The Mobile Banking Problem That No One Talks About

What's Next In Payments®
5:04 PM EDT May 8th, 2012

If you ask consumers why they don’t use mobile payments more often, they’ll probably give one of two reasons: either they’re concerned about security issues, research has shown, or they don’t see the point in terms of added value or convenience.

But businesses have a bigger problem, claimed Thabiso Moerane, Mobile Commerce Ecosystem Leader at Alcatel-Lucent, in a prepared statement issued earlier this week.

“Security is not the main concern in mobile banking. The real issue is making m-banking viable as a business concern, in order to offer it to the unbanked,” she said.

Moerane contends that most of the world’s underbanked — those customers in emerging markets that so many payments players are currently fighting over — can only afford to pay about $2 a month towards new mobile financial services.

“Mobile banking makes the most sense because the mobile infrastructure is available across the country,” Moerane added. “What comes into play now is finding ways to achieve a business model that makes commercial sense and is still affordable enough for low-income customers.”

Read the full release here.

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