Mobile Payments

Notes from the Mobile Commerce Summit (Day 1)

By Jim Bruene Posted on
Categories: Conferences, Mobile Banking, Mobile Commerce, Mobile Payments, USAA

image About 100+ folks gathered in the brand new M Resort near Las Vegas for the third annual Mobile Commerce Summit by SourceMedia. Jeff Dennes from USAA and Jim Simpson from City Bank of Texas, both provided an extraordinary amount of metrics on their mobile rollouts (details below).

The biggest innovation of the day was iPhone-enabled remote check-deposit capture soon to be available from USAA (official launch June 25; see picture below). 

imageSession highlights
Jeff Dennes, executive director, mobile money & movement, USAA:

  • 7.9 million logins so far this year vs. about 7 million in all of 2008
  • Highest week to date, 476,000
  • 4.8 million USAA members own mobile; 1.5 mil use it to access Internet
  • 20% say mobile is primary channel
  • 11.4% of members using USAA mobile
  • Why so much usage: no branches, members trust USAA, extremely mobile military-oriented customer base, more technically capable than average
  • Have SMS, Firethorn downloadable app, WAP <mobile.usaa.com>, native iPhone app
  • Native iPhone app released 2 weeks ago: Went to number 1 in first week with 55,000 downloads; 45,000 logins in first week, 93,000 in second week
  • iPhone app built in-house and has patents filed
  • Will be launching first iPhone remote deposit-capture app on June 25 (see photo above); tune in to the bank’s webcast at 7 PM Central time at <budurl.com/usaaannouncement>
  • Current iPhone app has insurance functions: filing a claim, roadside assistance
  • Personal financial management functions coming soon
  • With mobile rollout, are seeing call volumes going down
  • 35% of access to mobile site comes from iPhone, 35% from Blackberry
  • Will be building app for Blackberry; others as demand warrants (e.g., Pre)

Jim Simpson, VP IT, City Bank of Texas

  • Mobile banking is powered by ClairMail (use Jack Henry for core processing and online banking)
  • Launched 17 Oct 2008 with balance, history, funds transfers, “call me,” near-real-time alerts (not batch) including reward-checking status/summary (sent out 7 days before end of checking cycle telling users how they stand on meeting necessary activity levels
  • Have microsite: www.citybankmobile.com
  • Made a major cross-channel marketing effort at launch: TV, print, radio, in-branch, and so on; used it to differentiate themselves in competitive Lubbock market
  • 10.2% online banking penetration
  • 64% use weekly
  • Average age is 32
  • Average account balance on primary account is over $5,000
  • More than 3,000 active users
  • Limited use of mobile browser site, bnkngo.mobi; text-message banking is much more popular (also have gocitybank.mobi); get 5,000 balance requests via text messaging each week vs. 25 or 30 mobile Web logins
  • Real-time alerts (vs. batch) is one of the key benefits that users like; they often can text message a confirmation of the transaction while still standing at the checkout counter; not always that fast, sometimes can be a few minutes later
  • Coming: End-of-day, text-based account summary, “payit” loan payment via text (in response to text alert), iPhone/Blackberry apps
  • How to make money? Adding ad-supported links within text messages; e.g., link back to the restaurant where the transaction originated

Ginger Schmeltzer, SVP, SunTrust

  • Currently at 2.5% penetration of online banking users powered by Firethorn
  • 33% access via iPhone; 33% via Blackberry
  • Have an RFP out now to find vendor(s) to increase functionality
  • See real benefits from using mobile channel to decrease fraud

Patrick Reetz, VP & director, online banking, M&I Bank

  • Rolled out mobile in Oct 2008 powered by MShift
  • Within 11 days, achieved one-year goal of 2% penetration of online banking users (longer term, their initial goal was 10% by YE 2010)
  • Currently have 7% penetration

