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"I would use this," Mom said, "if there was a place nearby that accepted it." Mobile adoption confronts the classic chicken-or-egg conundrum.
November 21 -
Mobile banking can alleviate friction and save time for underserved, low-income consumers, but face-to-face interaction is critical to serving their financial needs.
October 29 -
To avoid incurring a customer's wrath or a lawsuit, banks should make sure new fees carry a clear value exchange, offer something new (ahem, mobile) and are easily avoided. Resist any temptation to set fee traps.
November 13
Conversations about banking bring to mind William Faulkner's famously complex run-on sentences: "It's not this or this but that and this."
While such wordplay is frustrating to those who prefer their banking simpler than their literature, it's sometimes necessary in a world where technology changes rapidly but old habits die hard.
Take Google's recent decision to
Google isn't the first company to use a more traditional payment method as a point of entry for a less tested one. American Express has paired a prepaid card with its digital payments platform since Serve rolled out in March 2011. (Amex, in fact,
These pairings seem counterintuitive. Mobile payments, by definition, should be more mobile-y, no? But there are a few straightforward, practical reasons that make these savvy business decisions.
For starters, existing mobile solutions are clunky and far from ubiquitous. They also have yet to make actual wallets obsolete. Isis, for instance, can't store your driver's license; Google Wallet doesn't recognize insurance cards. And, until smartphone batteries can get through longer periods of time without dying or, as my colleague
Pairing a mobile platform with a plastic card ensures that a company's (or its partner's) payment method is the one early adopters use while the rest of the world catches up. It also opens a door for consumers who want to try mobile payments, but aren't ready to give up on the magnetic stripe. I believe this
Research indicates that certain demographics,
It's hard to imagine that checks, along with cash and plastic cards, won't ultimately disappear, thanks to Androids and iPhones. Mobile, not necessarily the be-all-and-end for banking, is certainly part of the future of money.
On Breaking Banks, I mentioned that my cousin's twin children know how to work an iPad. They have no absolutely no idea what a credit card is or, more pointedly, why they should miss having one. But these kids are three years old, more than a decade away from being able to sign up for their own bank accounts and in no way, shape or form representative of today's accountholders.
Jeanine Skowronski is the deputy editor of BankThink. You can contact her at Jeanine.skowronski@sourcemedia.com or follow her at Twitter