While the market for mobile payments at the point of sale (POS) has yet to mature, there are multiple other ways for financial institutions to support mobile payments. To capitalize on the market opportunity, financial institutions should consider a strategy that encompasses the four pillars of mobile payments:
• Paying Self -Transfers and deposits into a personal bank account, via mobile deposit and funds transfer capabilities
• Paying Other People – Person-to-person payments to individuals and groups
• Paying Billers – Payments to a biller either through a financial institution or biller
• Paying Merchants/Retailers – Purchases via mobile proximity payments, cloud, or online via apps and mobile websites
A new white paper from Fiserv outlines how a strategic approach to mobile payments starts with the services consumers are using today. Titled “The Four Pillars of Mobile Payments: Immediate Opportunities,” focuses on the four pillars noted above until mobile proximity payment offerings mature will enable banks and credit unions to attract, retain and strengthen relationships with key customer segments already heavily using the mobile channel, such as Gen Y.
Fiserv say in addition to immediate opportunities associated with supporting today’s most prevalent mobile payment types, banks and credit unions are encouraged to invest in the future. Building out support capabilities and mapping the POS payments user experience to the design of other mobile banking transaction types could drive mobile retail payments use, putting financial institutions in a strong position.
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