James Van Dyke at Javelin weighs in on the fervent anticipation of contactless payments. He observes that the current "closed loop" versions of contactless payment do not offer sufficient value to merchants or consumers to drive adoption. Van Dyke recounts his own personal, frustrated, attempts to use contactless payment methods (only 1 in 10 succeeded). He suggests that the industry focus less on incremental, minimal value, steps and focus on the true value-add mobile payment that will drive incremental transactions.
Bottom line, Javelin believes that these two separate business
initiatives (contactless and mobile) must merge into one in order to
bring adoption to both. Sure we’ve all been expecting contactless to
roll out sooner and mobile payments later, but these two apps are each
incomplete halves of a whole.
I recommend that you read the whole post here.
Latest research from Javelin on contactless payments:
Mobile Payments Forecast: Contactless Evolution Flounders Without Heightened Attention to Merchants And Wireless Carriers
June 2007
download research brochure
Recent ComputerWorld article on contactless payments:
No Contact: Could smart phones spur contactless payment card adoption?
Computerworld
June 11, 2007
link to article
During her time at Glenbrook, Erin focused on client engagements in business payments, cross-border transactions, bill payment, and the intersection of corporate finance, banking, and ERP/accounting. She has nearly twenty years of experience leading increasingly complex payment initiatives for corporate clients and advising financial institutions and payment technologists on the development of their payment capabilities.
Erin is also the founder of Forte Financial, a consulting firm focused on corporate finance efficiency, technology, and process improvement. She is a past president of the Financial Women’s Association of San Francisco and also a two-term past president of the San Francisco Treasury Management Association. Erin is no longer with Glenbrook, but contributed greatly during her time at the firm.