An interesting report came out of CTIA last week that questioned the reason for poor adoption rates of mobile payment systems in North America. One of the main factors was the perception by consumers of how unsecure these systems may be. However, on closer examination the real problem is not with the security of the technology (as these are very secure, or can be made so), but rather with the perception of the institution offering the technology to the consumer. If consumers feel the solution is coming from a reputable brand (e.g. Visa) then their fears of security are alleiviated and they are more likely to adopt the technology willfully. This was sited as the "Brand Promise" that the provider offered.

Based on this information one could argue that Banks have a much better edge at rolling out mobile payment schemes as opposed to Network Operators. Banks are always percieved as being large vaults that protect our savings (ingoring the current market turmoil of course!). On the other hand MNO's are not necessarily revered by customers and hence the constant problem of subcriber churn.

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Name: Hesham Fahmy Title: Solutions and Technology Architect Company: DonRiver View Hesham Fahmy's Blog