New research by Aite Group in its report, Money Goes Mobile, tracks the evolution of the digital wallet ecosystem, mobile wallet growing pains and the success stories emerging as an industry ripe for change brings together the leaders that can create and deliver robust mobile wallet products.
Aite Group also breaks down the different types of digital wallet services that exist today,
identifies the barriers for adoption, and examines the value propositions of the various technologies for the consumers, merchants, and payment providers.
The research is based on more than 20 interviews with executives and product managers within the financial technology industry from February to April 2014.
Aite Group’s analysis indicates that technology companies and mobile payment providers should ensure that the user experience and loyalty or reward programs are paramount in their products in order to incentivize consumers to abandon traditional payment instruments and adopt mobile money.
Additionally, mobile telephone carriers should consider offering merchants consumer analytics by collecting and storing data and invest in partnerships with loyalty/reward providers to attract consumers to their platform.
Aggregators for white label applications should begin developing NFC-based payment systems, since card-present status and reduced liability will continue to be attractive to merchants.
“Financial institutions should begin partnering with mobile payment vendors to incorporate mobile payments into their mobile banking applications and focus on developing offers and promotions as well as consumer education to convert their mobile banking customers into mobile payments consumers,” says Nathalie Reinelt, analyst in Retail Banking & Payments at Aite Group.