In a new whitepaper, SWIFT stresses the importance of mobile payments (m-payments) for the financial industry and recommends that banks could make a bolder move in the mobile money transfers business – working together to deploy a global m-payments service for international money transfers and remittances.
The new SWIFT whitepaper argues that mobile payments are rightly a top investment priority for banks globally, unsurprisingly since out of a world population of 7 billion, more than 5 billion (70%) have a mobile phone, while only 2 billion (30%) have a bank account. This fast growing market is predicted to carry US$1 trillion in transaction value by 2015.
However, non-banks like mobile network operators and e-commerce companies are currently deploying many of the m-payment solutions. Several banks have already embraced m-payments, but banks all around the world could do more to strengthen ties with their customers in a new ‘experience banking model’.
SWIFT outlines three areas of strategic opportunity for banks:
- Actively invest and expand mobile banking, in particular for corporates.
- Partner with e-commerce companies to gain experience in m-commerce.
- Develop a global service for mobile money transfers.
In particular with regard to international money transfers, banks should collaborate to develop a global service that is mobile enabled. This can increase their market share and help address competition from non-banks.
“Banks have the power to shape the future of mobile payments. Collaboration with room for differentiation is key. All it takes is for a few leading banks to take initiative,” said Wim Raymaekers, head of banking market at SWIFT.
In other news, SWIFT has launched MyStandards, a web-based application designed to facilitate the management of global standards and related market practices across the financial industry. The platform will be commercially available at the end of June 2012.
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