Mobile money at stake

Abstract

Understanding exactly what "mobile payments" are, and figuring out how they fit in with your bank's overall strategy, will be crucial as today's smartphone-toting customers start looking for their banks' payment apps. Mobile payments are sometimes mentioned in connection with digital wallets, mobile wallets, or e-wallets. These generally refer to the same thing, analysts say; that is, the ability to conduct retail point-of-sale transactions through the use of a mobile device. The biggest banks also are getting involved through a number of pilots. Bank of America, Wells Fargo, and JPMorgan Chase formed a new venture called clearXchange, which really falls into the category of P2P payments, but is distinguished as being entirely bank-owned. It is also an indication of their interest in the mobile payments trend. Retaining customers clearly is a big factor in mobile payments strategy. The general thinking is that as people start using mobile devices for smaller purchases, they'll make more of them than they do now.