BROOKFIELD, Wis. (9/30/11)--Fiserv, Inc., a provider of financial services technology, has published a white paper that outlines the reasons banks and credit unions are suited to support mobile payments. The paper also provides insights on how credit unions and banks can enter the mobile market. In the paper, titled “Beyond Mobile Banking: It’s Time to Stake the Claim for Mobile Payments,” Fiserv argues that financial institutions are positioned to offer mobile payments for five reasons:
* Consumer trust: Consumers trust their credit union or bank for secure financial transactions. According to the 2011 Fiserv Consumer Trends Survey, 40% of consumers trust their credit union or bank to handle mobile payments, outpacing all other entities. * Access to consumer accounts: Banks and credit unions already hold the consumer accounts necessary to fund mobile payments. * Payments knowledge: Financial institutions possess the experience and practical know-how to provide a secure and reliable payment service. * Necessary assets: Financial institutions have access to the assets necessary for payments, including infrastructure, technology and networks, along with the ability to provide customer support. * Existing relationships: Credit unions and banks have the direct and indirect relationships (commercial, merchant and consumer) needed to facilitate mobile payments.
“Banks and credit unions don’t have to wait on the sidelines as non-traditional players move into the mobile payments market,” said Erich Litch, Fiserv, division president, Digital Channels. “There is currently a window of opportunity during which financial institutions can introduce consumers to mobile payments, starting with mobile bill payments and P2P payments, establishing themselves as providers of choice so they can retain the full range of mobile transactions as the space grows to include more payments at the point-of-sale.” A combination of three factors establishes the case for starting with mobile bill payment and person-to-person payments, Fiserv said. One, most financial institutions already are positioned to offer mobile bill payment and P2P because they support these capabilities via the online channel and have the necessary infrastructure in place. Two, consumers are now using--or are interested in using--mobile bill pay, particularly for expedited payments. Completing relatively straightforward transactions such as paying a bill or paying another person will allow consumers to become comfortable with using their mobile device for payments and will increase their confidence in the channel’s reliability. Third, financial institutions can extend security measures associated with existing payments capabilities to the mobile channel and capitalize on new security capabilities the channel offers, such as location-based payment verification. Fiserve said this will alleviate a significant consumer worry--41% of consumers responding to the 2011 Fiserv Consumer Trends Survey said they are concerned about the security of accessing financial information through their phone. The ability to offer a more secure mobile payment solution will give consumers another reason to pick financial institutions over non-bank competitors, the company added. To download the white paper, use the link.