Instrumented Interconnecteds Intelligent

When it comes to using mobile phones as electronic wallets, the emerging markets are clearly way ahead of the more developed ones. In Kenya, the Philippines  and elsewhere, millions of people are using their phones to pay for things, transfer money, secure micro-loans and do their banking. Not so in the United States. Will the US follow the path of the emerging markets? Probably not.

This message came through during a media panel sponsored by IBM in New York recently. The event, “Driving Mobile Payments Adoption in Developed Markets,” featured as panelists Tomasz Smilowicz, global head of mobile banking, Citibank; Kate Kingberger, of the CTIA wireless trade association; and two IBM executives, Alberto Jimenez and David Mangini. “There will be two distinct markets,” said Jimenez, the mobile payments leader for IBM. “One market will be the developed economies and wealthy people in emerging markets. The other will be majority of people in the emerging markets.”

In the United States, it seems likely that mobile money will primarily be a means of conveniently paying for things and interacting with retailers. In emerging markets, its could become the main doorway to banking services for masses of poor people.

Kate Kingberger and Tomasz Smilowicz

Kate Kingberger and Tomasz Smilowicz

Citibank is betting on that outcome, and plans on being the most aggressive mobile money advocate in the world. “Citi was the bank that made ATM’s successful. Now we hope to make mobile banking successful–even moreso,” Smilowicz said.

In spite of the fact that mobile money will develop differently in developed markets from emerging markets, Smilowicz believes that businesses in the West can learn from the experiments elsewhere. One of the deterrents to adoption of mobile money in the US is the fact that a new generation of point-of-sale devices would be required–or seemingly so. He pointed out that Kenya’s Safaricom, the mobile money leader in Kenya, is exploring the idea of putting near-field communications chips in handsets and installing wireless point-of-sale terminals. The cost: an affordable $10 for the phone and $30 for the terminal. “In Africa, they don’t have wired point-point-of-sale terminals, so they have to think outside the box. We can learn from them,” he said.

The panelists were optimistic about the potential of mobile money. Smilowicz stuck his neck out and predicted that in just three years the phenomenon will be mainstream.

Many factors have to come together for mobile money to take off in the US, but the main thing is large numbers of people will have to see a benefit in it. That hasn’t happened yet. Maybe Google Wallet will provide a tipping point. What’s needed is the proverbial killer app.


Here are links related to this topic:

The Deal

Bookmark and Share

Previous post

Next post

May 15, 2014
1:50 pm

For most up-to-date information you have to pay a visit world-wide-web
and on internet I found this website as a best web site for newest updates.

Posted by: steam wallet hack no survey no password december 2013
August 3, 2013
4:44 am

A Fujifilm LTO6 16310732 Best Safe-keeping Cartridge A Fujifilm is actually
a most important supplier involving image and knowledge technologies products and solutions.
Renowned to its medical modernism together with elevated virtue,
Fujifilm is an definite collecting imaging modern technology merchandise, perfect together with
trustworthy expert services also it relevant methods to shops, regulars, specialists, in addition to small businesses.
Typically the copy along with storing media channels is probably the most crucial issues with their trustworthy discovered and also knowledgeable whole products.
midwayusa cartridge síň slávy cartridge hp deskjet 3050 tonery služby St Martin Boulogne tonery samsung scx-3405fw tonery služby St Martin Boulogne cartridge valve cavity tools HP 662 cartridge cheap ink cartridges hp 02.

Posted by: cheap ink cartridges hp 301
July 28, 2013
3:59 am

I�d need to examine with you here. Which isn’t one thing I usually do! I enjoy studying a submit that will make people think. Additionally, thanks for permitting me to remark!

Posted by: Danae Bevilaqua
July 27, 2013
4:10 am

It¡¦s in reality a great and helpful piece of info. I am happy that you shared this helpful information with us. Please stay us up to date like this. Thank you for sharing.

Posted by: Travel Agency
July 26, 2013
5:46 am

Oh my goodness! an amazing article dude. Thank you However I am experiencing subject with ur rss . Don�t know why Unable to subscribe to it. Is there anyone getting equivalent rss problem? Anyone who knows kindly respond. Thnkx

Posted by: Shon Mancini
July 22, 2013
2:04 pm

When I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any approach you possibly can remove me from that service? Thanks!

Posted by: Marylin Doege
July 21, 2013
5:02 am

you will have an awesome blog here! would you prefer to make some invite posts on my blog?

Posted by: Kevin Feramisco
June 26, 2011
2:57 am

Undeniably believe that which you said. Your favorite justification appeared to be on the web the simplest thing to be aware of. HTC Touch Diamond 2

Posted by: michael04
June 10, 2011
2:05 am

Agreed. Google wallet will be the tipping point. There are also other players like square. These apps would increase adoption among mobile phone users.

Posted by: Shiva Kumar
Post a Comment