Monday, September 05, 2011

Payment eco-system must lead to cross-industry collaboration

The complexity of payment systems and the inter-dependencies of the many players in the value chain, necessitates collaboration. Fifty years ago, this need created the big payment brands (Visa and Mastercard) when the major banks understood the importance to collaborate. Today many efforts are made to form new alliances and collaboration groups. This is especially visible in instances where mobile operators form groups to establish shared payment mechanisms. For instance read here.

It is clear that with new ways to pay and the ability to change the whole payment experience, that other players could join the payment eco-system. This is why I found a recent Forbes article so interesting. (Read here). The article emphasises that many players must collaborate the create new payment eco-systems. The usual players are named, but then a new player is added: consumer packaging. With some very good motivations on why one should involve this industry in payments, this was quite a stimulating article.

3 comments:

ING Customer said...

Japan has one of the greatest payment ecosystems. With your cell phone you can pay instantly just by moving it over the payment pad at a store. IT collects points too ;)

BigChief said...

The Forbes article is profound and prophetic. As an SAP /Enterprise Systems consultant myself I have always been interested in the longer term disruption Mobile Payments will create in the value chain rather than the short term benefits.

This is truly disruptive Technology it goes beyond what people see on the surface and only collaboration and interoperability can unleash the massive potential.

As demographic shifts occur service to the customer will become more personalized and the most ubiquitous access channel to the consumer is the cellphone. Those who master granularity in service delivery will be the winners. Don Tapscott predicted this in his book "Wikinomics". It has always been about keeping the customer even for the MNOs it is not just for the transaction.

Too bad Fundamo was sold to Visa before they had the chance to win TechCrunch Disrupt. We hope Visa will be nimble enough to see where the real opportunities lie to create lasting change and do truly great things.

Frans Stander said...

VISA had the foresight to aquire Fundamo.. I would think that VISA will note these opportunities which BigChief refers to..