Written By Fergal Carton Jonas Hedman Jan Damsgaard Kay-Ti Tan J. B. McCarthy Reviewed By Conrad Fevrier Paul Griffith Heather Williams

A mobile payment is any payment where a mobile device is used to  initiate,  authorize and confirm a transfer of value in return for goods and services

 Mobile payments were suggested as an alternative for micro-payments at point-of- sales systems  Other mobile and payment methods have been implemented but most have failed due to lack of penetration

 Enough merchants must implement a new payment method for it to catch on with consumers; however, in order for it to be appealing to merchants a large amount of consumers need to be interested.

 Experts and companies agree that mobile phones will be turned into the new wallets  If mobile phones do become the new e- wallets, it will probably be at the expense of traditional payment methods.

 Transition to mobile phone driven not smooth due to lack of support  Lack of agreement between bank and customers  The high failure rate of mobile payment solutions  Banks promote payment instruments that earn them the most revenue

 Many retail banks run back office payment processing systems which use legacy development environments such as COBOL and RPG  Legacy banking systems were not designed to empower customers

 Financial Institutions should consult with hardware vendors, payment solution providers and trusted service managers

 The process dimension refers to what type of payment is being made, and should include the notion of customer value.  The technology dimensions describe how a payment process works and involves the integration of a number of physical and virtual payment instruments

The value dimension described as a market perspective by Ondrus et al (2005), or as a value taker perspective by Kauffman and Walden (2001)- relates to both customer benefits and needs respectively.

Nature of the goods, Where the payment is being made, Who is involved??  B2C  B2B  P2P  P2NP  G2C

The second dimension for mobile payment relates to the products, instruments or technologies through which the payment is executed.

 Theoretical Framework  Pilot Project

 The pilot project confirmed the issues concerning value proposition  Definition:  statement or reason that summarizes why a consumer should buy a product or use a service-In particular why would this product or service add more value i.e. better solve the problem than similar offerings.

 Merchant agreed that the M-payment system would be beneficial (save time).  Merchant was unwilling to pay to have the system installed at the 31 locations.

 Based mainly on three works.  Ondrus, J., Camponovo, G. and Pigneur, Y. (2005), A Proposal for a Multi-perspective Analysis of the Mobile Payment Environment. Proceedings from the International conference on mobile Business. Kim,C., Mirsobit, M. and Lee, I. (2010), An empirical examination of factors influencing the intention to use mobile payment, Computers in Human Behavior, 26, pp

 Mallat, N. (2007), Exploring consumer adoption of mobile payments - A qualitative study, The Journal of Strategic Information Systems, 16(4), pp

 Logical coherence  Theoretical relevance  Relative explanatory power

 Lack of convincing value proposition to customers.  mobile operators and banks focused on extracting revenue from customers.

 The paper was mostly well written.  There were a few minor to moderate miss- steps in the paper

 Miss-wording use of the word “connivance” instead of convenience Definition: “Willingness to secretly allow or be involved in an immoral or illegal act.”

 Use of un-cited statistics  25-30% of Bank Revenues  900 Billion dollars

 The paper is still relevant today.  The paper is till relatively current  There exists differences in option

Apple IPhone 5

 Apple IPhone 5: No need for NFC today Apple Senior VP Phil Schiller said “ Passbook alone does what most customers want and works without [replacing] existing merchant payment systems.” It's not clear that NFC is the solution to any current problem, Schiller said. "Passbook does the kinds of things customers need today."

The proper integration of mobile payment has its challenges