SIOUX FALLS, S.D. (8/30/13)--Although it is not clear which technologies will win the mobile payments race, financial institutions, including credit unions, must adapt products and services to meet consumer expectations for the mobile payments model, according to a new white paper from the ATM Industry Association.
The mobile payments market is still at an early stage, and most models are just one to two years old, but consumer adoption has been rapid, the paper said. By 2017, consumers worldwide will buy $1.3 trillion worth of goods with their phones and tablets, a fourfold increase from today, according to Juniper Research.
Recommendations for financial institutions made in the white paper include:
Financial institutions should leverage critical mass and global presence of the ATM as a hub for interacting with mobile devices by integrating technology such as cardless operation. It is crucial to position the ATM as an integrated payment hub to help financial institutions shape the future payments market, the paper said.
With their expertise in transactions, financial institutions should consider strategic alliances with mobile payments providers. For example, the mobile network operator handles interfacing with the banking network to provide mobile payment for under banked sectors.
Financial institutions can leverage their own competitive advantage to extend card-based payment to include mobile payments. Financial institutions can define mobile payment as an extension of card-base payments and can help establish standards in the mobile market, the papers said. Financial institutions also have expertise with data security and fraud prevention.
To download the white paper, use the link