In briefThe leading area for mobile payments globally is … the need for interoperabilityMobile payments will happen over the next 3 years because…dream on, theyre already hereMobile payments will not happen…if financial institutions and operators do not start cooperating The value in mobile services is … financial inclusion of the unbanked, reduction of transaction costs Cash will…become obsolete or very costly to holdConsumers will turn to their mobile phones mainly to…organize their life Three very “cool” initiatives in the mobile space are … Mobito, PayPal, Square
The Paypers: MoreMagic (an Oberthur Technologies company) has developed a mobile money system on which the mobito mobile payments platform was built in the Czech Republic. Could you provide our readers with more information on mobito and the business model on which it is based?Steven Jurgens: The Mobito Platform is based on the principles of cooperation – interoperability – between banks and network operators. With equal shares in the partnership and operating the fair business model of revenue sharing, the focus is resolutely on customer functionality.
The Paypers: What payment methods and functionalities does mobito enable?Steven Jurgens: MoreMagic Solutions, an Oberthur Technologies Company, has customized its mobile money platform for Mobito to enable cashless transactions. These replace cash or payment cards for convenience and speed of both users and merchants. Currently, key functionalities are person-to-person transfers, top-up of any phone or prepaid cards and transactions at merchant point-of-sale or the internet.
The Paypers: Mobito was developed to facilitate a partnership between banks, mobile network operators and merchants. How is this interoperability achieved (among these very competitive players) and what are its main advantages? Steven Jurgens: The story of Mobito is about perseverance of its founder, Mr. Tamas Salman, in getting banks and operators aligned around a common and fair business model. From idea generation to launch it took some 3 years, during which principles of cooperation, securing a regulatory license, selecting the right supplier, technical integration and platform customization were achieved.
As technology provider, we cannot comment on how participants view benefits. Based on deployments we have realized across the globe, we see clear benefits with structures that advocate an open standard. Interoperable platforms are likely to have greater uptake by users and merchants, scale up faster, support a greater level of trust and are rooted in convenience.
The Paypers: What are some of the main challenges mobito has come up against? Steven Jurgens: As technology vendor to Mopet CZ, the company founded by the banks and network opertaors to run the Mobito eco-system, we observed that a strong technology partner is key. MoreMagic Solutions was brought in to replace an earlier vendor half way through the integration process.
The Paypers: How do Czech merchants regard mobito? How is integration achieved between their systems and the mobito platform?Steven Jurgens: MoreMagic does not operate the Mobito platform, but we believe it is well on its way to achieve planned user and merchant acquisition targets. Integration for users - almost all device operating systems qualify - and for merchant systems are enabled through a near modular and approach to the technical design of the MoreMagic platform.
As far as the adoption of mobito by consumers is concerned, where do you think the main challenges come from? In your opinion, how far are consumers in general willing to trust their mobile phones for financial transactions / payments?I cannot speak for Mobito, but across MoreMagic’s deployments we have observed the main drivers for mobile money to be the lack of infrastructure - in emerging markets; and convenience and speed - for mature markets. The biggest challenge for mobile money anywhere are merchant acceptance and the delivery of a positive user experience.
The Paypers: In your opinion, is the regulatory environment favourable to new players entering the (mobile) payment market?Steven Jurgens: By definition, regulations are imposed on all players – incumbent or new. We see the EU now issues licenses that are valid for all EU-markets and we see more non-bank, non-operator service providers being awarded licenses to operate financial transactions in both emerging and mature markets. This will drive competition and reduce cost to users and drive creation of new services.
The Paypers: Innovation has always featured prominently on the agenda of the EPCA Payment Summit. As the scope of innovation in the global transaction services space shifts to encompass much more than simply the banking industry, mobile devices have become a significant element of new developments in the field. In your opinion, how has this paradigm shift come to happen and what are some of the main factors that have brought it about?Steven Jurgens: Innovation and replacement cycles in financial services are accelerating – it took 200 years to move from brick & mortar retail banks and cash to credit cards and the internet. It took 40 years for cards to become pervasive. And in only 20 or so years the mobile device has demonstrated that has become a new low-cost transaction channel. In parallel, the lack of banking infrastructure and regulation in emerging markets has enabled branchless banking to reach the unbanked at low cost, whilst drivers in the developed world have been convenience, ease of use on what are now affordable handheld devices.
About MoreMagic Solutions:MoreMagic Solutions, Inc. is a wholly owned subsidiary of Oberthur Technologies and a leading provider of mobile money solutions for mobile operators, financial institutions and other service providers worldwide. MoreMagics flexible, customizable and scalable platform interconnects all the stakeholders within a mobile commerce ecosystem to enable the delivery of a comprehensive suite of secure services: cloud wallet, remote and proximity payments, top-up, cross-border value exchange, coupons and loyalty. MoreMagic has more than 30 active deployments and over 120 mobile operators across 60 countries with a total addressable market of over 1billion mobile users connected to its international recharge hub and it has equipped complex mobile money platforms in Africa, the Caribbean and in Europe.
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