Mobile payments have been in the talks for many years without seeing any kind of break-through. But, recent market developments give us reason to believe that now the time is right for mobile solutions that change our businesses, the way we act and live, and that even have the power to change our society.
When I use the term “mobile payment”, I define it as payment transactions where at least one mobile device and one of the traditional payment methods is involved. Operator billing, also often referred to as mobile payments, I would like to leave out of scope as we do not see a real future in that area.
Today, we see three main areas of product offerings where mobile payments are taken place:
The payment is executed on a mobile device of the merchant, card present; examples: Square, payleven, SumUp
Payment is executed on a mobile device of the shopper, card not present; examples: mobile optimized shops, mobile apps for games, shops, etc.
Payment is executed as part of an application in the background, in the point of sale or online, it might even not be clear if card present or card not present. I refer to it as “person present”. Examples: Opentabs, myTaxi, …
All of the three have certain characteristics, add more or less value to merchants or consumers, and come with threats and opportunities for acquirers to increase their business and their market share.
At this point in time, it is impossible to forecast which solutions will be successful in the long-run. The market, merchants and consumers will decide.
Lastly, I would like to stress, for acquirers the opportunities are huge to benefit from products built on powerful mobile devices. The one or the other solution might have the power to shift market shares dramatically from the traditional POS world into something new.
How do acquirers prepare for this? How do acquirers decide where and when to invest? How do acquirers protect their existing business against new players entering the market?
At PAY.ON, we focus on providing an innovative mobile platform that lets also acquirers build their mobile solution based on a secure and flexible modular setup. We provide standard white-label products of the shelf, as well as flexible setups fitting into any kind of business idea.
PAY.ON is a neutral white-label provider never contracting merchants directly. We do not compete with our clients – never. All solutions are PCI DSS Level 1 certified, POS setups are EMV Level 2 certified and run on our own Hardware Security Modules independent of the PED hardware used. Integration, ADVT and M-TIP certification and other technical parts are handled by PAY.ON – acquirers can focus on their core business and competencies.
In my next blog post, I will focus on available mPOS solutions in the market, which of them will be successful, why they will be successful. And I will suggest strategies for card acquirers on how to take part in the game.