Ellen Johnson, SVP retail online services, Huntington Bank

  • Have just under 25,000 users of mobile Web banking, launched in June 2008
  • Number of users of text banking surpassed mobile Web in April, launched 6 months ago
  • Mobile banking customers are 38% more profitable; text banking, 13% more profitable
  • Call center contacts per active user dropped 3.4% in first 6 months
  • Have a mobile microsite for marketing

Juli Anne Callis, president & CEO, National Institutes of Health Federal Credit Union (previously at Keypoint Credit Union)

  • At Keypoint Credit Union, even usage between iPhone and Blackberry access
  • Keypoint powered by mShift and will be using mShift at her new CU
  • Launched on Facebook Nov 2007 (OBR Best of Web winner)

Amy Johnson, channel manager — CEO Mobile, Wells Fargo

  • Launched 2 years ago (April 2007), and Wells Fargo remains the only major U.S. bank offering full corporate mobile banking
  • Mobile Web-based system
  • No charge except certain text messages (and those fees may go away)
  • No set-up process
    — just log in at mobile site with existing online credentials
  • Will not disclose usage, but are targeting top-tier customers: top 10%-15%
  • Access: 30% iPhone, 50%+ BlackBerry
    — no Android so far
  • $2.5 billion in wire approvals via CEO Mobile in 2008

Kevin Morrisson, AVP card products, H&R Block

  • Using text messages to defer calls to call center (currently receive 80 million annually), especially people checking to see if their refund has arrived.
  • Program was piloted this year and is expected to roll out nationwide later this year. Found dramatic decline in voice calls from test group.
  • Mobile program powered by Metavante/Monitise joint program. 

Rebecca Mann, director of strategic alliances, Western Union

  • Using mobile to replace either the sending or receiving part of a money transfer
  • Partnering with US Bank for international remittances

Lisa Stanton, CEO, Monitise America

  • Can do more secure services within an app compared to mobile Web or SMS

Matt Krogstad, VP business development, M-Com

  • Critical for banks to be point of registration and source of funds
  • Should be able to register outside online banking
    — via call center, ATM along with mobile phone
  • In Australia, mobile money transfers was slower to take off, approx. 18 months after adoption of mobile banking

Clint Heyworth, attorney, consumer finance group, Chambliss, Bahner & Stophel

  • One-to-one relationship with phone (e.g., you have it with you) makes it better for security compared to PC where others have access
  • Not a lot of legal differences between delivering banking services via mobile vs. online
  • Don’t expect to see specific regulation regarding the mobile channel; will likely be the same regulations as for online banking

Tom Wills, senior analyst, Javelin Strategy & Research

  • Security is single biggest factor inhibiting mass consumer uptake
  • Only 500 pieces of malware have been identified so far in mobile vs. thousands of new ones every day online
  • 47% of respondents are uncomfortable with mobile security (Mar 2008 data)
  • Main concern is hackers, mentioned by 73% of those above
  • Expects anti-virus software makers to build mobile versions

Rebecca Sausner, editor, Bank Technology News

  • Total revenues for mobile banking vendors this year will be $26 million (source: Aite)

Sean Moshir, CEO, CellTrust (also mobile banking sub-committee co-chair of Mobile Marketing Association)

  • 66% of consumers still not yet comfortable using mobile device for financial transactions (source: 2009 KPMG Global Consumer Survey)
  • 7% said they would pay a nominal fee to access online banking services via mobile phones (source: 2009 KPMG Global Consumer Survey)

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ING’s Ultra-ATM Finder Android App Uses Augmented Reality (AR)

By Jim Bruene Posted on
Categories: ATMs, ATMs, Kiosks, ING Direct, Mobile Banking, Mobile Commerce, Mobile Payments

image While working my way through the RSS backlog tonight,
I found a post from Rob Findley at The Bank Channel, I wish I’d seen a week ago. It would have made a nice example in our latest Online Banking Report on the iPhone and other mobile applications. 

image Last month, Dutch giant ING released a Google Android mobile application called ING Wegwijzer (see translated page below), that goes one step beyond the iPhone’s GPS-enabled ATM finder apps.

