Mobile Payments in the U.S.--the JR View

Ed Kountz | June 13, 2008, 10:53 AM

Evidence exists that a new class of converged devices are changing the playing field in U.S. mobility.

As JR analyst and esteemed colleague Michael Gartenberg pointed out in April, converged devices are taking hold, as multi-function/ multi-feature handsets change what was (not that long ago) a single-device/ single feature world. Lower data plan prices, enhanced offerings and features, and consumers ‘use of the mobile Internet are all factors in this.

This is positive when it comes to the re-launch of mobile payments services, at least long-term. Mobile habits are also evolving to embrace more data, which is also a positive. Still, and inspite of the vibrant activity that has taken place within the US mobile payments arena for the last 2 years,significant inhibitors to the rise of mobile remote, P2P/ remittance and particularly NFC / proximity payments do remain. My recent research report: US Mobile Payments: Interim Steps for Driving Interest and Uptake, looks at these trends in the context of the broader habit shift required to drive widespread, handset-based transactional usage among US consumers.

LINK

In sum, mastering the interim steps—mobile marketing and search, two-way interaction (in the form of mobile banking) and engaging applications that overcome the remaining limitations of the interface will be essential in driving transactional usage. This is particularly true given the fact that, and in a divergence from other markets, most U.S. consumers do not yet express an interest in paying by cell.

Upcoming research will take a look at the role mobile banking is playing in the evolution of the mobile ecosystem.