The paper outlines the current range of mobile wallet structures coming to market and outlines some of the key considerations that financial institutions should take into account when evaluating which approach is the most appropriate for them. The paper contends that the majority of financial institutions will, in the short term, attempt to develop their own proprietary wallets in a partner-independent manner. Only when a secure element (SE) is required, or when core functionalities become too difficult for financial institutions to achieve alone, are they likely to open their solutions and seek to cooperate with other stakeholders.
The paper offers a generic description of a mobile wallet structure based on the premise that the wallet is a container, which houses ‘services’ (most commonly individual mobile apps). The paper then defines two broad mobile wallet structures that support this model: a ‘horizontal wallet’ (an open wallet capable of supporting services from multiple providers) and a ‘vertical wallet’ (a closed wallet housing services from a single provider).
The paper also highlights some of the restrictions that a financial institution could face in implementing a mobile wallet solution. These restrictions largely depend on each service’s requirement to store credentials data in the SE.
In recent news, Mobey Forum has published a white paper titled ‘The MPOS Breakthrough: How the Power of Mobile has Disrupted Payments’ which analyses the mobile point of sale (MPOS) revolution sweeping across North America and Europe.
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