In the ING (Netherlands) version, you have three choices of how to view the nearest ATMs (see below):

  • List
  • Map (regular or satellite)
  • Camera

The camera option is very cutting edge. Users point the camera in their G1 mobile phone camera (inset) and the app overlays a pointer to the nearest ATM (see below). The application works for all ATMs, ING-owned and others, but only in The Netherlands. 

The application was developed for ING by SprxMobile using technology from Australia’s Austria’s Mobilizy.

I saw a Japanese startup demonstrate a broader mobile shopping app at TechCrunch50 last September, the Sekai camera from Tonchidot, but this is the first production app I’ve seen using the technology.

Bottom line: This is probably overkill in terms of a mobile ATM finder. However, it shows the power and versatility that’s rapidly being engineered into mobile phones.   

ATM location as pointed out by ING app running in camera viewfinder

image

ATM locations also displayed via typical mapping

image       image

ING landing page for the Wegwijzer (link) (Google translation, 18 March 2009)

image

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Blaze Mobile Wallet Transforms iPhone into Payments Device at the Point of Sale (sort of)

By Jim Bruene Posted on
Categories: iPhone, Mobile Banking, Mobile Payments

image It will take years before the mobile phone fulfills its promise as a true mobile payments device. Or will it?

If you don’t mind a bit of a work-around and you limit your purchases to MasterCard PayPass-enabled merchants, you can pay by cell phone today thanks to Blaze Mobile.

How it works:

  1. Download the Blaze Mobile Wallet at the Apple App Store (iTunes link), cost $1.99 (note 2).
  2. Sign up for a Blaze pre-paid MasterCard issued by MetaBank
  3. Affix the MasterCard PayPass RFID sticker to the back of your iPhone
  4. Wave and pay at MasterCard PayPass terminals

Granted, few people will go through this trouble just to buy an Arby’s sandwich without pulling out their plastic (note 1). However, it shows that the technology is available today to enable at least some mobile payments. And for financial institutions, it provides a cool way to differentiate debit and credit cards.

Notes:
1. According to MasterCard, there are 463 PayPass locations within 25 miles of my Seattle location. 
2. The wallet also works on other mobile platforms, see the company’s website.
3. Previous post on paying via credit card stickers (here).
4. For more info see our Online Banking Report on Mobile Payments.

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UK’s MoBank Could be the First of a New Wave of Banking & Payments Companies Optimized for Mobile Delivery

By Jim Bruene Posted on
Categories: Launches, MoBank, Mobile Banking, Mobile Commerce, Mobile Payments

imageMoBank, the U.K.-based mobile banking and payments said to be launching this month, is creating some buzz on the other side of the Atlantic (stories here, here, and here).  Given the pedigree of its two founders, Steve Townsend and Dominic Keen, who blazed many online banking trails at Egg and First Direct, it should provide a glimpse of the future of mobile finance.

The company is establishing a call center on the Isle of Man, run by Steph Gregg, a veteran of Egg, First Direct and Vodafone. Melanie Hunter is head of marketing, and David Rubin is head of mcommerce.

The company was named to Red Herring’s top-100 global start-up list last month (here) along with FinovateStartup alum ClairMail (demo video here).

It appears at launch the service will support bill payment and certain mcommerce activities, such as purchasing movie tickets. An iPhone app is expected at launch. Users will register their credit/debit card(s) with the service. The company plans to expand into mobile banking and money-management activities in the future. 

The company has raised more than $1 million according to news reports. The company was founded in 2006 and presented at The Essential Web conference in June 2007
(p. 43, here) and had four employees at that time.

Here’s how the company described itself 18 months ago:

MoBank is creating the world’s first mobile-led online bank. The company believes that, for some sections of the population, small screen devices will become the channel of choice for most banking and payment services. moBank’s business model is based on providing a free-to-use basic banking service with paid-for add-on features. Furthermore, moBank’s users are enabled to participate in a range of unique, value-generating m-retail activities.

