Every day when I open the Mobile Banking journals or articles I read a out a new name, new collaboration in Mobile Banking space...and it does not stop here.. each of these new players are bringing new and unique definitions of mCommerce and Mobile Payments and dropping in new players in the Mobile Banking/Payments eco-system.
This definitely gives one indication: Mobile Banking is the red hot spot today(and lucrative too) where everyone wants to have a share in the pie.
If I look back 6 years from today somewhere back in 2005 no one.. I mean no one was interested in this domain.. rather a few technology players having a strong vision about the Mobile Technology growth were out there and experimenting few usecase in bits and pieces. Still remember I got 60 percent marks in the final semester project (assessed by Professors from ISRO).. Why 60 percent only? Because me and my friends implemented a project on "How to Perform Pre Paid Mobile Recharge using a stored wallet prepaid instrument using a J2ME Application download on our so called Smart Phone of 2005 THE NOKIA 6600".
Comments which we got from professors was even more shocking (than the 60 percent marks) - "Please be realistic in life... It would have been interesting to see something which makes some sense" - My friends got better results because they implemented "Switching a Fan On by sending SMS" That was year 2005. I wish to meet the same professor now :)
5 Years have been the biggest game changer in the vary Mobile Banking and Payment space... Reason being the entry of new Mobile Manufacturers... enabling developer communities, reduction in Mobile Phone prices and the Mobile usage charges let it be SMS, GPRS etc.., increase in technology support from telecom domain, awareness about security, Banks wish to go Multi channel and provide low cost Banking channels and become more profitable and many more.
If I recall back and list down the important events in Mobile Payment space in last 6 Years...
2005 - 2008 - Few Banks engaged in analysing Mobile Banking as an additional channels (powered by small technology providers).. Primary channel being looked out were SMS Banking or Text Banking and WAP Banking (WAP ??? :))
Few early entrants tried burning their fingers and took the beating on being unsuccessful to promote Mobile as a channel for Banking and Payments.. a very few sustained during this space. May be too early in developing countries.. where Telecom infrastructure was not upto the mark, end customers were not ready or didnt understand the technology, lack of awareness.
Channels which were known during this (will call) era were SMS, WAP.. Ya ya there were few guys using Nokia NFCs ... not much of happenings..
2008 - 2009 - Few Banks again the tried their hands on Downloadable J2ME applications and provide Mobile Banking services...Also ... and yes how can we forget .. there came few of the player who were known as third party Merchant Aggregators bringing in ticketing, Bill Payments, Mobile Recharge services via Credit Card payments .. hmm where are the Banks? No where..
Also suddenly there entered few people thinking about the unbanked population and brought in Mobile Payment services creating virtual wallets where user can pay from his virtual mobile account... (Sorry Banks we dont need you...).. Let me give a count now... First we had Banks, than entered so called Third Party Merchant Aggregators and then Saviors’ of the unbanked population Telecom service providers... This this time still things were pretty clear.. who is who was identifiable..
Channels grew to Downloadable Apps..Major chunk being J2ME applications, WAP got enhanced a bit to richer XHTML bases Mobile Browser solution(providers shown interest in bringing new Mobile Browsers)
2009 to 2011 - Now this is the time... too many technology revolutions... let me try to put it down if i remember
Apple iPhones becoming more and more popular (agree iPhones were there before this time).. and Apple iTunes services lacs of application download request...
Entry of the Giant Google - providing Android (not one.. more than 5 versions in an year..) opeing up for all the OEMs (Why Didn’t Nokia Join.... we have heard and read a lot), Opening up a developer forum and community which has grown faster as compared to Apple Developer community. Where is Nokia (busy working on new strategies?)
This was on the Manufacturer front.. lets talk about Technology Service provider.. Big Technology service providers saw this as a budding space and jumped to provide so called Mobile Banking and Payment solution.
Today every day a new company claims to provide seemless Mobile Banking solution on channels (you say what you want) - SMS, USSD, Mobile Browser and Downloadbale application (Android, Apple iOS, RIM, J2ME, iPad, Palm OS etc etc.. )
Ahhh forgot the NFC providers ... yes yes.. with Android 2.3.3 Ginger Bread version has made the entire market talk about NFC..(Near Field Communication)... where is the ecosystem...??? Wait for some time... Google's working on that..? Not only Google there are few companies doing NFC using SIM cards and NFC Tags... (Reality is that so far we have seen few POCs only) - will have to wait sometime to watch this space and comment.
This was on the Mobile Manufacturers front... While this was happening there entered few players from the back door .. again caring for those who are unBanked under the name of Financial Inclusion. So what do these guys do?? - They do the same... provide you Virtual Wallet (is this some magical wallet?) where you dont need a Bank account.. (are they taking Bank customer away from bank... Do they always want to keep the unbanked really unbanked for ever? ;)) How do they operate... These providers creates a virtual account .. Allow people to deposit/withdraw money from so called agent network (Manned ATM)..
Who’s doing all this.. Telecom Operators...(There is not much money today in SMS and Call business :)). Also this solutuon allow you to buy thing, pay utility bills, transfers money from the virtual account.. All that you can do from a Bank account.
So now if we count again the players in this domain.. technology providers, Telecom operators, Third Party Aggregators and yes of course Banks too..
So now as a end user I have too many solution to make the payments.. yes professors from ISRO am talking about Mobile Payments :
1. pay via my Mobile Banking linked Bank account.
2. Pay via my credit card from Mobile
3. Pay from my Virtual Account
4. Even pay from my pre paid Mobile recharge amount or include the amount in my monthly post paid telecom bills.
Quite a fast pace… from Cash to mobile.. J
