January 25, 2014
Mobile payments were tipped by experts several years ago as the panacea for payments at merchants, online, for governments and at tolls/transit. Today lot of people ask me this question – what is the problem that mobile payments are trying to solve? Considering, mobile payments have been touted as ‘must-have’ in the race to digital payments supremacy, companies from various industries and domains (Technology, Banking, Financial services, Retail, Telecom and others) launched their mobile payments solutions. As a result, market was flooded with hundreds of solutions. Each boasting its technological edge, promise of large adoption and being the game-changer. Forget the game many were not able to grow beyond their island.
How do we know this? Well to start with, the adoption among the consumers has not been encouraging. With mobile payments volumes not reaching the desired levels, board and investors at companies are asking tough questions to mobile payment leaders of these solution providers. This is driving some companies to closure already. LTP in this article would look at how major companies are dealing with it and what options are they exploring? What are the learnings for the market players as a whole. In subsequent articles, with inputs from industry experts we will try to further the cause.