What’s innovative: It sounds like a mobile-based account aggregation and bill-pay service, similar to Mint on the iPhone. But it could also contract directly with one or more banks like SmartyPig has (previous coverage). But as ING Direct proved, optimizing on a new delivery channel can pay off with great word of mouth and positive press.

MoBank pre-launch homepage (6 Feb. 2009)

image

Note: For more info on the growing market, see our Online Banking Report on Mobile Banking.

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Privier Launches ATMsend, a Promising Idea that Needs Banking Partners

By Jim Bruene Posted on
Categories: Alt Payments, Epayments, Launches, Mobile Banking, Mobile Payments

image I've communicated with Privier founder Charles Polanco a number of times over the years. He's a Wachovia alum who's been working on a financial startup for several years. The company launched a suite of payment services on Oct. 16 that aims to get the plastic card out of the ATM business (press release).

Privier's value prop is straightforward and compelling: Enable money transfers from any device at any time with the cash delivered through the worldwide ATM network.

The system initiates transfers in three ways:

  • ATMsend: ATM to ATM
  • iTransfer: Web to ATM 
  • mPayment: Mobile phone to ATM

In Privier's model the ATM card is replaced by a one-time authorization code that recipients key into the ATM to withdraw transferred funds.

Analysis
From a usability perspective, it's a great idea. After all, what's not to like? Consumers need to send cash. ATMs have cash. Why not let folks authorize a remote ATM withdrawal from the comfort of their own home or office. A proposed fee in the $7 range beats most alternatives for long-distance money transfers.

However, from a practical standpoint there are two massive roadblocks to overcome:

  • Retrofitting ATMs to accept a keyed-in code instead of a mag stripe for authentication
  • Convincing banks to add ATM-transfer capabilities to Web, mobile and telephone services

It will likely take an organization the size of Visa, MasterCard, or Bank of America to pull this off. To ensure that those behemoths work with it, Privier has a portfolio of patents pending on the business process. 

What it means for Netbankers
It may take decades, but eventually, the Web married to mobile will eliminate the plastic debit/credit card; however, unless you are a major bank or payments company, this isn't likely anything you need worry about for a number of years.

A better short-term solution for smaller financial institutions is to enable P2P funds transfers using PayPal so you can send money to anyone with a PayPal account (see note 1).

Privier's Web-based interface for sending cash to an ATM (5 Nov 2008)SendCash_Step1

Note:
1. See our latest, the Online Banking Report 2009 Planning Guide, for more info on project priorities for this year and beyond. 

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Visa Announces Android and P2P Mobile Initiatives

By Jim Bruene Posted on
Categories: Alerts & Messaging, Chase Bank, Credit/Debit Cards, Mobile Banking, Mobile Payments, US Bank, VISA

image Visa today put a stake in the ground to be viewed as the innovation leader, a position that American Express has claimed for some time with its chip cards, social media efforts, and even an online lab site. At today’s “innovation briefing” in NYC, Visa announced several pilots and upcoming initiatives.

Mobile person-to-person transfers
The most far-reaching announcement was the ability for Visa cardholders to transfer funds from one card to another via mobile device. So far, just one bank is participating in the pilot. US Bank says it will make the service available to a few thousand cardholders as a test later this year. PaymentsNews has more details here.

It sounds good, but as always the devil is in the details. For instance:

  • Through what hoops will cardholders have to jump to enable their card and phone for the service?
  • Will the transfers be treated as cash advances triggering fees and finance charges?
  • Will it be available to all cardholders using any mobile phones? 

Visa jumps on the android bandwagon
A more immediate innovation is a location-and-alert-based service built for Google’s android platform, a new mobile system launching in late October. Visa’s new service, to be rolled out initially by Chase Bank (no time frame given), promises some important new developments:

  • “Near real-time” purchase alerts (see note 1) so you can see immediately whether your server added an extra digit in front of your tip on that bar tab. The real-time alert pilot was announced a month ago (here) involving several thousand accounts at PNC Bank, SunTrust Bank, US Bank, Wachovia, Wells Fargo, Royal Bank of Canada, TD Bank, and Vancity.
  • Visa merchant finder based on your location-based/GPS technology  (nice!) with targeted marketing offers (hmmm??). The merchant locations will be integrated with Google Maps.

