After a time of significant hype, the mobile wallet debate is now starting to switch from ‘why’ to ‘how’. At the same time, the multi-billion euro payment industry is in a state of unprecedented change. The emergence of disruptive technologies has paved the way for new entrants into a formerly exclusive market, once dominated by the “traditional” financial service companies. By 2020, Mobile Payment, defined as payment with a smartphone or smart device is expected to account for a substantial part of current cash and card based payment methods.
To-date, stakeholders within the payment value chain have been unable to establish an overarching mobile wallet solution. If a consumer wants to transfer money or pay for goods and services, they are confronted with a variety of functional but outdated options: cash, various payment cards, or specialty cards. While most of these solutions still serve their intended purpose, they are slow, complicated, cumbersome, and ripe for innovation. In rare instances where there is a functioning mobile payment solution available, it usually covers only a single payment segment.
A European solution for a European market with a comprehensive mobile payment concept at its core is lacking. A number of factors suggest that the race to become a dominant mobile wallet solution within Europe will be difficult to win for big players like Apple, Google or PayPal. This presents exciting opportunities for new regional companies which are fundamentally neutral and establish themselves between the various stakeholder groups (Issuing and Acquiring Banks, PSPs, MNOs, Fintech Start- ups, etc.) and understand the complex European regulations which present significant barriers to entry for outsiders.
This gap in the market offers a unique opportunity to align with key stakeholders and form partnerships to connect the various existing infrastructures and create a single seamless payment interface for the end-user, ushering in the dawn of (mobile) payment 2.0.