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Dear Derek,

It appears to me that you have missed giving the message.. by miles. Your article might have intended to say:

1. Amazon gives competition to cards and saves 3% in doing so.

2. This saving is passed to customer, which would reduce card dependency. But unfortunately you are writing about yet another card.

All said... Amazon is either myopic or deaf..or I don't know what to say...but wasting investors' money..

Balazs has identified the right difference between PoS need and payment need of a merchant. Many companies are wasting their investors' money in devising a mobile based solution, which merges PoS and Payment needs. Hardware for PoS is usually a computer, whch is also used for other purposes like inventory management, vendor management, payroll processing while mobile based payment system ask for a different device. This is where the confusion starts...and we see foolish solutions like mPoS.

Can we have a payment mobile based payment mechanism that does not need any hardware or does not interfere with hardware need for PoS...and beats MDR far below what credit card companies may offer.

I just wish banks wake up to the need of the hour...

Question to Equity Bank CEO: Why Equity Bank is not encashing on their strengths and trying to compete with Telco's strengths. Bank have and would continue to have significant advantage in mobile based payments...be it meaningless wallet or else. 

Wallets would survive only in that country where cost of banking transaction is high and user needs cheaper mechanism. All concepts like unbanked, financial inclusiveness are gimmick. It is laughable that in US/UK, we expect a person to own a mobile but not have a bank account. Folks... which world are we living in and whom are we fooling. Africa is a success story for wallets because banks are ripping African people with all sort of obnoxiously high charges/fee. They created their own enemy and now amusingly Equity Bank has applied for VNO license. I am surprised...who advises such moves.

They have an existing infra-structure, wherein they can beat any Telco on their own turf....and bingo... with zero cost of transaction. Are Kenyan banks aware of it...?

Unfortunately, rest of the world is disillusioned by mPesa and similar examples and they are burning investors' money...offering a wrong solution to an unknown problem.

Need is not a wallet...but need is a payment system. I hope wise people can make out the huge difference. mPesa is not behaving as a wallet...but it has become mode of payment...for all purposes.

Would banks integrate with 3rd party apps, which would in turn offer inter-operatability for card and net-based banking...?

Dear Swamy: India does NOT allow non-bank members on mobile payment network but they can offer wallet services after getting license from RBI. Indian mobile payments are governed by NPCI and all have to mandatorily come through a bank, as a merchant aggregator. Yes, merchant needs to bother about the merchant aggregation, since not only charges but even the settlement cycle, loyalty and dispute resolution would matter a lot, based on capability of merchant aggregator. I suggest you a deeper study on this subject, as Square has failed and yesterday they have shut down their wallet business. 

http://www.mobilepaymentstoday.com/articles/square-drops-wallet-and-introduces-new-order-app/?utm_source=NetWorld%20Alliance&utm_medium=email&utm_campaign=SquaredropsWalletandintroducesnewOrderapp

I predict death of all wallets worldwide within next 1-2 years. This is infant mortality example and an example of bad problem resolution by some tech-geeks, which has no future. We need to evaluate the financials and user-experience before we lap any new technology, being thrown at us...!!

My question : What problem is being solved either by Wallet or  by Dongle based mPoS. Answer is loud and clear ... NONE. These are just time-expired fads.

Dear Amit: Yes, normal PoS machines can't be trusted blindly as well; but they atleast don't create suspicion in their appearance itself. A dongle is perceived as a skimming device with zero reliability. Trust vanishes faster when it is a small merchant, using her/his mobile. No way, would someone be comfortable. If PoS is not trusted, then why create another devil...?

Dear Swami: Regarding opening avenues for small merchants, it has done that...but how? Let's look at that. Few countries while have allowed non-banking P2M players in mobile payments but many have restricted bank-based entry only. UK and India allow only banks to become member of mobile payment network. It means that NO merchant can directly hop-over the band-wagon. Square or others still need merchant aggregation, which everyone forgets conveniently. Also, pls know that commissions/fee are different for P2M Push vs Pull; which is the whole game about.

Anyhow, not to deviate from my topic, I can prove in as many points that companies like Square and dongle based mPoS is just waste of investment; which all such investors have better opportunities to invest in mobile payment systems. Shall write more about P2M separately.

Well said Alexander..!

I am really surprised as to what problem are these people trying to resolve...? Currently we have portable card swipe machines, which has trust of customer, while a dongle can be misused to steal a card info. I suspect if customer would actually trust someone with a dongle and a mobile.

Highly optimistic people do feel that banks are safe in this scenario. No way can banks save their position in times to come. Banks would end-up becoming just a financial record-keeper for a meagre fee to pass the funds. Anyone who is unable to see it coming is only suffering from mypoic vision.

It is just an adoption cycle which needs some time to build confidence in people and for them to start using more of mobile or alternate payment channels...diminishing need of a bank. Even credit cards underwent an adoption phase. Earlier people used it for small amounts but now people swipe it for any amount. Guys...wake up...as banks are at significant threat.

I always laugh when people refuse to acknowledge an incoming.

I have never seen Finextra being so careless in what they write. Author has completely lost it between NFC technology and other modes of mobile payments. The article is void of any sense and logic.

I, rather, see a stiff competition being posed by IMPS payments; wherein direct bank-to-bank money transfer might become the norm of the day and retailer would rather get the money in real time. If it picks steam, then all switches like Visa/master/Amex would run out of business.

We just need a mobile and buyer can transfer money to retailes in real time using IMPS. We just need an app to make it secure. It would replace Debit cards but credit cards might survive only for those people who don't have money in bank.

Well Friends, with the pace of changing scenario in banking and marriage of 4 powerhouses: Retail, Social Media, Banking and Telecommunication; I foresee death of cash within this century itself. I have witnessed Kenya as an example; wherein even school/university fee is paid by m-Pesa [Mobile Money]. People pay each other over m-Pesa. The pace is different in different countries and cultures, but death of cash is inevitable....say within max another 30-40 years.

Telecom companies permeating into 'pseudo-financial' business is a big risk to banks and hence banks would do anything to 'safeguard' their positions. Card fee would continue to drop, alike call-charges in telecom. Eventually, it might end-up risky and expensive to get and carry cash.

In my housing society, cash is already a historical item. We pay for news-paper, milk, laundry and even car-wash through a card...provided by the housekeeping service provider. That card can be pre-loaded over the net.

So...let all of us stand for 2 minutes...in silence...!! RIP Cash...