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ADVANCED PAYMENTS REPORT 2014 – SPONSORED BY

Critics, however, say that setting up a new payment system that mobile device, from a laptop connected to the internet or at a POS.
is widely accepted is a tall order, and managing payment risk, However, existing networks are being challenged by start-ups
an essential part of any payment system, is not a core merchant and others to provide a more fexible, seamless user experience
competency. Stick to your knitting and do what you do best, they across channels.
say. 2014 will be a crucial year to watch progress on this front to
see whether or not the initial enthusiasm for merchant payments Slow Progress
graduates to something substantial. The relatively low ranking given to MNO-led initiatives (which
ranked above start-ups but below all other players) may refect
Card Networks disappointment in the slow pace of investment by mobile networks.

Respondents ranked card networks and payment schemes The MNOs have been slow to deliver the promise of data driven,
towards the top of the list, consistent with last year’s results. location based and easy to use payment services. Despite the
Existing card networks are at the heart of billions of electronic formation of consortiums such as ISIS and Weve, the mobile industry
payments and dominate retail payments today. The advantage has not yet been able to gain strong traction when ofering new
of incumbency, while never permanent, is of critical relevance in mobile payment services in developed markets.
payments because setting up a new payment infrastructure can In some developing markets where there is poor access to banking
be economically prohibitive.
and fnancial services, mobile operators have successfully introduced
Existing networks have well-established, robust processes and payment and banking services. However, as discussed in a separate
have been highly efective in managing a wide range of credit, section of this report, 2014 may well be the year when this may
charge, debit and prepaid products. Payment cards can be used change, and we may see more mobile payment programmes being
across multiple channels – a card payment can be made over a rolled out.

85%

85% of respondents believe established alternative

players most likely to drive mobile payments growth

www.edgardunn.com | www.paymentscardsandmobile.com Edgar, Dunn & Company in association with Payments Cards and Mobile 7