Again, PaymentsNews has the entire press release here.

Notes:
1. Visa says that the alerts will arrive “typically before (the consumer) leaves the store.”

2. For more information, see our Online Banking Report on Mobile Money & Payments.

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Will eWallets Make a Comeback on the iPhone?

By Jim Bruene Posted on
Categories: Apple, Credit/Debit Cards, iPhone, Mobile Banking, Mobile Payments

image Since the July opening of Apple’s App Store, we’ve been tracking the apps in the Finance category (see previous coverage here). But there are also several apps in the Productivity category of interest to financial institutions: the eWallets.

Ilium's eWallet for iPhoneThere are two wallets available in the U.S. iTunes store:

  • eWallet from Ilium Software: #46 in popularity in Productivity with a cost of $9.95 and rated 3.5 stars (out of 5) across 143 reviews (see inset)
  • Memengo Wallet: #48 in Productivity with a $0.99 cost and rated 4 stars across 43 reviews (website)

Web-based eWallets never took off because of security concerns and because they provided only marginal improvements in desktop productivity. However, a mobile version has more utility owing to sticky notes with password reminders and credit card info, helpful to users away from their desks.

How it works
Storage of usernames and passwords for websites is the primary use of eWallet, but it also has a Finance category (see inset above) where users can store credit card numbers and contact info (see screenshots below).

That info is helpful when using a card to make a purchase online or through the mobile phone. It’s also a great place to store the info in case the card itself is lost or stolen.

Financial institution opportunities
While these apps haven’t gained an overwhelming following, a financial institution could offer a free version that highlights its own card offerings while providing storage space for other card numbers. That way, you get your logo on the iPhone instead of Mint, Wesabe, or some other financial institution. 

The bank-branded eWallet could also include a financial calculator and direct connection to online banking.

Ilium iPhone eWallet showing credit card info    eWallet showing credit card detail

 Note:
1. For more info see our Online Banking Repot on Mobile Money & Payments.

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Could Mobile Payments Get a Boost from Lowly Stickers?

By Jim Bruene Posted on
Categories: Contactless payments, Credit/Debit Cards, Mobile Banking, Mobile Payments

image Even though I have credit cards from Citibank, Wells Fargo, U.S. Bank, American Express and Chase, I have never been offered the opportunity to add contactless payment capability to my card, so I still have no firsthand experience of that particular wave of the future. 

And it hasn’t been too high on my list of things to try, since it still requires carrying a piece of plastic or an additional device such as keychain fob (inset). I don’t see much benefit to tapping a piece of plastic compared to swiping it.

However, I do look forward to NFC-enabled mobile phones. But given the hurdles for adoption among carriers, payment processors, and issuing banks, I wasn’t expecting that much before the next summer Olympics.

But now an interim workaround is being tested around the world: the contactless payment sticker. It’s a quarter-sized sticker you plop on the back of your mobile phone making it instantly payment-enabled.

That allows consumers to leave their wallets at home, a nice benefit for outdoor enthusiasts, club goers, or anyone who doesn’t want to worry about losing their wallet while on the go. Of course, we’ll need a few million more contactless-enabled merchants before the wallet-free world is realistic for most, but widespread use of stickers could move that along (see note 1).

Who has it?
There are several rollouts under way around the world. For example:

USA Technologies Pay Dot contactless payment sticker

Note:
1. There are about 110,000 PayPass merchants worldwide, less than 1% of the 25 million locations that accept regular MasterCard cards. 

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Stealth Finsphere Corp Lands $10 mil for Mobile Transaction Verification Services

By Jim Bruene Posted on
Categories: Credit/Debit Cards, Finsphere, Mobile Banking, Mobile Payments, Security

imageLast week, the Puget Sound Business Journal reported on a Pacific Northwest stealth startup that’s receiving a lot of attention from Silicon Valley, at least measured in dollars. The $10 million round for Finsphere is an impressive endorsement, especially given the apparent involvement of prominent VC Mohr Davidow.

