce experience and potentially lower processing fees for merchants (the Merchant Customer Exchange retailer-led mobile wallet initiative is a good example of work toward this goal); 2) a desire to move away from the complexity of NFC, meaning the establishment of end-to-end trust throughout the ecosystem; and 3) the number of new payment providers who want to disrupt the status quo—essentially challenging why we need the existing payment rails and the legacy structure. Consumer Involvement Consumer trust lies at the core of mass adoption.

The importance of common look and feel (not just when it comes to the security aspects) cannot be underestimated. Neither merchants nor consumers will tolerate hundreds of differing proprietary solutions. Which of These Models Is Likely to Prevail? Right now it's too close to call. Cloud is clearly a disruption, while a contactless mobile payment—using the NFC secure element in the phone—is closer to the traditional point-of-sale experience.

Any solution that brings with it a significant change in consumer and merchant behavior is harder to scale quickly. However, if the mobile consumer begins to demand alternative mobile payments from new players in sufficiently large numbers, this will present a significant threat in terms of both market share and revenue for the banks. ${QSComments.incrementNestedCommentsCounter()} {{if QSComments.checkCommentsDepth()}} {{if _childComments}} {{tmpl(_childComments) "commentsTemplate"}} {{/if}} {{/if}} ${QSComments.decrementNestedCommentsCounter()} {{/if}}