Community

When technologies like this get rolled out by a dominant player like Apple, the adoption cycle from early to late adopters traditionally compresses. There is clear statistical trends for an overall shift in technology adoption in any case, with smartphone being a good indicator.

The fact of the matter is that within 2-3 years more people will be making mobile payments at the POS than any other payment method in most developed economies.

Those who herald the ubiquity of cash and cards as they stand, are the same that probably were surprised when the Kindle and iTunes rapidly overtook physical books and music sales.

The reality is this is inevitable based on consumer behavior trends. What Apple's move dictates is that NFC + Tokenization is the accepted standard moving forward, so that Merchants have clarity. That is a good thing. Tokenization will be embraced because of the better depth of identity as compared with just a PAN.

This is safer, more secure and opens up a whole lot of other informational value adds before and after the transaction that plastic and cash can never provide. In the end it is the data-based value ecosystem and improved experiences this will create wrapped around the payment that will spur this on.

Any other expectations is simply refusing to believe that consumers are net adopters of new technology, and that would be a position based on zero data/logic. 

Regardless of the payments aren't broken mantra here - Apple will result in mass adoption of mobile payments and that, my friends, is the kicker. 

Yeah, the biggest surprise is they didn't announce this 2 years ago...

Hitesh,

Really enjoy working with Simon as the CDO and David the new CEO of Westpac NZ. They're hungry for success and very competitive with their compatriots over the pond - a great driver of innovation.

BK 

Secure element is largely redundant with Tokenization in any respect

The data is misleading here. Between 2008 and 2014 the annual average number of visits per customer has declined across US branches from 4.8 times a year, to just 2.3 times per year. That is NOT an increase in case anyone is counting, it is in fact a greater than 50% decrease in branch activity.

Survey's on preferences are not what bankers should be watching. ACTUAL visits to the branch are actually a better statistic for predicting customer behavior. 

Murray,

CommBank did NOT drop Kaching. They simply incorporated Tap to Pay through the phone into their mainstream App

https://www.commbank.com.au/personal/online-banking/commbank-app.html

Mobile wallet is not elusive for CommBank - that is simply inaccurate. 

BK 

What is different about Australia is that Commonwealth Bank did Kaching, which would be the natural Google Wallet competitor, years ago. Not only would Google Wallet need to compete with an Incumbent who is well established, but they don't have the ability to contexualize payments in the way CommBank does.

I think it makes sense that Google would not directly compete in this way, but they might outsource their wallet to other players. 

Finextra Member,

Sit in a branch for a day and see how much time the teller line spends on cash deposits, then ask yourself whether the cost of carrying the branch for another "cost" is going to save the business case for the branch...

BK

James,

Seriously grannie's birthday cheque is the best use case you can come up with for a branch that costs £2m a year and runs at a 25% loss?

BK