Winning the Customer

November 27, 2015
/   Spotlight

It’s exhausting just trying to keep pace, let alone stay ahead. Every provider in every business feels the pinch.

Five ways payments will be different in 2024

November 24, 2015
/   Voices

Predicting the future of cash and card payment volumes is arguably a fool’s errand – but Payments UK, Britain’s new trade organisation for the industry, is in a good place to have a go...

Contactless cards: Opt-in or opt-out?

/   Voices

Australia is toying with the idea of creating an opt-in function for contactless cards, in a move that highlights the problems around coping with new payment technology and how fraud risks are handled.

Five EMV lessons for the US

/   Voices

The EMV liability shift has occurred in the US, so what can we expect to see happen in the coming months and years as a result of this change?

Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

What We’re Reading

May 5, 2011
/   Spotlight

Below are interesting stories the staff has been reading over the past week. What have you been reading? Let us know in the comments section below. Virtual Banking Worlds Provide Tangible Lessons American...

What We’re Reading: Thanksgiving Edition

November 22, 2012
/   Spotlight

Below are interesting stories the staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom. Mobile Thursday? Plans for Thanksgiving...

For a long time now, one key question in mobile banking has been: When? When will the integration of mobile devices and credit cards become truly mainstream, when will one open technology standard (or one clear proprietary winner) emerge, when will the market be described as stable rather than volatile?

The apparent answer still is. . .not anytime soon. But is that a bad thing?

To be sure, there’s no shortage of competitive options. Just a few days ago, FIS released its Mobile Wallet, which enables downloadable proprietary apps from selected financial institutions and retailers. As with other entrants in this market, it gives consumers the option to securely use their credit cards to make purchases via a smartphone either online or at the point of sale.

What makes this market so fascinating is that each new offering joins a lengthy list of innovative options already available from an array of providers.  Credit cards giants such as Visa and Mastercard have entered the arena, as has Internet behemoth Google. PayPal, the undisputed market leader in online payments, has multiple approaches, including its acquisition of mobile payment startup Fig Card. While some financial institutions are waiting it out to see who takes the lead, a few have entered the fray on their own, such as ClearXChange, a joint effort from Bank of America, JPMorgan Chase and Wells Fargo. And of course, as with any emerging market, there are very interesting newer players, including Intuit’s GoPayment and Square, launched by a co-founder of Twitter and now backed partly by Visa. And that’s by no means a complete list.

In other words, there may be just too many intriguing possibilities for a clear consensus to emerge anytime soon. But again, is that what the market needs? Can real growth only come through consolidation and a real standard?

Historically, that’s sometimes been the case. The VCR market saw a battle royal between VHS and Betamax, and it can be argued that only with the emergence of the VHS format did usage explode. The modem market waited for a standard as at least two formats fought for leadership. Microsoft’s DOS, and later Windows, captured a huge lead it the PC arena by beating out the Macintosh and holding off competitors such as IBM’s OS/2.

However, this has definitely not been the case with the mobile market. Apple’s iPhone has both mind and market share, but there are still plenty of other options in operating systems and formats alike, and that’s also the story with tablets.

So maybe the real answer with mobile payments is that, for the foreseeable future, there will be more competition rather than consolidation, and that will drive the market rather than constrict it. Of course, if there’s one prediction in technology that always holds true, it’s that every prediction turns out to be wrong. Any guesses?



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James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Brad Strothkamp

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.