ABSTRACT
Although banking may be going through a disruptive period, mobile technology has been experiencing a similar experience, with feature phones globally being replaced by smartphones. It could be suggested that mobile technology is also in a transition period.
The author’s view is that, from a payment prospective, we need to treat these two types of phones as separate payment platforms. The feature phones essentially support mobile money and smartphones support mobile payments. This chapter describes both of these mobile services, positioning them in their respective markets.
The impact of mobile money is examined by looking at the penetration rates in the various geographical regions. The question is asked relating to the challenge of extended mobile money being beyond just a cash transfer service (cash-in/cash-out).
The question is also raised, from a security perspective, about the smartphone being more than a device for calls. A number of payment services are now supported from smartphones, especially as mobile, tablet and PC devices merge into a single platform. What is the impact of losing your phone and does this expose the user to identity-based fraud?
It could be argued that, with smartphones, mobile operators have lost out in exercising any influence over payments. What influence they have is where feature phones still have a strong market presence. This can only be a short-term proposition, so why should mobile operators continue to invest?
