Mercator Blog

“Mobility” Is the Theme of Emerging Technologies for Banking and Payments
Date: May 13, 2014
Research Team
“Mobility”—mobile banking and payments enabled by mobile technology—is the prevailing theme of much of the research on emerging technologies covered by Mercator Advisory Group in 2014. As head of the Emerging Technologies Advisory Service, I would like to call attention to our recent research reports, research notes, and viewpoints that shed light on this important topic:

Enabling Host Card Emulation for Mobile Payments via the Cloud 
This 20-page Research Note explores the potential for Near Field Communication Host Card Emulation (NFC HCE) technologies to help financial institutions provision mobile payments via the cloud and leverage their digital banking services to provide convenient payment services for both their retail and merchant customers at the point of sale (POS). This document also highlights the growth of contactless payment transactions in other parts of the world and highlights the benefits of other emerging technologies such as Bluetooth Low Energy (BLE), Quick Response (QR) codes, and key security tools such as biometrics, tokenization, and point-to-point encryption.

Mobile Banking and Mobile Financial Services Transformation 
This 11-page Research Note describes how mobile banking services are helping financial institutions retain customers and gain new ones as well as reduce costs. The document also reviews new self-service tools that deserve to be added to the product development road map of FIs of all sizes which include technologies such as cardless ATMs, photo bill pay, and various personal financial management tools that will keep FIs at the forefront of innovation.

Mobile POS (mPOS) Acquiring Solutions
This is a Research Report which was released in January. To introduce the reader to the mPOS market in the United States and Europe, this detailed 30-page report provides information on various form factors, reviews the mPOS acquiring business model, explains the benefits of mPOS, and profiles vendors including Square, PayPal, Powa Technologies, and iZettle.

Microsoft’s Acquisition of Nokia: A Strategy for Mobility 
This 8-page Viewpoint brings the reader up to speed on Microsoft’s recent $7.5 billion acquisition of Nokia and plans to leverage the mobile capabilities to offer mPOS solutions for retailers and grow its mobile operating system to compete with Google (Android) and Apple (iOS) both domestically and globally.

Foreign Exchange via Mobile
This recently released 13-page Research Note reviews the current state of corporate mobile banking and discusses the critical need for financial institutions to consider offering foreign exchange services via smartphones and tablets in addition to online banking or treasury management systems. This document provides definitions of FX spot, forward contracts, and currency spread and highlights the revenue opportunity of this high-margin, noninterest, fee-income business for FIs of all sizes and the benefits that could accrue to small and medium-sized businesses.

Mercator Advisory Group’s bottom-line assessment of mobility is that there are no longer any excuses for not offering mobile financial services whether banking or payments. Consumers and businesses alike want a robust information and payments platform at their fingertips and a convenient experience, no matter where they are 24 hours a day, 7 days a week. Each of the documents highlights the growing importance of mobility in daily life and provides practical advice to financial institutions and other participants in the payment industry seeking to offer customers a mobile experience.