Paper: No ‘Winner’ in Wallet Wars

May 31, 2013

The Mobey Forum, an international consortium of financial services providers working to accelerate the adoption of mobile financial services, has published the fourth in a series of white papers on mobile wallets. In Structures and Approaches: The Changing Face of the Mobile Wallet , the Helsinki-based organization outlines the current state of mobile wallets and what stakeholders should take into consideration when evaluating what approach to use (open or “horizontal” vs. proprietary or “vertical”). While the forum, which aims its analysis at banks, said in the paper it believes banks initially will choose the vertical approach, it warned them to keep an open mind.

“Mobey Forum believes financial institutions will be tempted to develop their own partner-independent vertical wallets,” the paper concluded. “If, however, a secure element becomes essential in order to fulfill core service requirements or a partner-independent model inhibits other key factors such as market reach, then financial institutions must consider alternative models for market engagement.”

The organization said it thinks multiple integrated horizontal wallet solutions will launch to market along with numerous vertical solutions so, in the short term, there will be no “winner” and many different solutions will co-exist. The first three white papers in this series are available at the Mobey Forum Website .