Opportunity versus risk
Understanding the unique combination of both first mover opportunities and significant risks.
Mobile payments and e-wallet services represents a unique combination of both first mover opportunities and significant risks.
The mass adoption of mobile technology and the boom in smart phone functionality has led to the number of mobile payment users increasing by over 50 million since 2011 and the value of mobile payments increasing by 61.9% in the same time frame1.
The collaboration between previously unconnected industries to create what is a brand new consumer service presents clear challenges. From initial strategy definition, through to design, planning, implementation & go-live, a mobile payments ecosystem presents a complex web of interconnected risks across revenue, finance, operations, technology, legal & compliance and 3rd party management.
Any mobile payments service needs to ensure absolute regulatory compliance to financial and consumer-based regulation; this becomes more challenging when players are entering unfamiliar new markets. Ecosystem players will also need to be conscious of complying with relevant data privacy laws.
Mobile payments are broad and can range from simple SMS transactions, peer-to-peer payment systems, direct mobile billing, web or application-based payments on a mobile, through to newer contactless and Near Field Communication (NFC) technologies.