There’s not a lot we know about the company other than the founders are out of the wireless industry, and the company’s services are described as “location-based transaction verification services.” That sounds like using the GPS-based or triangulated location of mobile phone users to authenticate card transactions and/or online banking logins. Armed with the GPS reading, card companies would know that you (or at least your mobile phone) are where your credit card activity says you are, e.g., buying a tank of gas in Washington D.C.

With GPS capabilities coming to the iPhone next month, this could be a very large market indeed. If we are right about the product, we’ll try to convince the company to demo at one of our Finovate conferences. 

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Mobile Money & Payments 2.0 Released: The Latest from Online Banking Report

By Jim Bruene Posted on
Categories: Mobile Payments, Obopay, Online Banking Report

Mobile Money & Payments 2.0 from Online Banking ReportOur parent publication, Online Banking Report, has just released its latest in-depth report: Mobile Money & Payments 2.0: Why credit & debit card issuers should embrace mobile delivery now

  • Link to the full report here
  • Link to the abstract here

The report builds on last month's Mobile Banking Report (report here), this time looking at the rollout of mobile payments in North America. The report recommends tactical and strategic options for financial institutions both in the short-term and into the next decade. In addition, several innovators are highlighted including Obopay, PayPal Mobile, and NTT DoCoMo.

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Mobile Payment Metrics: NTT DoCoMo

By Jim Bruene Posted on
Categories: DoCoMo, Metrics & Market Research, Mobile Banking, Mobile Payments

DoCoMo mobile payments in use In today's special Technology Report in Wall Street Journal, the lead article was "What's New in Wireless," by Amol Sharma. The article's main focus is mobile video and advertising, but there are several paragraphs about mobile payments, mentioning the Cingular/AT&T/Citibank cellphone payment trial through MasterCard's PayPass. The only statistical backup provided was the 1.3 million Japanese mobile users signed up for NTT DoCoMo's year-old mobile credit-card service (note 1).

That number seemed low based on what I've been hearing about the popularity of all things mobile in Asia. It turns out the 1+ million number is just DoCoMo's credit-card slice of the mobile payments pie. 

NTT DoCoMo iD credit card platform In Japan, per capita credit card usage is just one-seventh that of United States (note 2) and stored value is much more popular. DoCoMo has 20 million stored-value mobile wallets in place, 15x the number of credit users. The mobile wallet penetration is approximately 40% of DoCoMo's 52 million wireless subscribers (note 3). 

That's a healthy uptake rate for a product that was introduced less than three years ago. Even the year-old mobile credit card adoption is dramatic given the country has just 130 million credit cards outstanding. DoCoMo's market share is already higher than 1% of total cards outstanding, the equivalent of 8 million accounts in the United Sates (note 4).

Interestingly, part of the reason for the popularity of cash replacements in Japan is that the lowest paper-money denomination is 1,000 Yen, or about $8.80, making coins more common and somewhat less convenient for low-value payments compared to the U.S. and its ubiquitous $1 bill. However, the stored-value mobile wallet is expected to eventually become popular in the U.S. once merchant acceptance grows, especially in the youth and underbanked segments with less access to traditional bank cards; but it won't likely reach current levels of Japanese penetration for another five to seven years (note 5).   

Notes:

1. According to a Feb. 1 article in the Motley Fool, DoCoMo has 1.5 million users who've applied for and activated the credit card function in their phone. The number of outlets accepting DoCoMo mobile payments was expected to top 150,000 this month. DoCoMo allows other credit card issuers to use its ID platform to delivery card services to its customers. DoCoMo also began issuing its own mobile credit card under the DCMX brand last year. For more information, watch the DoCoMo's video about its mobile wallet (here). The wallet discussion begins at about the 4.5-minute mark of the 16 minute video. DoCoMo's ID credit-card platform and its own DCMX credit card discussion begins at the 6-minute mark and ends a little before the 10-minute mark. The rest of the video discusses i-Mode's international growth and is not directly related to payments.  

