The mobile wallet is already doomed ? That was fast

cartes de créditThis week the UK Payments Council announced that by Spring 2014 consumers will be able to submit and receive funds via SMS, a move that marries up an opt-in database of mobile phone numbers to customer bank accounts with 8 of the large retail banks including Barclays, HSBC, Santander, RBS and Lloyds Bank. The concept will be run by the Faster Payments service which processed over 800m online and telephone banking transactions in 2012 and the Link network, which processed 3.1bn ATM withdrawals.

In the UK, Barclays has already built up it’s success using the PingIt mobile app but this is a UK first for sending funds without the use of an interface and the Payments Council assures that all the necessary safeguards are in place to prevent fraudulent activity such as payment limits. A similar service already exists called M-PESA in Kenya and other African and Asian countries. Launched in 2009 it has over 17m account holders, proving that the platform for paying by text works successfully for small amounts. Additionally in Australia, company mHIT Ltd has been active since 2010 with its mobile micro payments service.

But while this may be nothing new it’s impact will be felt by those building mobile wallet apps because this will be the first kind of service in the UK to not require users to set-up an account with a separate service.

Will this kill off the mobile wallet before it’s even gotten out of the starting gate ?

It’s unknown which mobile network providers will back the new service but if NFC makes it mainstream (we still await Apple to integrate NFC technology into the iPhone for example) then it’s no stretch of the imagination for there to be some kind of integration between NFC and this service all being linked to your mobile number without the need for a wallet service.

The mobile landscape is changing rapidly and banking and payment services are fast catching up to this, which may leave third party apps out of pocket and with empty wallets.

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Categories: Disruption, Finance, Financial, Information Technology, Innovation, Mobility

Author:Theo Priestley

"I had more creative ideas from Theo in 6 months than I have had in 6 years from most people." Theo Priestley is one of the most recognised independent technology industry influencers and evangelists, ranking in the Top 100 thought leaders across Virtual/ Augmented Reality, FinTech, Artificial Intelligence, Big Data, Internet of Things and future trends. Theo has written insights for Forbes, Wired, The European Magazine, Venturebeat to name a few, and has been interviewed for many online publications including the BBC on his thoughts on technology and the future. A regular paid keynote speaker and panelist at conferences and events, Theo is engaged for his forthright views and isn't afraid to challenge conventional thinking and the marketing hype surrounding the industry when presenting, never pulling punches to get the message across on how technology can be applied to improve business and the customer experience. He has also successfully organised and run TEDx and Ignite events. Highly active across social networks, he sits in the Top 1% for social media engagement on Kred and Klout and is constantly sharing articles and his analysis that he feels his audience would be interested in. Theo is also active in the startup community, mentoring within UK and US accelerators and sits on a number of advisory boards. Former VP and Chief Technology Evangelist at a Top 25 European enterprise software company with a career spanning both innovation strategy and delivery of software and business change in Financial Services, and as an independent technology industry analyst. Follow Theo on Twitter @tprstly or connect here directly for constant insights on tech and marketing trends. • Top 1% Influencer on Kred (915) • Top 1% Influencer on Klout (70+) • 12,000+ Followers on LinkedIn • 13,000+ Followers on Twitter • Recognised Top Influencer in AI, Virtual/ Augmented Reality, Fintech, IOT and Wearable Tech, Big Data and Analytics.

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2 Comments on “The mobile wallet is already doomed ? That was fast”

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  1. Innovación frugal en mercados desarrollados « eme ká eme - January 21, 2013

    […] de exportación. Y así ha sido: la parte más adaptable del sistema, el pago por SMS, ya está preparado para funcionar en Reino Unido. Lo de los “banqueros de aldea” no lo han importado, aunque sería extraño que los […]

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