2. According the Federal Reserve Bank of Philadelphia, in 2004 American's made 84 credit card purchases annually per capita, vs. 11 in Japan (see report here). According to the online CIA Sourcebook, in mid-July 2006 the population of Japan was 127 million compared to 298 million in the United States.

3. According to the company, DoCoMo has a 55% share of the Japanese cellphone market.

4. The U.S. has about 800 million credit cards outstanding (according to FRB Philadelphia, see #2.  

5. See our forecast in Online Banking Report 138/139 published three weeks ago.

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Conference Notebook: Mobile Payment Forum

By Jim Bruene Posted on
Categories: Conference Calendar, Mobile Banking, Mobile Payments

Mobile Payment Forum link I attended the public portion of the 2-day Mobile Payment Forum Spring Member Meeting in San Diego yesterday <mobilepaymentforum.org>. The group was formed by MasterCard, Visa, American Express and JCB more than five years ago to help develop standards and promote best practices in mobile payments.

The current board of directors:

  • Simon Pugh, VP Standards & Infrastructure, MasterCard 
  • Stephanie Ericksen, VP Product Technology & Integration, Visa
  • Martin Harrison, Head of Sales and Strategy, First Data
  • Christopher J. Bierbaum, Product Development, Emerging Products Group, Sprint
  • Bob Adamany, VeriSign
  • Oliver Kelly, Vodafone

It was a pay-to-present day, with each sponsor allotted time based on the size of their financial contribution. Six gold sponsors spoke for 30 minutes, a silver sponsor was allotted 15 minutes, and the only platinum one was handed the podium for a full hour. Consultant Richard Crone of Crone Consulting gave the keynote and handled the introductions and wrap-up.  

Platinum Sponsor:
ClairMail: Joseph Salesky, CEO

Gold Sponsors:
Firethorn Mobile: Tripp Rackley, CEO
PayCash Mobile (Cyphermint): CEO, Joseph Barboza
eBizMobility: CEO, Jeremy Kagan
Erico: VP Marketing, Larry Loper
mFoundry: VP Product, John Pizzi

Silver Sponsor:
Sapphire Mobile Systems: Rick Rasansky, CEO

For the most part, the speakers did a commendable job keeping things informative and not heading straight to sales-pitch mode (see note 1). The highlight was Firethorn CEO Tripp Rackley and ClairMail CEO making impassioned pitches on opposite sides of the SMS banking (ClairMail) vs. downloaded app (Firethorn) continuum (note 2). And as usual, Richard Crone of Crone Consulting set the stage with an entertaining and fact-filled keynote (note 3). 

Despite being a payments forum, most of the talk centered around online banking (Firethorn, ClairMail, mFoundry, Sapphire), mobile advertising (Erico), and ecommerce (eBizMobility). Only PayCash Mobile and keynoter Richard Crone spent more than a few minutes on payments. 

The main reason: Mobile banking is on the verge of breaking out, and banks are reaching for their checkbooks. With far more infrastructure hurdles, cellphone-based payments will lag mobile banking adoption by five years (see forecast in our most-recent Online Banking Report, 138/139).

I'll post a few more items from the conference during the next few days.

Note:

1. Hint for conference attendees: Always look for private-company CEO presentations. Private-company CEOs usually do a great job speaking about the broader issues, understanding that their industry knowledge is a far better sales pitch for their organization than a dozen "About us" slides. Marketing VPs on the other hand, seem enamored with how many times they can work their company and client names into the presentation deck. Unfortunately, the same cannot be said of many public-company CEOs who are so ham-strung by disclosure regulations, they can hardly say anything that's not already widely known.  

2. For more on the mobile banking debate, see our latest Online Banking Report, "Mobile Banking & Payments" (OBR 138/139 here).

3. Disclosure: Mr. Crone has been an occasional contributor to our sister publication Online Banking Report. His first article appeared in our 1996 issue.

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